Wai Kee Holdings Limited (0610) AI Stock Analysis

• Market Cap: HK$531.39M
• Dividend Yield: N/A
• Average Volume (3M): 211.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: 13.91%
• EPS Growth: -94.05%
• Country: HK
• Employees: 3,922
• Sector: Industrials
• Sector Strength: 89
• Industry: Engineering & Construction
• EPS (TTM): -3.37
• Shares Outstanding: 793,124,000
• 10 Day Avg. Volume: 263,902
• 30 Day Avg. Volume: 211,237
• PEG Ratio: <0.01
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.40
• 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$0.50
• Price Target Upside: -25.37% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: HK$0.50 ▼(-25.37%Downside)

The overall stock score reflects robust cash flow management and moderate technical indicators, but is significantly weighed down by weak profitability and valuation concerns due to continuous net losses and negative P/E ratio.

Wai Kee Holdings Limited Business Overview & Revenue Model

Company Description

Wai Kee Holdings Limited (0610) is a Hong Kong-based investment holding company primarily engaged in construction and infrastructure businesses. The company operates through several segments, including Construction, Quarrying, Construction Materials, and Property Development and Investment. With a strong presence in the construction industry, Wai Kee Holdings is involved in civil engineering works, which include roads, bridges, and tunnels, as well as the production and sale of construction materials. Additionally, the company invests in property development projects, further diversifying its business operations.

How the Company Makes Money

Wai Kee Holdings Limited generates revenue primarily through its construction segment, which undertakes public and private sector projects, including infrastructure development and civil engineering works. The Quarrying and Construction Materials segments contribute to revenue by supplying raw materials such as asphalt, concrete, and aggregates, which are essential for construction projects. The Property Development and Investment segment generates income through the development, sale, and leasing of residential and commercial properties. These diversified revenue streams are complemented by strategic partnerships and joint ventures, enhancing the company's capacity to secure large-scale contracts and optimize its market position.

Wai Kee Holdings Limited Financial Statement Overview

Summary

Wai Kee Holdings Limited shows revenue growth and strong cash flow management, but faces challenges with profitability and increased financial leverage.

Income Statement

Wai Kee Holdings Limited has experienced a mixed revenue trajectory with a notable revenue increase of 13.88% in 2024, after a marginal increase of 0.65% in 2023. Despite consistent revenue growth, profitability metrics reveal a decline, as indicated by negative net profit margins due to continuous net losses since 2023. The gross profit margin stands at approximately 8.87% in 2024, a slight decrease from 11.49% in 2023, pointing to challenges in maintaining cost efficiency. The EBIT and EBITDA margins have shown some consistency but reflect a downward trend in EBIT profitability from 6.06% in 2023 to 3.50% in 2024.

Balance Sheet

Wai Kee Holdings' balance sheet presents a moderate financial structure with a debt-to-equity ratio of 0.26 in 2024, improved from 0.20 in 2023, indicating increased leverage. The equity ratio has decreased to 36.73% in 2024 from 49.50% in 2023, reflecting a decline in equity financing relative to total assets. Return on equity (ROE) is negative in 2024 due to net losses, which is a concern for shareholders. The company's asset base has contracted slightly, suggesting a cautious approach to expansion amid financial pressures.

Cash Flow

Cash flow analysis shows stability in operating cash flows with a significant increase of 141.34% to HKD 753.53 million in 2024, supporting a robust free cash flow growth of 162.78% from 2023. The operating cash flow to net income ratio is strong, demonstrating effective cash generation from operations despite net losses. Free cash flow generation indicates resilience in cash management, although financing activities have consumed cash, affecting liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.48B	12.71B	12.63B	10.28B	7.98B
Gross Profit	1.32B	1.46B	1.14B	902.28M	799.99M
EBITDA	592.79M	792.65M	689.51M	1.12B	1.36B
Net Income	-3.09B	-1.59B	175.97M	676.16M	1.08B
Balance Sheet
Total Assets	12.64B	16.36B	17.59B	18.40B	15.35B
Cash, Cash Equivalents and Short-Term Investments	2.63B	2.09B	3.08B	2.97B	2.41B
Total Debt	1.19B	1.59B	1.78B	2.27B	1.21B
Total Liabilities	6.89B	7.26B	6.71B	6.94B	4.83B
Stockholders Equity	4.64B	8.10B	9.98B	10.68B	9.85B
Cash Flow
Free Cash Flow	648.00M	246.50M	958.54M	-853.05M	-333.96M
Operating Cash Flow	753.53M	312.13M	1.09B	-516.07M	81.23M
Investing Cash Flow	79.22M	-593.47M	-29.12M	221.26M	-117.76M
Financing Cash Flow	-528.23M	-381.85M	-793.83M	689.95M	-390.94M

Wai Kee Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0610, the sentiment is Negative. The current price of 0.67 is above the 20-day moving average (MA) of 0.66, above the 50-day MA of 0.65, and below the 200-day MA of 0.67, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.62 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0610.

Wai Kee Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1627	80 Outperform	HK$1.46B	6.39	13.63%	6.85%	5.06%	30.15%
1447	72 Outperform	HK$228.00M	8.21	7.49%	14.04%	19.67%	9.64%
0610	59 Neutral	HK$531.39M	―	-48.43%	―	13.91%	-94.05%
0611	58 Neutral	HK$777.86M	6.67	6.69%	―	―	―
Sector *	58 Neutral	HK$14.16B	4.53	-3.01%	6.82%	3.67%	-54.16%
0711	56 Neutral	HK$794.51M	―	-11.69%	5.01%	20.89%	-296.52%
8021	45 Neutral	HK$272.97M	8.64	7.78%	―	-22.96%	―

Wai Kee Holdings Limited Corporate Events

Wai Kee Holdings to Discuss Key Service Agreements at Special General Meeting

Wai Kee Holdings Limited has announced a Special General Meeting to discuss and approve service agreements involving its subsidiary, Build King Holdings Limited. The agreements with New World Development Company Limited and CTF Services Limited are set to enhance the company’s service provision capabilities, potentially strengthening its market position and operational scope.

Wai Kee Holdings Announces New Business Services Agreements

Wai Kee Holdings Limited has announced that its subsidiary, Build King, has entered into Business Services Agreements with NWD and CTFS. These agreements, effective from January 1, 2025, to December 31, 2027, outline the provision of building and foundation services by Build King Group to NWD Group and CTFS Group. The transactions are classified as continuing connected transactions under the Listing Rules due to the substantial shareholding relationship between CTFS and Wai Kee Holdings. The agreements require approval from independent shareholders, with a special general meeting scheduled for July 28, 2025, to discuss and vote on the terms and proposed annual caps.

Leadership Changes at Wai Kee Holdings Limited

Wai Kee Holdings Limited has announced significant changes in its leadership structure, effective June 21, 2025. Mr. William Zen Wei Pao has resigned as Executive Director and Chairman to focus on personal affairs, with Mr. Derek Zen Wei Peu taking over as Chairman. These changes are expected to impact the company’s strategic direction and governance, with Mr. Derek Zen bringing over 50 years of experience in civil engineering to his new role.

Wai Kee Holdings Secures HK$11.15 Million Construction Sub-Contract

Wai Kee Holdings Limited, through its subsidiary Titan, has secured a horizontal pipe pile sub-contract worth approximately HK$11.15 million from Vibro HK, a connected entity under the Listing Rules. This contract is part of a larger development project in Kai Tak, Kowloon, and involves significant construction tasks such as foundation and excavation works. The transaction is classified as a connected transaction, requiring compliance with specific reporting and announcement requirements, although it is exempt from certain shareholder approval processes. This development is expected to enhance Wai Kee Holdings’ project portfolio and strengthen its position in the construction industry.

Wai Kee Holdings Limited AGM Resolutions Passed Successfully

Wai Kee Holdings Limited successfully held its Annual General Meeting on May 21, 2025, where all proposed resolutions were approved by shareholders. The resolutions included the re-election of directors, approval of financial statements, and granting of mandates for share allotment and repurchase, indicating strong shareholder support and strategic direction for the company.