Wan Kei Group Holdings Limited (1718) AI Stock Analysis

• Market Cap: HK$53.81M
• Dividend Yield: N/A
• Average Volume (3M): 760.95K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.50
• Revenue Growth: 4.32%
• EPS Growth: -143.93%
• Country: HK
• Employees: 207
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.36
• Shares Outstanding: 253,440,000
• 10 Day Avg. Volume: 916,850
• 30 Day Avg. Volume: 760,950
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -1.31
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.50 ▲(28.21% Upside)

The overall stock score is primarily influenced by the company's weak financial performance and unattractive valuation metrics. Despite strong technical indicators suggesting bullish momentum, the financial challenges and lack of earnings visibility weigh heavily on the stock's attractiveness.

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 provision of construction and engineering services. The company operates in the construction sector, offering a range of services including building construction, civil engineering, and maintenance. Wan Kei Group also engages in property development and investment, focusing on both residential and commercial projects, which positions it as a key player in the local construction industry.

How the Company Makes Money

Wan 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

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	4.98M	10.39M
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	184.61M	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: 0.39
• 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 0.39 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.27, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 65.52 is Neutral, neither overbought nor oversold. The STOCH value of 63.56 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
3822	68 Neutral	HK$68.04M	6.22	2.30%	―	92.38%	―
1591	66 Neutral	HK$57.60M	-10.14	-3.98%	―	-50.14%	-114.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1500	50 Neutral	HK$58.93M	―	-7.50%	―	-28.58%	-47.10%
1718	46 Neutral	HK$53.81M	-0.49	-72.83%	―	4.32%	-143.93%
1802	44 Neutral	HK$37.42M	0.04	―	―	―	―

Wan Kei Group Holdings Limited Corporate Events

Wan Kei Group Holdings to Review Interim Results and Dividend

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.

Wan Kei Group Holdings Limited Announces Change of Head Office Location

Wan Kei Group Holdings Limited has announced a change in its head office and principal place of business in Hong Kong, effective from October 16, 2025. The move to the Bank of America Tower is part of the company’s strategic operational adjustments, which may impact its logistical operations and stakeholder engagements.

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’s AGM Resolutions Unanimously Approved

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

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.