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Wai Kee Holdings Limited (HK:0610)
:0610
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Wai Kee Holdings Limited (0610) AI Stock Analysis

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HK:0610

Wai Kee Holdings Limited

(0610)

Rating:56Neutral
Price Target:
HK$0.50
▼(-27.54% Downside)
Wai Kee Holdings Limited's overall stock score is primarily influenced by its financial performance and technical analysis. The company's revenue growth and strong cash flow management are positive, but profitability challenges and increased leverage pose significant risks. Technical indicators suggest mixed momentum, while valuation concerns due to negative earnings and lack of dividends further impact the score.

Wai Kee Holdings Limited (0610) vs. iShares MSCI Hong Kong ETF (EWH)

Wai Kee Holdings Limited Business Overview & Revenue Model

Company DescriptionWai Kee Holdings Limited, an investment holding company, operates in the construction and infrastructure industry in Hong Kong and the People's Republic of China. The company operates through Construction, Sewage Treatment and Steam Fuel; Construction Materials; Quarrying; and Property Development and Investment, Toll Road, Investment and Asset Management segments. It is involved in the construction of civil engineering and building projects; and operates sewage treatment and steam fuel plants. The company also produces and sells concrete; and produces, sells, and lays asphalt. In addition, it engages in the provision of financial and transportation, marine engineering and construction, and environmental engineering, as well as fitting out, improvement, and alteration works for buildings; and deals in securities and advising on securities. Wai Kee Holdings Limited was founded in 1970 and is headquartered in Tsim Sha Tsui, Hong Kong.
How the Company Makes MoneyWai Kee Holdings Limited generates revenue primarily from its construction and civil engineering activities, where it undertakes large-scale infrastructure projects and government contracts. It also earns significant income from its quarrying operations, which involve the extraction and sale of aggregates and asphalt products used in construction. Additionally, the company derives revenue from its property development arm, where it engages in the development and sale of residential and commercial properties. Strategic partnerships with government agencies and private sector clients play a crucial role in securing projects and contracts, contributing to its earnings.

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
65
Positive
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
58
Neutral
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.48B12.71B12.63B10.28B7.98B
Gross Profit1.32B1.46B1.14B902.28M799.99M
EBITDA592.79M792.65M689.51M1.12B1.36B
Net Income-3.09B-1.59B175.97M676.16M1.08B
Balance Sheet
Total Assets12.64B16.36B17.59B18.40B15.35B
Cash, Cash Equivalents and Short-Term Investments2.63B2.09B3.08B2.97B2.41B
Total Debt1.19B1.59B1.78B2.27B1.21B
Total Liabilities6.89B7.26B6.71B6.94B4.83B
Stockholders Equity4.64B8.10B9.98B10.68B9.85B
Cash Flow
Free Cash Flow648.00M246.50M958.54M-853.05M-333.96M
Operating Cash Flow753.53M312.13M1.09B-516.07M81.23M
Investing Cash Flow79.22M-593.47M-29.12M221.26M-117.76M
Financing Cash Flow-528.23M-381.85M-793.83M689.95M-390.94M

Wai Kee Holdings Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.69
Price Trends
50DMA
0.69
Positive
100DMA
0.65
Positive
200DMA
0.67
Positive
Market Momentum
MACD
<0.01
Positive
RSI
44.95
Neutral
STOCH
54.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0610, the sentiment is Neutral. The current price of 0.69 is below the 20-day moving average (MA) of 0.72, above the 50-day MA of 0.69, and above the 200-day MA of 0.67, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.95 is Neutral, neither overbought nor oversold. The STOCH value of 54.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0610.

Wai Kee Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
HK$1.42B6.2113.63%7.14%44.58%11.62%
72
Outperform
HK$224.00M8.077.49%12.50%19.67%9.64%
63
Neutral
$10.71B16.256.57%2.09%2.65%-16.21%
58
Neutral
HK$916.76M7.856.69%
56
Neutral
HK$539.32M-48.43%13.91%-94.05%
49
Neutral
HK$803.75M-11.69%5.01%3.14%-480.05%
45
Neutral
HK$330.44M8.18-1.80%-3.98%37.50%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0610
Wai Kee Holdings Limited
0.69
-0.04
-5.48%
HK:0611
China Nuclear Energy Technology Corporation Limited
0.50
0.18
56.25%
HK:1447
SFK Construction Holdings Ltd.
0.56
0.05
9.80%
HK:1627
Able Engineering Holdings Ltd.
0.70
0.29
70.73%
HK:0711
Asia Allied Infrastructure Holdings Limited
0.44
-0.01
-2.22%
HK:8021
WLS Holdings Ltd
0.02
0.00
0.00%

Wai Kee Holdings Limited Corporate Events

Wai Kee Holdings to Announce Interim Results
Aug 13, 2025

Wai Kee Holdings Limited has announced that its board of directors will convene a meeting on August 26, 2025, to discuss and announce the interim financial results for the first half of the year ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

Wai Kee Holdings Appoints New Executive Director
Aug 12, 2025

Wai Kee Holdings Limited, a company incorporated in Bermuda, has announced the appointment of Mr. Hayley Zen Chung Hei as an Executive Director effective from August 12, 2025. Mr. Zen, who has over 25 years of experience in finance, accounting, and business development across the United States, Hong Kong, and Mainland China, is the son of one of the controlling shareholders of the company. His appointment is seen as a strategic move to strengthen the company’s leadership, with Mr. Zen bringing a wealth of expertise and familial ties to the board. The company has structured a three-year service agreement with Mr. Zen, with an annual emolument of HK$1,800,000, reflecting his responsibilities and the company’s performance.

Wai Kee Holdings Limited Announces Board Composition and Roles
Aug 12, 2025

Wai Kee Holdings Limited has announced the composition of its Board of Directors, highlighting the roles and functions of each member. The board includes executive directors such as Mr. Zen Wei Peu, Derek, who serves as Chairman and CEO, and independent non-executive directors like Dr. Wong Che Ming, Steve. The announcement also details the membership of board committees, emphasizing the leadership and participation of directors in audit, nomination, and remuneration committees. This structure is crucial for stakeholders as it outlines the governance framework and decision-making hierarchy within the company.

Wai Kee Holdings Successfully Passes All Resolutions at Special General Meeting
Jul 28, 2025

Wai Kee Holdings Limited announced that all resolutions were passed at their Special General Meeting held on July 28, 2025. The resolutions involved approving service agreements between Build King Holdings Limited and other companies, with all votes cast in favor of the resolutions. This successful approval is significant for Wai Kee Holdings as it strengthens its operational agreements and potentially enhances its market positioning.

Wai Kee Holdings to Discuss Key Service Agreements at Special General Meeting
Jul 9, 2025

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
Jul 4, 2025

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
Jun 22, 2025

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
May 26, 2025

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
May 21, 2025

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.

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: Aug 16, 2025