Wong's International Holdings (0099) AI Stock Analysis

• Market Cap: HK$598.10M
• Dividend Yield: 4.61%
• Average Volume (3M): 27.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: 0.48%
• EPS Growth: -86.42%
• Country: HK
• Employees: 2,213
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -0.33
• Shares Outstanding: 478,483,800
• 10 Day Avg. Volume: 30,800
• 30 Day Avg. Volume: 27,500
• PEG Ratio: <0.01
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 3.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$1.50 ▲(20.00% Upside)

The overall stock score of 45 reflects significant financial challenges, including declining revenues, profitability, and cash flows. Technical analysis indicates a bearish trend, while valuation is impacted by a negative P/E ratio, though a relatively high dividend yield offers some compensation. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Business Model Strength

Wong's International's diversified revenue streams through direct sales and long-term contracts provide stability and resilience in fluctuating markets.

Partnerships and Innovation

Strategic partnerships enhance Wong's International's market reach and product innovation, supporting long-term competitive positioning in the electronics sector.

Balance Sheet Health

A stable balance sheet with manageable leverage indicates Wong's International's ability to withstand financial pressures and invest in growth opportunities.

Negative Factors

Declining Revenue and Profitability

The decline in revenue and profitability highlights challenges in maintaining market competitiveness and could impact long-term financial health.

Cash Flow Issues

Zero cash flow indicates potential liquidity challenges, limiting Wong's International's ability to fund operations and invest in growth initiatives.

Profit Margin Decline

Significant margin declines suggest cost management issues and competitive pressures, affecting long-term profitability and financial sustainability.

Wong's International Holdings Business Overview & Revenue Model

Company Description

Wong's International Holdings Limited, together with its subsidiaries, develops, manufactures, markets, and distributes electronic products in Hong Kong, the rest of Asia, North America, and Europe. It operates in two divisions, Electronic Manufacturing Service (EMS), and Property Holding. The company manufactures and distributes electronic products for EMS customers; and offers electronic manufacturing, testing, value-added engineering, hardware, software or mechanical design, product design, supply management, logistics management, and after-sales services for products in industrial and power, office electronics, network and peripheral, and consumer and digital categories. It also invests in, develops, sells, and leases properties; provides sales and marketing services; and manufactures and trades in electronic products. Wong's International Holdings Limited was founded in 1962 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

The company generates revenue through multiple streams, primarily from the sale of electronic components and related products to various industries, including telecommunications and consumer electronics. Its revenue model is largely based on direct sales to manufacturers and distributors, as well as through long-term contracts with key clients. Additionally, Wong's International benefits from partnerships with technology firms, allowing it to expand its product lines and market access. The company's earnings are further supported by its investments in research and development, which enable it to innovate and stay competitive in the fast-evolving electronics market.

Wong's International Holdings Financial Statement Overview

Summary

Wong's International Holdings faces considerable financial challenges, marked by declining revenues, profitability, and cash flows. The balance sheet remains relatively strong with adequate equity levels, but negative income and cash flow trends raise concerns regarding long-term sustainability. Prioritizing revenue growth and restoring profitability will be essential to reversing current negative trends.

Income Statement

The company's income statement shows significant volatility. Total revenue has decreased from 2022 to 2024, with a noticeable decline in gross profit and net income turning negative in 2024. The gross profit margin decreased from 24.3% in 2023 to 27.6% in 2024, and net profit margin turned from 4.8% in 2023 to -31.4% in 2024, indicating profitability issues. The EBIT margin also declined sharply from 6.7% in 2023 to -10.7% in 2024. Despite past profitability, the negative trends in margins and revenue growth present financial challenges.

Balance Sheet

The balance sheet reflects a relatively stable financial position with a decreasing debt-to-equity ratio from 0.40 in 2023 to 0.46 in 2024, indicating manageable leverage. The equity ratio slightly decreased, reflecting a drop from 61.2% in 2023 to 57.1% in 2024, which still suggests a strong equity base. However, declining net income has negatively impacted return on equity, which turned negative in 2024. Overall, the balance sheet remains stable but shows some signs of weakening.

Cash Flow

The cash flow statement highlights significant issues, with operating cash flow and free cash flow both falling to zero in 2024. This stark contrast to positive cash flow in previous years suggests operational difficulties and potential liquidity challenges. The free cash flow to net income ratio was positive in previous years but is now undefined due to zero cash flows. Maintaining a positive cash flow will be critical for financial stability moving forward.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.74B	2.66B	3.19B	3.47B	3.26B	3.22B
Gross Profit	753.63M	736.92M	843.21M	881.70M	847.39M	843.45M
EBITDA	241.69M	-210.68M	355.80M	335.78M	216.81M	-283.53M
Net Income	-606.98M	-837.46M	152.73M	112.44M	89.47M	-761.68M
Balance Sheet
Total Assets	5.95B	6.16B	7.31B	7.68B	7.75B	7.59B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.22B	1.23B	1.09B	1.28B	1.42B
Total Debt	1.58B	1.62B	1.81B	2.06B	2.12B	2.07B
Total Liabilities	2.55B	2.64B	2.84B	3.27B	3.27B	3.25B
Stockholders Equity	3.39B	3.52B	4.47B	4.41B	4.48B	4.33B
Cash Flow
Free Cash Flow	161.49M	182.67M	322.05M	-61.03M	-104.23M	15.35M
Operating Cash Flow	168.61M	195.63M	342.86M	31.73M	-76.14M	89.23M
Investing Cash Flow	308.93M	-178.33M	340.15M	255.95M	-222.35M	-89.67M
Financing Cash Flow	-47.87M	-213.18M	-284.31M	-95.61M	-481.00K	60.42M

Wong's International Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0099, the sentiment is Negative. The current price of 1.25 is below the 20-day moving average (MA) of 1.25, above the 50-day MA of 1.25, and below the 200-day MA of 1.25, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.26 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0099.

Wong's International Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0912	66 Neutral	HK$301.88M	9.31	4.09%	7.62%	6.84%	-0.96%
1692	63 Neutral	HK$617.48M	6.93	26.70%	12.91%	19.54%	6.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0167	58 Neutral	HK$1.51B	―	―	―	―	―
0927	54 Neutral	€276.80M	-4.96	-11.41%	8.70%	-16.95%	-461.16%
1747	54 Neutral	HK$2.10B	61.77	15.73%	0.50%	11.29%	40.42%
0099	45 Neutral	HK$598.10M	-0.99	-16.40%	4.61%	0.48%	-86.42%