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

• Market Cap: HK$171.39M
• Dividend Yield: N/A
• Average Volume (3M): 26.13K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.02
• Revenue Growth: 19.46%
• EPS Growth: 28.18%
• Country: HK
• Employees: 3,519
• Sector: Technology
• Sector Strength: 94
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.10
• Shares Outstanding: 219,725,000
• 10 Day Avg. Volume: 10,700
• 30 Day Avg. Volume: 26,133
• PEG Ratio: 0.16
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.78
• 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: 74 Outperform
• Price Target: HK$1.00 ▲(28.21%Upside)

The company's strong financial performance, particularly in revenue growth and cost management, coupled with favorable technical indicators, supports a solid stock score. Valuation metrics suggest potential undervaluation, enhancing the attractiveness of the stock. However, limited cash flow data and profit margins indicate areas for improvement.

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

Company Description

Wai Chi Holdings Co., Ltd. (1305) is a Hong Kong-based investment holding company primarily engaged in the manufacturing and distribution of electronic components. The company's core products include light-emitting diode (LED) components, LED lighting products, and semiconductor products. Wai Chi Holdings serves various sectors such as automotive, consumer electronics, and industrial applications, providing innovative and energy-efficient solutions to its clients.

How the Company Makes Money

Wai Chi Holdings Co., Ltd. generates revenue through the production and sale of electronic components, mainly focusing on LED and semiconductor products. The company's key revenue streams include sales of LED components and lighting products to manufacturers and distributors across different industries. Significant partnerships with original equipment manufacturers (OEMs) and collaborations with technology firms contribute to its earnings. Additionally, Wai Chi Holdings benefits from its investment in research and development, which supports the development of advanced products and enhances its competitive position in the market.

Wai Chi Holdings Co., Ltd. Financial Statement Overview

Summary

The company exhibits strong revenue growth and an improved gross profit margin, indicating positive business momentum and efficient cost management. However, the low net profit margin and limited cash flow data suggest areas for improvement in profitability and cash flow reporting.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.37B	1.99B	2.22B	1.92B	1.40B
Gross Profit	363.31M	268.60M	262.69M	282.20M	198.42M
EBITDA	153.90M	130.89M	158.37M	155.31M	107.12M
Net Income	46.68M	36.42M	59.91M	51.47M	30.96M
Balance Sheet
Total Assets	2.76B	2.40B	2.72B	2.43B	2.03B
Cash, Cash Equivalents and Short-Term Investments	378.95M	357.21M	257.91M	112.31M	101.52M
Total Debt	385.42M	278.74M	457.75M	343.50M	372.86M
Total Liabilities	1.86B	1.53B	1.90B	1.61B	1.28B
Stockholders Equity	893.37M	866.52M	825.29M	818.48M	749.86M
Cash Flow
Free Cash Flow	96.56M	-242.39M	269.12M	230.06M	224.79M
Operating Cash Flow	162.22M	-135.94M	319.78M	255.42M	307.00M
Investing Cash Flow	-260.06M	432.18M	-295.92M	-169.60M	-336.08M
Financing Cash Flow	50.74M	-192.28M	137.18M	-77.68M	24.14M

Wai Chi Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 0.78 is below the 20-day moving average (MA) of 0.79, above the 50-day MA of 0.77, and below the 200-day MA of 0.82, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.34 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1305	74 Outperform	HK$171.39M	3.67	5.30%	―	19.46%	28.18%
1480	65 Neutral	HK$254.40M	4.22	8.23%	5.66%	-7.93%	-19.66%
Sector *	57 Neutral	HK$14.23B	4.94	-5.75%	5.29%	9.34%	-42.23%
0532	54 Neutral	HK$215.32M	―	-12.76%	―	-5.65%	-43.21%
0894	51 Neutral	HK$194.97M	25.00	0.52%	1.20%	9.56%	90.70%
1002	41 Neutral	HK$133.09M	―		―	-29.25%	59.26%
2363	40 Underperform	HK$69.44M	5.06		―	-21.55%	83.95%

Wai Chi Holdings Co., Ltd. Corporate Events

Wai Chi Holdings Announces Board Composition and Committee Roles

Wai Chi Holdings Company Limited has announced the composition of its board of directors and their respective roles as of June 30, 2025. The board includes both executive and independent non-executive directors, with Chen Chung Po serving as Chairman and CEO. The company has also established four committees: Audit, Remuneration, Nomination, and Risk Management, each chaired and staffed by various board members. This announcement highlights the company’s governance structure, which is crucial for stakeholders to understand the leadership and oversight mechanisms in place.

Wai Chi Holdings Announces Leadership Changes Amid Governance Updates

Wai Chi Holdings Co., Ltd. announced the retirement and resignation of Mr. Chen Wei Wu as an executive director, effective June 30, 2025, with no disagreements reported. In response to upcoming amendments to the Listing Rules and Corporate Governance Code, the company has appointed Ms. Yiu Kwan Yu to the nomination committee and Mr. Yu Zhenyu as the lead independent non-executive director, effective the same date.

Wai Chi Holdings’ AGM Resolutions Unanimously Approved

Wai Chi Holdings Co., Ltd. announced that all proposed resolutions were passed at their Annual General Meeting held on May 28, 2025. The resolutions included the adoption of audited financial statements, re-election of directors, authorization of directors’ remuneration, re-appointment of auditors, and granting of mandates for share allotment and buyback. The voting was conducted by poll, with all resolutions receiving unanimous support from the shareholders, indicating strong backing for the company’s current management and strategic direction.

Wai Chi Holdings Announces Closure of Register for AGM

Wai Chi Holdings Company Limited has announced the closure of its register of members in preparation for its upcoming annual general meeting (AGM) scheduled for May 28, 2025. The closure will occur from May 23 to May 28, 2025, during which no share transfers will be registered. This move is a standard procedure to determine shareholder eligibility to attend and vote at the AGM, reflecting the company’s adherence to regulatory requirements and ensuring orderly shareholder participation.

Wai Chi Holdings Announces 2025 Annual General Meeting

Wai Chi Holdings Co., Ltd. has announced its upcoming annual general meeting scheduled for May 28, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of the audited financial statements for the year ending December 31, 2024, re-election of various directors, and the re-appointment of SHINEWING (HK) CPA Limited as auditors. Additionally, the board seeks approval to allot and issue additional shares, with the total share capital not exceeding 20% of the current issued share capital.