Wan Kei Group Holdings Limited (1718) AI Stock Analysis

• Market Cap: HK$72.90M
• Dividend Yield: N/A
• Average Volume (3M): 2.34M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.30
• Revenue Growth: 4.32%
• EPS Growth: -143.93%
• Country: HK
• Employees: 207
• Sector: Industrials
• Sector Strength: 73
• Industry: Engineering & Construction
• EPS (TTM): -0.36
• Shares Outstanding: 253,440,000
• 10 Day Avg. Volume: 1,674,900
• 30 Day Avg. Volume: 2,335,383
• 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: HK$0.50
• Price Target Upside: 66.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: HK$0.50 ▲(66.67% Upside)

The overall stock score is primarily influenced by the company's challenging financial performance, characterized by declining revenues and high leverage. Technical analysis shows some short-term bullish trends, but valuation remains poor due to negative earnings. The lack of earnings call and corporate events data limits additional insights.

Wan Kei Group Holdings Limited Business Overview & Revenue Model

Company Description

Wan Kei Group Holdings Limited (1718) is a Hong Kong-based investment holding company primarily engaged in the manufacturing and trading of building materials, particularly in the production of precast concrete products. The company operates in the construction sector, providing various construction-related solutions and services that cater to both residential and commercial projects. With a focus on quality and innovation, Wan Kei Group aims to meet the growing demand for construction materials in the region.

How the Company Makes Money

Wan 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	311.38M	301.13M	288.65M	315.45M	263.22M	293.60M
Gross Profit	50.43M	52.96M	53.07M	53.79M	52.81M	56.97M
EBITDA	-40.53M	-32.33M	-6.05M	-34.22M	14.37M	10.62M
Net Income	-49.56M	-51.43M	-20.62M	-47.00M	-12.76M	-12.24M
Balance Sheet
Total Assets	327.72M	267.27M	323.97M	354.08M	458.33M	466.55M
Cash, Cash Equivalents and Short-Term Investments	116.92M	109.44M	140.25M	116.48M	180.55M	199.35M
Total Debt	192.61M	8.63M	179.94M	188.91M	245.36M	236.14M
Total Liabilities	235.98M	217.57M	233.15M	236.75M	286.61M	285.73M
Stockholders Equity	92.24M	50.90M	90.32M	117.34M	171.71M	180.83M
Cash Flow
Free Cash Flow	-3.86M	-26.53M	40.56M	22.33M	1.17M	-16.49M
Operating Cash Flow	4.69M	-14.98M	42.29M	24.36M	4.91M	-11.90M
Investing Cash Flow	-33.79M	-12.29M	331.77K	28.54M	-6.75M	-63.97M
Financing Cash Flow	3.97M	-3.68M	-20.36M	-68.35M	-3.43M	-16.91M

Wan Kei Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1718, the sentiment is Positive. The current price of 0.3 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.25, and above the 200-day MA of 0.25, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 67.95 is Neutral, neither overbought nor oversold. The STOCH value of 72.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1718.

Wan Kei Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1591	66 Neutral	HK$69.60M	36.39	-3.98%	―	-50.14%	-114.40%
Sector *	64 Neutral	$10.75B	15.69	7.62%	2.01%	2.75%	-15.14%
3822	58 Neutral	HK$87.36M	7.98	2.30%	―	92.38%	―
1802	48 Neutral	HK$45.74M	0.04		―	―	―
1718	44 Neutral	HK$72.90M	―	-72.83%	―	4.32%	-143.93%
1500	44 Neutral	HK$52.29M	20.36	-7.50%	―	-28.58%	-47.10%
1722	―	HK$74.80M	―	-3.66%	―	―	―

Wan Kei Group Holdings Limited Corporate Events

Wan Kei Group Holdings Announces Virtual AGM and Share Issuance Plans

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

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

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

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

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

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.