Wang On Group Limited (1222) AI Stock Analysis

• Market Cap: €323.70M
• Dividend Yield: N/A
• Average Volume (3M): 5.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• 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 (1222) is a diversified investment holding company based in Hong Kong, primarily engaged in the property development and investment, logistics, and food and beverage sectors. The company focuses on developing residential and commercial properties, while also offering various logistics services and operating food and beverage outlets, contributing to its broad portfolio aimed at enhancing shareholder value.

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	2.08B	2.74B	1.98B	3.60B	1.86B	1.92B
Gross Profit	283.46M	808.76M	823.64M	1.22B	907.10M	974.96M
EBITDA	-555.86M	-705.81M	-376.63M	533.79M	174.49M	245.59M
Net Income	-779.04M	-922.43M	-753.85M	12.78M	-305.23M	123.88M
Balance Sheet
Total Assets	16.13B	13.73B	17.58B	18.39B	20.06B	20.45B
Cash, Cash Equivalents and Short-Term Investments	1.07B	796.09M	1.33B	1.75B	1.96B	2.47B
Total Debt	5.99B	5.29B	7.11B	7.05B	7.63B	7.84B
Total Liabilities	7.93B	6.95B	9.46B	9.01B	10.46B	10.48B
Stockholders Equity	5.36B	4.33B	5.27B	5.92B	5.99B	6.44B
Cash Flow
Free Cash Flow	785.26M	1.13B	-206.60M	491.96M	-2.21B	-1.17B
Operating Cash Flow	819.13M	1.18B	-174.67M	549.19M	-2.13B	-1.11B
Investing Cash Flow	721.28M	656.19M	433.31M	423.84M	2.42B	833.47M
Financing Cash Flow	-1.46B	-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: 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 Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.03, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.76 is Neutral, neither overbought nor oversold. The STOCH value of 52.78 is Neutral, 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%
1222	51 Neutral	€323.70M	-0.40	-30.56%	―	30.86%	-67.89%
2327	51 Neutral	HK$1.17B	29.69	3.21%	1.93%	-54.92%	26.32%
1282	47 Neutral	€420.76M	-2.16	-4.03%	―	55.27%	68.84%
1468	45 Neutral	HK$248.36M	―	-18.50%	―	-19.10%	83.61%
1094	41 Neutral	HK$213.30M	-1.72	-58.89%	―	-92.58%	-44916.67%
0925	40 Underperform	―	―	―	―	―	―

Wang On Group Limited Corporate Events

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.

Wang On Group Completes Major Transaction and Forms New Joint Ventures

Wang On Group Limited and Wang On Properties Limited have completed a major transaction involving the disposal of a 20% interest in joint venture companies to limited partnerships managed by Angelo, Gordon & Co., L.P. Additionally, they have fulfilled conditions for a business collaboration through the formation of new joint ventures with the same limited partnerships. This strategic move is expected to enhance their operational capabilities and strengthen their market position.

Wang On Group Engages in Sale and Leaseback Transaction

Wang On Group Limited, through its subsidiary Luoyang Hongjin, has entered into a sale and leaseback agreement with Jiangsu Financial for assets valued at RMB20 million. This transaction, classified as a discloseable transaction under Hong Kong’s Listing Rules, involves the sale of assets by Luoyang Hongjin to Jiangsu Financial with a subsequent leaseback, ensuring continued operational use while optimizing financial liquidity.

Wang On Group Limited’s AGM Resolutions Approved by Shareholders

Wang On Group Limited announced that all resolutions proposed during its Annual General Meeting held on August 19, 2025, were approved by shareholders. The resolutions included the adoption of financial statements, re-election of directors, and authorization of directors’ remuneration. Additionally, the company re-appointed Ernst & Young as auditors and granted mandates for share repurchase and issuance. The approval of these resolutions signifies strong shareholder support and is expected to positively impact the company’s governance and operational strategies.

Wang On Group Secures Shareholder Approval for Strategic Joint Ventures

Wang On Group Limited announced that all proposed ordinary resolutions related to the disposal of 20% interests in joint venture companies and the formation of new joint ventures were approved by shareholders during the Special General Meeting held on August 12, 2025. This decision marks a strategic move for the company, potentially strengthening its market position and expanding its collaborative efforts through new joint ventures, which could have significant implications for its stakeholders.