K Wah International Holdings (0173) AI Stock Analysis

• Market Cap: $6.40B
• Dividend Yield: 4.93%
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.68
• Revenue Growth: 17.77%
• EPS Growth: -58.36%
• Country: HK
• Employees: 812
• Sector: Real Estate
• Sector Strength: 52
• Industry: Real Estate - Development
• EPS (TTM): 0.11
• Shares Outstanding: 3,152,728,500
• 10 Day Avg. Volume: 3,676,562
• 30 Day Avg. Volume: 2,077,586
• PEG Ratio: -0.11
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.26
• 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: $2.36
• Price Target Upside: 16.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: ―

The overall stock score of 44 reflects the company's declining financial performance, particularly in revenue and profitability, alongside weak technical indicators. Although the valuation is somewhat attractive due to a reasonable P/E ratio and high dividend yield, these factors are outweighed by the financial challenges and bearish technical signals.

Positive Factors

Asset Backing

Strong asset backing supports a positive outlook for the company's stock.

Project Pipeline

A robust project pipeline is expected to help unlock value for the company.

Negative Factors

Development Earnings

FY24 underlying profit more than halved to HKD361m on lower development earnings and higher property provisions.

Dividends

Final DPS fell 44% to HKD0.05, raising concerns about future dividend payouts.

Housing Demand

Any deterioration in housing demand in Hong Kong and China could drag its development earnings and share price performance.

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 Holdings makes money primarily through the development and sale of residential and commercial properties. The company's revenue model is heavily reliant on the successful development and sale of its real estate projects. In addition to property sales, K Wah International Holdings generates income from property leasing, where it earns rental income from its portfolio of investment properties. The company's hospitality segment also contributes to its earnings, with revenue coming from the operation of hotels and serviced apartments. Significant partnerships and joint ventures with other real estate developers and investment entities also play a role in expanding its project portfolio and market presence, thereby contributing to its overall revenue.

K Wah International Holdings Financial Statement Overview

Summary

K Wah International Holdings demonstrates declining revenue and profitability, with significant challenges in maintaining cash generation and liquidity. While the debt levels are manageable, the decreasing return on equity and lack of recent cash flow data indicate financial difficulties that need addressing to ensure long-term stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.19B	6.10B	8.79B	16.22B	11.73B
Gross Profit	1.36B	2.02B	2.67B	5.56B	5.99B
EBITDA	1.12B	1.75B	2.22B	5.15B	4.86B
Net Income	335.07M	802.16M	1.37B	3.35B	3.27B
Balance Sheet
Total Assets	66.37B	72.51B	76.64B	78.50B	81.75B
Cash, Cash Equivalents and Short-Term Investments	9.87B	8.09B	8.82B	9.30B	9.65B
Total Debt	14.57B	15.19B	14.95B	19.00B	25.05B
Total Liabilities	24.41B	27.41B	29.99B	33.28B	36.93B
Stockholders Equity	40.08B	42.33B	43.86B	43.90B	43.58B
Cash Flow
Free Cash Flow	0.00	676.98M	6.74B	7.56B	805.79M
Operating Cash Flow	3.28B	713.95M	6.75B	7.57B	812.43M
Investing Cash Flow	0.00	-589.66M	-1.12B	-372.51M	-2.49B
Financing Cash Flow	0.00	-463.37M	-4.55B	-6.88B	3.71B

K Wah International Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2.02 is above the 20-day moving average (MA) of 1.84, above the 50-day MA of 1.77, and above the 200-day MA of 1.75, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 72.94 is Negative, neither overbought nor oversold. The STOCH value of 88.41 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 *	59 Neutral	C$1.24B	0.83	-8.20%	5.11%	9.89%	-25.14%
0173	44 Neutral	$6.40B	19.10	0.81%	4.93%	17.77%	-58.36%
BEIJF		$757.03M	―	-26.83%	3.35%	―	―
PHKIF		$759.41M	25.48	0.53%	0.20%	―	―
SZNTF		$1.01B	―	-4.50%	13.18%	―	―
TIACF		$812.51M	9.28	-0.77%	7.80%	―	―
0081	59 Neutral	HK$6.48B	6.26	3.05%	7.69%	-20.27%	-59.83%

K Wah International Holdings Corporate Events

K. Wah International Holdings Announces 2025 AGM Details

K. Wah International Holdings Limited has announced the schedule for its 2025 Annual General Meeting (AGM), set to take place on June 18, 2025. The AGM will address key corporate matters including the adoption of financial statements, declaration of dividends, re-election of directors, and the reappointment of auditors. Additionally, the meeting will consider resolutions granting the company’s directors the authority to repurchase shares and issue new shares, which could impact the company’s market operations and shareholder value.

K. Wah International Holdings Reports 2024 Annual Results with Strategic Focus on Growth

K. Wah International Holdings Limited reported its annual results for the year ended December 31, 2024, with a consolidated revenue of HK$7,187 million and a total attributable revenue of HK$8,426 million. The company achieved an underlying profit of HK$361 million and a profit attributable to equity holders of HK$335 million. Despite a decrease in profit compared to the previous year, the company maintained a strong financial position with a gearing ratio reduced to 12% and a net asset value per share of HK$12.7. The company plans to cautiously explore opportunities to expand its landbank in key regions, indicating a strategic focus on long-term growth.

K. Wah International Declares Final Dividend for 2024

K. Wah International Holdings Limited announced a final ordinary dividend of HKD 0.05 per share for the financial year ending December 31, 2024. This announcement reflects the company’s commitment to returning value to its shareholders, with the dividend set for payment on July 31, 2025, following shareholder approval in June. The decision underscores the company’s stable financial performance and its strategic focus on maintaining investor confidence.

K. Wah International Announces Key Leadership Appointments

K. Wah International Holdings Limited has announced significant leadership changes effective March 27, 2025. Mr. Francis Lui Yiu Tung has been appointed as the Chairman of the Board, the chairman of the Nomination Committee, and a member of the Remuneration Committee. Additionally, Mrs. Paddy Tang Lui Wai Yu and Mr. Alexander Lui Yiu Wah have been appointed as Co-Managing Directors. The Board expressed confidence that these appointments will positively impact the company’s development and business growth.

K. Wah International Holdings Announces Board Composition and Roles

K. Wah International Holdings Limited has announced the composition of its board of directors and their roles within the company. The board includes executive directors, non-executive directors, and independent non-executive directors, with specific members serving on various board committees such as the Audit, Executive, Nomination, and Remuneration Committees. This announcement is crucial for stakeholders as it outlines the leadership structure and governance, which can impact the company’s strategic direction and operational decisions.

K. Wah International to Announce Annual Results and Dividend Consideration

K. Wah International Holdings Limited has announced a board meeting scheduled for March 27, 2025, to approve the annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend or other distribution, which could impact the company’s financial strategy and shareholder returns.