Wai Kee Holdings Limited (0610) AI Stock Analysis

• Market Cap: HK$515.53M
• Dividend Yield: N/A
• Average Volume (3M): 164.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: 13.91%
• EPS Growth: -94.05%
• Country: HK
• Employees: 3,922
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): -3.37
• Shares Outstanding: 793,124,000
• 10 Day Avg. Volume: 275,301
• 30 Day Avg. Volume: 164,176
• PEG Ratio: <0.01
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.11
• 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

• Rating: 58 Neutral
• Price Target: HK$0.50 ▼(-23.08%Downside)

The overall score is influenced by positive cash flow management and stable technical indicators, but is significantly hampered by profitability issues and a negative valuation outlook.

Wai Kee Holdings Limited Business Overview & Revenue Model

Company Description

Wai 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 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
	EBIT
551.59M	771.12M	457.69M	970.83M	1.25B
	EBITDA
592.79M	792.65M	689.51M	1.12B	1.36B
	Net Income Common Stockholders
-3.09B	-1.59B	175.97M	676.16M	1.08B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.63B	2.09B	3.08B	2.97B	2.41B
	Total Assets
12.64B	16.36B	17.59B	18.40B	15.35B
	Total Debt
1.19B	1.59B	1.78B	2.27B	1.21B
	Net Debt
-780.12M	-79.12M	-540.25M	224.29M	-435.88M
	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: Positive
• Last Price: 0.65
• 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 Positive. The current price of 0.65 is above the 20-day moving average (MA) of 0.65, above the 50-day MA of 0.63, and below the 200-day MA of 0.68, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.54 is Neutral, neither overbought nor oversold. The STOCH value of 67.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3311	71 Outperform	HK$63.39B	6.46	14.62%	4.75%	1.21%	2.15%
1199	70 Outperform	$19.18B	7.08	5.64%	5.74%	5.93%	-3.64%
1786	69 Neutral	HK$1.22B	8.74	2.16%	4.13%	-1.50%	-12.52%
0386	66 Neutral	HK$717.09B	10.87		3.77%	-7.72%	-26.66%
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%
0610	58 Neutral	HK$515.53M	―	-48.43%	―	13.91%	-94.05%
0396	51 Neutral	HK$71.92M	4.95	19.25%	―	20.86%	―

Wai Kee Holdings Limited Corporate Events

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.

Wai Kee Holdings Limited Announces 2025 Annual General Meeting

Wai Kee Holdings Limited has announced its Annual General Meeting scheduled for May 21, 2025, in Hong Kong. The meeting will address several key business items, including the consideration of audited financial statements for 2024, re-election of directors, and re-appointment of auditors. Additionally, the company seeks approval for directors to allot and issue additional shares, which could impact the company’s capital structure and shareholder value.

Wai Kee Holdings Reports Significant Losses Amidst Challenging Year

Wai Kee Holdings Limited reported its financial results for the year ending December 31, 2024, revealing a significant loss attributable to owners of HK$3,086 million, despite generating revenue of HK$14,480 million. The company faced challenges including a substantial impairment loss on interest in an associate and increased share of losses from associates and joint ventures, impacting its financial performance and market positioning.

Wai Kee Holdings Secures HK$570 Million Loan Facility with Conditions

Wai Kee Holdings Limited, through its wholly-owned subsidiary Trend Pacific Limited, has entered into a HK$570 million term loan facility agreement with a syndicate of five independent banks in Hong Kong. The agreement includes provisions that could lead to the cancellation of undrawn commitments or acceleration of loan repayments if certain conditions regarding the company’s executive directors and major shareholders are not met. Currently, the major shareholders, Mr. William Zen Wei Pao and Mr. Derek Zen Wei Peu, hold a 63.25% beneficial shareholding interest in the company.