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

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 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
HK$0.34
▲(22.50% Upside)
The score is held down primarily by weak financial performance (losses, negative operating cash flow, and high leverage). Technicals are comparatively better with the stock above major moving averages, but valuation remains pressured by negative earnings and no dividend data to offset the risk.
Positive Factors
Diversified contract and development revenue
The firm operates across building construction, civil engineering, maintenance and property development, and counts government and private partners. This service and client diversification supports recurring contract flows and reduces single-segment risk over the medium term.
Improving free cash flow generation
Notable improvement in free cash flow despite headline losses indicates better cash conversion and working capital management. Sustained FCF growth can fund project execution, reduce reliance on external funding, and improve medium-term financial flexibility.
Moderate equity ratio provides financing stability
A moderate equity ratio indicates a measure of balance-sheet resilience, allowing continued project financing without immediate recapitalization. This stability supports contract bids and counterparty confidence across the next several quarters.
Negative Factors
Declining revenue and persistent losses
Sustained top-line decline and negative net/EBIT/EBITDA margins undermine long-term profitability and reinvestment capacity. Over months this erodes competitive position, limits bidding power on new projects, and constrains ability to rebuild earnings.
High leverage increases financial risk
Elevated leverage raises interest and refinancing risk in a cyclical construction sector. High debt limits strategic flexibility, increases vulnerability to project delays or cost overruns, and can strain creditor relationships over the medium term.
Negative operating cash flow poses liquidity pressure
Continued negative operating cash flow means core activities consume cash, pressuring working capital and supplier terms. Even with better free cash flow metrics, persistent OCFO deficits threaten project execution and require financing to sustain operations.

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 its construction and engineering services, which include contracts for building and civil engineering projects. The company earns money by bidding on and securing contracts from both public and private sector clients. Additionally, revenue is supplemented through property development activities, where the company develops residential and commercial properties for sale or lease. Significant partnerships with government agencies and private developers enhance the company's market position and contribute to its earnings. The company may also benefit from ongoing maintenance contracts that provide a steady stream of income.

Wan Kei Group Holdings Limited Financial Statement Overview

Summary
Financial fundamentals are weak: declining revenue and persistent losses (negative net/EBIT/EBITDA margins) weigh heavily. High leverage (elevated debt-to-equity) adds risk, while cash flow shows some improvement in free cash flow but operating cash flow remains negative, indicating ongoing liquidity/operational pressure.
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 Revenue301.13M301.13M288.65M315.45M263.22M293.60M
Gross Profit52.96M52.96M53.07M53.79M52.81M56.97M
EBITDA-37.97M-32.33M-6.05M-34.22M4.98M10.39M
Net Income-51.43M-51.43M-20.62M-47.00M-12.76M-12.24M
Balance Sheet
Total Assets267.27M267.27M323.97M354.08M458.33M466.55M
Cash, Cash Equivalents and Short-Term Investments109.44M109.44M140.25M116.48M180.55M199.35M
Total Debt184.61M184.61M179.94M188.91M245.36M236.14M
Total Liabilities217.57M217.57M233.15M236.75M286.61M285.73M
Stockholders Equity50.90M50.90M90.32M117.34M171.71M180.83M
Cash Flow
Free Cash Flow-25.59M-26.53M40.56M22.33M1.17M-16.49M
Operating Cash Flow-14.98M-14.98M42.29M24.36M4.91M-11.90M
Investing Cash Flow-12.29M-12.29M331.77K28.54M-6.75M-63.97M
Financing Cash Flow-3.68M-3.68M-20.36M-68.35M-3.43M-16.91M

Wan Kei Group Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.28
Price Trends
50DMA
0.31
Negative
100DMA
0.29
Positive
200DMA
0.27
Positive
Market Momentum
MACD
<0.01
Negative
RSI
53.54
Neutral
STOCH
43.26
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 0.28 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.31, and above the 200-day MA of 0.27, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.54 is Neutral, neither overbought nor oversold. The STOCH value of 43.26 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$92.40M1.6811.01%10.17%52.69%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
51
Neutral
HK$126.16M4.8910.02%-17.67%1010.71%
47
Neutral
HK$57.60M-3.41-12.77%11.27%-1272.22%
46
Neutral
HK$77.59M-0.86-46.48%-0.64%13.72%
44
Neutral
HK$37.42M0.04
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1718
Wan Kei Group Holdings Limited
0.31
0.07
27.57%
HK:1500
In Construction Holdings Ltd
0.15
0.09
130.30%
HK:1591
Shun Wo Group Holdings Ltd.
0.14
-0.03
-14.79%
HK:1722
Kin Pang Holdings Ltd.
0.09
0.04
84.31%
HK:1802
Wenye Group Holdings Limited
0.05
<0.01
2.27%
HK:3822
Sam Woo Construction Group Ltd.
1.10
0.26
30.95%

Wan Kei Group Holdings Limited Corporate Events

Wan Kei Discloses Independent HK$16.9 Million Valuation for 51% Stake Acquisition
Dec 24, 2025

Wan Kei Group Holdings Limited has issued a supplemental announcement regarding its previously disclosed acquisition of 51% of the issued share capital of a target company, detailing the independent valuation that underpins the transaction consideration. The valuation, conducted by Ascent Partners Valuation Service Limited using a market approach and the Guideline Public Company Method, appraised the 51% stake at HK$16.9 million as of 30 September 2025, based on a median price-to-earnings multiple of 15.05, trailing 12‑month earnings of HK$2.09 million, and adjustments for lack of marketability and a premium for control. The decision to adopt the market approach, rather than cost or income approaches, reflects the availability of comparable listed peers and the desire to capture current market expectations for the industry, providing shareholders and stakeholders with greater transparency on how the acquisition price was determined and supporting the board’s assertion that the terms are fair and reasonable on an arm’s‑length basis.

The most recent analyst rating on (HK:1718) stock is a Hold with a HK$0.35 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 Announces Director Resignation and Investment Committee Change
Dec 18, 2025

Wan Kei Group Holdings Limited has announced the resignation of non-executive director Mr. Lui Kwok Wai, effective 18 December 2025, as he steps down to devote more time to personal commitments, with both the board and Mr. Lui indicating there is no disagreement or matter requiring shareholder attention. Concurrently, the company has adjusted the composition of its investment committee, with Mr. Lui ceasing to be a member and independent non-executive director Mr. Jiang Senlin appointed in his place, a move that maintains compliance with the committee’s terms of reference and signals continuity in the governance of the group’s investment oversight.

The most recent analyst rating on (HK:1718) stock is a Hold with a HK$0.35 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 Sets Out Board and Committee Structure
Dec 18, 2025

Wan Kei Group Holdings Limited has announced the composition of its board of directors and outlined the structure of its key board committees. The company has appointed Bai Huawei and Wang Yu as executive directors, Xu Lin as non-executive chairman, and Jiang Senlin, Zhang Yi and Dan Xi as independent non-executive directors, and detailed their respective roles on the audit, nomination, remuneration and investment committees, indicating a clarified governance framework and delineation of oversight responsibilities.

The most recent analyst rating on (HK:1718) stock is a Hold with a HK$0.35 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 Reports Turnaround with Interim Profit
Nov 28, 2025

Wan Kei Group Holdings Limited reported its interim financial results for the six months ending September 30, 2025. The company achieved a revenue of approximately HK$186.8 million, marking an increase from the previous year’s HK$178.6 million. The profit attributable to the owners was approximately HK$1.08 million, a significant improvement from the loss of HK$10.56 million in the same period last year. Despite the positive turnaround, the board decided not to declare any interim dividend for this period.

The most recent analyst rating on (HK:1718) stock is a Hold with a HK$0.35 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 Acquires Majority Stake in Target Company
Nov 25, 2025

Wan Kei Group Holdings Limited has announced a significant acquisition, purchasing 51% of the issued share capital of a target company for HK$15,000,000. This transaction will result in the target company becoming an indirect non-wholly owned subsidiary of Wan Kei Group, with its financial results consolidated into the group’s financial statements. The acquisition is classified as a discloseable transaction under Hong Kong’s Listing Rules, requiring notification and announcement due to its size. However, the completion of this acquisition is contingent upon certain conditions being met, and stakeholders are advised to exercise caution.

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 Announces Positive Profit Alert for 2025
Nov 21, 2025

Wan Kei Group Holdings Limited has announced a positive profit alert, expecting to record a net profit of not less than HK$1,000,000 for the six months ending September 30, 2025, compared to a net loss of approximately HK$11,739,000 in the same period of 2024. This turnaround is attributed to a significant foundation construction project with a higher gross profit margin, reduced general and administrative expenses, a fair value gain on financial assets, and a gain on the disposal of subsidiaries.

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 to Review Interim Results and Dividend
Nov 18, 2025

Wan Kei Group Holdings Limited has announced a forthcoming board meeting scheduled for November 28, 2025. The meeting will focus on reviewing and approving the unaudited interim results for the six months ending September 30, 2025, and discussing the potential payment of an interim dividend. This announcement signals the company’s ongoing commitment to transparency and shareholder value, potentially impacting its financial standing and investor relations.

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.

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: Jan 23, 2026