Wang On Group Limited (1222) AI Stock Analysis

• Market Cap: HK$261.45M
• Dividend Yield: N/A
• Average Volume (3M): 5.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 30.86%
• EPS Growth: -67.89%
• Country: HK
• Employees: 2,005
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): -0.03
• Shares Outstanding: 14,166,697,000
• 10 Day Avg. Volume: 3,663,478
• 30 Day Avg. Volume: 5,461,002
• PEG Ratio: -0.02
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 0.27
• 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: 49 Neutral
• Price Target: HK$0.02 ▲(5.00% Upside)
• Action: Reiterated Date: 01/20/26
• Date: Action: Reiterated 01/20/26

The score is primarily held back by weak profitability (negative margins/ROE) and high leverage despite improved cash flow. Technical signals are mixed with only modest near-term support and negative MACD. Valuation is constrained by a negative P/E and no dividend yield data.

Positive Factors

Revenue Growth

Sustained ~31% revenue growth indicates the group is successfully converting market demand into sales across development and investment segments. Over 2–6 months this supports layering of scale, improves cash generation potential and provides a base to address operating losses if cost discipline follows.

Improved Cash Generation

Material improvement in operating and free cash flow strengthens liquidity and reduces near-term refinancing risk. Durable cash generation allows the company to fund working capital, service debt and invest in projects without immediate equity raises, increasing resilience through property cycles.

Diversified Real‑estate Model

A business mix of development, investment and management provides both transactional sale revenue and recurring rental/management income. This structural diversity helps smooth cash flow volatility and supports long-term customer relationships and cross-selling across property lifecycles.

Negative Factors

Negative Profitability

Persistently negative EBIT and net margins, alongside negative return on equity, indicate structural profitability issues. Over months this constrains retained earnings, weakens incentives for investment, and makes it harder to rebuild equity without sustained margin recovery or outsized revenue gains.

High Leverage

Significant leverage increases interest burden and reduces strategic flexibility, especially in a capital‑intensive property business. Over the medium term, high debt levels raise refinancing risk, limit capacity for new projects, and amplify earnings volatility during market slowdowns.

Margin Pressure

Declining gross margins point to rising costs or pricing pressure in development and sales. Sustained margin contraction erodes the company's ability to convert revenue growth into profit, making long‑term deleveraging and investment funding more difficult without operational improvements.

Wang On Group Limited Business Overview & Revenue Model

Company Description

Wang On Group Limited, an investment holding company, primarily engages in the property development and investment activities in Hong Kong, Mainland China, Macau, and internationally. It operates through five segments: Property Development, Property Investment, Fresh Markets, Pharmaceutical, and Treasury Management. The company invests in industrial and commercial premises, and residential units for rental or for sale; and invests in debt and other securities. It is also involved in the management and sub-licensing of fresh markets; butchery business, which includes management and sale of properties in agricultural produce exchange markets; and production and sale of Chinese and Western pharmaceutical, health food, and personal healthcare products under the Wai Yuen Tong and Madame Pearl's brand names. In addition, the company is involved in asset management, money lending, sale of pork, and property management businesses, as well as offers management and financial services. The company was founded in 1987 and is headquartered in Kowloon Bay, Hong Kong.

How the Company Makes Money

Wang On Group generates revenue through multiple streams. Its primary source of income comes from property development and sales, where the company undertakes residential and commercial projects, selling units upon completion. Additionally, the company earns revenue from property leasing, providing a steady income from its investment properties. The logistics segment contributes through freight and supply chain management services, while the food and beverage division generates sales from its restaurants and food retail operations. Strategic partnerships with local businesses and suppliers enhance its operational efficiency and market reach, further bolstering its revenue generation capabilities.

Wang On Group Limited Financial Statement Overview

Summary

Income statement shows strong recent revenue growth but negative EBIT and net margins, indicating ongoing operating weakness. Balance sheet leverage is high with negative ROE, raising financial risk. Cash flow has improved with higher free cash flow and a positive operating cash flow to net income ratio, but volatility remains a concern.

Income Statement

Wang On Group Limited has experienced fluctuating revenue growth, with a notable increase of 31.92% in the latest year. However, profitability metrics such as the net profit margin and EBIT margin are negative, indicating operational challenges. The gross profit margin has decreased over time, reflecting pressure on cost management.

Balance Sheet

The company maintains a high debt-to-equity ratio, indicating significant leverage, which poses financial risk. Return on equity is negative, reflecting poor profitability. The equity ratio suggests moderate reliance on equity financing, but overall financial stability is a concern due to high leverage.

Cash Flow

Cash flow performance shows improvement, with a substantial increase in free cash flow growth. The operating cash flow to net income ratio is positive, indicating some efficiency in cash generation relative to earnings. However, historical volatility in cash flows suggests potential liquidity risks.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	2.72B	2.74B	1.98B	3.60B	1.86B	1.92B
Gross Profit	709.40M	808.76M	823.64M	1.22B	907.10M	974.96M
EBITDA	-823.38M	-705.81M	-376.63M	533.79M	174.49M	245.59M
Net Income	-1.36B	-922.43M	-753.85M	12.78M	-305.23M	123.88M
Balance Sheet
Total Assets	12.71B	13.73B	17.58B	18.39B	20.06B	20.45B
Cash, Cash Equivalents and Short-Term Investments	778.14M	796.09M	1.33B	1.75B	1.96B	2.47B
Total Debt	4.39B	5.29B	7.11B	7.05B	7.63B	7.84B
Total Liabilities	6.53B	6.95B	9.46B	9.01B	10.46B	10.48B
Stockholders Equity	4.03B	4.33B	5.27B	5.92B	5.99B	6.44B
Cash Flow
Free Cash Flow	835.36M	1.13B	-206.60M	491.96M	-2.21B	-1.17B
Operating Cash Flow	881.94M	1.18B	-174.67M	549.19M	-2.13B	-1.11B
Investing Cash Flow	-13.73M	656.19M	433.31M	423.84M	2.42B	833.47M
Financing Cash Flow	-1.19B	-2.32B	-358.94M	-1.01B	-444.62M	551.46M

Wang On Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1222, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.14 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1222.

Wang On Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1094	53 Neutral	HK$269.59M	-2.06	-66.52%	―	-92.58%	-44916.67%
2327	51 Neutral	HK$1.02B	19.78	3.24%	2.00%	-54.92%	26.32%
1222	49 Neutral	HK$261.45M	-0.28	-30.56%	―	30.86%	-67.89%
1282	41 Neutral	HK$600.00M	-1.61	-4.03%	―	55.27%	68.84%
1468	40 Underperform	HK$149.36M	-2.52	-18.50%	―	-19.10%	83.61%