Wing On Co. International Ltd. (0289) AI Stock Analysis

• Market Cap: HK$3.98B
• Dividend Yield: 6.92%
• Average Volume (3M): 36.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: -12.22%
• EPS Growth: -112.92%
• Country: HK
• Employees: 531
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): -0.52
• Shares Outstanding: 288,471,000
• 10 Day Avg. Volume: 54,101
• 30 Day Avg. Volume: 36,680
• PEG Ratio: <0.01
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 3.68
• P/FCF Ratio: 219.66
• 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: 54 Neutral
• Price Target: HK$12.50 ▼(-5.23% Downside)

The overall stock score of 54 reflects significant financial performance challenges, particularly in profitability and cash flow, despite a strong equity position. Technical analysis shows moderate bullish momentum, but valuation concerns persist due to a negative P/E ratio, offset slightly by a high dividend yield.

Positive Factors

Strong Equity Position

A high equity ratio indicates financial stability, providing a buffer against economic downturns and enabling potential strategic investments.

Effective Cost Management

Stable gross margins reflect the company's ability to manage costs effectively, which is crucial for maintaining profitability in a competitive retail market.

Low Leverage

Low leverage reduces financial risk and interest obligations, allowing the company to focus on operational improvements and growth opportunities.

Negative Factors

Declining Revenue Trend

A consistent decline in revenue indicates challenges in market demand or competitive positioning, which could impact long-term growth prospects.

Profitability Challenges

Negative profit margins suggest operational inefficiencies or pricing pressures, which need addressing to ensure sustainable profitability.

Cash Flow Challenges

Inadequate cash flow generation can strain liquidity, limiting the company's ability to invest in growth initiatives or weather economic fluctuations.

Wing On Co. International Ltd. Business Overview & Revenue Model

Company Description

Wing On Company International Limited operates department stores in the Hong Kong, the People's Republic of China, Australia, and the United States. The company operates in two segments, Department Stores and Property Investment. Its department stores offer electrical appliances, kitchen and dining, bedding and bath, grocery, toys, children and babies, men's wear, women's' wear, active, home sundries, shoes and handbags, personal care, travel and accessories, and cosmetics products. The company also leases commercial premises in Hong Kong, Australia, and the United States. In addition, it offers securities trading, property management, and computer services; owns trademarks; and acts as a trustee for investment trusts. It also sells its products online. The company was founded in 1907 and is based in Central, Hong Kong. Wing On Company International Limited is a subsidiary of Wing On International Holdings Limited.

How the Company Makes Money

Wing On Co. International Ltd. generates revenue through multiple streams, primarily from its retail operations, which include department stores and supermarkets that sell a variety of consumer goods. The company's revenue model is based on the sale of products directly to consumers, capturing margins on retail prices. Additionally, Wing On earns income from its property investment and development activities, where it leases retail space and engages in property sales. Strategic partnerships with suppliers and brands help enhance product offerings and drive sales. Seasonal promotions and loyalty programs also play a crucial role in boosting customer retention and increasing revenue during peak shopping periods.

Wing On Co. International Ltd. Financial Statement Overview

Summary

Wing On Co. International Ltd. is facing profitability and cash flow challenges despite maintaining a solid equity base and low leverage. The declining revenue trend and negative net income in 2024 highlight the need for improved operational efficiency and cost controls. The company must address cash flow generation to ensure long-term financial health.

Income Statement

The company's revenue has shown a declining trend over the years, with a negative revenue growth of -10.4% from 2023 to 2024. The net profit margin has turned negative in 2024, indicating profitability challenges. However, the gross profit margin remains relatively stable at around 61%, suggesting effective cost management.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of approximately 93.2% in 2024, indicating financial stability. The debt-to-equity ratio is low at 0.57%, reflecting low leverage. Despite these strengths, the decline in stockholders' equity from 2023 raises concerns.

Cash Flow

The cash flow statement reveals challenges, with a lack of free cash flow generation in 2024. The company did not generate operating cash flow in 2024, raising concerns over liquidity and cash generation capabilities. Historical free cash flow has been positive, but the current year reflects potential cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	876.89M	946.23M	1.06B	1.04B	1.13B	1.19B
Gross Profit	522.70M	578.49M	662.43M	667.82M	738.36M	689.76M
EBITDA	175.39M	-803.75M	241.19M	-136.70M	429.72M	-304.33M
Net Income	-829.82M	-919.11M	123.36M	-300.95M	552.50M	-456.15M
Balance Sheet
Total Assets	18.15B	18.07B	19.72B	19.90B	20.64B	20.63B
Cash, Cash Equivalents and Short-Term Investments	4.73B	4.29B	4.19B	4.04B	4.12B	4.05B
Total Debt	93.22M	96.20M	53.39M	20.84M	75.61M	132.80M
Total Liabilities	1.39B	1.21B	1.34B	1.32B	1.39B	1.45B
Stockholders Equity	16.73B	16.83B	18.36B	18.55B	19.22B	19.15B
Cash Flow
Free Cash Flow	352.15M	15.84M	191.84M	-6.25M	100.42M	69.59M
Operating Cash Flow	393.36M	21.68M	211.40M	-6.25M	100.42M	69.59M
Investing Cash Flow	281.31M	98.01M	290.68M	-755.33M	279.71M	-224.12M
Financing Cash Flow	-235.59M	-236.37M	-343.60M	-197.03M	-377.50M	-299.43M

Wing On Co. International Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0289, the sentiment is Positive. The current price of 13.19 is below the 20-day moving average (MA) of 13.75, below the 50-day MA of 13.40, and above the 200-day MA of 12.28, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 10.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0289.

Wing On Co. International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0289	54 Neutral	HK$3.98B	-4.82	-4.80%	6.92%	-12.22%	-112.92%
0825	50 Neutral	HK$455.26M	18.67	0.76%	―	-12.99%	89.87%
0984	46 Neutral	HK$106.60M	-0.28	―	―	-3.03%	-36.45%
0162	43 Neutral	HK$51.74M	-0.08	-110.16%	―	-17.63%	-13.10%
0312	42 Neutral	HK$236.99M	-10.76	-2.41%	―	-0.83%	93.83%

Wing On Co. International Ltd. Corporate Events

Wing On Sets Formal Governance Framework for Board Nomination Committee

Wing On Company International Limited has formalised the terms of reference for its Nomination Committee, a board committee first established in March 2012, setting out its composition, governance and operating procedures. The committee must comprise at least three members with a majority being independent non-executive directors and at least one director of a different gender, with the chair to be either the board chairman or an independent non-executive director. The document specifies meeting frequency, quorum, modes of participation, and the requirement to keep full records and circulate minutes, while empowering the committee to obtain sufficient resources and independent professional advice at the company’s expense. These measures reinforce the company’s corporate governance framework, enhance transparency over board appointments and succession planning, and are likely to be viewed positively by investors and regulators focused on board independence and diversity.

The most recent analyst rating on (HK:0289) stock is a Hold with a HK$12.50 price target. To see the full list of analyst forecasts on Wing On Co. International Ltd. stock, see the HK:0289 Stock Forecast page.

Wing On Tightens Audit Committee Terms to Bolster Governance Standards

Wing On Company International Limited has formalised and disclosed updated terms of reference for its Audit Committee, originally established by board resolution in 1998, to align with Hong Kong Stock Exchange listing rules and strengthen its corporate governance framework. The revised mandate specifies that the Audit Committee must comprise at least three non-executive directors with a majority being independent, including at least one member possessing professional accounting or financial management expertise, sets clear rules on chairmanship, prohibits recent partners of the existing external auditor from joining for a two-year cooling-off period, and details meeting frequency, quorum, allowable participation by teleconference or written resolutions, and the record-keeping responsibilities of the Company Secretary, underscoring a structured approach to oversight of the Group’s financial reporting and audit processes.

The most recent analyst rating on (HK:0289) stock is a Hold with a HK$12.50 price target. To see the full list of analyst forecasts on Wing On Co. International Ltd. stock, see the HK:0289 Stock Forecast page.

Wing On Sets Out Updated Terms of Reference for Remuneration Committee

Wing On Company International Limited has formalised and updated the terms of reference for its Remuneration Committee, a board committee originally established in 2005 to oversee pay policies for directors and senior management across the group. The document sets out the committee’s composition—at least three members with a majority of independent non-executive directors and an independent chairman—its meeting frequency, quorum and procedures, as well as its authority to access resources and professional advice. The Remuneration Committee is tasked with recommending the company’s remuneration policy and structure, ensuring a formal and transparent process for setting pay, and reviewing and approving senior management remuneration proposals in line with the board’s corporate goals and objectives, underscoring the group’s emphasis on stronger governance and accountability around executive compensation.

The most recent analyst rating on (HK:0289) stock is a Hold with a HK$12.50 price target. To see the full list of analyst forecasts on Wing On Co. International Ltd. stock, see the HK:0289 Stock Forecast page.