Wai Chun Group Holdings Limited (1013) AI Stock Analysis

• Market Cap: HK$50.00M
• Dividend Yield: N/A
• Average Volume (3M): 16.80K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.44
• Revenue Growth: 85.37%
• EPS Growth: 73.25%
• Country: HK
• Employees: 11
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): -0.06
• Shares Outstanding: 267,389,530
• 10 Day Avg. Volume: 28,177
• 30 Day Avg. Volume: 16,802
• PEG Ratio: 0.04
• Price to Book (P/B): -0.15
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -2.92
• 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: 44 Neutral
• Price Target: HK$0.18 ▼(-3.16% Downside)

The score is primarily constrained by weak financial quality: negative equity, high leverage versus a small asset base, ongoing net losses, and persistent negative operating/free cash flow. Technicals are only mildly supportive with limited trend strength, and valuation signals are not constructive because the negative P/E is driven by losses and there is no dividend support.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and potential for future expansion, enhancing the company's competitive position.

Loss Reduction

The reduction in losses reflects improved operational efficiency and cost management, which could lead to profitability if sustained.

Operational Improvement

Enhanced operational performance suggests better management and execution, which can drive long-term growth and stability.

Negative Factors

Negative Equity

Negative equity indicates financial instability and poses a risk to solvency, limiting the company's ability to finance growth or absorb losses.

High Debt Levels

High debt levels increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth or weather downturns.

Negative Cash Flow

Consistently negative cash flow suggests the business is not self-sustaining, which could lead to liquidity issues and reliance on external funding.

Wai Chun Group Holdings Limited Business Overview & Revenue Model

Company Description

Wai Chun Group Holdings Limited, an investment holding company, engages in the sale and service, and provision of integration services of computer and communication systems in the People's Republic of China and Hong Kong. The company operates through Sales and Integration Services, and General Trading segments. It is also involved in the design, consultation, and production of information system software; and the provision of management training services. In addition, it engages in the provision of telecommunications infrastructure solutions, and software solutions and services; and trading chemicals and agricultural products. The company was formerly known as Wai Chun Group Limited and changed its name to Wai Chun Group Holdings Limited in November 2008. The company was incorporated in 1996 and is headquartered in Admiralty, Hong Kong. Wai Chun Group Holdings Limited is a subsidiary of Ka Chun Holdings Limited.

How the Company Makes Money

Wai Chun Group Holdings Limited generates its revenue primarily through the trading and distribution of mobile and electronic components. These activities involve purchasing products from manufacturers or other suppliers and selling them to retailers, businesses, or end consumers. The company also engages in the distribution of computer-related products and accessories, contributing to its sales. Wai Chun may work with various suppliers and maintain strategic partnerships to ensure a steady supply chain and competitive pricing. Its earnings are influenced by factors such as market demand for electronics, pricing strategies, and its ability to manage inventory efficiently.

Wai Chun Group Holdings Limited Financial Statement Overview

Summary

Despite a strong FY2025 revenue rebound (+61.78% YoY) and materially reduced losses, the company remains unprofitable with extremely thin gross margin (below 1%), sustained negative free cash flow, and a severely weakened capital structure (negative equity and high debt relative to assets).

Income Statement

Revenue rebounded strongly in FY2025 (+61.78% YoY), signaling improving top-line traction after a weaker FY2023. Losses narrowed materially (net loss improved to -10.3M from -36.5M in FY2024 and -50.7M in FY2023), and operating performance also improved versus the prior two years. However, profitability remains the core issue: gross margin is extremely thin (below 1% in FY2025), and net margins are still negative, leaving earnings highly sensitive to costs and pricing pressure.

Balance Sheet

The balance sheet is strained by persistently negative shareholders’ equity (FY2025: -219.9M), which is a major credit and solvency red flag. Debt remains high (FY2025: 189.1M) relative to a small asset base (FY2025 total assets: 54.9M), limiting financial flexibility and increasing refinancing risk. While total debt has come down versus FY2024, the capital structure remains weak and leaves little margin for operational setbacks.

Cash Flow

Cash generation is consistently weak: operating cash flow and free cash flow were negative in FY2025 (-11.0M) and also negative in FY2024 and FY2023, indicating the business has not been self-funding in recent years. Free cash flow deteriorated sharply in FY2025 (growth -89.505%), suggesting worsening cash burn despite improved reported earnings. A past positive year (FY2022) appears non-recurring relative to the subsequent three-year trend.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	266.34M	266.34M	273.89M	176.80M	233.93M	159.83M
Gross Profit	2.15M	2.15M	1.55M	567.00K	1.10M	3.34M
EBITDA	-5.40M	18.07M	-5.26M	-19.44M	-84.29M	31.03M
Net Income	-10.33M	-10.33M	-36.53M	-50.72M	-127.08M	-17.93M
Balance Sheet
Total Assets	54.86M	54.86M	32.07M	81.34M	138.49M	156.86M
Cash, Cash Equivalents and Short-Term Investments	11.01M	11.01M	127.00K	9.16M	14.19M	19.70M
Total Debt	189.08M	189.08M	222.38M	229.13M	196.60M	124.74M
Total Liabilities	258.53M	258.53M	272.36M	312.14M	322.59M	246.56M
Stockholders Equity	-219.85M	-219.85M	-256.42M	-246.73M	-200.97M	-106.97M
Cash Flow
Free Cash Flow	-11.00M	-11.00M	-8.52M	-8.79M	3.78M	-9.47M
Operating Cash Flow	-11.00M	-11.00M	-8.52M	-8.79M	3.79M	-9.44M
Investing Cash Flow	0.00	0.00	8.00K	-6.14M	-7.00K	844.00K
Financing Cash Flow	21.97M	21.97M	-2.12M	11.13M	-9.96M	14.57M

Wai Chun Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.19
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1013, the sentiment is Negative. The current price of 0.19 is below the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.19, and below the 200-day MA of 0.20, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.10 is Neutral, neither overbought nor oversold. The STOCH value of 83.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1013.

Wai Chun Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1362	56 Neutral	HK$151.20M	63.53	1.44%	3.06%	4.82%	-71.76%
1213	50 Neutral	HK$102.00M	-10.45	-8.13%	0.94%	-8.83%	-28.76%
0471	47 Neutral	HK$74.36M	-1.08	-38.82%	―	-10.29%	86.69%
1013	44 Neutral	HK$50.00M	-5.44	―	―	85.37%	73.25%
8106	44 Neutral	HK$151.96M	103.45	2.91%	―	62.31%	―
0997	41 Neutral	HK$33.91M	-0.14	-48.20%	―	-25.27%	53.14%

Wai Chun Group Holdings Limited Corporate Events

Wai Chun Group Holdings Reports Interim Financial Results for 2025

Wai Chun Group Holdings Limited reported its unaudited interim results for the six months ending September 30, 2025, showing a slight decrease in gross profit compared to the previous year. The company continues to face financial challenges, with a reported loss before tax of HK$16.25 million, slightly improved from the previous year’s loss, and a total comprehensive expense of HK$16.21 million, indicating ongoing financial pressures.

Wai Chun Group Holdings Schedules Board Meeting for Interim Results

Wai Chun Group Holdings Limited has announced that its board of directors will meet on 28 November 2025 to approve and publish the unaudited interim results for the six months ending 30 September 2025. This announcement indicates the company’s ongoing commitment to transparency and timely financial reporting, which is crucial for maintaining investor confidence and ensuring compliance with market regulations.