Wanka Online, Inc. (1762) AI Stock Analysis

• Market Cap: HK$1.21B
• Dividend Yield: N/A
• Average Volume (3M): 8.77M
• Price to Earnings (P/E): 480.0
• Beta (1Y): 0.98
• 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: 69.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: HK$1.00 ▲(40.85% Upside)

Wanka Online, Inc. faces significant challenges with a high P/E ratio suggesting overvaluation and technical indicators pointing to bearish momentum. While operational efficiency is a positive, the company's financial stability is threatened by inconsistent revenue growth and negative cash flow. The lack of dividend yield further diminishes its appeal.

Positive Factors

Revenue Growth

Despite inconsistencies, recent revenue growth indicates potential for market expansion and increased adoption of services, which could drive long-term business success.

Operational Efficiency

Maintaining positive EBIT and EBITDA margins suggests strong cost management and the ability to generate profits from core operations, supporting sustainable growth.

Solid Equity Base

A strong equity base provides financial stability and flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Rising Debt Levels

Increased debt levels could strain financial resources and limit the company's ability to invest in growth, posing a risk to long-term financial health if not managed.

Negative Cash Flow

Negative operating cash flow indicates potential liquidity issues, which could hinder the company's ability to fund operations and growth initiatives sustainably.

Volatile Net Profit Margin

Volatility in net profit margins reflects challenges in maintaining consistent profitability, which may affect investor confidence and long-term financial stability.

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

Wanka Online, Inc. shows operational efficiency with positive EBIT and EBITDA margins. However, inconsistent revenue growth and negative cash flow present challenges. The balance sheet is strong, but increasing debt levels could pose risks.

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: Negative
• Last Price: 0.71
• 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:1762, the sentiment is Negative. The current price of 0.71 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.80, and below the 200-day MA of 0.77, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 39.01 is Neutral, neither overbought nor oversold. The STOCH value of 63.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1762.

Wanka Online, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1948	57 Neutral	HK$2.44B	19.90	8.02%	0.99%	40.20%	26.39%
2422	54 Neutral	HK$780.00M	-12.13	-16.52%	―	10.61%	-1448.48%
1762	53 Neutral	HK$1.21B	480.00	0.45%	―	35.73%	-88.89%
1753	45 Neutral	HK$239.05M	-4.64	-3.55%	―	-5.89%	-330.91%
1640	39 Underperform	HK$2.14B	-24.92	-33.53%	―	309.32%	-205.04%

Wanka Online, Inc. Corporate Events

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.

Wanka Online Proposes New Share Option Scheme

Wanka Online, Inc. has announced its intention to adopt a new share option scheme in compliance with the latest requirements of the Hong Kong Stock Exchange’s Listing Rules. This scheme aims to provide eligible participants with the opportunity to acquire proprietary interests in the company, thereby enhancing the company’s value and motivating participants to contribute to its success. The scheme will be effective upon shareholder approval at an extraordinary general meeting and subsequent approval from the Stock Exchange’s Listing Committee.

Wanka Online’s Substantial Shareholder Increases Stake

Wanka Online, Inc. announced that its substantial shareholder and executive director, Mr. Gao Dinan, has increased his shareholding in the company by acquiring 100,000 shares through Wanka Media Limited. This acquisition raises Mr. Gao’s total interest to approximately 24.07% of the company’s issued share capital. The company assures that it maintains a sufficient public float and advises shareholders and potential investors to exercise caution when dealing in its shares.

Wanka Online’s Key Shareholders Increase Stakes, Signaling Confidence

Wanka Online Inc. announced that two of its substantial shareholders, Mr. Gao Dinan and Ms. Jiang Yu, have increased their shareholdings in the company. Mr. Gao acquired 200,000 shares, raising his stake to approximately 24.06%, while Ms. Jiang also acquired 200,000 shares, increasing her stake to approximately 10.26%. This move indicates strong confidence from the company’s leadership in its future prospects, while the company maintains a sufficient public float.

Wanka Online Inc. Shareholders Increase Stakes, Reflecting Confidence

Wanka Online Inc. announced that its substantial shareholders, Mr. Gao Dinan and Ms. Jiang Yu, have increased their shareholdings in the company by acquiring 300,000 shares each on the Hong Kong Stock Exchange. This move signifies confidence in the company’s prospects, with Mr. Gao now holding approximately 24.04% and Ms. Jiang holding approximately 10.24% of the company’s total issued share capital. The company maintains a sufficient public float, ensuring compliance with market regulations.