Wecon Holdings Ltd. (1793) AI Stock Analysis

• Market Cap: HK$151.20M
• Dividend Yield: 6.35%
• Average Volume (3M): 106.27K
• Price to Earnings (P/E): 20.3
• Beta (1Y): <0.01
• Revenue Growth: 36.65%
• EPS Growth: 60.00%
• Country: HK
• Employees: 167
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 164,400
• 30 Day Avg. Volume: 106,266
• PEG Ratio: 0.36
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.33
• 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: 73 Outperform
• Price Target: ―

Wecon Holdings Ltd. is showing signs of recovery with improved financial performance, evidenced by revenue growth and a return to profitability. The strong balance sheet and improved cash flow position enhance financial stability. Positive technical indicators suggest bullish momentum, though caution is warranted due to high stochastic levels. The reasonable P/E ratio and attractive dividend yield further support a positive outlook. Overall, the stock is well-positioned for growth with a few areas for operational improvement.

Wecon Holdings Ltd. Business Overview & Revenue Model

Company Description

Wecon Holdings Ltd. (1793) is a construction and engineering company based in Hong Kong. It specializes in providing building construction, repair, maintenance, and renovation services primarily in the public and private sectors. The company is committed to delivering high-quality projects that meet the needs of its clients through innovative solutions and sustainable practices.

How the Company Makes Money

Wecon Holdings Ltd. generates revenue through its comprehensive range of construction services, catering to both public and private sector projects. The company primarily earns money by undertaking building construction contracts, which include new builds and major renovations. Additionally, Wecon Holdings is involved in repair and maintenance services, providing ongoing upkeep for existing structures, which contributes a steady income stream. The company may also engage in strategic partnerships with other construction firms or government entities to enhance its project portfolio and expand its market reach. Furthermore, the company's reputation for quality and reliability helps in securing repeat business and new contracts, contributing significantly to its revenue.

Wecon Holdings Ltd. Financial Statement Overview

Summary

Wecon Holdings Ltd. shows promising recovery trends in revenue and profitability. The balance sheet is strong with minimal debt, enhancing financial stability. Cash flow has improved markedly, but historical fluctuations highlight the importance of consistent cash flow management. The company appears to be on a positive trajectory, though there are opportunities for operational and cash flow improvements.

Income Statement

Wecon Holdings Ltd. experienced a recovery in revenue with a 33.6% increase from 2023 to 2024, reflecting positive growth. Gross profit margin improved slightly from 4.5% to 3.9%. The company returned to profitability with a net profit margin of 0.52% after a loss in the previous year. However, EBIT and EBITDA margins remain low at 0.25% and 1.25% respectively, showing room for improvement in operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.03, indicating low leverage. Stockholders' equity is stable at 46.8% of total assets, showcasing financial stability. Return on equity is modest at 2.2%, reflecting some profitability but with potential for higher returns.

Cash Flow

Wecon Holdings Ltd. demonstrated significant improvement in cash flow with a positive free cash flow of HKD 21.6 million, contrasting with the previous year’s negative free cash flow. Operating cash flow to net income ratio is healthy at 3.62, indicating strong cash generation relative to net income. However, historical volatility in cash flows suggests a need for better cash flow management.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.16B	869.03M	1.15B	1.10B	1.20B
Gross Profit	45.10M	39.02M	53.65M	55.40M	104.61M
EBITDA	14.47M	14.53M	24.02M	28.55M	66.60M
Net Income	6.00M	5.95M	14.21M	19.24M	50.50M
Balance Sheet
Total Assets	594.19M	454.72M	532.23M	498.32M	575.03M
Cash, Cash Equivalents and Short-Term Investments	96.48M	77.96M	104.08M	143.20M	140.77M
Total Debt	9.29M	6.72M	7.89M	4.66M	7.10M
Total Liabilities	315.86M	172.88M	246.54M	217.31M	297.06M
Stockholders Equity	278.33M	281.85M	285.69M	281.01M	277.97M
Cash Flow
Free Cash Flow	21.59M	-1.72M	-33.74M	34.31M	-2.45M
Operating Cash Flow	21.69M	-690.00K	-30.52M	38.49M	3.92M
Investing Cash Flow	7.58M	-13.45M	6.57M	-30.18M	-12.79M
Financing Cash Flow	-15.09M	-15.35M	-13.29M	-23.34M	-24.67M

Wecon Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1793, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.17, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1793.

Wecon Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3311	79 Outperform	HK$62.65B	6.21	14.62%	4.81%	1.21%	2.15%
1093	77 Outperform	$98.78B	21.49	13.20%	2.33%	-9.60%	-27.18%
1793	73 Outperform	HK$151.20M	20.32	2.66%	6.35%	36.65%	60.00%
0081	64 Neutral	HK$6.87B	6.64	3.05%	7.25%	-20.27%	-59.83%
1193	59 Neutral	$45.93B	11.24	9.94%	6.91%	1.39%	-21.74%
Sector *	58 Neutral	HK$14.11B	4.63	-3.01%	6.76%	3.67%	-54.16%
8365	55 Neutral	HK$47.10M	―	-44.10%	―	-10.70%	-186.02%

Wecon Holdings Ltd. Corporate Events

Wecon Holdings Announces Property Acquisition in Hong Kong

Wecon Holdings Limited, through its indirect wholly-owned subsidiary, has entered into a formal agreement to acquire a property in Hong Kong for HK$10,500,000. This acquisition is classified as a discloseable transaction under the Listing Rules, requiring notification and announcement due to its size relative to the company’s financials. The property, a factory unit in Kwai Chung, will be acquired on an ‘as is’ basis, with vacant possession delivered upon completion.