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Wan Kei Group Holdings Limited (HK:1718)
:1718
Hong Kong Market
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Wan Kei Group Holdings Limited (1718) AI Stock Analysis

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HK:1718

Wan Kei Group Holdings Limited

(1718)

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Neutral 41 (OpenAI - 4o)
Rating:41Neutral
Price Target:
HK$0.50
▲(92.31% Upside)
The overall stock score is primarily impacted by the company's weak financial performance and poor valuation. Despite some improvements in cash flow, the high leverage and persistent losses pose significant risks. Technical analysis suggests a bearish trend, with the stock nearing oversold conditions, which could present a potential buying opportunity if financial conditions improve.

Wan Kei Group Holdings Limited (1718) vs. iShares MSCI Hong Kong ETF (EWH)

Wan Kei Group Holdings Limited Business Overview & Revenue Model

Company DescriptionWan Kei Group Holdings Limited, an investment holding company, provides foundation and ground investigation field works to public and private sectors in Hong Kong. The company operates through Foundation Construction; Ground Investigation Services; Financial Services; and Trading of Beauty and Skin Care Products segments. Its foundation works primarily consist of construction of socketed H-piles, mini piles, soldier piles, pipe piles, and king posts. The company also engages in the construction of site foundation engineering and bore pile pre-drilling works; and trading of beauty and skin care products. In addition, it provides investment, financing, and money lending services, as well as leases machinery. Wan Kei Group Holdings Limited was incorporated in 2014 and is headquartered in Wan Chai, Hong Kong.
How the Company Makes MoneyWan Kei Group Holdings Limited generates revenue primarily through the sale of precast concrete products, which are essential components in construction projects. The company benefits from multiple revenue streams, including direct sales to contractors and builders, as well as long-term contracts for supply to large-scale construction projects. Additionally, Wan Kei Group may engage in joint ventures or partnerships with construction firms to secure large contracts, further enhancing its earnings potential. The company's strategic positioning in the construction supply chain, along with its reputation for quality, enables it to maintain a competitive edge and secure consistent revenue.

Wan Kei Group Holdings Limited Financial Statement Overview

Summary
Wan Kei Group Holdings Limited faces significant financial challenges, with declining revenues and persistent losses impacting profitability. High leverage increases financial risk, while cash flow improvements offer some hope for recovery. Overall, the company needs to address operational inefficiencies and manage debt levels to improve its financial health.
Income Statement
35
Negative
The company has experienced declining revenue growth with a negative trend in profitability. Gross profit margin is relatively stable, but net profit margin is negative, indicating losses. EBIT and EBITDA margins are also negative, reflecting operational challenges.
Balance Sheet
40
Negative
The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which poses financial risk. Return on equity is negative, reflecting poor profitability. However, the equity ratio is moderate, suggesting some stability in asset financing.
Cash Flow
45
Neutral
Cash flow analysis reveals a substantial improvement in free cash flow growth, but operating cash flow remains negative, indicating potential liquidity issues. The free cash flow to net income ratio is positive, suggesting some efficiency in cash generation relative to net losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue311.38M301.13M288.65M315.45M263.22M293.60M
Gross Profit50.43M52.96M53.07M53.79M52.81M56.97M
EBITDA-40.53M-32.33M-6.05M-34.22M14.37M10.62M
Net Income-49.56M-51.43M-20.62M-47.00M-12.76M-12.24M
Balance Sheet
Total Assets327.72M267.27M323.97M354.08M458.33M466.55M
Cash, Cash Equivalents and Short-Term Investments116.92M109.44M140.25M116.48M180.55M199.35M
Total Debt192.61M8.63M179.94M188.91M245.36M236.14M
Total Liabilities235.98M217.57M233.15M236.75M286.61M285.73M
Stockholders Equity92.24M50.90M90.32M117.34M171.71M180.83M
Cash Flow
Free Cash Flow-3.86M-26.53M40.56M22.33M1.17M-16.49M
Operating Cash Flow4.69M-14.98M42.29M24.36M4.91M-11.90M
Investing Cash Flow-33.79M-12.29M331.77K28.54M-6.75M-63.97M
Financing Cash Flow3.97M-3.68M-20.36M-68.35M-3.43M-16.91M

Wan Kei Group Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.26
Price Trends
50DMA
0.27
Negative
100DMA
0.26
Positive
200DMA
0.26
Positive
Market Momentum
MACD
<0.01
Positive
RSI
40.08
Neutral
STOCH
23.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1718, the sentiment is Negative. The current price of 0.26 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.27, and above the 200-day MA of 0.26, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 40.08 is Neutral, neither overbought nor oversold. The STOCH value of 23.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1718.

Wan Kei Group Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
HK$68.80M-12.11-50.14%-114.40%
58
Neutral
HK$84.00M7.672.28%92.38%
50
Neutral
HK$56.44M-2.98-7.79%-28.58%-47.10%
45
Neutral
HK$36.59M0.0310.23%
41
Neutral
HK$66.32M-72.83%4.32%-143.93%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1718
Wan Kei Group Holdings Limited
0.26
0.07
36.84%
HK:1500
In Construction Holdings Ltd
0.07
>-0.01
-12.50%
HK:1591
Shun Wo Group Holdings Ltd.
0.17
>-0.01
-5.56%
HK:1722
Kin Pang Holdings Ltd.
0.06
0.00
0.00%
HK:1802
Wenye Group Holdings Limited
0.04
-0.01
-20.00%
HK:3822
Sam Woo Construction Group Ltd.
1.00
0.04
4.17%

Wan Kei Group Holdings Limited Corporate Events

Wan Kei Group’s AGM Resolutions Unanimously Approved
Sep 1, 2025

Wan Kei Group Holdings Limited announced that all resolutions proposed at their Annual General Meeting held on September 1, 2025, were passed unanimously. The resolutions included the reappointment of auditors, re-election of directors, and granting of mandates to the board for share issuance and repurchase. This unanimous approval reflects strong shareholder support and may enhance the company’s operational flexibility and governance, potentially impacting its strategic decisions and market positioning.

The most recent analyst rating on (HK:1718) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Wan Kei Group Holdings Limited stock, see the HK:1718 Stock Forecast page.

Wan Kei Group Completes Share Subscription, Raises HK$4.8 Million
Aug 26, 2025

Wan Kei Group Holdings Limited has completed the subscription of new shares under a general mandate, resulting in the issuance of 23,040,000 shares at HK$0.215 each, raising approximately HK$5.0 million in gross proceeds. The net proceeds of HK$4.8 million will be used for general working capital, including director fees, staff salaries, legal fees, and office rentals, with the funds intended to be fully utilized by the end of 2025. This subscription has altered the company’s shareholding structure, with the new shares representing about 9.09% of the enlarged share capital.

The most recent analyst rating on (HK:1718) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Wan Kei Group Holdings Limited stock, see the HK:1718 Stock Forecast page.

Wan Kei Group Holdings Announces New Share Subscription Agreement
Aug 15, 2025

Wan Kei Group Holdings Limited has entered into a Subscription Agreement with Zhongshen Xihe Enterprise Limited to issue 23,040,000 new shares, representing approximately 10% of its current issued share capital. The shares will be issued at a price of HK$0.215 each, which is a discount to recent trading prices. The gross proceeds from this issuance are expected to be HK$5.0 million, with net proceeds of HK$4.8 million intended for general working capital. This move is part of the company’s strategy to strengthen its financial position, although the completion of the subscription is subject to certain conditions.

Wan Kei Group Holdings Announces Virtual AGM and Share Issuance Plans
Jul 24, 2025

Wan Kei Group Holdings Limited, incorporated in the Cayman Islands, has announced its upcoming annual general meeting scheduled for September 1, 2025, to be held virtually. The meeting will address several ordinary resolutions, including the approval of audited financial statements, reappointment of auditors, and re-election of directors. Additionally, the board seeks authorization to manage the issuance of additional shares, with a cap set at 20% of the current issued shares, to enhance the company’s capital management strategies.

Wan Kei Group Holdings Completes Disposal of Zhongshen Jianye Shares
Jul 15, 2025

Wan Kei Group Holdings Limited announced the disposal of 440,000 Zhongshen Jianye shares, representing approximately 0.07% of Zhongshen Jianye’s issued share capital, for a total of HK$662,800. This transaction marks the company’s complete divestment from Zhongshen Jianye, an investment holding company engaged in construction services in the PRC. The disposal is considered a discloseable transaction under Hong Kong’s Listing Rules due to the aggregated percentage ratios of recent disposals exceeding 5% but remaining below 25%.

Wan Kei Group Sells Zhongshen Jianye Shares in Discloseable Transaction
Jul 14, 2025

Wan Kei Group Holdings Limited, through its indirect wholly-owned subsidiary, has disposed of 2,040,000 shares of Zhongshen Jianye, an investment holding company engaged in construction services in the PRC, for HK$3,153,520. This transaction, conducted on the open market, is considered a discloseable transaction under Hong Kong’s Listing Rules due to the aggregated percentage ratios exceeding 5% but remaining below 25%. The disposal reduces Wan Kei Group’s holdings in Zhongshen Jianye to 440,000 shares.

Wan Kei Group Reports Increased Revenue but Rising Losses for FY2025
Jun 27, 2025

Wan Kei Group Holdings Limited reported its annual financial results for the year ended March 31, 2025, showing a revenue increase to HK$301.1 million from HK$288.7 million in the previous year. However, the company faced a significant increase in losses before tax, amounting to HK$51.9 million compared to HK$19.3 million the previous year, primarily due to higher general and administrative expenses. The board did not recommend a final dividend for the year, reflecting the financial challenges faced by the company.

Wan Kei Group Issues Profit Warning Amid Rising Operational Costs
Jun 19, 2025

Wan Kei Group Holdings Limited, listed on the Hong Kong Stock Exchange, has issued a profit warning for the fiscal year ending March 31, 2025. The company anticipates a significant increase in net loss compared to the previous year, primarily due to higher selling, general, and administrative expenses as it expands its operations. Despite a reversal of impairment losses, the expected net loss is attributed to increased operational costs aimed at maintaining business stability and sustainability.

Wan Kei Group Schedules Board Meeting to Approve Annual Results
Jun 16, 2025

Wan Kei Group Holdings Limited has announced a Board meeting scheduled for June 27, 2025, to discuss and approve the company’s annual results for the fiscal year ending March 31, 2025. The meeting will also consider the recommendation of a final dividend payment, highlighting the company’s ongoing financial and operational assessments.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 27, 2025