Wecon Holdings Ltd. (1793) AI Stock Analysis

• Market Cap: HK$173.60M
• Dividend Yield: 5.53%
• Average Volume (3M): 78.00K
• Price to Earnings (P/E): 19.9
• Beta (1Y): -0.06
• Revenue Growth: -9.62%
• EPS Growth: -2.68%
• Country: HK
• Employees: 167
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 44,800
• 30 Day Avg. Volume: 78,000
• PEG Ratio: 0.79
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 10.26
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$0.22 ▼(-0.91% Downside)

The overall stock score of 54 reflects significant challenges in financial performance, particularly in revenue growth and cash flow generation, which are partially offset by a strong balance sheet. Technical analysis indicates overbought conditions, suggesting caution. Valuation is moderate, with a high dividend yield providing some investor appeal.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility to navigate market challenges.

Strategic Partnerships

These partnerships enhance market reach and product offerings, potentially leading to joint ventures and shared profits, supporting long-term growth.

Government Incentives

Government incentives provide financial support, encouraging investment in sustainable technologies and enhancing Wecon's competitive position.

Negative Factors

Declining Revenue

Declining revenue growth indicates challenges in market demand or competitive positioning, potentially impacting long-term profitability and market share.

Negative EBIT Margins

Negative EBIT margins suggest operational inefficiencies, which can strain profitability and require strategic adjustments to improve cost management.

Cash Flow Challenges

Declining free cash flow growth indicates potential liquidity issues, limiting the company's ability to invest in growth opportunities and manage financial obligations.

Wecon Holdings Ltd. Business Overview & Revenue Model

Company Description

Wecon Holdings Limited, an investment holding company, operates as a construction contractor in Hong Kong. It operates through two segments, Construction Contracts; and Repair, Maintenance, Alteration and Addition (RMAA) Works Services. The company provides building construction services for residential, commercial, and industrial buildings; and RMAA works services, such as general upkeep, maintenance, improvement, refurbishment, alteration, and addition of existing facilities and components of buildings and their surroundings. Wecon Holdings Limited was founded in 1974 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Wecon Holdings generates revenue through multiple streams, including the sale of electronic products, which encompass components and systems utilized in various industries. The company also derives income from its real estate investments, including rental income from properties it owns. Additionally, Wecon Holdings may engage in strategic partnerships and collaborations with other companies to enhance its product offerings and market reach, thereby contributing to its overall earnings. The combination of manufacturing, trading activities, and real estate investments creates a diversified revenue model that helps mitigate risks associated with reliance on a single sector.

Wecon Holdings Ltd. Financial Statement Overview

Summary

Wecon Holdings Ltd. faces challenges in revenue growth and operational profitability, with declining revenue and negative EBIT margins. The balance sheet is strong with low leverage, providing financial stability. However, cash flow performance is concerning, with significant declines in free cash flow growth, indicating potential liquidity issues.

Income Statement

Wecon Holdings Ltd. has experienced a decline in revenue over the past year, with a negative revenue growth rate of -15.05%. The gross profit margin has also decreased slightly, indicating pressure on profitability. However, the company managed to maintain a positive net profit margin of 0.70%, showing some resilience in net income generation despite challenging conditions. The EBIT margin is negative, reflecting operational challenges, but the EBITDA margin remains positive, suggesting some level of operational efficiency.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio of 0.017, indicating a conservative leverage position. Return on equity is modest at 2.67%, reflecting limited profitability relative to equity. The equity ratio is healthy, suggesting a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth by -88.78%, indicating potential liquidity challenges. The operating cash flow to net income ratio is low at 0.054, suggesting limited cash generation from operations relative to net income. However, the free cash flow to net income ratio is relatively high at 0.89, indicating that a substantial portion of net income is converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.06B	1.06B	1.16B	869.03M	1.15B	1.10B
Gross Profit	37.52M	37.52M	45.10M	39.02M	53.65M	55.40M
EBITDA	-1.33M	15.84M	14.47M	14.53M	17.72M	28.55M
Net Income	7.39M	7.39M	6.00M	5.95M	14.21M	19.24M
Balance Sheet
Total Assets	537.33M	537.33M	594.19M	454.72M	532.23M	498.32M
Cash, Cash Equivalents and Short-Term Investments	106.28M	106.28M	96.48M	77.96M	104.08M	143.20M
Total Debt	4.60M	4.60M	9.29M	6.72M	7.89M	4.66M
Total Liabilities	261.13M	261.13M	315.86M	172.88M	246.54M	217.31M
Stockholders Equity	276.20M	276.20M	278.33M	281.85M	285.69M	281.01M
Cash Flow
Free Cash Flow	12.68M	12.68M	21.59M	-1.72M	-33.74M	34.31M
Operating Cash Flow	14.17M	14.17M	21.69M	-690.00K	-30.52M	38.49M
Investing Cash Flow	12.35M	20.93M	7.58M	-13.45M	6.57M	-30.18M
Financing Cash Flow	-16.24M	-16.27M	-15.09M	-15.35M	-13.29M	-23.34M

Wecon Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 0.22 is above the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.20, and above the 200-day MA of 0.18, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 60.95 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1953	55 Neutral	HK$212.94M	24.85	3.28%	―	-29.24%	-40.35%
1793	54 Neutral	HK$173.60M	19.91	3.17%	5.53%	-9.62%	-2.68%
1920	44 Neutral	HK$144.14M	-7.03	-68.45%	―	62.98%	67.20%

Wecon Holdings Ltd. Corporate Events

Wecon Holdings Reports Strong Interim Financial Results with Revenue and Profit Growth

Wecon Holdings Ltd. reported a notable financial performance for the six months ending September 30, 2025, with a revenue increase of 11.7% to HK$648 million and a gross profit rise of 36.7% to HK$23.1 million. Despite the positive financial results, the company decided not to declare an interim dividend, reflecting a strategic decision to possibly reinvest profits for future growth or maintain financial stability.

Wecon Holdings Schedules Board Meeting for Interim Results Approval

Wecon Holdings Limited has announced that its Board of Directors will meet on November 26, 2025, to approve the unaudited interim results for the six months ending September 30, 2025. The meeting will also consider the recommendation for an interim dividend and the potential closure of the company’s register of members. This announcement indicates Wecon Holdings’ ongoing commitment to transparency and shareholder engagement, potentially impacting its market positioning and stakeholder relations.