K Wah International Holdings (0173) AI Stock Analysis

• Market Cap: $7.31B
• Dividend Yield: 3%
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.67
• Revenue Growth: 66.68%
• EPS Growth: -38.14%
• Country: HK
• Employees: 812
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.04
• Shares Outstanding: 3,152,728,500
• 10 Day Avg. Volume: 1,634,920
• 30 Day Avg. Volume: 2,239,451
• PEG Ratio: -0.29
• Price to Book (P/B): 0.14
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 1.71
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 1.82
• Enterprise Value/Gross Profit: 12.28
• Enterprise Value/Ebitda: 14.11
• 1Y Price Target: $2.64
• Price Target Upside: 13.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$2.00 ▼(-14.16% Downside)

The overall stock score is primarily impacted by weak financial performance, with declining revenue and profitability. Technical analysis and valuation provide mixed signals, neither strongly positive nor negative. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Stable Balance Sheet

A stable balance sheet with a strong equity ratio indicates financial resilience, providing a solid foundation for future growth and stability.

Diversified Revenue Streams

Diversified revenue streams from property development, leasing, and hospitality enhance the company's ability to withstand market fluctuations and sustain long-term growth.

Manageable Leverage

Improving debt-to-equity ratio suggests effective management of leverage, which can enhance financial flexibility and reduce risk.

Negative Factors

Declining Revenue

A consistent decline in revenue over three years signals potential challenges in market demand or competitive positioning, impacting long-term growth prospects.

Weak Profitability

Declining profit margins indicate reduced pricing power or increased costs, which could erode competitive advantage and profitability over time.

Liquidity Concerns

Lack of positive operating cash flow raises concerns about liquidity, potentially limiting the company's ability to invest in growth or weather economic downturns.

K Wah International Holdings Business Overview & Revenue Model

Company Description

K. Wah International Holdings Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China. Its property portfolio comprises residential developments, office towers, hotels, serviced apartments, and retail premises. The company also provides property management services to residential buildings, commercial facilities, office towers, and real estate complexes. In addition, it offers financial, management, and decoration services. The company was incorporated in 1990 and is headquartered in North Point, Hong Kong.

How the Company Makes Money

K Wah International generates revenue primarily through its property development activities, which involve the sale of residential and commercial properties in Hong Kong and Mainland China. The company also earns income from leasing its investment properties, which include retail and office spaces. Additionally, K Wah operates several hotels and resorts, contributing to its revenue through hospitality services. Strategic partnerships with financial institutions and local governments facilitate project financing and land acquisitions, which are crucial for future development projects. The company's diversified portfolio and adaptability to market demands enable it to maintain robust revenue streams.

K Wah International Holdings Financial Statement Overview

Summary

The company's financial performance is weak, with declining revenue and profitability over the past three years. The income statement shows a negative growth trend, and the cash flow statement indicates potential liquidity issues. While the balance sheet is stable, the overall financial health is concerning.

Income Statement

The company's income statement shows declining revenue over the past three years, from HK$8.79 billion in 2022 to HK$7.19 billion in 2024, indicating a negative growth trend. Gross profit margin dropped from 30.3% in 2022 to 18.9% in 2024, and net profit margin decreased from 15.6% to 4.7% over the same period. This reflects weakening profitability, which might be concerning in a competitive real estate industry.

Balance Sheet

The balance sheet displays a stable equity ratio, with stockholders' equity at 60.4% of total assets in 2024. The debt-to-equity ratio improved slightly from 0.35 in 2023 to 0.36 in 2024, indicating manageable leverage. However, the return on equity dropped from 1.9% in 2023 to 0.8% in 2024, suggesting decreased efficiency in generating profits from equity.

Cash Flow

The cash flow statement lacks recent operating and free cash flow data for 2024, raising concerns about cash generation and liquidity. In 2023, the free cash flow was HK$676.98 million, down from HK$6.74 billion in 2022, reflecting a significant decline. The lack of positive operating cash flow in 2024 further highlights potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.03B	7.19B	6.10B	8.79B	16.22B	11.73B
Gross Profit	1.04B	1.36B	2.02B	2.67B	5.56B	5.99B
EBITDA	906.78M	1.12B	1.75B	2.22B	5.15B	4.86B
Net Income	295.18M	335.07M	802.16M	1.37B	3.35B	3.27B
Balance Sheet
Total Assets	65.63B	66.37B	72.51B	76.64B	78.50B	81.75B
Cash, Cash Equivalents and Short-Term Investments	8.71B	9.43B	8.09B	8.82B	9.30B	9.65B
Total Debt	13.44B	14.57B	15.19B	14.95B	19.00B	25.05B
Total Liabilities	23.09B	24.41B	27.41B	29.99B	33.28B	36.93B
Stockholders Equity	40.63B	40.08B	42.33B	43.86B	43.90B	43.58B
Cash Flow
Free Cash Flow	2.47B	3.27B	676.98M	6.74B	7.56B	805.79M
Operating Cash Flow	2.47B	3.28B	713.95M	6.75B	7.57B	812.43M
Investing Cash Flow	-1.12B	40.69M	-589.66M	-2.38B	-372.51M	-2.49B
Financing Cash Flow	-1.11B	-1.81B	-463.37M	-2.99B	-6.88B	3.66B

K Wah International Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0173, the sentiment is Positive. The current price of 2.33 is above the 20-day moving average (MA) of 2.26, above the 50-day MA of 2.21, and above the 200-day MA of 1.96, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 61.57 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0173.

K Wah International Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0119	54 Neutral	$6.99B	415.91	0.04%	0.99%	22.28%	-98.68%
0081	52 Neutral	HK$8.22B	21.63	1.10%	0.43%	-24.86%	-76.06%
0028	50 Neutral	HK$6.61B	3.21	7.40%	2.24%	216.43%	186.77%
0173	49 Neutral	$7.31B	24.79	0.73%	3.00%	66.68%	-38.14%
0604	49 Neutral	$7.74B	-2.32	-8.73%	10.23%	62.19%	-168.07%
0588	45 Neutral	$6.15B	-0.69	-41.74%	2.50%	-44.25%	-406.20%

K Wah International Holdings Corporate Events

K. Wah International Holdings Reports Resilient Interim Results Amid Market Challenges

K. Wah International Holdings reported its interim results for the six months ending June 30, 2025, with a total attributable revenue of HK$7,179 million and a profit attributable to equity holders of HK$114 million. The company declared an interim dividend of 2 HK cents per share and noted a decrease in its gearing ratio to 11%. Despite challenges, the company continues to focus on preserving quality and value, with HK$6 billion in attributable contracted sales yet to be recognized, and plans to cautiously assess opportunities for landbank expansion.

The most recent analyst rating on (HK:0173) stock is a Buy with a HK$2.36 price target. To see the full list of analyst forecasts on K Wah International Holdings stock, see the HK:0173 Stock Forecast page.

K. Wah International Announces Interim Dividend for 2025

K. Wah International Holdings Limited has announced an interim dividend of HKD 0.02 per share for the six months ending June 30, 2025. This decision reflects the company’s ongoing commitment to providing returns to its shareholders and may impact its financial positioning and stakeholder confidence positively.

The most recent analyst rating on (HK:0173) stock is a Buy with a HK$2.36 price target. To see the full list of analyst forecasts on K Wah International Holdings stock, see the HK:0173 Stock Forecast page.

K. Wah International Schedules Board Meeting for Interim Results

K. Wah International Holdings Limited has announced a board meeting scheduled for August 21, 2025, to approve the unaudited interim results for the first half of the year and consider the payment of an interim dividend. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and potential returns.

The most recent analyst rating on (HK:0173) stock is a Buy with a HK$2.72 price target. To see the full list of analyst forecasts on K Wah International Holdings stock, see the HK:0173 Stock Forecast page.