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

• Market Cap: HK$50.16M
• Dividend Yield: N/A
• Average Volume (3M): 77.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: 36.78%
• EPS Growth: 29.00%
• Country: HK
• Employees: 91
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Machinery
• EPS (TTM): -0.04
• Shares Outstanding: 456,000,000
• 10 Day Avg. Volume: 160,600
• 30 Day Avg. Volume: 77,800
• PEG Ratio: -0.16
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.21
• 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: 41 Neutral
• Price Target: ―

The overall stock score of 41 reflects Yuk Wing Group Holdings Ltd.'s significant financial and profitability challenges, as indicated by its negative profit margins and cash flow issues. While the technical analysis suggests some mixed signals, the negative P/E ratio and absence of dividends further weigh down the valuation. Strategic improvements are crucial for enhancing the company's financial health and stock performance.

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 production and sale of drill pipes, which are essential components for drilling operations in construction and mining. The company benefits from long-term contracts with businesses in these sectors, ensuring a steady demand for its products. Additionally, Yuk Wing may have partnerships with major construction and mining firms, enhancing its market reach and stability in sales. The company's earnings are influenced by factors such as commodity prices, global construction activity, and technological advancements in drilling equipment.

Yuk Wing Group Holdings Ltd. Financial Statement Overview

Summary

Yuk Wing Group Holdings Ltd. is facing significant financial challenges, with declining revenues and negative profit margins. The balance sheet shows moderate leverage but reflects weak profitability. Cash flow issues persist, with negative free cash flow and insufficient operational cash flows. The company needs strategic improvements to enhance revenue generation and operational efficiency to stabilize its financial position.

Income Statement

The company has seen a declining revenue trend over the past years, with Total Revenue decreasing from 178.6M in 2020 to 148.2M in 2024. Gross Profit Margin has also decreased from 37.2% in 2020 to 23.0% in 2024. The Net Profit Margin turned negative, with a Net Income of -18.7M in 2024, indicating significant profitability challenges. EBIT and EBITDA margins are negative, further highlighting operational inefficiencies.

Balance Sheet

The company's Debt-to-Equity ratio improved as Total Debt decreased and equity remained relatively stable, reflecting a moderately leveraged position. However, Return on Equity has been negative, showing a lack of profitability. The Equity Ratio decreased slightly over the years but remains healthy at 60.8% in 2024, indicating a stable capital structure.

Cash Flow

The company has experienced negative Free Cash Flow growth, with Free Cash Flow declining from a positive position in 2020 to -9.3M in 2024. The Operating Cash Flow to Net Income ratio is negative, suggesting cash flow challenges. Despite a reduction in CapEx, cash flow generation remains insufficient to cover operational needs sustainably.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	148.23M	157.05M	141.75M	106.69M	178.56M
Gross Profit	34.15M	43.42M	39.60M	38.98M	66.40M
EBITDA	-17.85M	-3.44M	1.65M	-4.36M	30.53M
Net Income	-18.67M	-3.50M	-454.00K	-4.41M	13.68M
Balance Sheet
Total Assets	201.74M	231.10M	232.80M	239.09M	238.20M
Cash, Cash Equivalents and Short-Term Investments	66.91M	89.32M	89.68M	87.44M	101.42M
Total Debt	33.45M	39.90M	32.92M	34.72M	36.35M
Total Liabilities	48.92M	53.24M	46.49M	53.11M	50.48M
Stockholders Equity	122.71M	142.71M	149.33M	148.87M	149.97M
Cash Flow
Free Cash Flow	-9.28M	-4.76M	1.40M	-15.88M	38.24M
Operating Cash Flow	-7.98M	-3.75M	1.97M	-14.92M	39.85M
Investing Cash Flow	297.00K	4.68M	-23.67M	-903.00K	-1.25M
Financing Cash Flow	-9.00M	4.94M	-2.68M	-2.49M	-8.76M

Yuk Wing Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.11 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and below the 200-day MA of 0.12, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 60.25 is Neutral, neither overbought nor oversold. The STOCH value of 19.27 is Positive, 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	69 Neutral	HK$550.00M	7.54	7.31%	3.98%	-28.58%	-53.71%
Sector *	65 Neutral	$10.94B	15.63	5.18%	1.91%	3.14%	-27.13%
3302	57 Neutral	HK$122.41M	―	-6.89%	―	7.26%	-146.91%
1536	41 Neutral	HK$50.16M	―	-10.53%	―	36.78%	29.00%
1645	40 Underperform	HK$575.26M	―	-13.40%	―	4.25%	-4.86%
1673	39 Underperform	HK$359.13M	―	-1.94%	―	-14.00%	87.71%
3628	―	HK$148.74M	21.02	5.60%	―	―	―

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.