Wan Kei Group Holdings Limited (1718) AI Stock Analysis

• Market Cap: HK$54.45M
• Dividend Yield: N/A
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.77
• Revenue Growth: 6.83%
• EPS Growth: -63.75%
• Country: HK
• Employees: 207
• Sector: Industrials
• Sector Strength: 89
• Industry: Engineering & Construction
• EPS (TTM): -0.35
• Shares Outstanding: 230,400,000
• 10 Day Avg. Volume: 2,730,800
• 30 Day Avg. Volume: 1,083,283
• PEG Ratio: <0.01
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.52
• 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

• Rating: 48 Neutral
• Price Target: ―

Wan Kei Group Holdings Limited's stock score is primarily hindered by its financial challenges, including declining revenues, negative profitability, and high leverage. Despite improvements in cash flow management, the overall financial health remains a concern. The technical analysis also indicates bearish momentum, further impacting the score. The negative P/E ratio and lack of a dividend yield contribute to a less favorable valuation, reflecting ongoing challenges in achieving profitability.

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

Wan Kei Group Holdings Limited generates revenue through its core business of providing foundation works and related services. The company earns income by undertaking contracts for large-scale construction projects, including residential, commercial, and infrastructure developments. Key revenue streams include fees for project management, labor, and the use of machinery and materials. The company may also engage in strategic partnerships or joint ventures to expand its service offerings and market reach. Wan Kei Group's financial performance is influenced by factors such as the demand for construction services in Hong Kong and the surrounding regions, as well as the company's ability to secure new contracts and efficiently manage project costs.

Wan Kei Group Holdings Limited Financial Statement Overview

Summary

Wan Kei Group Holdings Limited is facing challenges with declining revenues and profitability, reflected in negative margins and consistent losses. While the balance sheet shows high leverage, cash flow improvements suggest effective cash management. The company needs to address its operational inefficiencies and leverage to enhance financial stability and profitability.

Income Statement

The company's revenue exhibits a declining trend from $315.45M in 2023 to $288.65M in 2024, translating to a revenue growth rate of -8.49%. Gross profit margins are stable at 18.39% for 2024, but the net profit margin remains negative due to continuous losses, at -7.15% for 2024. EBIT and EBITDA margins are also negative, indicating challenges in operational efficiency.

Balance Sheet

The debt-to-equity ratio is 1.99, indicating high leverage, which poses risks. However, the equity ratio is stable at 27.89%, showing some balance. Return on equity remains negative at -22.83% due to persistent losses, which is a concern for profitability.

Cash Flow

The company achieved a strong free cash flow growth rate of 81.62% in 2024, reflecting improved cash management. The operating cash flow to net income ratio is -2.05, and the free cash flow to net income ratio is -1.97, indicating that cash flows are better than accounting profits, but still negative.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	288.65M	315.45M	263.22M	293.60M	255.53M
Gross Profit	53.07M	53.79M	52.81M	56.97M	21.25M
EBITDA	-6.05M	-34.22M	14.37M	10.62M	-39.51M
Net Income	-20.62M	-47.00M	-12.76M	-12.24M	-60.37M
Balance Sheet
Total Assets	323.97M	354.08M	458.33M	466.55M	481.55M
Cash, Cash Equivalents and Short-Term Investments	140.25M	116.48M	180.55M	199.35M	248.63M
Total Debt	179.94M	188.91M	245.36M	236.14M	221.29M
Total Liabilities	233.15M	236.75M	286.61M	285.73M	273.65M
Stockholders Equity	90.32M	117.34M	171.71M	180.83M	207.91M
Cash Flow
Free Cash Flow	40.56M	22.33M	1.17M	-16.49M	-99.17M
Operating Cash Flow	42.29M	24.36M	4.91M	-11.90M	-97.44M
Investing Cash Flow	331.77K	28.54M	-6.75M	-63.97M	-15.04M
Financing Cash Flow	-20.36M	-68.35M	-3.43M	-16.91M	3.69M

Wan Kei Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 0.24 is above the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.25, and below the 200-day MA of 0.25, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 59.18 is Neutral, 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
Sector *	67 Neutral	CHF6.97B	25.37	14.57%	3.61%	-2.17%	-30.07%
1591	66 Neutral	HK$60.00M	36.39	-3.98%	―	-61.23%	-95.96%
1718	48 Neutral	HK$54.45M	―	-72.83%	―	6.83%	-63.75%
1500	48 Neutral	HK$46.48M	20.36	-7.50%	―	23.52%	―
1722	―	HK$71.50M	―	-10.43%	―	―	―
3822	47 Neutral	HK$61.32M	5.60	2.30%	―	23.75%	-100.39%
1802	40 Underperform	HK$31.60M	―		―	―	―

Wan Kei Group Holdings Limited Corporate Events

Wan Kei Group Holdings Limited Announces Rights Issue Results and Compensatory Arrangements

Wan Kei Group Holdings Limited announced the results of its Rights Issue, revealing that only 35.15% of the offered shares were subscribed, leaving 64.85% unsubscribed. The company has arranged for these unsubscribed shares to be placed with independent placees, with any net gain distributed to shareholders who did not take action or were excluded, on a pro-rata basis.

Wan Kei Group Updates Timeline for Use of Proceeds

Wan Kei Group Holdings Limited announced an update on the expected timeline for the use of proceeds from a previous placement of shares. The company has utilized 84.6% of the net proceeds, with the remaining 15.4% intended for further acquisitions in the food and beverage and construction sectors. The timeline for utilizing these funds has been extended to September 2026, reflecting the company’s strategic focus on expanding its market presence and revenue streams.

Wan Kei Group Approves Key Resolutions at EGM

Wan Kei Group Holdings Limited announced the results of its Extraordinary General Meeting held on March 13, 2025. All proposed resolutions, including the increase in authorized share capital and the rights issue, were approved with overwhelming support, receiving 99.99% of the votes in favor. This approval signifies a strategic move for the company, potentially enhancing its financial flexibility and market position.

Wan Kei Group Plans Major Capital Expansion and Rights Issue

Wan Kei Group Holdings Limited announced an extraordinary general meeting to discuss resolutions that include a significant increase in authorized share capital and the issuance of rights shares. The company plans to expand its capital by increasing its authorized share capital to HK$100,000,000 and issuing 115,200,000 rights shares at HK$0.2 per share. This move aims to strengthen the company’s financial position and provide greater flexibility for growth. The resolutions also include approval of a Placing Agreement, which is subject to regulatory approvals and legal compliance, indicating strategic efforts to bolster market presence and shareholder value.