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

• Market Cap: HK$3.79B
• Dividend Yield: 6.48%
• Average Volume (3M): 14.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: -12.22%
• EPS Growth: -112.92%
• Country: HK
• Employees: 531
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Department Stores
• EPS (TTM): -0.52
• Shares Outstanding: 289,158,000
• 10 Day Avg. Volume: 13,700
• 30 Day Avg. Volume: 14,066
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$12.50
• Price Target Upside: -4.73% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: HK$12.50 ▼(-4.73% Downside)

The overall score reflects the company's financial challenges, indicated by declining revenue and profitability issues, balanced by strong equity and a high dividend yield. Technical indicators suggest potential for price gains, but valuation concerns persist due to negative earnings.

Positive Factors

Strong Equity Position

A strong equity position indicates financial stability and low leverage, providing the company with a solid foundation to weather economic fluctuations and invest in growth opportunities.

Stable Gross Profit Margin

A stable gross profit margin reflects effective cost management, which is crucial for maintaining profitability and competitive pricing in the retail sector, especially amidst revenue challenges.

Shareholder Confidence

Strong shareholder confidence, as evidenced by the passage of all AGM resolutions, supports the company's strategic initiatives and operational stability, fostering long-term growth potential.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and consumer demand, which could impact long-term profitability and necessitate strategic adjustments to reverse the trend.

Profitability Challenges

Negative profitability highlights operational inefficiencies and potential issues in cost control or pricing strategy, which need addressing to ensure sustainable business operations.

Cash Flow Issues

Lack of operating cash flow generation suggests liquidity issues that could hinder the company's ability to fund operations and investments, affecting its long-term financial health.

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

Company Description

Wing On Co. International Ltd. (0289) is a prominent Hong Kong-based department store operator, engaged predominantly in the retail sector. The company operates a chain of department stores under the Wing On brand, offering a diverse range of products, including fashion apparel, accessories, home goods, electronics, and groceries. With a strong presence in Hong Kong, Wing On Co. is known for providing quality products and excellent customer service, catering to a wide demographic of customers.

How the Company Makes Money

Wing On Co. International Ltd. generates revenue primarily through its retail operations. As a department store operator, the company earns income by selling a broad assortment of consumer goods across various categories. Revenue streams include direct sales from its physical stores and any e-commerce platforms that the company may operate. Additionally, Wing On Co. may benefit from strategic partnerships with suppliers and brands, allowing them to offer exclusive or popular products that attract a steady flow of customers. The company might also engage in promotional activities and loyalty programs to increase sales and customer retention. Any investment income from its financial assets or properties would also contribute to its overall earnings.

Wing On Co. International Ltd. Financial Statement Overview

Summary

Wing On Co. International Ltd. faces profitability and cash flow challenges despite a strong equity position and low leverage. Declining revenue and negative net income in 2024 highlight the need for improved operational efficiency.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	946.23M	1.06B	1.04B	1.13B	1.19B
Gross Profit	578.49M	662.43M	609.26M	678.72M	689.76M
EBITDA	-803.75M	241.19M	-124.94M	429.72M	-304.33M
Net Income	-919.11M	123.36M	-300.95M	552.50M	-456.15M
Balance Sheet
Total Assets	18.07B	19.72B	19.90B	20.64B	20.63B
Cash, Cash Equivalents and Short-Term Investments	4.32B	4.19B	4.04B	4.12B	4.05B
Total Debt	96.20M	53.39M	20.84M	75.61M	132.80M
Total Liabilities	1.21B	1.34B	1.32B	1.39B	1.45B
Stockholders Equity	16.83B	18.36B	18.55B	19.22B	19.15B
Cash Flow
Free Cash Flow	15.84M	191.84M	139.83M	472.44M	425.83M
Operating Cash Flow	21.68M	211.40M	-6.25M	100.42M	69.59M
Investing Cash Flow	98.01M	290.68M	-755.33M	279.71M	-224.12M
Financing Cash Flow	-236.37M	-343.60M	-197.03M	-377.50M	-299.43M

Wing On Co. International Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 13.12 is above the 20-day moving average (MA) of 12.72, above the 50-day MA of 12.66, and above the 200-day MA of 11.74, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 71.78 is Negative, neither overbought nor oversold. The STOCH value of 57.92 is Neutral, 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	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
0289	54 Neutral	HK$3.79B	―	-4.80%	6.48%	-12.22%	-112.92%
NWM	―	€55.51M	26.00	0.43%	―	―	―
AVK1	―	€12.39M	―		―	―	―
0162	41 Neutral	HK$57.48M	―	-110.16%	―	-17.63%	-13.10%
0244	―	HK$486.17M	―	-103.51%	―	―	―
0312	45 Neutral	HK$254.45M	―	-2.41%	―	-0.83%	93.83%

Wing On Co. International Ltd. Corporate Events

Wing On Co. Reports Reduced Losses Amid Investment Gains

Wing On Company International Ltd. has announced a reduction in its losses for the first half of 2025, with a loss of HK$150.4 million compared to HK$239.6 million in the same period of 2024. This improvement is attributed to a significant gain from its investment portfolio, despite a decrease in income from its investment properties and increased losses in its department store operations due to changing consumer habits and reduced demand for office space.

Wing On Company International Limited Successfully Passes All Resolutions at AGM

Wing On Company International Limited, a company incorporated in Bermuda and listed on the Hong Kong Stock Exchange, held its Annual General Meeting (AGM) on June 16, 2025. During the AGM, all proposed resolutions, including the adoption of financial statements, declaration of dividends, re-election of directors, and granting of mandates to issue and buy-back shares, were passed with overwhelming support. The successful passage of these resolutions indicates strong shareholder confidence and positions the company for continued operational stability and strategic growth.