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

• Market Cap: HK$77.52M
• Dividend Yield: N/A
• Average Volume (3M): 110.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: 19.32%
• EPS Growth: -100.00%
• Country: HK
• Employees: 91
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): <0.01
• Shares Outstanding: 456,000,000
• 10 Day Avg. Volume: 68,400
• 30 Day Avg. Volume: 110,800
• PEG Ratio: 0.11
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 26.56
• 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: 49 Neutral
• Price Target: HK$0.17 ▲(2.35% Upside)

The overall stock score of 49 reflects the company's strong revenue growth but significant profitability challenges. Technical analysis shows a positive short-term trend, but valuation remains weak due to negative earnings. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

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

Controlled Leverage

Improved leverage management suggests better financial stability and reduced risk, enhancing long-term sustainability.

Cash Flow Improvements

Positive operating cash flow indicates improved cash generation ability, which is crucial for funding operations and growth initiatives.

Negative Factors

Negative Profitability

Ongoing losses and negative margins highlight challenges in cost management and pricing, affecting long-term financial health.

Negative Return on Equity

Negative ROE indicates that the company is not generating sufficient returns on shareholders' equity, impacting investor confidence.

Free Cash Flow Concerns

Negative free cash flow suggests potential cash management issues, limiting the company's ability to invest in growth opportunities.

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 the sale of precast concrete products and related construction materials. The company has established a diversified revenue model that includes direct sales to construction companies, partnerships with government and private sector infrastructure projects, and long-term contracts with major developers. Key revenue streams include bulk sales of precast concrete components for residential, commercial, and civil engineering projects, as well as value-added services such as logistics and project management. The company's strategic alliances and collaborations with industry players further enhance its market reach and contribute significantly to its earnings.

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	217.07M	217.07M	148.23M	157.05M	141.75M	106.69M
Gross Profit	43.83M	43.83M	34.15M	43.42M	39.60M	38.98M
EBITDA	-8.96M	-6.32M	-17.85M	-3.44M	1.65M	-4.36M
Net Income	-12.52M	-12.52M	-18.67M	-3.50M	-454.00K	-4.41M
Balance Sheet
Total Assets	200.41M	200.41M	201.74M	231.10M	232.80M	239.09M
Cash, Cash Equivalents and Short-Term Investments	69.46M	69.46M	66.91M	89.32M	89.68M	87.44M
Total Debt	13.91M	13.91M	33.45M	39.90M	32.92M	34.72M
Total Liabilities	55.84M	55.84M	48.92M	53.24M	46.49M	53.11M
Stockholders Equity	115.23M	115.23M	122.71M	142.71M	149.33M	148.87M
Cash Flow
Free Cash Flow	2.00M	2.00M	-9.28M	-4.76M	1.40M	-15.88M
Operating Cash Flow	11.45M	11.45M	-7.98M	-3.75M	1.97M	-14.92M
Investing Cash Flow	-6.25M	-6.25M	297.00K	4.68M	-23.67M	-903.00K
Financing Cash Flow	-7.49M	-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: Negative
• RSI: Neutral
• STOCH: Negative

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 above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.17, and above the 200-day MA of 0.14, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.30 is Neutral, neither overbought nor oversold. The STOCH value of 90.57 is Negative, 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	67 Neutral	HK$605.00M	7.19	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$349.75M	-6.25	-10.85%	―	-0.51%	-922.95%
1645	51 Neutral	HK$1.82B	-103.22	-6.34%	―	-2.88%	44.39%
1536	49 Neutral	HK$77.52M	-3.99	-14.06%	―	19.32%	-100.00%
1673	39 Underperform	HK$399.03M	-30.26	-2.71%	―	-4.33%	55.43%

Yuk Wing Group Holdings Ltd. Corporate Events

Yuk Wing Group Holdings Ltd. Reports Decline in Interim Profit Despite Revenue Growth

Yuk Wing Group Holdings Ltd. reported its unaudited consolidated interim results for the six months ending September 30, 2025, showing a slight increase in revenue to HK$109,130,000 compared to the previous year. However, the company experienced a significant decline in profit, with a net profit of HK$2,143,000, down from HK$6,264,000 in the same period last year. This decrease was attributed to higher costs of sales and administrative expenses, as well as reduced other income. The total comprehensive income for the period also saw a downturn, mainly due to unfavorable exchange differences affecting foreign operations.

Yuk Wing Group Holdings Ltd. Schedules Board Meeting to Review Interim Results

Yuk Wing Group Holdings Ltd. has announced that its Board of Directors will convene on November 27, 2025, to review and approve the unaudited interim results for the six months ending September 30, 2025. The meeting will also consider the payment of an interim dividend, which could have implications for stakeholders depending on the company’s financial performance.