Yuk Wing Group Holdings Ltd. (1536) AI Stock Analysis

• Market Cap: HK$76.15M
• Dividend Yield: N/A
• Average Volume (3M): 257.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: 46.44%
• EPS Growth: 38.09%
• Country: HK
• Employees: 91
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): -0.04
• Shares Outstanding: 456,000,000
• 10 Day Avg. Volume: 78,000
• 30 Day Avg. Volume: 257,533
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by the company's financial performance, which shows revenue growth but significant profitability challenges. Technical analysis indicates positive momentum, providing some optimism. However, the negative P/E ratio and lack of dividend yield weigh heavily on the valuation, resulting in a moderate overall score.

Positive Factors

Revenue Growth

The company has shown a positive revenue growth rate of 16.89% in the latest year, indicating an upward trend in sales and expanding market reach.

Leverage Management

Improved debt-to-equity ratio suggests better leverage management, enhancing financial stability and reducing risk associated with high debt levels.

Cash Flow Improvements

Positive cash flow from operations indicates improved cash management, providing the company with more flexibility to invest in growth opportunities.

Negative Factors

Profitability Challenges

Ongoing profitability issues, highlighted by negative net income and margins, may hinder the company's ability to invest in growth and sustain operations long-term.

Negative Return on Equity

Negative return on equity indicates inefficiencies in generating profits from shareholders' investments, impacting investor confidence and potential capital raising.

Free Cash Flow Concerns

Negative free cash flow growth suggests potential cash management issues, limiting the company's ability to fund new projects or return value to shareholders.

Yuk Wing Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Yuk Wing Group Holdings Limited, an investment holding company, designs, manufactures, and trades in down-the-hole (DTH) rock drilling tools in Hong Kong, Macau, the People's Republic of China, and internationally. The company operates through Manufacturing and Trading of DTH Rockdrilling Tools; Trading of Piling and Drilling Machineries; and Trading of Rockdrilling Equipment segments. It offers DTH hammers, casing systems, button bits and bit openers, drill pipes, cluster drills, and casing tubes. The company also trades in piling and drilling machineries, and rock drilling equipment. Its products are used in building foundation and piling on construction sites, mining and quarrying, water well drilling, utility linings, micro-tunneling, and overburden drilling. The company was founded in 1997 and is headquartered in Central, Hong Kong. Yuk Wing Group Holdings Limited is a subsidiary of Colour Shine Investments Limited.

How the Company Makes Money

Yuk Wing Group Holdings Ltd. generates revenue primarily through its construction and engineering contracts. The company earns money by bidding for and executing construction projects, which may involve civil engineering works, building construction, and maintenance services. Revenue is recognized upon the completion of various project milestones or upon the delivery of services as stipulated in contract agreements. Additionally, the company may have recurring revenue streams from maintenance contracts and long-term service agreements with clients. Partnerships with government entities and private developers also significantly contribute to its earnings, as these relationships may secure long-term projects and steady cash flows.

Yuk Wing Group Holdings Ltd. Financial Statement Overview

Summary

Yuk Wing Group Holdings Ltd. is experiencing revenue growth, but profitability remains a significant issue, with negative net income and margins. The balance sheet shows controlled leverage, but the negative return on equity highlights ongoing challenges. Cash flow improvements are noted, but free cash flow remains a concern. Overall, the company needs to focus on improving profitability and cash management to enhance financial stability.

Income Statement

Yuk Wing Group Holdings Ltd. has shown a positive revenue growth rate of 16.89% in the latest year, indicating an upward trend in sales. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin has decreased over the years, suggesting rising costs or pricing pressures. Overall, while revenue is growing, profitability remains a significant challenge.

Balance Sheet

The company's debt-to-equity ratio has improved, indicating better leverage management, with a current ratio of 0.12. However, the return on equity remains negative, highlighting ongoing profitability issues. The equity ratio is stable, suggesting a solid asset base relative to equity. While leverage is under control, the lack of profitability is a concern.

Cash Flow

Cash flow from operations has improved from negative to positive, but free cash flow growth is negative, indicating potential cash management issues. The operating cash flow to net income ratio is low, reflecting inefficiencies in converting income into cash. The free cash flow to net income ratio is positive, suggesting some ability to generate cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	185.71M	217.07M	148.23M	157.05M	141.75M	106.69M
Gross Profit	40.70M	43.83M	34.15M	43.42M	39.60M	38.98M
EBITDA	-20.75M	-6.32M	-17.85M	-3.44M	1.65M	-4.36M
Net Income	-8.09M	-12.52M	-18.67M	-3.50M	-454.00K	-4.41M
Balance Sheet
Total Assets	209.77M	200.41M	201.74M	231.10M	232.80M	239.09M
Cash, Cash Equivalents and Short-Term Investments	60.47M	69.46M	66.91M	89.32M	89.68M	87.44M
Total Debt	21.38M	13.91M	33.45M	39.90M	32.92M	34.72M
Total Liabilities	49.92M	55.84M	48.92M	53.24M	46.49M	53.11M
Stockholders Equity	128.03M	115.23M	122.71M	142.71M	149.33M	148.87M
Cash Flow
Free Cash Flow	-18.98M	2.00M	-9.28M	-4.76M	1.40M	-15.88M
Operating Cash Flow	-17.57M	11.45M	-7.98M	-3.75M	1.97M	-14.92M
Investing Cash Flow	-419.50K	-6.25M	297.00K	4.68M	-23.67M	-903.00K
Financing Cash Flow	-10.35M	-7.49M	-9.00M	4.94M	-2.68M	-2.49M

Yuk Wing Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.17
• 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:1536, the sentiment is Positive. The current price of 0.17 is below the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.14, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.67 is Neutral, neither overbought nor oversold. The STOCH value of 71.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1536.

Yuk Wing Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3348	65 Neutral	HK$550.00M	6.30	8.36%	4.13%	-21.28%	-29.40%
Sector *	65 Neutral	$2.70B	14.70	12.10%	3.45%	2.94%	43.39%
1536	52 Neutral	HK$76.15M	―	-10.53%	―	46.44%	38.09%
3302	49 Neutral	HK$142.66M	―	-10.85%	―	-0.51%	-922.95%
1645	44 Neutral	HK$592.17M	―	-6.34%	―	-2.88%	44.39%
1673	39 Underperform	HK$338.38M	―	-1.94%	―	-14.00%	87.71%
3628	―	HK$180.90M	14.42	9.19%	―	―	―

Yuk Wing Group Holdings Ltd. Corporate Events

Yuk Wing Group Holdings Announces Key Leadership Change

Yuk Wing Group Holdings Ltd. announced the resignation of Ms. Choi Yee Man as the company secretary, authorised representative, and process agent, effective May 1, 2025. She will be succeeded by Mr. Kwong Chun Chung, who brings extensive experience in company secretarial, accounting, auditing, and finance for listed companies in Hong Kong. This change is expected to enhance the company’s operational efficiency and strengthen its governance framework.