Wai Chi Holdings Co., Ltd. (1305) AI Stock Analysis

• Market Cap: HK$149.41M
• Dividend Yield: N/A
• Average Volume (3M): 228.03K
• Price to Earnings (P/E): 2.9
• Beta (1Y): 0.04
• Revenue Growth: 1.72%
• EPS Growth: 41.27%
• Country: HK
• Employees: 3,519
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.13
• Shares Outstanding: 219,725,000
• 10 Day Avg. Volume: 70,900
• 30 Day Avg. Volume: 228,033
• PEG Ratio: 0.17
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.08
• P/FCF Ratio: 1.96
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: HK$0.50 ▼(-26.47% Downside)

The overall stock score is driven primarily by the company's solid financial performance and attractive valuation. The stock's undervaluation, as indicated by a low P/E ratio, is a significant positive factor. However, technical analysis suggests bearish momentum, which is a concern. The lack of recent cash flow data and absence of earnings call insights slightly detract from the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates positive business momentum and expanding market reach, suggesting a robust demand for the company's products.

Balance Sheet Health

A low debt-to-equity ratio reflects prudent leverage management, ensuring financial stability and flexibility for future growth opportunities.

Gross Profit Margin

Improved gross profit margin suggests effective cost control and operational efficiency, enhancing the company's ability to generate profits.

Negative Factors

Net Profit Margin

A low net profit margin indicates challenges in converting revenue into profit, which could impact long-term profitability and shareholder value.

Cash Flow Volatility

Volatility in cash flow and negative trends in free cash flow suggest potential cash management challenges, affecting liquidity and financial planning.

Cash Flow Reporting

Lack of recent cash flow data hinders comprehensive financial analysis, raising concerns about transparency and management's ability to maintain cash flow stability.

Wai Chi Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Wai Chi Holdings Company Limited, an investment holding company, manufactures and trades in light-emitting diode (LED) backlight and LED lighting products to business corporations and public utilities in the People's Republic of China, Hong Kong, Taiwan, and internationally. It provides LED backlight products, such as automobile on-board displays, television displays, and other industrial equipment displays; and LED lighting products, including commercial and public lighting products. The company also offers various services comprising lighting solutions design, installation, maintenance, etc.; and energy management solutions, as well as semiconductor memory chips. The company was founded in 1984 and is headquartered in Kwun Tong, Hong Kong. Wai Chi Holdings Company Limited is a subsidiary of Rexell Technology Company Limited.

How the Company Makes Money

Wai Chi Holdings generates revenue primarily through the sale of its food products, including frozen and processed foods, which are distributed to various retail and wholesale channels. The company's revenue model relies on a combination of direct sales to consumers and partnerships with retailers and distributors. Key revenue streams include sales from its own branded products, contract manufacturing agreements where it produces food items for other brands, and export sales to international markets. Additionally, Wai Chi Holdings may benefit from economies of scale in production and distribution, allowing it to optimize costs and improve margins, contributing to its overall earnings.

Wai Chi Holdings Co., Ltd. Financial Statement Overview

Summary

Wai Chi Holdings Co., Ltd. exhibits strengths in revenue growth and a stable balance sheet with a conservative debt approach. Profitability margins are moderate, and net income growth is modest. Cash flow analysis is limited due to unavailable recent data, signaling a need for improved cash flow reporting and management. Overall, the company shows potential with areas for enhancement in profitability and cash flow stability.

Income Statement

The company has shown strong revenue growth of 19.46% from the previous year, indicating positive business momentum. The gross profit margin improved to 15.31%, demonstrating efficient cost management. However, the net profit margin remains low at 1.97%, suggesting room for improvement in overall profitability. The EBIT and EBITDA margins are moderate at 4.40% and 6.49% respectively, highlighting stable operational performance.

Balance Sheet

The company maintains a solid equity position with a debt-to-equity ratio of 0.43, indicating prudent leverage management. The equity ratio stands at 32.41%, reflecting a strong capital structure. ROE is moderate at 5.23%, suggesting reasonable returns on shareholder equity. The balance sheet shows stability and effective management of liabilities.

Cash Flow

The absence of reported cash flow figures for the latest period limits detailed analysis, but historical data reveals volatility. The company previously demonstrated substantial operating cash flow, though recent years indicate negative trends in free cash flow. The cash flow to net income ratios are unavailable, highlighting potential cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.33B	2.37B	1.99B	2.22B	1.92B	1.40B
Gross Profit	397.60M	363.31M	268.60M	262.69M	282.20M	198.42M
EBITDA	174.73M	153.90M	130.89M	159.37M	155.31M	111.77M
Net Income	51.22M	46.68M	36.42M	59.91M	51.47M	30.96M
Balance Sheet
Total Assets	2.83B	2.76B	2.40B	2.72B	2.43B	2.03B
Cash, Cash Equivalents and Short-Term Investments	204.48M	378.95M	640.92M	316.65M	454.33M	101.52M
Total Debt	452.81M	385.42M	278.74M	457.75M	343.50M	372.86M
Total Liabilities	1.90B	1.86B	1.53B	1.90B	1.61B	1.28B
Stockholders Equity	928.80M	893.37M	866.52M	825.29M	818.48M	749.86M
Cash Flow
Free Cash Flow	-175.33M	96.56M	-242.39M	269.12M	230.06M	224.79M
Operating Cash Flow	-113.35M	162.22M	-135.94M	319.78M	255.42M	307.00M
Investing Cash Flow	-214.61M	-260.06M	432.18M	-295.92M	-169.60M	-336.08M
Financing Cash Flow	45.76M	50.74M	-192.28M	137.18M	-77.68M	24.14M

Wai Chi Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.68
• 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:1305, the sentiment is Negative. The current price of 0.68 is above the 20-day moving average (MA) of 0.67, below the 50-day MA of 0.74, and below the 200-day MA of 0.80, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 46.19 is Neutral, neither overbought nor oversold. The STOCH value of 76.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1305.

Wai Chi Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1480	77 Outperform	HK$280.80M	6.62	5.64%	5.22%	-16.27%	-36.15%
1305	67 Neutral	HK$149.41M	2.92	5.63%	―	1.72%	41.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0894	54 Neutral	HK$373.87M	39.20	0.63%	0.63%	5.72%	-57.39%
0532	48 Neutral	HK$237.22M	-2.03	-8.12%	―	6.32%	28.39%
2363	43 Neutral	HK$70.46M	21.84	―	―	53.37%	-75.77%

Wai Chi Holdings Co., Ltd. Corporate Events

Wai Chi Holdings Updates Audit Committee Terms

Wai Chi Holdings Company Limited has updated the terms of reference for its Audit Committee, which was originally established by the board of directors in 2014. The revised terms, effective from December 2025, outline the committee’s composition, meeting frequency, and operational procedures, emphasizing the inclusion of independent non-executive directors with financial expertise. These changes aim to enhance the governance and oversight functions of the committee, potentially strengthening the company’s financial management and compliance with Hong Kong Stock Exchange listing rules.

Wai Chi Holdings Updates Nomination Committee Structure

Wai Chi Holdings Company Limited has announced the establishment and updated terms of reference for its Nomination Committee, which was initially formed in 2014 and amended effective December 2025. The committee will consist of a majority of independent non-executive directors, with a minimum of three members, and will meet at least once a year to oversee nominations and related governance activities, ensuring diverse representation and adherence to corporate governance standards.

Wai Chi Holdings Updates Remuneration Committee Terms

Wai Chi Holdings Company Limited has announced amendments to the terms of reference for its Remuneration Committee, which were initially established in 2014. The updated terms, effective from December 2025, outline the composition and operational procedures of the committee, emphasizing the requirement for a majority of independent non-executive directors. These changes aim to enhance governance and ensure the committee’s effectiveness in overseeing remuneration policies, potentially impacting the company’s operational transparency and stakeholder trust.

Wai Chi Holdings Announces EGM for Strategic Acquisition Approval

Wai Chi Holdings Company Limited, a company incorporated in the Cayman Islands, has announced an Extraordinary General Meeting (EGM) to be held on December 15, 2025. The primary agenda is to consider and potentially approve a conditional sale and purchase agreement for the acquisition of Joyful Family Consultant Limited by Techwide Management Company Limited. This acquisition, if approved, will authorize the company’s directors to execute necessary actions to implement the agreement, potentially impacting the company’s strategic operations and market positioning.

Wai Chi Holdings Announces Further Delay in Acquisition Circular Dispatch

Wai Chi Holdings Company Limited has announced a further delay in the dispatch of a circular related to its acquisition of Joyful Family Consultant Limited. The company cited the need for additional time to prepare and finalize the contents of the circular, which will now be dispatched on or before 28 November 2025. This delay may impact stakeholders awaiting detailed information regarding the acquisition, including advice from the Independent Board Committee and the Independent Financial Adviser.

Wai Chi Holdings Announces Further Delay in Circular Dispatch

Wai Chi Holdings Company Limited has announced a further delay in the dispatch of a circular related to its acquisition of Joyful Family Consultant Limited. The circular, which includes details about the acquisition and advice from the Independent Board Committee and Financial Adviser, was initially scheduled for dispatch by 7 November 2025 but is now postponed to on or before 21 November 2025 due to additional time needed for preparation.

Wai Chi Holdings Clarifies Share Options and Awarded Shares in 2024 Annual Report

Wai Chi Holdings Co., Ltd. has issued a supplemental announcement to its 2024 Annual Report, detailing the granting and vesting of share options and awarded shares under its 2014 and 2022 schemes. The company has provided additional information regarding the share options granted to eligible participants and the status of unvested awarded shares, including those granted to key executives. This announcement clarifies the financial implications and the company’s adherence to listing rules, potentially impacting stakeholders’ understanding of the company’s equity compensation practices.

Wai Chi Holdings Delays Dispatch of Acquisition Circular

Wai Chi Holdings Company Limited announced a delay in the dispatch of a circular related to the acquisition of Joyful Family Consultant Limited. The circular, initially scheduled for release by October 15, 2025, will now be dispatched by November 7, 2025, due to additional time needed for preparation. This delay may impact stakeholders awaiting further details on the acquisition and related advisory communications.

Wai Chi Holdings Announces Major Acquisition

Wai Chi Holdings Co., Ltd. has announced a major and connected transaction involving the acquisition of the entire shareholding in a target company for HK$155,000,000. This acquisition is considered a major transaction under the Listing Rules, requiring independent shareholders’ approval due to the vendor’s significant shareholding in the company. An Independent Board Committee and an Independent Financial Adviser have been appointed to guide shareholders, with a circular detailing the acquisition to be dispatched by October 15, 2025.