Wang On Group Limited (1222) AI Stock Analysis

• Market Cap: €286.35M
• Dividend Yield: 1.9%
• Average Volume (3M): 7.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: -22.76%
• EPS Growth: -630.56%
• Country: HK
• Employees: 2,005
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Conglomerates
• EPS (TTM): -0.07
• Shares Outstanding: 14,166,697,000
• 10 Day Avg. Volume: 16,118,765
• 30 Day Avg. Volume: 7,144,178
• PEG Ratio: 0.12
• Price to Book (P/B): 0.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.33
• 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

• Rating: 45 Neutral
• Price Target: ―

Wang On Group Limited's overall stock score is significantly impacted by its weak financial performance, characterized by declining revenues and profitability. While technical indicators are neutral, the negative P/E ratio and absence of dividends reflect valuation challenges. The company must focus on improving operational efficiency and financial stability to enhance its stock outlook.

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 Limited generates revenue through multiple streams. Its primary source of income is derived from its property development and investment activities, where it engages in the development, sale, and leasing of residential and commercial properties. The company also earns revenue from the management and sub-licensing of Chinese wet markets, where it oversees operations and collects fees from vendors and sub-licensees. Additionally, Wang On Group is involved in providing finance through structured loans and lending services, contributing to its earnings. Partnerships and joint ventures in property projects and other strategic investments further support the company's revenue generation.

Wang On Group Limited Financial Statement Overview

Summary

Wang On Group Limited is struggling with financial challenges, showing declining revenues, significant net losses, and negative cash flows. While some stability is noted in the balance sheet with equity, high leverage and poor operational performance are major concerns.

Income Statement

Wang On Group Limited has experienced a consistent decline in total revenue over the past few years, with the latest figures showing a 45% drop from 2023. The company has also moved from positive net income in 2023 to a significant net loss in 2024. Margins are negative, with a gross profit margin of approximately 41.5% in 2024 but net profit margin is deeply negative. The shrinking EBITDA and EBIT margins further indicate operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is relatively high, suggesting significant leverage, but it has improved slightly from the previous year. Stockholders' equity has decreased, but still maintains a reasonable proportion of total assets, with an equity ratio of around 29.9%. The high debt levels pose a potential risk if earnings do not recover.

Cash Flow

Wang On Group has shown a deterioration in cash flow, with a significant negative operating cash flow in 2024. The free cash flow has also turned negative from a positive position in 2023. The operating cash flow to net income ratio is unfavorable due to negative figures, indicating challenges in cash generation relative to net income.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.98B	3.60B	1.86B	1.92B	3.44B
Gross Profit	823.64M	1.22B	907.10M	974.96M	1.73B
EBITDA	-376.63M	311.91M	254.97M	245.59M	956.78M
Net Income	-753.85M	12.78M	-305.23M	123.88M	474.86M
Balance Sheet
Total Assets	17.58B	18.39B	20.06B	20.45B	19.09B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.75B	1.96B	2.47B	1.97B
Total Debt	7.11B	7.05B	7.63B	7.84B	7.04B
Total Liabilities	9.46B	9.01B	10.46B	10.48B	9.41B
Stockholders Equity	5.27B	5.92B	5.99B	6.44B	6.06B
Cash Flow
Free Cash Flow	-206.60M	491.96M	-2.21B	-1.17B	229.69M
Operating Cash Flow	-174.67M	549.19M	-2.13B	-1.11B	265.35M
Investing Cash Flow	433.31M	423.84M	2.42B	833.47M	-435.39M
Financing Cash Flow	-358.94M	-1.01B	-444.62M	551.46M	-566.39M

Wang On Group Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1222, the sentiment is Positive. 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 bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	61 Neutral	€5.86B	12.16	-11.12%	4.18%	3.79%	-34.20%
2327	50 Neutral	HK$1.23B	36.71	2.65%	1.33%	-60.81%	-21.00%
1222	45 Neutral	€286.35M	―	-19.72%	1.90%	-22.76%	-630.56%
1094	44 Neutral	HK$284.41M	―	-0.09%	―	63.16%	-100.69%
0925	40 Underperform	HK$919.95M	―		―	―	―
W2T1	―	€47.87M	―	-4.41%	―	―	―
1468	36 Underperform	HK$494.99M	―	-17.78%	―	-63.62%	49.46%

Wang On Group Limited Corporate Events

Wang On Group Announces Property Disposal in Kowloon

Wang On Group Limited, through its subsidiary WYT, has entered into a provisional agreement to sell a property located at 60A Yen Chow Street, Kowloon, Hong Kong. The property is being sold for HK$19.5 million to Blessed Fortune Limited, with Centaline Property Agency Limited acting as the property agent. This transaction is classified as a discloseable transaction under the Listing Rules, as the applicable percentage ratio exceeds 5% but is below 25%. The disposal aligns with current market prices and conditions, and the payment is structured in deposits and a final balance upon completion.