Wanka Online, Inc. (1762) AI Stock Analysis

• Market Cap: HK$2.10B
• Dividend Yield: N/A
• Average Volume (3M): 8.77M
• Price to Earnings (P/E): 820.0
• Beta (1Y): 1.00
• Revenue Growth: 35.73%
• EPS Growth: -88.89%
• Country: HK
• Employees: 343
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.03
• Shares Outstanding: 1,770,343,400
• 10 Day Avg. Volume: 10,913,200
• 30 Day Avg. Volume: 8,771,400
• PEG Ratio: -1.37
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -1.57
• 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$1.20
• Price Target Upside: 73.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$1.50 ▲(117.39% Upside)

The score is held back primarily by very weak valuation (extremely high P/E) and cash-flow strain (negative operating and free cash flow). These risks partially offset a generally positive technical uptrend and a balance sheet that remains relatively solid despite rising leverage.

Positive Factors

Revenue Growth

Sustained high revenue growth reflects expanding platform adoption and successful monetization of e-commerce and marketing services. Over the medium term this supports scale economies, strengthens partner relationships, and provides a foundation for reinvesting in product and customer acquisition.

Operational Margins

Consistent positive EBIT/EBITDA margins indicate operational efficiency and disciplined cost management across core platform and services. Durable margins help absorb competitive pressures, fund product development, and improve resilience to cyclical revenue swings over the next several quarters.

Balance Sheet Equity Base

A solid equity base and strong asset position provide financial flexibility to support growth initiatives and weather downturns. This structural strength enhances the company’s ability to invest in technology, pursue partnerships, and access capital without immediate dilution or distress.

Negative Factors

Cash Flow Generation

Persistent negative operating and free cash flow signals weak cash conversion and potential liquidity stress. Over a multi-month horizon this hampers the company’s ability to self-fund growth, increases reliance on external financing, and raises execution risk for strategic initiatives.

Profit Volatility

Marked profit volatility and uneven revenue trends impede forecasting and long-term planning. This instability can undermine investor and partner confidence, complicate resource allocation, and make it harder to sustain strategic investments or demonstrate consistent returns on growth programs.

Rising Leverage

An increasing debt-to-equity ratio indicates greater reliance on debt financing, which elevates financial risk especially given weak cash flows. Higher leverage reduces balance sheet flexibility, increases interest burden, and constrains the company’s ability to invest or absorb shocks over the medium term.

Wanka Online, Inc. Business Overview & Revenue Model

Company Description

Wanka Online Inc. provides android-based content distribution services in Mainland China. The company offers DAPG Platform, a proprietary platform that enables marketers to distribute contents, such as advertisements, games, and videos. It also provides mobile advertising, online-video distribution, and game co-publishing services. The company serves marketers from industries, including mobile advertising, game publishing, and digital entertainment. Wanka Online Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Wanka Online, Inc. generates revenue through multiple streams, primarily from transaction fees on sales made through its e-commerce platform. Each sale processed via the platform incurs a percentage fee, which constitutes a significant portion of the company's earnings. Additionally, Wanka Online earns money by offering subscription-based marketing services to businesses seeking to enhance their online visibility and engagement. This includes tiered packages for SEO and social media management. Furthermore, the company has established partnerships with various brands to feature exclusive products on its platform, which provides additional revenue through promotional agreements. These collaborative efforts not only enrich the product offerings but also create co-marketing opportunities that can lead to increased sales and brand loyalty.

Wanka Online, Inc. Financial Statement Overview

Summary

Mixed fundamentals: income statement strength in positive EBIT/EBITDA margins is offset by volatile net profit and inconsistent revenue trends, while cash flow is the weakest area with negative operating and free cash flow signaling liquidity and cash-conversion challenges. Balance sheet is relatively solid with a stable equity base, but rising debt-to-equity increases risk.

Income Statement

Wanka Online, Inc. has shown a mixed performance in its income statement. The gross profit margin has decreased over the years, indicating pressure on cost management. However, the company has managed to maintain a positive EBIT and EBITDA margin, showcasing operational efficiency. The net profit margin has been volatile, with a significant drop in the latest year due to a sharp decline in net income. Revenue growth has been inconsistent, with a notable increase in the latest year, but the overall trend suggests a need for sustainable growth strategies.

Balance Sheet

The balance sheet of Wanka Online, Inc. reflects a solid equity base with a stable equity ratio. The debt-to-equity ratio has increased, suggesting a higher reliance on debt financing, which could pose a risk if not managed properly. Return on equity has been impacted by fluctuating net income, but the company maintains a strong asset base, indicating potential for future growth.

Cash Flow

The cash flow statement reveals challenges in generating positive operating cash flow, with recent years showing negative figures. Free cash flow has also been negative, indicating potential liquidity issues. The operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting income into cash. The company needs to focus on improving cash flow management to support its operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.11B	2.63B	2.10B	2.30B	2.10B	1.73B
Gross Profit	273.99M	234.04M	223.27M	234.47M	263.32M	242.75M
EBITDA	66.72M	61.66M	55.12M	23.33M	103.23M	102.61M
Net Income	6.78M	2.27M	15.49M	-129.54M	62.30M	66.81M
Balance Sheet
Total Assets	2.68B	2.33B	1.97B	1.91B	1.85B	1.57B
Cash, Cash Equivalents and Short-Term Investments	529.04M	591.49M	524.52M	550.86M	401.10M	195.98M
Total Debt	625.47M	574.89M	315.78M	272.32M	197.96M	199.17M
Total Liabilities	1.13B	916.24M	568.75M	538.28M	454.45M	414.82M
Stockholders Equity	1.41B	1.33B	1.32B	1.29B	1.39B	1.16B
Cash Flow
Free Cash Flow	-353.21M	-168.20M	-65.74M	8.58M	88.78M	-116.45M
Operating Cash Flow	-329.19M	-165.35M	-65.31M	9.33M	89.85M	-115.96M
Investing Cash Flow	8.35M	-3.79M	-29.85M	-19.39M	-3.13M	-4.88M
Financing Cash Flow	285.63M	234.41M	76.67M	137.27M	120.67M	64.25M

Wanka Online, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1762, the sentiment is Positive. The current price of 0.69 is below the 20-day moving average (MA) of 1.00, below the 50-day MA of 0.83, and below the 200-day MA of 0.83, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 70.65 is Negative, neither overbought nor oversold. The STOCH value of 76.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1762.

Wanka Online, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1948	67 Neutral	HK$3.12B	24.40	8.02%	0.94%	40.20%	26.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2422	59 Neutral	HK$1.73B	-24.27	-16.52%	―	10.61%	-1448.48%
1762	55 Neutral	HK$2.10B	820.00	0.45%	―	35.73%	-88.89%
1753	45 Neutral	HK$217.52M	-4.22	-3.55%	―	-5.89%	-330.91%
1640	40 Underperform	HK$1.92B	-25.05	-33.53%	―	309.32%	-205.04%

Wanka Online, Inc. Corporate Events

Wanka Online Plans New Share Option Scheme With 10% Overall Cap

Wanka Online Inc. plans to adopt a new share option scheme that complies with the latest Chapter 17 requirements of the Hong Kong Listing Rules, using equity incentives as a flexible tool to retain, motivate and reward eligible participants and align their interests with those of shareholders. The scheme, which is subject to shareholder approval at an extraordinary general meeting and listing approval for the underlying shares, will cap the aggregate number of shares and treasury shares issuable or transferable under this and other existing share incentive schemes at 10% of the company’s issued share capital, signaling a structured approach to employee incentivisation while limiting dilution for existing investors.

The most recent analyst rating on (HK:1762) stock is a Hold with a HK$0.97 price target. To see the full list of analyst forecasts on Wanka Online, Inc. stock, see the HK:1762 Stock Forecast page.

Wanka Online Inc. Boosts Mobile Advertising Joint Venture with Capital Increase

Wanka Online Inc. has announced a capital increase in its joint venture, Suzhou Jinglan Cloud Technology Co., Ltd., with the introduction of a new investor, Suzhou Huanxiu Lake Xincheng Phase II Industrial Investment Fund. This capital increase, amounting to RMB60.0 million, aims to expand the joint venture’s mobile advertising business and support its rapid growth. Despite the changes in shareholding structure, Wanka Online will maintain its controlling interest, ensuring continued consolidation of the joint venture’s financial results into its own statements.

The most recent analyst rating on (HK:1762) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Wanka Online, Inc. stock, see the HK:1762 Stock Forecast page.