Wuxi Sunlit Science & Technology Co., Ltd. Class H (1289) AI Stock Analysis

• Market Cap: HK$355.84M
• Dividend Yield: 3.13%
• Average Volume (3M): 152.65K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.20
• Revenue Growth: 20.69%
• EPS Growth: -24.85%
• Country: HK
• Employees: 181
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.18
• Shares Outstanding: 32,000,000
• 10 Day Avg. Volume: 83,450
• 30 Day Avg. Volume: 152,650
• PEG Ratio: 0.05
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 0.95
• 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: 76 Outperform
• Price Target: HK$3.00 ▲(7.14% Upside)

The score is driven primarily by improving financial performance (strong recent growth and profitability) and an exceptionally conservative balance sheet, supported by a low P/E and reasonable dividend yield. Offsetting factors are historically volatile cash flows and a mixed near-term technical picture.

Positive Factors

Revenue Growth

Sustained revenue growth indicates robust demand and effective market strategies, contributing to long-term business expansion.

Balance Sheet Health

A strong balance sheet with minimal debt enhances financial stability and provides flexibility for future investments.

Cash Flow Quality

Strong cash flow generation supports operational needs and potential growth investments, indicating good earnings quality.

Negative Factors

Cash Flow Volatility

Inconsistent cash flow can challenge financial planning and stability, posing risks to sustained operational and strategic initiatives.

Margin Compression

Margin compression suggests cost pressures or pricing challenges, potentially impacting profitability if not managed effectively.

Moderate Returns on Equity

Moderate ROE indicates the company is not yet maximizing shareholder value, which could limit attractiveness to investors.

Wuxi Sunlit Science & Technology Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Wuxi Sunlit Science and Technology Company Limited engages in the research and development, design, manufacture, equipment supply, installation, testing, repair, and maintenance of production lines for manufacturing steel wire products in the People's Republic of China. Its products include brass electroplating wire production lines, bead wire production lines, pre-treatment production lines, inter-medium heat treatment production lines, hot dip and electro galvanizing production lines, gas furnace and water quenching bath products, lead batah for heat treatment, diffusion induction heating systems, take-up and pay-off equipment, and acid mist scrubbers, as well as wire bunching, wire drawing, wrapping, and die repair machines. The company is also involved in the trading of machinery products; and software development and software patent rights trading activities. Its products are used in various industries, including radial tire steel cords, bead wires, cutting wires, hose wires, precision wire ropes, and other steel wire products. The company was incorporated in 2006 and is headquartered in Wuxi, the People's Republic of China.

How the Company Makes Money

Wuxi Sunlit Science & Technology Co., Ltd. generates revenue through the sale of its industrial machinery and equipment. The company serves various industries by providing technologically advanced solutions that optimize production processes. Revenue streams include direct sales of equipment, maintenance services, and technological consulting. The company may also engage in strategic partnerships with other firms to enhance its product offerings and expand its market reach. Key factors contributing to its earnings include its innovation in product development and its ability to meet the evolving needs of industrial clients.

Wuxi Sunlit Science & Technology Co., Ltd. Class H Financial Statement Overview

Summary

Wuxi Sunlit Science & Technology Co., Ltd. demonstrates strong financial performance with robust revenue growth and profitability. The balance sheet is excellent with no debt and a strong equity ratio. However, the company faces challenges in cash flow management, which needs attention to ensure sustainable financial health.

Income Statement

Wuxi Sunlit Science & Technology Co., Ltd. has demonstrated strong revenue growth, with a significant increase in total revenue from 2023 to 2024. The company has maintained healthy gross and net profit margins, indicating efficient cost management and profitability. EBIT and EBITDA margins have also improved, highlighting operational efficiency. However, the company should continue focusing on sustaining this growth and maintaining margins in a competitive industry.

Balance Sheet

The company's balance sheet is robust, with a strong equity ratio and zero debt, showcasing financial stability and low leverage risk. The return on equity (ROE) is commendable, reflecting effective utilization of shareholders' equity to generate profits. The absence of debt enhances flexibility but could limit growth opportunities if not managed strategically.

Cash Flow

Cash flow metrics are challenging, with fluctuating free cash flow and operating cash flow trends. The lack of consistent operating cash flow relative to net income suggests potential issues with cash conversion. Although there is no current debt burden, generating stable cash flows is critical to support future operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	499.17M	516.02M	313.26M	208.05M	167.04M	121.62M
Gross Profit	135.70M	143.21M	95.87M	47.48M	35.63M	30.26M
EBITDA	50.47M	63.15M	53.83M	27.07M	16.41M	12.86M
Net Income	39.94M	49.54M	29.35M	22.60M	4.71M	2.42M
Balance Sheet
Total Assets	919.88M	1.06B	1.03B	945.73M	732.96M	747.90M
Cash, Cash Equivalents and Short-Term Investments	408.99M	347.16M	181.32M	173.22M	110.28M	167.05M
Total Debt	0.00	0.00	0.00	2.00M	0.00	0.00
Total Liabilities	195.14M	350.54M	355.40M	291.12M	100.94M	114.20M
Stockholders Equity	724.74M	713.02M	673.72M	654.62M	632.01M	633.70M
Cash Flow
Free Cash Flow	104.98M	164.83M	2.16M	17.27M	-36.16M	-29.97M
Operating Cash Flow	104.60M	165.23M	8.48M	30.99M	-34.41M	-26.22M
Investing Cash Flow	-76.29M	-128.59M	-37.50M	40.99M	21.04M	17.84M
Financing Cash Flow	-10.24M	-10.24M	-10.24M	7.00M	-6.40M	0.00

Wuxi Sunlit Science & Technology Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1289, the sentiment is Negative. The current price of 2.8 is below the 20-day moving average (MA) of 2.83, below the 50-day MA of 2.81, and above the 200-day MA of 2.25, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.01 is Neutral, neither overbought nor oversold. The STOCH value of 21.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1289.

Wuxi Sunlit Science & Technology Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1289	76 Outperform	HK$355.84M	8.26	5.59%	3.13%	20.69%	-24.85%
3348	67 Neutral	HK$640.00M	7.61	8.36%	3.34%	-21.28%	-29.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3302	51 Neutral	HK$312.93M	-5.45	-10.85%	―	-0.51%	-922.95%
1645	48 Neutral	HK$2.07B	-107.31	-6.34%	―	-2.88%	44.39%
1536	44 Neutral	HK$67.49M	-3.47	-14.06%	―	19.32%	-100.00%
1673	39 Underperform	HK$376.69M	-30.26	-2.71%	―	-4.33%	55.43%