Wai Kee Holdings Limited (0610) AI Stock Analysis

• Market Cap: HK$674.16M
• Dividend Yield: N/A
• Average Volume (3M): 239.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: 12.80%
• EPS Growth: -270.01%
• Country: HK
• Employees: 3,922
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -3.96
• Shares Outstanding: 793,124,000
• 10 Day Avg. Volume: 216,643
• 30 Day Avg. Volume: 239,392
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.04
• P/FCF Ratio: 0.88
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$1.00 ▲(17.65% Upside)

The overall stock score of 60 reflects strong technical momentum and robust cash flow management, offset by profitability challenges and a negative valuation outlook due to ongoing losses. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong demand for Wai Kee's services and products, supporting long-term business stability and market presence.

Cash Flow Management

Strong cash flow management enhances financial stability, providing the company with the flexibility to invest in growth opportunities and manage debt effectively.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on a single market, mitigating risks and supporting sustained growth across economic cycles.

Negative Factors

Profitability Challenges

Ongoing profitability challenges can hinder reinvestment in the business and impact long-term shareholder value, necessitating strategic adjustments.

Increased Leverage

Rising leverage can strain financial resources and limit the company's ability to navigate economic downturns, affecting long-term financial health.

Declining Equity Ratio

A declining equity ratio suggests reduced financial flexibility and increased reliance on debt, which may impact the company's ability to fund growth initiatives.

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 generates revenue through multiple streams. Its core revenue comes from construction contracts, where it undertakes civil engineering and building projects for public and private sectors, often awarded through competitive bidding. The company also earns income from the sale of construction materials produced by its manufacturing subsidiaries. Furthermore, property investment and development activities provide a significant revenue source, as the company engages in leasing and selling properties to maximize returns. Strategic partnerships with other construction firms and government entities enhance its project portfolio, while effective cost management and operational efficiencies contribute to profitability.

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 leverage. The balance sheet indicates financial risks due to a reduced equity ratio and negative ROE.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.87B	14.48B	12.71B	12.63B	10.28B	7.98B
Gross Profit	1.25B	1.32B	1.46B	1.14B	902.28M	799.99M
EBITDA	637.87M	592.79M	792.65M	806.58M	607.92M	703.87M
Net Income	-5.82B	-3.09B	-1.59B	-6.76M	676.16M	1.08B
Balance Sheet
Total Assets	8.98B	12.64B	16.36B	17.59B	18.40B	15.35B
Cash, Cash Equivalents and Short-Term Investments	2.45B	2.63B	2.16B	3.08B	3.06B	2.41B
Total Debt	822.33M	1.19B	1.59B	1.78B	2.27B	1.21B
Total Liabilities	6.19B	6.89B	7.26B	6.71B	6.94B	4.83B
Stockholders Equity	1.67B	4.64B	8.10B	9.98B	10.68B	9.85B
Cash Flow
Free Cash Flow	598.08M	648.00M	250.66M	958.54M	-853.05M	-333.96M
Operating Cash Flow	684.59M	753.53M	312.13M	1.09B	-516.07M	81.23M
Investing Cash Flow	529.81M	79.22M	-593.47M	-29.12M	221.26M	-117.76M
Financing Cash Flow	-667.20M	-528.23M	-381.85M	-793.83M	689.95M	-390.94M

Wai Kee Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.85
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 0.85 is below the 20-day moving average (MA) of 0.89, below the 50-day MA of 0.85, and above the 200-day MA of 0.72, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.60 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 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$1.30B	5.49	14.15%	9.09%	26.57%	-2.39%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	62 Neutral	HK$182.00M	7.48	6.66%	15.38%	13.59%	-12.52%
0610	60 Neutral	HK$674.16M	-0.12	-127.12%	―	12.80%	-270.01%
0611	51 Neutral	HK$1.04B	8.79	―	―	―	―
0711	45 Neutral	HK$801.45M	15.70	2.28%	1.93%	0.97%	―
8021	43 Neutral	HK$172.41M	-24.00	-1.80%	―	-3.98%	37.50%

Wai Kee Holdings Limited Corporate Events

Wai Kee Holdings Limited Updates Nomination Committee Terms

Wai Kee Holdings Limited, a company incorporated in Bermuda with limited liability, has amended and adopted the terms of reference for its Nomination Committee during a board meeting on November 13, 2025. The committee will consist of at least three members, primarily independent non-executive directors, and will include at least one member of a different gender. This move is likely aimed at enhancing governance and diversity within the company’s board structure, potentially impacting its operational effectiveness and stakeholder confidence.

Wai Kee Holdings Secures Concrete Supply with Quon Hing Agreement

Wai Kee Holdings Limited has entered into a Purchase Framework Agreement with Quon Hing to secure a reliable supply of concrete for the next three years, with annual caps set at HK$20 million. This agreement is part of the company’s strategy to meet increasing demand and mitigate risks associated with sudden spikes in concrete needs, ensuring the smooth progression of construction projects. The transactions are classified as continuing connected transactions under the Listing Rules, requiring reporting and annual reviews but exempt from shareholder approval.