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

• Market Cap: HK$1.59B
• Dividend Yield: N/A
• Average Volume (3M): 1.63M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.97
• Revenue Growth: 44.19%
• EPS Growth: N/A
• Country: HK
• Employees: 1,867
• Sector: Industrials
• Sector Strength: 92
• Industry: Engineering & Construction
• EPS (TTM): 0.05
• Shares Outstanding: 4,073,767,600
• 10 Day Avg. Volume: 844,500
• 30 Day Avg. Volume: 1,630,066
• PEG Ratio: 0.05
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.01
• 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: 65 Neutral
• Price Target: HK$0.50 ▲(28.21%Upside)

The overall stock score is positively influenced by strong technical indicators and reasonable valuation. However, significant concerns remain regarding financial performance, particularly in profitability and cash flow, which must be addressed to ensure long-term stability.

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 through its engineering, procurement, and construction (EPC) contracts, primarily within the petrochemical and coal-to-chemical industries. The company's key revenue streams include fees for designing, engineering, and managing complex industrial projects. Additionally, Wison benefits from strategic partnerships and collaborations with global companies, enhancing its project pipeline and market reach. The company also invests in research and development, which supports its ability to offer innovative solutions and maintain competitive advantage in its sector.

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
EBITDA	-966.81M	-13.04M	-982.04M	-138.10M	-102.86M
Net Income	141.63M	-196.12M	-1.19B	-92.61M	-271.24M
Balance Sheet
Total Assets	12.29B	9.46B	8.94B	10.10B	8.86B
Cash, Cash Equivalents and Short-Term Investments	4.07B	1.14B	750.88M	1.01B	691.33M
Total Debt	1.12B	1.12B	1.22B	1.19B	974.57M
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	3.06B	628.81M	-598.64M	226.57M	-390.92M
Operating Cash Flow	3.08B	651.54M	-594.91M	256.48M	-380.27M
Investing Cash Flow	-703.68M	-10.57M	39.77M	-4.39M	-142.75M
Financing Cash Flow	-51.51M	-163.98M	-2.77M	217.29M	156.59M

Wison Engineering Services Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.39
• 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:2236, the sentiment is Positive. The current price of 0.39 is above the 20-day moving average (MA) of 0.38, above the 50-day MA of 0.33, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 67.86 is Neutral, neither overbought nor oversold. The STOCH value of 86.67 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
1618	80 Outperform	€63.91B	5.78	5.56%	4.62%	-19.10%	-30.15%
3311	79 Outperform	HK$60.64B	6.18	14.62%	4.96%	1.21%	2.15%
2386	71 Outperform	€26.15B	9.78	7.81%	6.51%	12.37%	―
3996	66 Neutral	HK$66.87B	5.39	8.19%	4.82%	4.81%	1.42%
2236	65 Neutral	HK$1.59B	10.48	5.53%	―	44.19%	―
Sector *	65 Neutral	$10.89B	15.56	5.22%	1.87%	3.09%	-26.84%
2068	56 Neutral	€14.39B	42.41	7.03%	―	2.57%	―

Wison Engineering Services Co., Ltd. Corporate Events

Wison Engineering Services Announces AGM Resolutions Passed

Wison Engineering Services Co., Ltd. announced the successful passing of all proposed resolutions at their Annual General Meeting held on June 6, 2025. This includes the re-election of directors, re-appointment of auditors, and granting of mandates to the board for share repurchase and issuance. These decisions reflect a stable governance structure and strategic flexibility, potentially enhancing shareholder value and market confidence.

Wison Engineering Announces Board Composition and Committee Roles

Wison Engineering Services Co., Ltd. has announced the composition of its board of directors and their roles within the company. The board includes executive, non-executive, and independent non-executive directors, with Mr. ZHOU Hongliang serving as the Chairman and CEO. The company has also established three board committees: Audit, Nomination, and Remuneration, each chaired by different independent non-executive directors. This announcement highlights the company’s governance structure and emphasizes its commitment to maintaining a robust oversight framework, which may impact its strategic direction and stakeholder confidence.

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.