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

• Market Cap: HK$1.57B
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 5.9
• Beta (1Y): 1.02
• 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 ▲(25.00% 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.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and demand for Wison's services, enhancing its competitive position and potential for future expansion.

Market Position

As a leading provider in the engineering and construction sector, Wison benefits from established market presence and expertise, supporting long-term business stability and growth.

Strategic Partnerships

Strategic partnerships enhance Wison's market reach and financial performance, providing opportunities for joint ventures and collaborative projects that strengthen its business model.

Negative Factors

Profitability Challenges

Persistent profitability issues can undermine financial health and limit reinvestment capabilities, posing risks to long-term growth and operational efficiency.

Cash Flow Constraints

Negative cash flows restrict financial flexibility and hinder the ability to invest in growth opportunities, potentially impacting Wison's competitive edge and sustainability.

High Debt Levels

High debt levels can lead to increased financial risk and interest obligations, limiting Wison's capacity to navigate economic fluctuations and invest in strategic initiatives.

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 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: Positive
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 0.4 is above the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.41, and above the 200-day MA of 0.38, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 54.34 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, 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
2386	78 Outperform	HK$32.30B	11.83	8.27%	5.41%	11.89%	8.49%
3311	67 Neutral	HK$51.29B	5.21	13.70%	6.46%	-5.14%	-4.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1618	62 Neutral	HK$63.28B	9.25	3.80%	3.32%	-18.36%	-47.29%
3996	56 Neutral	€67.09B	5.35	7.78%	3.83%	11.49%	-7.01%
2236	52 Neutral	HK$1.57B	5.94	9.56%	―	96.63%	―
2068	45 Neutral	HK$14.94B	74.22	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.

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.