K Wah International Holdings (0173) AI Stock Analysis

• Market Cap: HK$6.68B
• Dividend Yield: 3.32%
• Average Volume (3M): 3.14M
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.64
• 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: 3,780,630
• 30 Day Avg. Volume: 3,137,942
• 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: 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): 0.86
• Revenue Forecast (FY): HK$45.19B

• Rating: 46 Neutral
• Price Target: HK$2.00 ▼(-5.66% Downside)

The overall stock score of 46 reflects significant financial challenges, including declining revenue and profitability, and liquidity concerns. Technical indicators suggest bearish momentum, while valuation metrics indicate potential overvaluation despite a reasonable dividend yield. These factors combined suggest caution for potential investors.

Positive Factors

Diversified Revenue Streams

The company's diversified revenue streams across property development, leasing, and hospitality services provide resilience against market fluctuations, supporting long-term stability and growth.

Strategic Partnerships

Strategic partnerships enhance K Wah's ability to secure financing and land acquisitions, crucial for sustaining development projects and competitive positioning in the real estate market.

Stable Equity Ratio

A stable equity ratio indicates a solid financial foundation, providing the company with the ability to withstand economic downturns and invest in future growth opportunities.

Negative Factors

Declining Revenue

The declining revenue trend suggests challenges in maintaining market share and competitiveness, potentially impacting long-term growth and profitability in the real estate sector.

Weakening Profit Margins

Decreasing profit margins reflect cost pressures and competitive challenges, which could undermine the company's ability to generate sustainable profits and invest in future growth.

Cash Flow Concerns

Insufficient cash flow generation raises concerns about liquidity and the company's ability to fund operations and growth initiatives, potentially impacting financial stability.

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: 2.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2.12 is below the 20-day moving average (MA) of 2.12, below the 50-day MA of 2.19, and above the 200-day MA of 2.04, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.66 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 is Negative, 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%
0604	51 Neutral	HK$7.47B	-2.26	-8.73%	10.98%	62.19%	-168.07%
0028	50 Neutral	HK$6.67B	3.24	7.40%	2.21%	216.43%	186.77%
0119	49 Neutral	HK$7.76B	461.36	0.04%	0.98%	22.28%	-98.68%
0173	46 Neutral	HK$6.68B	22.65	0.73%	3.32%	66.68%	-38.14%
0588	45 Neutral	HK$5.80B	-0.62	-41.74%	―	-44.25%	-406.20%
0081	45 Neutral	HK$7.33B	19.29	1.10%	0.50%	-24.86%	-76.06%