Wang On Group Limited (1222) AI Stock Analysis

• Market Cap: HK$298.80M
• Dividend Yield: N/A
• Average Volume (3M): 5.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$0.03 ▲(40.00% Upside)

The overall stock score of 51 reflects significant challenges in financial performance, with high leverage and negative profit margins being major concerns. Technical analysis shows some positive momentum, but valuation remains unattractive due to negative earnings and lack of dividends. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for the company's offerings, suggesting potential for market expansion and increased market share.

Cash Flow Improvements

Improved cash flow enhances the company's ability to reinvest in growth opportunities and manage financial obligations, supporting long-term stability.

Diversified Revenue Streams

Diversification across sectors reduces dependency on a single revenue stream, providing resilience against sector-specific downturns.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting the company's flexibility to invest in growth and manage economic downturns effectively.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies, which could hinder the company's ability to generate sustainable profits over time.

Profitability and Financial Stability Challenges

Ongoing financial challenges could impact the company's ability to fund operations and growth initiatives, affecting long-term viability.

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

Wang On Group Limited faces challenges in profitability and financial stability, with high leverage and negative profit margins. While revenue growth and cash flow improvements are positive signs, the company must address operational inefficiencies and manage debt levels to enhance financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.74B	2.74B	1.98B	3.60B	1.86B	1.92B
Gross Profit	921.39M	808.76M	823.64M	1.22B	907.10M	974.96M
EBITDA	-426.68M	-705.81M	-376.63M	533.79M	174.49M	245.59M
Net Income	-922.43M	-922.43M	-753.85M	12.78M	-305.23M	123.88M
Balance Sheet
Total Assets	13.73B	13.73B	17.58B	18.39B	20.06B	20.45B
Cash, Cash Equivalents and Short-Term Investments	796.09M	796.09M	1.33B	1.75B	1.96B	2.47B
Total Debt	5.29B	5.29B	7.11B	7.05B	7.63B	7.84B
Total Liabilities	6.95B	6.95B	9.46B	9.01B	10.46B	10.48B
Stockholders Equity	4.33B	4.33B	5.27B	5.92B	5.99B	6.44B
Cash Flow
Free Cash Flow	1.13B	1.13B	-206.60M	491.96M	-2.21B	-1.17B
Operating Cash Flow	1.18B	1.18B	-174.67M	549.19M	-2.13B	-1.11B
Investing Cash Flow	511.37M	656.19M	433.31M	423.84M	2.42B	833.47M
Financing Cash Flow	-1.94B	-2.32B	-358.94M	-1.01B	-444.62M	551.46M

Wang On Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.03, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.20 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
1222	51 Neutral	HK$298.80M	-0.25	-30.56%	―	30.86%	-67.89%
2327	51 Neutral	HK$1.13B	28.65	3.21%	2.00%	-54.92%	26.32%
1282	47 Neutral	HK$600.00M	-1.65	-4.03%	―	55.27%	68.84%
1468	45 Neutral	HK$218.84M	-0.94	-18.50%	―	-19.10%	83.61%
1094	41 Neutral	HK$198.49M	-1.24	-58.89%	―	-92.58%	-44916.67%
0925	40 Underperform	―	―	―	―	―	―

Wang On Group Limited Corporate Events

Wang On Group Limited Reports Interim Financial Challenges

Wang On Group Limited reported a challenging financial performance for the six months ending September 30, 2025, with a significant decline in revenue and profitability. The company experienced a 1.8% decrease in revenue and a substantial drop in gross profit by 29.9%, resulting in a net loss attributable to owners of HK$354 million. The interim results reflect increased costs and expenses, impacting the company’s financial stability and market positioning.

Wang On Group Issues Profit Warning Amid Strategic Asset Disposals

Wang On Group Limited has issued a profit warning, expecting a loss of up to HK$360 million for the six months ended September 2025, compared to a profit of HK$85.8 million in the same period last year. The loss is attributed to strategic asset disposals aimed at strengthening liquidity amid a downturn in the real estate market, resulting in a 25% reduction in net debt. Despite the loss, the company achieved record-high contracted sales in Hong Kong, indicating strong operational performance and positioning for future growth.

Wang On Group Schedules Board Meeting for Interim Results and Dividend Decision

Wang On Group Limited has announced that its board of directors will hold a meeting on November 24, 2025, to review and approve the interim financial results for the six months ending September 30, 2025. The meeting will also consider the declaration of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Wang On Group Completes Key Man Insurance Subscription

Wang On Group Limited and Wang On Properties Limited have announced the completion of a key man insurance policy subscription with Manulife, involving a single premium of approximately US$4.85 million. This transaction, which exceeds a 5% but is less than 25% applicable percentage ratio, is considered a discloseable transaction under Hong Kong’s Listing Rules, reflecting the companies’ strategic financial planning to safeguard their key personnel.