Wing Lee Property Investments Ltd. (0864) AI Stock Analysis

• Market Cap: HK$54.84M
• Dividend Yield: N/A
• Average Volume (3M): 29.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -8.18%
• EPS Growth: -212.59%
• Country: HK
• Employees: 7
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.43
• Shares Outstanding: 386,175,750
• 10 Day Avg. Volume: 70,800
• 30 Day Avg. Volume: 29,016
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 2.65
• P/FCF Ratio: 4.36
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: HK$0.11 ▼(-24.29% Downside)

Wing Lee Property Investments Ltd. receives a low overall stock score due to significant financial performance challenges, including declining revenues and negative profitability. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing oversold conditions. Valuation metrics are unattractive, with a negative P/E ratio and no dividend yield.

Positive Factors

Strong Equity Position

A strong equity position with low leverage enhances financial stability, providing a solid foundation for future growth and resilience against market fluctuations.

Positive Cash Flow Growth

Consistent free cash flow growth indicates effective cash management and liquidity, enabling the company to invest in new opportunities and manage obligations efficiently.

High Gross Profit Margin

A high gross profit margin reflects strong cost management and operational efficiency, which can support profitability improvements as revenue stabilizes or grows.

Negative Factors

Declining Revenue Trend

A declining revenue trend poses challenges to growth and profitability, potentially impacting the company's ability to invest in new projects and maintain competitive positioning.

Negative Profitability

Negative profitability undermines financial health, limiting reinvestment capacity and necessitating strategic adjustments to improve earnings and shareholder value.

Negative Return on Equity

A negative return on equity suggests inefficiencies in utilizing shareholder capital, which can deter investment and hinder long-term growth prospects.

Wing Lee Property Investments Ltd. Business Overview & Revenue Model

Company Description

Wing Lee Property Investments Limited, an investment holding company, engages in the property investment business. The company invests in office, industrial, and residential premises, as well as retail shops and car parking bays; and leases commercial, residential, and industrial properties. As of December 31, 2021, it had an investment property portfolio of 37 properties in Hong Kong; and one property in Mainland China. The company was formerly known as Wing Lee Properties Limited and changed its name to Wing Lee Property Investments Limited in August 2012. Wing Lee Property Investments Limited was incorporated in 2012 and is headquartered in Kwun Tong, Hong Kong. Wing Lee Property Investments Limited is a subsidiary of Bright Asia Holdings Limited.

How the Company Makes Money

Wing Lee Property Investments Ltd. generates revenue primarily through rental income from its diversified property portfolio. The company leases commercial and residential properties to various tenants, ensuring a steady cash flow. Additionally, it engages in property development projects, which provide significant profit margins upon completion and sale. The firm may also generate income from property management services, offering maintenance and leasing services to third-party property owners. Strategic partnerships with local real estate firms and construction companies enhance its market reach and operational efficiency, contributing to its overall earnings.

Wing Lee Property Investments Ltd. Financial Statement Overview

Summary

Wing Lee Property Investments Ltd. faces challenges with declining revenues and negative profitability, impacting its income statement. The balance sheet shows a strong equity position with low leverage, but the negative return on equity is concerning. Cash flow generation is improving, but the company needs to address its profitability issues to enhance financial stability.

Income Statement

Wing Lee Property Investments Ltd. has shown a declining revenue trend over the years, with a negative revenue growth rate in recent periods. The company has consistently maintained a high gross profit margin, indicating strong cost management. However, the net profit margin is negative, reflecting significant losses, particularly in the most recent year, which impacts overall profitability.

Balance Sheet

The company's debt-to-equity ratio is relatively low, suggesting conservative leverage. However, the return on equity is negative, indicating that the company is not generating sufficient returns on its equity base. The equity ratio is stable, showing a solid equity position relative to total assets.

Cash Flow

Wing Lee Property Investments Ltd. has shown positive free cash flow growth recently, which is a positive sign for liquidity. The operating cash flow to net income ratio is low, reflecting the challenges in converting earnings into cash. However, the free cash flow to net income ratio is consistently at 1.0, indicating that free cash flow is aligned with net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.07M	26.83M	27.79M	29.33M	28.93M	30.33M
Gross Profit	24.64M	26.15M	26.37M	28.02M	27.71M	30.33M
EBITDA	17.18M	20.59M	16.46M	23.58M	21.59M	-91.08M
Net Income	-338.38M	-234.27M	-47.09M	17.53M	17.41M	-96.60M
Balance Sheet
Total Assets	483.35M	753.15M	998.37M	1.06B	1.06B	1.01B
Cash, Cash Equivalents and Short-Term Investments	7.28M	79.39M	42.65M	53.75M	45.27M	66.27M
Total Debt	60.00M	132.22M	100.58M	113.61M	104.44M	117.75M
Total Liabilities	71.47M	145.17M	116.08M	130.40M	121.47M	137.31M
Stockholders Equity	411.88M	607.97M	882.29M	934.45M	936.51M	875.45M
Cash Flow
Free Cash Flow	13.85M	16.30M	13.53M	16.70M	15.66M	13.56M
Operating Cash Flow	13.85M	16.30M	13.53M	16.70M	15.66M	13.56M
Investing Cash Flow	-50.29M	-48.88M	-5.27M	-14.33M	-21.24M	-1.01M
Financing Cash Flow	-74.60M	23.92M	-19.36M	6.11M	-15.41M	45.25M

Wing Lee Property Investments Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0864, the sentiment is Neutral. The current price of 0.14 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.13, and below the 200-day MA of 0.16, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.71 is Neutral, neither overbought nor oversold. The STOCH value of 273.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0864.

Wing Lee Property Investments Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0616	54 Neutral	HK$613.01M	-2.38	-5.14%	―	66.69%	88.69%
1941	48 Neutral	HK$95.65M	-5.45	-6.82%	―	1.53%	22.83%
3603	48 Neutral	HK$73.15M	-0.68	-8.33%	―	-18.46%	-12.77%
0864	42 Neutral	HK$54.84M	-0.16	-55.99%	―	-8.18%	-212.59%
0313	41 Neutral	HK$95.68M	-0.39	-304.65%	―	230.64%	-14.21%
8181	40 Underperform	HK$66.61M	-1.08	-28.17%	―	-5.03%	-26.98%

Wing Lee Property Investments Ltd. Corporate Events

Wing Lee Property Investments Ltd. Grants Share Options to Enhance Stakeholder Value

Wing Lee Property Investments Ltd. announced the grant of share options totaling 11,971,446 ordinary shares, representing approximately 3.1% of the issued shares, to eligible participants under its share option scheme. This initiative, with options exercisable at HK$0.147 per share, aims to provide competitive remuneration and reward packages, potentially enhancing stakeholder value and aligning with the company’s strategic goals.