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

• Market Cap: HK$180.17M
• Dividend Yield: N/A
• Average Volume (3M): 151.37K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.05
• Revenue Growth: 19.46%
• EPS Growth: 28.18%
• Country: HK
• Employees: 3,519
• Sector: Technology
• Sector Strength: 98
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.10
• Shares Outstanding: 219,725,000
• 10 Day Avg. Volume: 11,000
• 30 Day Avg. Volume: 151,366
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 76 Outperform
• Price Target: HK$1.00 ▲(20.48% Upside)

Wai Chi Holdings Co., Ltd. benefits from a strong valuation score due to its low P/E ratio, indicating potential undervaluation. Technical analysis supports bullish momentum, although caution is advised due to overbought indicators. The financial performance is stable with room for improvement in cash flow management. The absence of earnings call and corporate events data does not impact the score.

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

Company Description

Wai Chi Holdings Co., Ltd. (1305) is a prominent company listed on the Hong Kong Stock Exchange, primarily engaged in the manufacturing and sale of light-emitting diode (LED) products. The company specializes in a wide range of LED applications, including LED backlighting and LED lighting, serving both domestic and international markets. Wai Chi Holdings is known for its innovation and quality, contributing to the advancement of energy-efficient lighting solutions.

How the Company Makes Money

Wai Chi Holdings Co., Ltd. generates revenue through the design, manufacture, and sale of LED products. The company's key revenue streams include LED backlighting, which is utilized in consumer electronics such as televisions and monitors, and LED lighting, which is used in residential, commercial, and industrial applications. The company benefits from its vertically integrated business model, which allows it to control the production process from raw materials to finished products. Significant partnerships with electronics manufacturers and distributors enhance its market reach and contribute to its earnings. Additionally, Wai Chi Holdings invests in research and development to maintain its competitive edge and expand its product offerings in the evolving LED technology landscape.

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: Positive
• Last Price: 0.83
• 50DMA: Positive
• 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:1305, the sentiment is Positive. The current price of 0.83 is above the 20-day moving average (MA) of 0.81, above the 50-day MA of 0.80, and above the 200-day MA of 0.82, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 55.40 is Neutral, neither overbought nor oversold. The STOCH value of 55.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	76 Outperform	HK$180.17M	3.86	5.30%	―	19.46%	28.18%
1480	65 Neutral	HK$244.80M	4.06	8.23%	5.77%	-7.93%	-19.66%
Sector *	57 Neutral	HK$14.16B	10.67	-2.83%	4.83%	9.36%	-49.67%
0894	51 Neutral	HK$202.11M	25.91	0.52%	1.18%	9.56%	90.70%
0532	51 Neutral	HK$222.62M	―	-12.76%	―	-5.65%	-43.21%
2363	46 Neutral	HK$75.56M	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.