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

• Market Cap: HK$1.59B
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.97
• Revenue Growth: 96.63%
• EPS Growth: N/A
• Country: HK
• Employees: 1,867
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.02
• Shares Outstanding: 4,073,767,600
• 10 Day Avg. Volume: 836,400
• 30 Day Avg. Volume: 1,291,066
• PEG Ratio: -0.03
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 0.27
• 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: 52 Neutral
• Price Target: HK$0.50 ▲(35.14% Upside)

The overall stock score of 52 reflects significant financial performance concerns, particularly in profitability and cash flow, despite some revenue growth. Technical analysis indicates a bearish trend with oversold conditions, while valuation suggests potential undervaluation. The absence of earnings call insights and corporate events limits additional context.

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

Company Description

Wison Engineering Services Co., Ltd. (2236) is a leading engineering and construction service provider based in China, specializing in the fields of petrochemicals, refining, and renewable energy. The company offers a comprehensive range of services including engineering design, procurement, construction, and project management, catering to various sectors such as oil and gas, chemicals, and power generation. Wison is known for its innovative solutions and commitment to sustainability, aiming to support the growing demand for energy-efficient and environmentally friendly technologies.

How the Company Makes Money

Wison Engineering generates revenue primarily through its engineering and construction services, which are contracted for large-scale projects in the petrochemical and energy sectors. The company earns money by providing end-to-end solutions that include design, procurement, and construction management. Key revenue streams include project-based contracts, where Wison is compensated based on milestones achieved or completed work, as well as service agreements for ongoing support and maintenance. The company also benefits from strategic partnerships with major industry players, which can lead to joint ventures and collaborative projects, enhancing its market reach and 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.46B	5.65B	3.84B	4.66B	6.28B	5.30B
Gross Profit	598.23M	445.22M	227.20M	-208.30M	458.80M	301.20M
EBITDA	-828.42M	-966.81M	-13.04M	-982.04M	-138.10M	-102.86M
Net Income	250.56M	141.63M	-196.12M	-1.19B	-92.61M	-271.24M
Balance Sheet
Total Assets	11.51B	12.29B	9.46B	8.94B	10.10B	8.86B
Cash, Cash Equivalents and Short-Term Investments	3.86B	4.07B	1.14B	750.88M	1.01B	471.47M
Total Debt	790.09M	1.12B	1.12B	1.22B	1.19B	974.57M
Total Liabilities	8.72B	9.64B	7.01B	6.37B	6.45B	5.07B
Stockholders Equity	2.80B	2.67B	2.46B	2.59B	3.65B	3.79B
Cash Flow
Free Cash Flow	2.71B	3.06B	628.81M	-598.64M	226.57M	-390.92M
Operating Cash Flow	2.72B	3.08B	651.54M	-594.91M	256.48M	-380.27M
Investing Cash Flow	-720.10M	-703.68M	-10.57M	39.77M	-4.39M	-142.75M
Financing Cash Flow	-40.28M	-51.51M	-163.98M	-2.77M	217.29M	156.59M

Wison Engineering Services Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.37
• 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:2236, the sentiment is Negative. The current price of 0.37 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.46, and below the 200-day MA of 0.37, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 39.26 is Neutral, neither overbought nor oversold. The STOCH value of 63.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
2386	78 Outperform	€32.82B	12.03	8.27%	5.38%	11.89%	8.49%
3311	67 Neutral	HK$48.91B	4.97	13.70%	6.75%	-5.14%	-4.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1618	62 Neutral	HK$74.50B	11.53	3.80%	2.85%	-18.36%	-47.29%
3996	56 Neutral	€69.00B	5.59	7.78%	3.73%	11.49%	-7.01%
2236	52 Neutral	HK$1.59B	5.86	9.56%	―	96.63%	―
2068	45 Neutral	HK$15.59B	74.84	3.35%	―	-1.75%	―

Wison Engineering Services Co., Ltd. Corporate Events

Wison Engineering Announces Contract Termination with Lukoil-Permnefteorgsintez

Wison Engineering Services Co., Ltd. announced the termination of a contract with Lukoil-Permnefteorgsintez, initially valued at approximately RMB8.3 billion. Despite the contract’s termination, the company has received sufficient prepayment to cover any advanced payments, ensuring no financial risk. The contract’s termination is not expected to materially impact Wison’s revenue, gross profit, or financial position, as it accounted for a small percentage of the company’s overall financials. The company’s operations remain stable and unaffected.

The most recent analyst rating on (HK:2236) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Wison Engineering Services Co., Ltd. stock, see the HK:2236 Stock Forecast page.

Wison Engineering Terminates Contract with Lukoil Subsidiary Amid Sanctions

Wison Engineering Services Co., Ltd. announced the termination of its contract with Lukoil’s subsidiary due to sanctions imposed by the UK and the US. Despite the contract’s termination, which accounted for a small percentage of the company’s revenue and profit, Wison Engineering expects no significant adverse impact on its overall business operations or financial position.

The most recent analyst rating on (HK:2236) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Wison Engineering Services Co., Ltd. stock, see the HK:2236 Stock Forecast page.

Wison Engineering Reports Strong Interim Results Amid Global Challenges

Wison Engineering Services Co., Ltd. announced its interim results for the first half of 2025, highlighting its efforts in internationalization, risk control, and digital capabilities to enhance competitiveness. Despite global economic challenges, the company benefited from China’s economic resilience and continued its green transition in response to the evolving petrochemical industry landscape, which faces pressure from fluctuating oil prices and a shift towards sustainable practices.

The most recent analyst rating on (HK:2236) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Wison Engineering Services Co., Ltd. stock, see the HK:2236 Stock Forecast page.

Wison Engineering Announces Board Composition and Committee Roles

Wison Engineering Services Co., Ltd. has announced the composition of its board of directors and the roles within its board committees. This update includes the appointment of executive, non-executive, and independent non-executive directors, as well as the leadership of the audit, nomination, and remuneration committees, potentially impacting the company’s governance and strategic direction.

The most recent analyst rating on (HK:2236) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Wison Engineering Services Co., Ltd. stock, see the HK:2236 Stock Forecast page.