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

• Market Cap: HK$159.71M
• Dividend Yield: 5.23%
• Average Volume (3M): 1.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: -29.77%
• EPS Growth: -321.55%
• Country: HK
• Employees: 472
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.07
• Shares Outstanding: 825,400,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,066
• PEG Ratio: -0.18
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.16
• 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: 64 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is influenced primarily by the strong technical analysis, indicating positive market momentum. However, significant concerns in financial performance, indicated by declining revenue and profitability, weigh down the score. The valuation score reflects a negative P/E ratio but a high dividend yield, presenting mixed signals.

Watts International Maritime Engineering Ltd. Business Overview & Revenue Model

Company Description

Watts International Maritime Company Limited, an investment holding company, operates as a port, waterway, and marine and municipal public engineering services provider in the People's Republic of China. It operates through two segments, Marine Construction and Municipal Public Construction. The Marine Construction segment includes infrastructure construction of ports, waterway engineering, and other services. The Municipal Public Construction segment engages in the construction of public infrastructure within cities, urban greening, and construction of buildings. The company was formerly known as Watts International Maritime Engineering Limited and changed its name to Watts International Maritime Company Limited in January 2022. Watts International Maritime Company Limited was incorporated in 2017 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

Watts International Maritime Engineering Ltd. generates revenue primarily through contracts for engineering and construction services in the maritime sector. The company earns income by undertaking projects related to the development and maintenance of marine infrastructure, such as ports and harbors. These projects often involve long-term contracts and can be funded by government bodies or private sector clients seeking to expand or improve their maritime facilities. Additionally, the company may engage in strategic partnerships or joint ventures with other firms to enhance its capabilities and expand its market reach, contributing to its overall revenue.

Watts International Maritime Engineering Ltd. Financial Statement Overview

Summary

The company is facing significant challenges with declining revenue and profitability, resulting in a low income statement score. The balance sheet shows moderate stability but includes concerns about asset and equity decreases. Persistent cash flow issues with negative operating cash flow also contribute to a low overall financial performance score.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.53B	2.14B	2.08B	2.26B	1.82B
	Gross Profit
98.54M	173.57M	171.13M	207.77M	202.64M
	EBIT
-48.83M	67.02M	95.18M	97.44M	106.31M
	EBITDA
-29.51M	89.98M	85.14M	95.91M	96.83M
	Net Income Common Stockholders
-69.25M	30.75M	27.10M	47.06M	46.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
342.66M	257.58M	541.48M	443.83M	423.75M
	Total Assets
3.35B	3.24B	3.44B	3.34B	3.43B
	Total Debt
280.83M	207.08M	250.41M	129.44M	60.59M
	Net Debt
-61.82M	-48.68M	-289.76M	-314.39M	-363.10M
	Total Liabilities
2.65B	2.49B	2.71B	2.63B	2.77B
	Stockholders Equity
696.92M	752.10M	731.67M	703.36M	663.72M
Cash Flow		Free Cash Flow
-14.17M	-231.75M	11.80M	-23.09M	19.34M
	Operating Cash Flow
-10.06M	-224.08M	19.88M	-14.50M	32.56M
	Investing Cash Flow
40.92M	2.61M	-31.99M	-20.78M	-32.74M
	Financing Cash Flow
55.75M	-63.21M	101.51M	59.10M	-38.25M

Watts International Maritime Engineering Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 0.2 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.19, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 35.05 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, 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
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
2258	64 Neutral	HK$159.71M	―	-9.55%	5.23%	-29.77%	-321.55%
CCOHF		$8.14B	7.64	14.62%	4.03%	―	―
6MT		€6.69B	4.50	5.56%	5.95%	―	―

Watts International Maritime Engineering Ltd. Corporate Events

Watts International Maritime Engineering Ltd. Announces 2025 AGM and Key Resolutions

Watts International Maritime Engineering Ltd. has announced its upcoming annual general meeting scheduled for June 24, 2025, in Shanghai, China. Key agenda items include the adoption of the company’s audited financial statements for 2024, re-election of directors, and re-appointment of PricewaterhouseCoopers as auditor. Additionally, the company seeks approval to authorize its directors to manage share allotments and related financial instruments, which could impact its capital structure and shareholder value.

Watts International Maritime Engineering Ltd. Reports Annual Loss for 2024

Watts International Maritime Engineering Ltd. reported its annual financial results for the year ending December 31, 2024, showing a significant decline in revenue and profit compared to the previous year. The company experienced a loss before income tax of RMB 68,045,000 and a comprehensive loss attributable to shareholders of RMB 47,546,000, reflecting challenges in its operational performance.

Watts International Issues Profit Warning Amid Economic Challenges

Watts International Maritime Engineering Ltd. has issued a profit warning, anticipating a net loss of RMB65 million to RMB75 million for the financial year ending December 2024, compared to a net profit of RMB30.7 million in 2023. This downturn is attributed to a significant decline in revenue and gross profit due to challenging macroeconomic conditions in the PRC, a weakened property market, and increased competition in their industry sectors. Additionally, there is an increased general provision of RMB44.6 million related to several municipal construction projects. The company’s annual results are still being finalized, and stakeholders are advised to exercise caution.