Water Oasis Group (1161) AI Stock Analysis

• Market Cap: $639.72M
• Dividend Yield: 5.79%
• Average Volume (3M): 95.73K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.39
• Revenue Growth: -1.62%
• EPS Growth: -10.07%
• Country: HK
• Employees: 914
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 0.08
• Shares Outstanding: 680,552,800
• 10 Day Avg. Volume: 93,800
• 30 Day Avg. Volume: 95,733
• PEG Ratio: -0.24
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 1.60
• Enterprise Value/Market Cap: 0.23
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 0.32
• Enterprise Value/Ebitda: 0.80
• 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: 74 Outperform
• Price Target: HK$1.00 ▲(6.38% Upside)

The overall stock score of 74 reflects Water Oasis Group's strong financial performance and attractive valuation. The company's efficient cash flow management and stable balance sheet are significant strengths. However, technical indicators suggest a lack of strong momentum, and declining net income poses a risk to future profitability.

Positive Factors

Cash Flow Management

Effective cash flow management ensures the company can fund operations, invest in growth opportunities, and maintain financial stability over time.

Balance Sheet Health

A lower debt-to-equity ratio enhances financial flexibility and reduces risk, supporting long-term sustainability and potential for growth.

Revenue Model

Partnerships with established brands strengthen the company's market position and diversify its revenue streams, contributing to stable growth.

Negative Factors

Declining Net Income

Decreasing net income impacts profitability, which can limit reinvestment in business operations and affect long-term growth prospects.

Return on Equity

Lower return on equity suggests less efficient use of equity capital, potentially affecting investor confidence and long-term value creation.

Net Profit Margin

A declining net profit margin indicates challenges in maintaining cost efficiency and profitability, which can impact financial health over time.

Water Oasis Group Business Overview & Revenue Model

Company Description

Water Oasis Group Limited, an investment holding company, provides beauty and related wellness services. The company operates through Product and Service segments. It provides general, specialist, and medical beauty services to high-end, mid-range, and mass-market consumer sectors for men and women. It also operates an online florist shop under the Oasis Florist brand; and a manicure business under the Oasis Nail brand. In addition, the company offers skincare products under the Glycel and Eurobeauté brands, and medical beauty products line under the DermaSynergy brand; and retails and distributes skincare products of Erno Laszlo and H2O+ brands. Further, it is involved in the online sale of skincare products; provision of beauty equipment; and property holding business, as well as produces and sells cold pressed fruit juice. As of September 30, 2021, the company operated a total of 17 Oasis Beauty centers in Hong Kong comprising 15 Oasis Beauty and 2 Oasis Homme centers; and 3 self-managed Oasis Beauty centers in Beijing, the People's Republic of China. Water Oasis Group Limited was founded in 1998 and is headquartered in Causeway Bay, Hong Kong.

How the Company Makes Money

Water Oasis Group generates revenue through multiple streams, primarily from the sale of water filtration systems and bottled water products. The company markets its products directly to consumers as well as through retail partnerships and distributors. Additionally, Water Oasis Group earns income from service contracts related to the maintenance and installation of its filtration systems. Strategic partnerships with retailers and environmental organizations also contribute to brand visibility and sales, enhancing the company’s market reach and revenue potential.

Water Oasis Group Financial Statement Overview

Summary

Water Oasis Group demonstrates solid financial health with strong revenue growth and efficient cash flow management. However, declining net income and EBIT in the latest period could pose risks to future profitability. The company shows a stable balance sheet with decreasing leverage, but improving returns on equity should be a focus.

Income Statement

The company's revenue has shown steady growth over the years, with a notable increase in gross profit margin in the latest year. However, the net profit margin has decreased due to a significant drop in net income. Although the EBITDA margin remains strong, the absence of EBIT in the latest report suggests potential operational challenges.

Balance Sheet

The debt-to-equity ratio has improved, indicating a decrease in leverage. The equity ratio has remained relatively stable, showing strong asset backing from equity. However, the return on equity has decreased, pointing to reduced profitability on shareholder investments.

Cash Flow

The company exhibits strong cash flow management, with significant growth in free cash flow and positive operating cash flow. The free cash flow to net income ratio is exceptionally high, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	972.02M	983.22M	976.57M	841.94M	829.93M	531.37M
Gross Profit	452.82M	900.19M	306.92M	245.16M	325.49M	140.68M
EBITDA	180.80M	263.12M	310.30M	293.19M	380.03M	150.56M
Net Income	83.83M	68.28M	110.32M	67.43M	170.34M	27.74M
Balance Sheet
Total Assets	1.37B	1.25B	1.22B	1.26B	1.36B	1.19B
Cash, Cash Equivalents and Short-Term Investments	632.54M	485.16M	271.76M	234.86M	370.40M	418.52M
Total Debt	164.56M	171.81M	263.16M	289.52M	236.59M	205.04M
Total Liabilities	1.02B	934.52M	909.88M	959.18M	999.45M	971.48M
Stockholders Equity	350.67M	310.95M	312.08M	301.11M	352.42M	216.44M
Cash Flow
Free Cash Flow	371.76M	386.50M	251.09M	95.75M	71.93M	187.32M
Operating Cash Flow	380.77M	402.98M	280.07M	186.17M	123.35M	210.77M
Investing Cash Flow	-6.27M	-5.27M	-23.86M	-93.24M	-33.52M	-23.33M
Financing Cash Flow	-148.43M	-186.31M	-217.90M	-219.42M	-141.89M	-157.44M

Water Oasis Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.94
• 50DMA: Positive
• 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:1161, the sentiment is Neutral. The current price of 0.94 is below the 20-day moving average (MA) of 0.95, above the 50-day MA of 0.93, and above the 200-day MA of 0.92, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.35 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1161.

Water Oasis Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1161	74 Outperform	$639.72M	7.63	25.63%	5.79%	-1.62%	-10.07%
8603	69 Neutral	HK$2.67B	58.39	49.25%	―	56.28%	-9.91%
1830	66 Neutral	HK$1.75B	8.44	36.52%	11.52%	-23.31%	-44.61%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1827	55 Neutral	HK$368.00M	34.72	7.67%	―	-20.59%	―
0919	46 Neutral	€68.74M	―	10.10%	―	-3.40%	512.50%