Watts International Maritime Engineering Ltd. (2258) AI Stock Analysis

• Market Cap: HK$164.62M
• Dividend Yield: 5.6%
• Average Volume (3M): 170.85K
• Price to Earnings (P/E): 2.2
• Beta (1Y): 0.37
• Revenue Growth: -13.98%
• EPS Growth: N/A
• Country: HK
• Employees: 472
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.02
• Shares Outstanding: 825,400,000
• 10 Day Avg. Volume: 70,800
• 30 Day Avg. Volume: 170,853
• PEG Ratio: <0.01
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -10.86
• 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: 60 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score reflects significant financial challenges, with declining revenue and profitability impacting the company's financial health. However, the stock's low P/E ratio and attractive dividend yield suggest potential undervaluation, which could appeal to value investors. Technical indicators show mixed signals, with potential for a rebound given the RSI's proximity to oversold levels.

Watts International Maritime Engineering Ltd. Business Overview & Revenue Model

Company Description

Watts International Maritime Engineering Ltd. (2258) is a company that operates in the engineering and construction sectors, focusing primarily on maritime and infrastructure projects. The company is involved in the design, engineering, and construction of ports, terminals, and other marine-related facilities. Additionally, Watts International engages in infrastructure development, including roads, bridges, and urban facilities, providing comprehensive solutions from planning to execution.

How the Company Makes Money

Watts International Maritime Engineering Ltd. generates revenue through a variety of streams within its core operations. The primary source of income comes from large-scale engineering and construction projects for maritime infrastructure, such as the development and upgrading of ports and terminals. Additionally, the company earns from infrastructure projects including roads and bridges, which involve contracts with governmental bodies and private enterprises. Revenue is also derived from consultancy services in project planning and design. The company's earnings are bolstered by strategic partnerships and collaborations with other engineering firms and government agencies, which help secure large contracts and expand its project portfolio.

Watts International Maritime Engineering Ltd. Financial Statement Overview

Summary

The company faces significant challenges with declining revenue and profitability, impacting its income statement score. The balance sheet shows moderate stability but highlights concerns about asset and equity decreases. Cash flow issues persist, with negative operating cash flow creating potential liquidity concerns.

Income Statement

The income statement shows a concerning trend with a significant decline in revenue and profitability. The gross profit margin decreased from previous years, and the company reported a net loss for 2024. The negative revenue growth and declining profit margins indicate potential challenges in maintaining competitiveness and managing costs.

Balance Sheet

The balance sheet reveals moderate financial stability. The debt-to-equity ratio remains reasonable, indicating manageable leverage levels. However, the declining stockholders' equity and a decrease in total assets suggest potential pressure on the company's financial health. The equity ratio is stable, but there are concerns about the company's ability to generate sufficient returns on equity.

Cash Flow

Cash flow analysis highlights challenges in generating positive operating cash flow, with the company consistently reporting negative figures in recent years. Although free cash flow has improved slightly, the operating cash flow to net income ratio remains unfavorable, reflecting difficulties in converting earnings into cash. This could impact the company's ability to invest in growth opportunities or service its debt.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.57B	1.53B	2.14B	2.08B	2.26B	1.82B
Gross Profit	104.12M	98.54M	173.57M	171.13M	207.77M	202.64M
EBITDA	85.07M	-29.51M	89.98M	85.14M	93.51M	102.01M
Net Income	70.32M	-69.25M	30.75M	27.10M	47.06M	46.84M
Balance Sheet
Total Assets	3.30B	3.35B	3.24B	3.44B	3.34B	3.43B
Cash, Cash Equivalents and Short-Term Investments	371.37M	342.66M	257.58M	541.48M	443.83M	423.75M
Total Debt	352.55M	280.83M	207.08M	250.41M	129.44M	60.59M
Total Liabilities	2.59B	2.65B	2.49B	2.71B	2.63B	2.77B
Stockholders Equity	710.48M	696.92M	752.10M	731.67M	703.36M	663.72M
Cash Flow
Free Cash Flow	76.13M	-14.17M	-231.75M	11.80M	-23.09M	19.34M
Operating Cash Flow	82.28M	-10.06M	-224.08M	19.88M	-14.50M	32.56M
Investing Cash Flow	-437.00K	40.92M	2.61M	-31.99M	-20.78M	-32.74M
Financing Cash Flow	17.77M	55.75M	-63.21M	101.51M	59.10M	-38.25M

Watts International Maritime Engineering Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2258, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.21, and below the 200-day MA of 0.19, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 28.55 is Positive, neither overbought nor oversold. The STOCH value of 10.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2258.

Watts International Maritime Engineering Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8502	75 Outperform	HK$244.00M	4.12	10.04%	―	0.89%	-3.77%
1785	72 Outperform	HK$3.35B	6.27	10.26%	5.28%	3.43%	-17.34%
1576	64 Neutral	HK$3.64B	7.72	10.92%	5.98%	-21.80%	-8.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2258	60 Neutral	HK$164.62M	2.16	10.40%	5.60%	-13.98%	―
1823	54 Neutral	HK$474.50M	-10.05	-5.81%	―	-44.12%	-3110.53%
6888	52 Neutral	HK$144.13M	32.27	0.63%	―	-78.51%	388.89%

Watts International Maritime Engineering Ltd. Corporate Events

Watts International Maritime Engineering Ltd. Updates Share Award Scheme Details

Watts International Maritime Engineering Ltd. has issued a supplemental announcement regarding its Share Award Scheme, which is part of its 2024 Annual Report. The scheme is designed to reward individuals who contribute to the company, including employees, directors, officers, and service providers. The announcement clarifies eligibility criteria for participation in the scheme, emphasizing compliance with local laws and regulations. This move is likely aimed at enhancing employee motivation and aligning interests with the company’s growth objectives.

The most recent analyst rating on (HK:2258) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Watts International Maritime Engineering Ltd. stock, see the HK:2258 Stock Forecast page.

Watts International Reports Financial Turnaround in 2025 Interim Results

Watts International Maritime Engineering Ltd. reported a significant financial turnaround for the six months ending June 30, 2025, with a revenue increase to RMB 749.7 million and a profit of RMB 15.7 million, compared to a loss in the previous year. This improvement in financial performance is likely to enhance the company’s market position and provide positive implications for its stakeholders.

Watts International Maritime Announces Board Meeting for Interim Results

Watts International Maritime Engineering Ltd. has announced a board meeting scheduled for August 26, 2025, to discuss and approve the company’s interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential dividends, impacting stakeholders and possibly influencing the company’s market position.