Wang On Group Limited (1222) AI Stock Analysis

• Market Cap: HK$286.35M
• Dividend Yield: 1.9%
• Average Volume (3M): 2.97M
• 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: 57
• Industry: Conglomerates
• EPS (TTM): <0.01
• Shares Outstanding: 14,166,697,000
• 10 Day Avg. Volume: 2,335,251
• 30 Day Avg. Volume: 2,967,924
• PEG Ratio: -0.56
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.51
• 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 (1222) is a diversified investment holding company based in Hong Kong. The company operates across several sectors, including property development and investment, management and sub-licensing of Chinese wet markets, and provision of finance. Wang On Group is known for its involvement in residential and commercial property projects, as well as its strategic investments in various businesses related to its core operations.

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
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.08B	1.98B	3.60B	1.86B	1.92B	3.44B
	Gross Profit
283.46M	823.64M	1.22B	907.10M	974.96M	1.73B
	EBIT
-608.75M	-28.82M	164.70M	93.78M	101.53M	806.41M
	EBITDA
-555.86M	-376.63M	311.91M	254.97M	245.59M	956.78M
	Net Income Common Stockholders
-779.04M	-753.85M	12.78M	-305.23M	123.88M	474.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.07B	1.33B	1.75B	1.96B	2.47B	1.97B
	Total Assets
16.13B	17.58B	18.39B	20.06B	20.45B	19.09B
	Total Debt
5.99B	7.11B	7.05B	7.63B	7.84B	7.04B
	Net Debt
4.98B	5.86B	5.43B	6.14B	6.11B	5.45B
	Total Liabilities
7.93B	9.46B	9.01B	10.46B	10.48B	9.41B
	Stockholders Equity
5.36B	5.27B	5.92B	5.99B	6.44B	6.06B
Cash Flow		Free Cash Flow
785.26M	-206.60M	491.96M	-2.21B	-1.17B	229.69M
	Operating Cash Flow
819.13M	-174.67M	549.19M	-2.13B	-1.11B	265.35M
	Investing Cash Flow
739.39M	433.31M	423.84M	2.42B	833.47M	-435.39M
	Financing Cash Flow
-1.68B	-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 55.32 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 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
0113	76 Outperform	HK$2.64B	13.59	5.58%	2.92%	-12.74%	-17.17%
0016	73 Outperform	HK$246.17B	14.13	2.88%	4.47%	20.91%	-29.29%
0083	70 Outperform	$74.85B	19.69	2.17%	1.83%	-30.38%	-43.73%
Sector *	62 Neutral	$6.76B	11.06	2.80%	6.66%	2.68%	-24.89%
0012	62 Neutral	$129.27B	20.53	1.94%	9.61%	-7.64%	-32.01%
0017	54 Neutral	HK$12.83B	―	-10.34%	9.80%	-56.64%	-3398.20%
1222	45 Neutral	HK$286.35M	―	-13.88%	1.90%	-22.76%	-630.56%

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.