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

• Market Cap: HK$84.96M
• Dividend Yield: N/A
• Average Volume (3M): 29.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• 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: 53 Neutral
• Price Target: HK$0.22 ▲(59.29% Upside)

The score is primarily held back by weak financial performance (declining revenue and loss-making results) and a low valuation score due to negative earnings, partly offset by strong recent technical uptrend that appears overbought and therefore less durable in the near term.

Positive Factors

High Gross Profit Margin

Sustained high gross margins indicate durable cost management and pricing strength within its real-estate services operations. This margin buffer supports operating resilience while the company addresses top-line weakness, enabling reinvestment or maintained service levels despite revenue pressure.

Conservative Leverage

A low debt-to-equity profile gives the company greater financial flexibility and lower refinancing risk in a cyclical real estate services sector. This conservatism supports the ability to sustain operations, fund selective investment, or absorb market downturns without acute liquidity stress.

Positive Free Cash Flow Growth

Consistent free cash flow growth and a FCF-to-net-income alignment signal reliable cash generation despite accounting losses. Durable cash conversion enhances liquidity, enabling debt servicing, opportunistic investments, or gradual capital returns without relying solely on accounting profitability.

Negative Factors

Declining Revenue Trend

A multi-period revenue decline reduces operational scale, erosions pricing power, and limits fixed-cost absorption in property services. Persisting top-line shrinkage hampers the firm's ability to invest in growth initiatives and to restore sustainable operating leverage over the medium term.

Negative Profitability

Negative net margins show the business is not currently generating accounting profits or adequate returns on operations. Over time, sustained losses impair equity returns, constrain reinvestment, and increase dependence on cash reserves or external capital to maintain operations and strategic initiatives.

Very Small Operational Scale

A tiny employee base implies limited in-house capacity and scalability in servicing clients or executing expansion. This structural constraint increases reliance on third parties, reduces internal control over growth execution, and may hinder the company’s ability to pursue larger contracts or diversify revenue streams.

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

Weak profitability and declining revenues (negative net margin; negative revenue growth) weigh on results, partially offset by low leverage/solid equity positioning and improving free cash flow trends.

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: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0864, the sentiment is Positive. The current price of 0.14 is below the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.14, and below the 200-day MA of 0.16, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 97.38 is Negative, neither overbought nor oversold. The STOCH value of 98.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$606.88M	-2.21	-5.14%	―	66.69%	88.69%
0864	53 Neutral	HK$84.96M	-0.25	-55.99%	―	-8.18%	-212.59%
1941	48 Neutral	HK$94.03M	-5.45	-6.82%	―	1.53%	22.83%
3603	48 Neutral	HK$80.62M	-0.75	-8.33%	―	-18.46%	-12.77%
8181	43 Neutral	HK$64.35M	-1.19	-28.17%	―	-5.03%	-26.98%
0313	41 Neutral	HK$98.01M	-0.40	-304.65%	―	230.64%	-14.21%