Wan Kei Group Holdings Limited (1718) AI Stock Analysis

• Market Cap: HK$114.36M
• Dividend Yield: N/A
• Average Volume (3M): 760.95K
• Price to Earnings (P/E): 13.4
• Beta (1Y): -0.53
• Revenue Growth: -0.64%
• EPS Growth: 13.72%
• Country: HK
• Employees: 207
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 304,120,000
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: HK$0.37 ▲(33.57% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is held down primarily by weak financial performance (losses, negative operating cash flow, and high leverage) and a negative P/E tied to unprofitable operations. Technicals are a partial offset with strong trend/momentum above moving averages, but overbought signals temper the benefit.

Positive Factors

Free cash flow improvement

Improving free cash flow and a positive free cash flow-to-net-income ratio indicate the business is generating cash despite accounting losses. This durable cash generation helps fund operations, service debt and invest in recovery without immediate equity raises, easing near-term financing pressure.

Stable gross profit margin

A stable gross margin shows underlying unit economics and effective control of direct costs. That structural margin stability supports profitability when volumes recover and makes scaling or margin improvement initiatives more feasible over the medium term, improving recovery prospects.

Moderate equity ratio

A moderate equity ratio provides a partial cushion against insolvency risk and indicates some long-term asset financing stability. This structural balance-sheet feature can preserve borrowing capacity and limit immediate dilution needs while management addresses operating performance.

Negative Factors

Severe revenue decline

A very large year-over-year revenue decline signals persistent demand loss or contract attrition. Reduced scale undermines fixed-cost absorption, weakens bargaining position with suppliers and clients, and makes returning to sustainable profitability more difficult without structural revenue recovery or new contract wins.

Persistent unprofitable operations

Sustained negative operating and EBITDA margins indicate core business economics are loss-making. Over the medium term this erodes equity, forces reliance on external funding, and constrains reinvestment. Without structural cost reduction or revenue recovery, profitability risks remain elevated.

High leverage and liquidity risk

Significant leverage combined with negative operating cash flow and negative ROE raises refinancing and liquidity risk. This structural funding weakness limits strategic flexibility, increases interest burden and could force asset sales or dilutive capital raises if cash generation does not continue improving.

Wan Kei Group Holdings Limited Business Overview & Revenue Model

Company Description

Wan 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 Money

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Wan Kei Group Holdings Limited Financial Statement Overview

Summary

Income statement quality is weak (declining revenue and persistent losses with negative EBIT/EBITDA), the balance sheet is leveraged (high debt-to-equity and negative ROE), and cash flow shows mixed signals (improving free cash flow but negative operating cash flow creating liquidity risk).

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	309.38M	301.13M	288.65M	315.45M	263.22M	293.60M
Gross Profit	56.12M	52.96M	53.07M	53.79M	52.81M	56.97M
EBITDA	-20.33M	-32.33M	-6.05M	-34.22M	4.98M	10.39M
Net Income	-39.79M	-51.43M	-20.62M	-47.00M	-12.76M	-12.24M
Balance Sheet
Total Assets	308.78M	267.27M	323.97M	354.08M	458.33M	466.55M
Cash, Cash Equivalents and Short-Term Investments	86.45M	109.44M	140.25M	116.48M	180.55M	199.35M
Total Debt	174.26M	184.61M	179.94M	188.91M	245.36M	236.14M
Total Liabilities	229.83M	217.57M	233.15M	236.75M	286.61M	285.73M
Stockholders Equity	78.95M	50.90M	90.32M	117.34M	171.71M	180.83M
Cash Flow
Free Cash Flow	-33.52M	-26.53M	40.56M	22.33M	1.17M	-16.49M
Operating Cash Flow	-28.17M	-14.98M	42.29M	24.36M	4.91M	-11.90M
Investing Cash Flow	-1.76M	-12.29M	331.77K	28.54M	-6.75M	-63.97M
Financing Cash Flow	1.55M	-3.68M	-20.36M	-68.35M	-3.43M	-16.91M

Wan Kei Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1718, the sentiment is Neutral. The current price of 0.28 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.34, and below the 200-day MA of 0.29, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.77 is Neutral, neither overbought nor oversold. The STOCH value of 3.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	71 Outperform	HK$97.44M	0.44	11.01%	10.17%	52.69%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1500	56 Neutral	HK$182.60M	0.50	10.06%	―	-17.67%	1010.71%
1718	47 Neutral	HK$114.36M	13.37	-46.48%	―	-0.64%	13.72%
1591	47 Neutral	HK$74.67M	-1.08	-12.80%	―	11.27%	-1272.22%
1802	44 Neutral	HK$37.42M	0.01	―	―	―	―

Wan Kei Group Holdings Limited Corporate Events

Wan Kei Group Raises Capital via Share Placing to Bolster Liquidity and Flexibility

Wan Kei Group Holdings has completed a share placing under its general mandate, issuing 50.68 million new shares at HK$0.25 each to at least six placees, representing 20% of its issued share capital before the deal and 16.66% after enlargement. The transaction is intended to strengthen liquidity without incurring interest, provide supplementary working capital to address cash burn and timing mismatches in customer payments, reduce reliance on related-party funding, and broaden the shareholder base to improve trading liquidity of the stock.

As of 31 December 2025, the group held HK$103.3 million in cash and equivalents but estimates it needs around HK$113 million to fund operations across its various business lines, including provisions for long service payments and loan and interest repayments. Management highlighted that the fresh capital will enhance financial flexibility amid possible lengthening payment cycles and macroeconomic pressures, while positioning the company to capture future business development and investment opportunities of interest to professional and institutional investors.

The most recent analyst rating on (HK:1718) stock is a Hold with a HK$0.48 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 Buys Majority Stake in Shanghai Premium Coffee Operator

Wan Kei Group Holdings Limited has agreed to acquire 70% of House Clover Ventures Limited, a British Virgin Islands company engaged in the food and beverage business, for HK$2.31 million. The target operates two premium coffee shops in prime Shanghai locations under an exclusive distribution and trademark licence with a renowned Japanese coffee brand, and runs an online platform selling branded coffee beans and related products. Following completion, House Clover Ventures will become a non-wholly-owned subsidiary and its financial results will be consolidated into Wan Kei’s accounts. The board views the deal as a strategic move to enter Shanghai’s fast-growing premium coffee retail market, diversify the group’s operations and revenue streams across physical and e-commerce channels, and enhance overall business performance and profitability for shareholders.

The most recent analyst rating on (HK:1718) stock is a Hold with a HK$0.28 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 Plans Discounted Share Placing to Raise HK$12.7 Million for Working Capital

Wan Kei Group Holdings Limited has entered into a placing agreement to issue up to 50,688,000 new shares under its existing general mandate at HK$0.25 per share, representing a discount to recent market prices. The new shares will amount to 20% of the company’s current issued share capital, or about 16.67% on an enlarged basis, raising gross proceeds of approximately HK$12.7 million (about HK$12.5 million net) if fully placed. Management plans to use all of the net proceeds for general working capital, primarily to fund directors’ fees, staff salaries, rental expenses, and legal and professional fees, signalling a focus on shoring up day-to-day operations rather than financing new projects. The placing, which will be conducted on a best-effort basis by an independent placing agent to at least six independent investors, remains subject to conditions under the agreement, meaning completion is not guaranteed and existing shareholders face potential dilution if it proceeds.

The most recent analyst rating on (HK:1718) stock is a Hold with a HK$0.34 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 Discloses Independent HK$16.9 Million Valuation for 51% Stake Acquisition

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

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

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.