Wang On Properties Ltd. (1243) AI Stock Analysis

• Market Cap: HK$532.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: 213.63%
• EPS Growth: -61.18%
• Country: HK
• Employees: 146
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.03
• Shares Outstanding: 15,200,000,000
• 10 Day Avg. Volume: 960,400
• 30 Day Avg. Volume: 1,053,733
• PEG Ratio: -0.02
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 0.56
• 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: 51 Neutral
• Price Target: HK$0.04 ▼(-12.50% Downside)
• Action: Reiterated Date: 11/26/25
• Date: Action: Reiterated 11/26/25

The overall stock score is primarily influenced by financial performance challenges, including negative profitability margins and operational inefficiencies. Technical analysis provides a neutral outlook, while valuation concerns due to negative earnings further weigh down the score.

Positive Factors

Revenue Growth

Sustained, high revenue growth indicates robust demand and execution of development projects, supporting scale and future cash flows. Over a 2–6 month horizon, strong top-line momentum improves project financing prospects and underpins potential recovery in profitability if cost efficiencies follow.

Free Cash Flow Strength

Substantial free cash flow growth and near‑one FCF-to-net-income conversion show the business is generating real cash despite accounting losses. Durable cash generation allows funding of development cycles, debt servicing, and selective capex without immediate equity raises, improving financial resilience.

Balanced Leverage

A roughly 1.0 debt-to-equity level reflects moderate leverage that can finance project pipelines while retaining flexibility. This balance supports continued development activity and rental investments without extreme solvency risk, assuming cash flows and project execution remain steady.

Negative Factors

Negative Profitability Margins

Very large negative margins point to structural operational or project-level losses that impair sustainable earnings power. Over months, persistent negative EBIT and net margins erode retained earnings, constrain reinvestment, and raise questions about long-term viability without meaningful improvement in cost structure or pricing.

Negative Return on Equity

A negative ROE indicates the company is destroying shareholder value rather than generating returns on capital employed. This structural weakness limits the ability to attract capital, reduces internal reinvestment capacity, and increases reliance on external financing or asset sales to stabilize equity metrics.

Operational/Cash Management Issues

An OCF-to-net-income ratio below 1 and cited operational inefficiencies point to uneven cash conversion and working-capital stress. Over several months this raises execution risk for development projects, can inflate financing needs, and makes cash flows less predictable even with strong headline FCF growth.

Wang On Properties Ltd. Business Overview & Revenue Model

Company Description

Wang On Properties Limited, an investment holding company, invests in, develops, and sells residential and commercial properties in Hong Kong. It operates through three segments: Property Development, Property Investment, and Asset Management. The company engages in the acquisition of land to develop property, as well as the acquisition of existing buildings to be demolished and rebuilt into new properties; and acquisition of ready-made properties for long-term investments. It also engages in the rental or sale of commercial and industrial premises; and provision of management, securities investment, asset management, and financial services. The company was founded in 1987 and is headquartered in Kowloon Bay, Hong Kong. Wang On Properties Limited is a subsidiary of Earnest Spot Limited.

How the Company Makes Money

Wang On Properties generates revenue primarily through three key streams: property sales, rental income, and property management services. The company profits from the sale of residential and commercial properties it develops, often at a premium due to location and quality. Additionally, Wang On Properties earns consistent rental income from its portfolio of commercial and residential properties, providing a stable cash flow. The company may also engage in property management services for third-party properties, further diversifying its revenue sources. Strategic partnerships with local contractors and real estate agencies enhance its market reach and operational efficiency, contributing to its overall earnings.

Wang On Properties Ltd. Financial Statement Overview

Summary

Wang On Properties Ltd. shows strong revenue growth but struggles with profitability and operational inefficiencies. The balance sheet is moderately leveraged, and cash flow management shows improvement but requires careful monitoring.

Income Statement

The income statement shows significant volatility with a recent revenue growth rate of 177% but negative profitability margins, including a net profit margin of -77.87% and an EBIT margin of -63.53%. This indicates substantial operational challenges despite revenue growth.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.998, indicating balanced leverage. However, the negative return on equity of -28.08% suggests inefficiencies in generating returns from equity investments.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate of 268.87% and a near-perfect free cash flow to net income ratio of 0.999. Despite this, the operating cash flow to net income ratio of 0.90 indicates potential cash flow management issues.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.42B	1.25B	297.89M	1.99B	38.86M	339.51M
Gross Profit	13.88M	139.23M	59.77M	316.25M	15.54M	169.59M
EBITDA	-813.04M	-781.64M	-540.08M	42.79M	-62.37M	-13.63M
Net Income	-1.46B	-976.89M	-733.28M	211.07M	285.08M	466.75M
Balance Sheet
Total Assets	6.54B	7.27B	9.89B	9.75B	10.61B	10.20B
Cash, Cash Equivalents and Short-Term Investments	422.62M	393.95M	766.31M	889.95M	976.27M	1.05B
Total Debt	3.14B	3.47B	4.72B	4.21B	4.58B	4.91B
Total Liabilities	3.59B	3.85B	5.44B	4.46B	5.42B	5.17B
Stockholders Equity	3.09B	3.48B	4.45B	5.27B	5.17B	5.02B
Cash Flow
Free Cash Flow	678.70M	918.14M	-724.49M	329.63M	-3.04B	-1.40B
Operating Cash Flow	679.33M	918.24M	-724.14M	347.81M	-3.03B	-1.40B
Investing Cash Flow	47.81M	328.45M	410.14M	327.05M	3.42B	331.56M
Financing Cash Flow	-863.56M	-1.62B	428.50M	-897.30M	-377.90M	1.04B

Wang On Properties Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1243, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.95 is Neutral, neither overbought nor oversold. The STOCH value of 120.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1243.

Wang On Properties Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0496	60 Neutral	HK$615.24M	7.67	1.50%	―	10.78%	-12.42%
1243	51 Neutral	HK$532.00M	-0.40	-38.17%	―	213.63%	-61.18%
0846	51 Neutral	HK$658.09M	-0.56	-12.55%	―	-25.51%	-158.20%
3688	43 Neutral	HK$430.88M	-0.34	-35.32%	―	53.69%	-33.81%
0542	43 Neutral	HK$2.48B	-2.01	96.66%	―	-16.81%	-0.18%
1628	40 Underperform	HK$157.57M	-0.01	―	―	-62.71%	-16.95%

Wang On Properties Ltd. Corporate Events

Wang On Properties Posts HK$2.15 Billion in Unaudited Contracted Sales for First Nine Months of FY2025

Wang On Properties Limited reported that, for the nine months ended 31 December 2025, it and its joint venture companies achieved unaudited contracted sales of approximately HK$2,152 million, representing a total saleable area of about 78,396 square feet. For the most recent quarter from 1 October to 31 December 2025, the group recorded unaudited contracted sales of roughly HK$515 million over 20,076 square feet, providing investors with an interim indication of sales momentum while noting that these preliminary figures may differ from the amounts to be disclosed in forthcoming audited or interim financial statements and should therefore be treated with caution by shareholders and potential investors.

The most recent analyst rating on (HK:1243) stock is a Hold with a HK$0.04 price target. To see the full list of analyst forecasts on Wang On Properties Ltd. stock, see the HK:1243 Stock Forecast page.