Wecon Holdings Ltd. (1793) AI Stock Analysis

• Market Cap: HK$164.00M
• Dividend Yield: 5.85%
• Average Volume (3M): 322.40K
• Price to Earnings (P/E): 22.8
• Beta (1Y): -0.05
• Revenue Growth: -8.76%
• EPS Growth: 22.37%
• Country: HK
• Employees: 167
• Sector: Industrials
• Sector Strength: 80
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 185,600
• 30 Day Avg. Volume: 322,400
• 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

• Rating: 58 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by financial performance challenges, particularly in revenue growth and cash flow generation. However, the strong technical indicators and attractive dividend yield provide a positive offset. The stock's valuation is reasonable, but the company needs to address operational and liquidity issues to improve its financial health.

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 Ltd. generates revenue through multiple streams, including the sale of electronic and electrical products, service contracts, and consulting fees related to technology solutions. The company capitalizes on its diverse product portfolio by targeting both consumer and industrial markets, which allows for a steady influx of sales. Additionally, Wecon has established strategic partnerships with key players in the technology and renewable energy sectors, enabling collaborative projects that expand its market reach and enhance product offerings. These partnerships often lead to joint ventures, where both parties share resources and profits, further contributing to Wecon's earnings. The company also benefits from government incentives and grants focused on promoting renewable energy and sustainable technologies, which can provide additional financial support.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.06B	1.16B	869.03M	1.15B	1.10B
Gross Profit	39.86M	37.52M	45.10M	39.02M	53.65M	55.40M
EBITDA	-1.26M	15.84M	14.47M	14.53M	24.02M	28.55M
Net Income	8.86M	7.39M	6.00M	5.95M	14.21M	19.24M
Balance Sheet
Total Assets	604.65M	537.33M	594.19M	454.72M	532.23M	498.32M
Cash, Cash Equivalents and Short-Term Investments	185.68M	106.28M	96.48M	77.96M	104.08M	143.20M
Total Debt	7.93M	4.60M	9.29M	6.72M	7.89M	4.66M
Total Liabilities	330.79M	261.13M	315.86M	172.88M	246.54M	217.31M
Stockholders Equity	273.86M	276.20M	278.33M	281.85M	285.69M	281.01M
Cash Flow
Free Cash Flow	113.08M	12.68M	21.59M	-1.72M	-33.74M	34.31M
Operating Cash Flow	113.13M	14.17M	21.69M	-690.00K	-30.52M	38.49M
Investing Cash Flow	31.93M	20.93M	7.58M	-13.45M	6.57M	-30.18M
Financing Cash Flow	-15.74M	-16.27M	-15.09M	-15.35M	-13.29M	-23.34M

Wecon Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.2 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.18, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.81 is Neutral, neither overbought nor oversold. The STOCH value of 7.29 is Positive, 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 *	65 Neutral	$2.63B	16.52	15.18%	3.64%	2.55%	45.29%
1793	58 Neutral	HK$164.00M	22.80	2.66%	5.85%	-8.76%	22.37%
1615	―	HK$159.00M	16.45	4.54%	―	―	―
1953	58 Neutral	HK$302.40M	34.26	3.28%	24.64%	-29.24%	-40.35%
1920	46 Neutral	HK$183.46M	―	-137.59%	―	26.81%	16.02%
2266	―	HK$116.00M	4.96	20.60%	9.09%	―	―
0589	―	HK$118.75M	―		―	―	―

Wecon Holdings Ltd. Corporate Events

Wecon Holdings Announces AGM and Key Resolutions

Wecon Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for August 21, 2025, in Hong Kong. Key resolutions include the adoption of financial statements, approval of a final dividend, reappointment of auditors, and re-election of directors. These decisions are expected to impact the company’s financial management and governance structure, potentially influencing shareholder confidence and market positioning.

Wecon Holdings Limited Announces Board Composition and Committee Roles

Wecon Holdings Limited has announced the composition of its Board of Directors, including executive, non-executive, and independent non-executive directors. The announcement outlines the roles and functions of each director, as well as their membership in various Board committees, which include the Audit, Remuneration, and Nomination Committees. This update provides clarity on the governance structure of the company, potentially impacting its strategic direction and stakeholder confidence.

Wecon Holdings Updates Nomination Committee Terms

Wecon Holdings Limited has updated the terms of reference for its Nomination Committee, which is responsible for nominating directors to the company’s board. The revised terms, effective from June 27, 2025, ensure compliance with the listing rules of the Hong Kong Stock Exchange and emphasize diversity by requiring at least one member of a different gender. This move is likely to enhance the company’s governance practices and align with broader market expectations for diversity and compliance.

Wecon Holdings Ltd. Reports Increased Profit Amid Revenue Decline

Wecon Holdings Ltd. reported a decrease in revenue by approximately 8.8% to HK$1,058.7 million for the year ending March 31, 2025, alongside a reduction in gross profit margin from 3.9% to 3.5%. Despite these declines, the company’s profit attributable to owners increased by 23.3% to HK$7.4 million, and the Board proposed maintaining the final dividend at HK1.2 cents per share, with a payout ratio of approximately 130%. These financial results reflect a challenging year with reduced revenues but improved profitability, indicating strategic adjustments and potential resilience in operations.

Wecon Holdings Announces Final Cash Dividend for FY2025

Wecon Holdings Limited, a company listed on the Hong Kong Stock Exchange, has announced a final cash dividend for the financial year ending 31 March 2025. The dividend is set at HKD 0.012 per share, with the payment date scheduled for 10 September 2025. Shareholders’ approval is expected on 21 August 2025, and the ex-dividend date is 25 August 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may impact its market positioning by potentially enhancing investor confidence.

Wecon Holdings Schedules Board Meeting for Annual Results Approval

Wecon Holdings Limited has announced that its board of directors will meet on June 27, 2025, to approve the audited annual results for the financial year ending March 31, 2025. The meeting will also consider a final dividend recommendation and determine the closure of the company’s register of members, impacting stakeholders by potentially influencing dividend payouts and shareholding records.