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Wanjia Group Holdings Ltd. (HK:0401)
:0401
Hong Kong Market

Wanjia Group Holdings Ltd. (0401) AI Stock Analysis

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HK:0401

Wanjia Group Holdings Ltd.

(0401)

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Neutral 50 (OpenAI - 5.2)
Rating:50Neutral
Price Target:
HK$0.10
▲(15.56% Upside)
Action:ReiteratedDate:03/04/26
Overall score is driven mainly by weak financial performance (declining revenue and ongoing losses) partially offset by moderate leverage and positive operating cash flow. Technicals are neutral with mild positive momentum, but valuation remains a key risk because earnings are negative (negative P/E) and no dividend yield is available.
Positive Factors
Manageable Leverage
A low debt-to-equity ratio provides long-term financial flexibility for a real estate operator. Manageable leverage reduces interest burden volatility across cycles, supports access to credit for development or refinancing, and lowers solvency risk during sector downturns.
Positive Operating Cash Flow
Consistent positive operating cash flow in a property-centric business supplies the cash needed for maintenance, lease obligations, and selective reinvestment. This durable cash generation capability helps sustain operations and service liabilities even when accounting profits are negative.
Stable Gross Margin
A stable gross margin near 31% suggests the core property rental and sales business preserves pricing spread over direct costs. That underlying margin resilience provides a structural buffer that can support recovery to net profitability if top-line trends improve.
Negative Factors
Declining Revenue
A sustained revenue decline in a property and investment group signals weakening demand or execution issues. Lower top-line reduces economies of scale, pressure operational leverage, and limits the firm's ability to invest in development or asset upgrades over the medium term.
Persistent Losses
Ongoing negative net margins and weak EBIT/EBITDA indicate the company is not generating accounting profits from operations. Long-term losses constrain retained capital, limit strategic investments or dividends, and increase reliance on external funding for growth or asset maintenance.
Negative Free Cash Flow Growth
Declining free cash flow growth, even from positive operating cash flow, reduces capacity for capital expenditure, development projects, or acquisitions. Over time this can force higher leverage, asset sales, or cutbacks in investment that impair competitive positioning.

Wanjia Group Holdings Ltd. (0401) vs. iShares MSCI Hong Kong ETF (EWH)

Wanjia Group Holdings Ltd. Business Overview & Revenue Model

Company DescriptionWanjia Group Holdings Limited, an investment holding company, engages in pharmaceutical wholesale and distribution business in the People's Republic of China and Hong Kong. It also offers hemodialysis treatment and consultancy services. The company sells its products to hospitals and healthcare institutions; and companies operating pharmaceutical retail chain stores, independent pharmacies, outpatient departments of community hospitals, healthcare service stations, and clinics in Fujian province. Wanjia Group Holdings Limited was founded in 2004 and is headquartered in Kowloon, Hong Kong.
How the Company Makes MoneyWanjia Group Holdings Ltd. generates revenue primarily through property rental income, sales of developed properties, and management fees associated with its real estate projects. The company's revenue model is supported by a mix of long-term leases and short-term rentals, which provide a steady cash flow. Additionally, the group engages in strategic partnerships within the real estate sector to enhance its development capabilities and expand its market reach. The performance of Wanjia Group is influenced by factors such as property market trends, investment demand, and the overall economic environment in the regions where it operates.

Wanjia Group Holdings Ltd. Financial Statement Overview

Summary
Financial performance is weak: revenue declined (-5.67%) and profitability remains negative (net margin below 0% with low EBIT/EBITDA margins). Offsetting factors include moderate leverage (debt-to-equity 0.175) and positive operating cash flow, though free cash flow growth is slightly negative (-3.23%).
Income Statement
45
Neutral
The company has experienced declining revenue growth, with a negative growth rate of -5.67% in the latest period. Gross profit margin remains relatively stable at 31.14%, but net profit margin is negative, indicating ongoing losses. EBIT and EBITDA margins are also low, reflecting operational challenges.
Balance Sheet
55
Neutral
The debt-to-equity ratio is moderate at 0.175, suggesting manageable leverage. However, the company has struggled with profitability, as indicated by negative return on equity in recent years. The equity ratio is not provided, but the balance sheet shows a stable equity base.
Cash Flow
50
Neutral
Operating cash flow is positive, but free cash flow growth is negative at -3.23%. The free cash flow to net income ratio is high, indicating efficient cash generation relative to net income, despite overall financial challenges.
BreakdownMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue161.69M181.09M173.70M154.82M114.09M
Gross Profit50.35M54.74M56.94M54.23M41.34M
EBITDA4.13M-29.02M16.40M-34.64M8.16M
Net Income-6.62M-39.98M1.82M-51.00M-4.54M
Balance Sheet
Total Assets106.82M117.10M173.45M191.82M223.59M
Cash, Cash Equivalents and Short-Term Investments24.08M18.23M9.88M5.77M25.10M
Total Debt11.72M15.60M25.17M24.49M29.17M
Total Liabilities38.19M41.91M53.22M63.72M52.51M
Stockholders Equity66.88M73.49M118.20M126.18M169.31M
Cash Flow
Free Cash Flow9.92M5.89M5.47M-4.86M-4.34M
Operating Cash Flow10.65M9.30M9.38M2.12M7.61M
Investing Cash Flow-697.00K674.00K-3.84M-6.93M-11.84M
Financing Cash Flow-3.71M-1.04M-802.00K-14.97M4.33M

Wanjia Group Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.09
Price Trends
50DMA
0.09
Positive
100DMA
0.10
Positive
200DMA
0.08
Positive
Market Momentum
MACD
<0.01
Negative
RSI
58.99
Neutral
STOCH
41.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0401, the sentiment is Positive. The current price of 0.09 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.09, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.99 is Neutral, neither overbought nor oversold. The STOCH value of 41.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0401.

Wanjia Group Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$6.58B15.966.77%2.72%29.81%10.40%
68
Neutral
HK$107.20M5.399.25%1.89%27.91%18.87%
66
Neutral
HK$1.91B20.845.07%3.81%0.33%-44.28%
60
Neutral
HK$626.40M7.998.12%8.03%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
50
Neutral
HK$118.77M-18.49-11.91%-4.50%75.98%
42
Neutral
HK$846.15M-5.63-465.55%-17.39%-45.76%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0401
Wanjia Group Holdings Ltd.
0.11
0.04
55.88%
HK:0673
China Health Group
0.61
0.45
281.25%
HK:1931
IVD Medical Holding Limited
1.18
-0.57
-32.57%
HK:2192
Medlive Technology Co., Ltd.
8.90
-6.57
-42.47%
HK:2289
Charmacy Pharmaceutical Co., Ltd. Class H
5.80
-1.58
-21.41%
HK:8372
Grand Brilliance Group Holdings Limited
0.13
0.03
31.37%

Wanjia Group Holdings Ltd. Corporate Events

Wanjia Group strengthens board with new independent non-executive director
Mar 2, 2026

Wanjia Group Holdings Limited, a Cayman Islands-incorporated company listed on the Hong Kong Stock Exchange, maintains standard Hong Kong corporate governance structures with dedicated audit, remuneration, and nomination and corporate governance committees. The group follows the Listing Rules and its articles of association for board composition, director rotation, and remuneration, signaling a commitment to regulatory compliance and independent oversight.

The company has appointed finance veteran Lam Williamson as an independent non-executive director and member of its audit, remuneration, and nomination and corporate governance committees, effective 2 March 2026. His more than 20 years of experience in finance and company secretarial roles across multiple Hong Kong-listed firms is expected to bolster Wanjia’s board independence and strengthen its oversight functions, with his remuneration and term set in line with market practice and the group’s governance policies.

Under a one-year renewable appointment subject to rotation and re-election, Lam will receive a monthly director’s fee of HK$16,500, determined with reference to his responsibilities and market conditions. He holds a negligible shareholding in the company and has confirmed his independence under Hong Kong Listing Rules, which should reassure investors about the integrity of board decisions and enhance confidence in the company’s governance standards.

The most recent analyst rating on (HK:0401) stock is a Hold with a HK$0.11 price target. To see the full list of analyst forecasts on Wanjia Group Holdings Ltd. stock, see the HK:0401 Stock Forecast page.

Wanjia Group Sets Out Board and Committee Line-up
Mar 2, 2026

Wanjia Group Holdings Limited has outlined the current composition of its board, naming Wang Jia Jun as the sole executive director and chief executive officer, alongside one non-executive director and four independent non-executive directors. The disclosure clarifies governance responsibilities by detailing the membership and leadership of its audit, remuneration, and nomination and corporate governance committees, underscoring the company’s adherence to established oversight and board-committee structures.

The audit committee will be chaired by independent director Xu Wei, while the remuneration and the nomination and corporate governance committees will both be chaired by independent director Liu Yongping. The announcement gives investors and other stakeholders clearer visibility into the company’s governance framework and decision-making processes, potentially reinforcing confidence in board independence and regulatory compliance.

The most recent analyst rating on (HK:0401) stock is a Hold with a HK$0.11 price target. To see the full list of analyst forecasts on Wanjia Group Holdings Ltd. stock, see the HK:0401 Stock Forecast page.

Wanjia Group Clears EGM Hurdle for Rights Issue With Poll Approval
Feb 10, 2026

Wanjia Group Holdings Ltd. announced that all resolutions put to shareholders at its extraordinary general meeting on 10 February 2026 were approved by poll. The meeting concerned, among other matters, a proposed rights issue, for which major shareholders Power King and Mr. Wang were required by listing rules to abstain from voting, while the remaining share base was entitled to vote and an independent scrutineer oversaw the poll.

The company confirmed there were no treasury shares or repurchased shares affecting voting rights, and no shareholders besides the specified parties were required to abstain. Attendance by the chief executive and several board members, including independent non-executive directors, underlined formal governance of the process, clearing a key procedural hurdle for the rights issue and related transactions to proceed.

The most recent analyst rating on (HK:0401) stock is a Hold with a HK$0.11 price target. To see the full list of analyst forecasts on Wanjia Group Holdings Ltd. stock, see the HK:0401 Stock Forecast page.

Wanjia Group Calls 2026 EGM to Approve Capital Expansion and Rights Issue
Jan 20, 2026

Wanjia Group Holdings Ltd. has called an extraordinary general meeting (EGM) for 10 February 2026 in Hong Kong, where shareholders will vote on key capital measures. The board is seeking approval to double the company’s authorised share capital to HK$100 million and to conduct a rights issue of up to 560.2 million new shares at HK$0.08 per share on a one-for-one basis for qualifying shareholders, a move aimed at expanding the company’s capacity to raise equity and potentially strengthening its balance sheet, though it will also dilute existing holdings for those who do not subscribe.

The most recent analyst rating on (HK:0401) stock is a Hold with a HK$0.10 price target. To see the full list of analyst forecasts on Wanjia Group Holdings Ltd. stock, see the HK:0401 Stock Forecast page.

Wanjia Group to Double Authorised Share Capital and Launch HK$40–47 Million Rights Issue
Dec 30, 2025

Wanjia Group Holdings Limited plans to double its authorised share capital from HK$50 million to HK$100 million by increasing the number of authorised shares from 1 billion to 2 billion, subject to shareholder approval at an extraordinary general meeting. Conditional on this increase and independent shareholders’ approval, the company will launch a rights issue of one new share for every existing share held at a subscription price of HK$0.08 per rights share, aiming to raise gross proceeds of approximately HK$44.82 million to HK$51.28 million and net proceeds of around HK$40.82 million to HK$47.28 million. The offer will be available only to qualifying shareholders, with compensatory placing arrangements in place, and is intended to strengthen the company’s capital base and provide funding flexibility, which may have implications for existing shareholders through equity dilution balanced against improved liquidity and funding capacity.

The most recent analyst rating on (HK:0401) stock is a Hold with a HK$0.14 price target. To see the full list of analyst forecasts on Wanjia Group Holdings Ltd. stock, see the HK:0401 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 04, 2026