Wison Engineering Services Co., Ltd. (2236) AI Stock Analysis

• Market Cap: HK$1.49B
• Dividend Yield: N/A
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.85
• Revenue Growth: 44.19%
• EPS Growth: N/A
• Country: HK
• Employees: 1,867
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): 0.04
• Shares Outstanding: 4,073,767,600
• 10 Day Avg. Volume: 2,131,300
• 30 Day Avg. Volume: 1,428,400
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.74
• 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: 56 Neutral
• Price Target: ―

The overall score reflects a company with potential due to revenue growth and a stable equity base. However, significant challenges in profitability and cash flow management, along with moderate technical indicators, temper the expectations. The valuation suggests the stock is somewhat undervalued, providing an opportunity for value investors, but the lack of a dividend yield and bearish momentum indicators are notable concerns.

Wison Engineering Services Co., Ltd. Business Overview & Revenue Model

Company Description

Wison Engineering Services Co. Ltd., an investment holding company, provides chemical engineering, procurement, and construction management services in Mainland China, the United States, the Middle East, and internationally. The company operates in two segments: Engineering, Procurement and Construction; and Engineering, Consulting and Technical Services. It provides a range of integrated services, including feasibility studies; consulting; proprietary technologies; design, engineering, and raw materials and equipment procurement; construction management; and maintenance and after-sale technical support services. The company is also involved in the import, export, and sale of equipment and parts. It offers its services for petrochemical, coal-to-chemical, oil refining, public infrastructure, and other sectors. The company was founded in 1997 and is headquartered in Shanghai, the People's Republic of China. Wison Engineering Services Co. Ltd. is a subsidiary of Wison Engineering Investment Limited.

How the Company Makes Money

Wison Engineering Services Co., Ltd. generates revenue primarily through its comprehensive EPC services, which encompass engineering design, procurement of equipment and materials, and construction management for industrial projects. The company earns income by securing contracts from clients in the petrochemical and energy sectors, which require its expertise in developing and expanding their infrastructure. Wison's revenue streams are bolstered by long-term partnerships and strategic alliances with major industry players, enabling it to undertake large and complex projects. Additionally, Wison may generate income from ancillary services such as technology licensing and consultancy, contributing to its overall financial performance.

Wison Engineering Services Co., Ltd. Financial Statement Overview

Summary

Wison Engineering Services Co., Ltd. shows potential with improved revenue growth, but profitability challenges and cash flow constraints are significant concerns. The balance sheet indicates moderate leverage and a stable equity base, yet the financial health needs to be monitored closely to mitigate risks associated with high debt levels and negative cash flows.

Income Statement

The company has shown a significant improvement in revenue from 2023 to 2024, reflecting a growth rate of 46.98%. However, profitability remains a concern with consistent negative EBIT and EBITDA margins over the years. The net profit margin turned positive in 2024, indicating some progress in cost management, yet overall operating performance is weak.

Balance Sheet

The debt-to-equity ratio improved slightly in 2024, showing a decrease in leverage compared to 2023. The equity ratio remains stable, indicating a solid equity base relative to total assets. However, the company holds a high level of total debt, which could pose risks if not managed properly.

Cash Flow

The company's cash flow situation is challenging, with inconsistent operating cash flows and negative free cash flow in recent years. There is a lack of free cash flow growth, which could hinder reinvestment opportunities and financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.65B	3.84B	4.66B	6.28B	5.30B
	Gross Profit
445.22M	227.20M	-208.30M	458.80M	301.20M
	EBIT
-1.02B	-302.18M	-1.40B	-188.35M	-383.48M
	EBITDA
-966.81M	-13.04M	-982.04M	-138.10M	-102.86M
	Net Income Common Stockholders
141.63M	-196.12M	-1.19B	-92.61M	-271.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.07B	1.14B	750.88M	1.01B	691.33M
	Total Assets
12.29B	9.46B	8.94B	10.10B	8.86B
	Total Debt
1.12B	1.12B	1.22B	1.19B	974.57M
	Net Debt
-2.69B	215.44M	835.96M	261.70M	503.60M
	Total Liabilities
9.64B	7.01B	6.37B	6.45B	5.07B
	Stockholders Equity
2.67B	2.46B	2.59B	3.65B	3.79B
Cash Flow		Free Cash Flow
0.00	628.81M	-598.64M	226.57M	-390.92M
	Operating Cash Flow
0.00	651.54M	-594.91M	256.48M	-380.27M
	Investing Cash Flow
0.00	-10.57M	39.77M	-4.39M	-142.75M
	Financing Cash Flow
0.00	-163.98M	-2.77M	217.29M	156.59M

Wison Engineering Services Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2236, the sentiment is Positive. The current price of 0.36 is above the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.29, and above the 200-day MA of 0.24, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 70.14 is Negative, neither overbought nor oversold. The STOCH value of 80.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2236.

Wison Engineering Services Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%
2236	56 Neutral	HK$1.49B	9.68	5.53%	―	44.19%	―
CCOHF		$8.07B	7.64	14.62%	4.03%	―	―
1616	52 Neutral	HK$71.00M	―	-21.00%	―	-29.79%	-146.84%

Wison Engineering Services Co., Ltd. Corporate Events

Wison Engineering Announces Key Resolutions for Upcoming AGM

Wison Engineering Services Co., Ltd. has announced its upcoming annual general meeting scheduled for June 6, 2025, in Shanghai. The meeting will address several key resolutions, including the re-election of directors, reappointment of auditors, and granting of mandates for share purchases and allotments. These decisions are pivotal for the company’s governance and strategic direction, potentially impacting its market positioning and shareholder value.

Wison Engineering Grants Share Options to Boost Stakeholder Engagement

Wison Engineering Services Co., Ltd. announced the grant of share options to eligible persons, allowing them to subscribe to a total of 67,760,000 ordinary shares. This grant is part of their 2022 share option scheme, representing approximately 1.66% of the company’s total issued shares. The exercise price is set at HK$0.301 per share, and the options will vest over three years, starting from April 2026. This move is likely aimed at incentivizing and retaining key personnel, potentially impacting the company’s operational efficiency and market competitiveness.

Wison Engineering Reports Strong Financial Growth and Green Innovation in 2024

Wison Engineering Services Co., Ltd. reported a significant financial turnaround for the year ending December 31, 2024, with a 47% increase in revenue and a notable profit compared to the previous year’s loss. The company also saw a substantial rise in new contract values and backlog, reflecting its strengthened market position and international expansion efforts. The establishment of the Green Hydrogen Products Technology Centre underscores Wison’s commitment to green transformation and innovation, enhancing its competitiveness and value creation for stakeholders.

Wison Engineering Announces Leadership Change with New Chairman Appointment

Wison Engineering Services Co., Ltd. has announced a change in its leadership, with Mr. Zhou Hongliang set to become the new Chairman of the Board, effective March 27, 2025. Mr. Zhou, who has been with the company since 2005 and has over 30 years of experience in the petrochemicals industry, will succeed Mr. Liu Hongjun, who will remain as a non-executive Director. This leadership transition is expected to maintain the company’s strategic direction and operational stability, given Mr. Zhou’s extensive background and expertise.

Wison Engineering Schedules Board Meeting to Approve Annual Results

Wison Engineering Services Co., Ltd. has announced a board meeting scheduled for March 27, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend payment, which could impact the company’s financial strategy and shareholder returns.

Wison Engineering Projects a Financial Turnaround for 2024

Wison Engineering Services Co., Ltd. has announced a positive profit alert, indicating a significant financial turnaround. For the year ending 31 December 2024, the company expects a net profit of at least RMB120 million, a stark contrast to the net loss of approximately RMB198.4 million in the previous year. This improvement is attributed to increased gross margins and enhanced productivity from various strategic measures. However, these figures are based on preliminary assessments and may be subject to adjustments.