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Watts International Maritime Engineering Ltd. (HK:2258)
:2258
Hong Kong Market

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

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HK:2258

Watts International Maritime Engineering Ltd.

(2258)

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Rating:58Neutral
Price Target:
HK$0.50
▲(117.39% Upside)
Action:ReiteratedDate:11/18/25
The overall stock score of 58 for HK:2258 reflects significant financial challenges as the primary drag, with declining revenue, net losses, and negative cash flows. However, positive valuation metrics, including a low P/E ratio and decent dividend yield, along with moderate bullish technical momentum, provide some upside. Financial performance remains the key risk to monitor.
Positive Factors
Business Model Diversification
Watts International's diversified revenue streams from construction, services, and partnerships help mitigate risks and ensure steady cash flow.
Negative Factors
Declining Revenue and Profitability
The decline in revenue and profitability indicates challenges in market competitiveness and cost management, potentially affecting long-term growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Business Model Diversification
Watts International's diversified revenue streams from construction, services, and partnerships help mitigate risks and ensure steady cash flow.
Read all positive factors

Watts International Maritime Engineering Ltd. (2258) vs. iShares MSCI Hong Kong ETF (EWH)

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 Co...
How the Company Makes Money
Watts International Maritime Engineering Ltd. generates revenue through multiple key streams. Primarily, the company earns income from the construction and sale of ships and offshore platforms, which involves substantial contracts with government ...

Watts International Maritime Engineering Ltd. Financial Statement Overview

Summary
Financial performance is weak, with a significant revenue decline of 28.4% and a shift to net losses in 2024 (net profit margin of -4.5%). The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.40, but a declining equity base. Cash flows remain negative, though slightly improved. This indicates operational and financial challenges.
Income Statement
25
Negative
Balance Sheet
45
Neutral
Cash Flow
30
Negative
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.57B1.53B2.14B2.08B2.26B1.82B
Gross Profit104.12M98.54M173.57M171.13M207.77M202.64M
EBITDA85.07M-29.51M89.98M85.14M93.51M102.01M
Net Income70.32M-69.25M30.75M27.10M47.06M46.84M
Balance Sheet
Total Assets3.30B3.35B3.24B3.44B3.34B3.43B
Cash, Cash Equivalents and Short-Term Investments371.37M342.66M257.58M541.48M443.83M423.75M
Total Debt352.55M280.83M207.08M250.41M129.44M60.59M
Total Liabilities2.59B2.65B2.49B2.71B2.63B2.77B
Stockholders Equity710.48M696.92M752.10M731.67M703.36M663.72M
Cash Flow
Free Cash Flow76.13M-14.17M-231.75M11.80M-23.09M19.34M
Operating Cash Flow82.28M-10.06M-224.08M19.88M-14.50M32.56M
Investing Cash Flow-437.00K40.92M2.61M-31.99M-20.78M-32.74M
Financing Cash Flow17.77M55.75M-63.21M101.51M59.10M-38.25M

Watts International Maritime Engineering Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.23
Price Trends
50DMA
0.22
Negative
100DMA
0.22
Negative
200DMA
0.21
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
37.39
Neutral
STOCH
-6.67
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 0.23 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.22, and above the 200-day MA of 0.21, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.39 is Neutral, neither overbought nor oversold. The STOCH value of -6.67 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
HK$272.00M1.7912.01%0.89%-3.77%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
HK$3.36B5.6711.42%5.25%3.78%-17.34%
58
Neutral
HK$158.89M5.0210.40%4.64%-13.98%
54
Neutral
HK$829.15M-11.68-4.98%-44.12%-3110.53%
52
Neutral
HK$3.48B4.897.19%6.05%-21.80%-8.00%
49
Neutral
HK$160.37M-2.920.62%-78.51%388.89%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2258
Watts International Maritime Engineering Ltd.
0.19
0.01
7.78%
HK:1576
Qilu Expressway Co., Ltd. Class H
1.74
-0.18
-9.37%
HK:1785
Chengdu Expressway Co., Ltd. Class H
2.03
0.16
8.56%
HK:1823
Huayu Expressway Group Limited
1.76
1.34
319.05%
HK:6888
Freetech Road Recycling Technology (Holdings) Ltd.
0.16
-0.01
-6.51%
HK:8502
Ocean Line Port Development Limited
0.34
0.08
30.77%

Watts International Maritime Engineering Ltd. Corporate Events

Watts International Maritime Wins Shareholder Approval for 2026–2028 Construction Services Framework
Dec 23, 2025
Watts International Maritime Company Limited announced that shareholders at its extraordinary general meeting on 23 December 2025 approved, by poll, the 2026–2028 Master Construction Services Agreement and its proposed annual caps, with all ...
Watts International Maritime to Hold EGM on New Construction Agreement
Dec 9, 2025
Watts International Maritime Engineering Ltd. has announced an extraordinary general meeting scheduled for December 23, 2025, to discuss and potentially approve the 2026−2028 Master Construction Services Agreement. This agreement, if ratifie...
Watts International Renews Construction Services Agreement with Watts Gallop
Dec 4, 2025
Watts International Maritime Engineering Ltd. has announced the renewal of its Master Construction Services Agreement with Watts Gallop, effective from January 1, 2026, to December 31, 2028. This agreement allows Watts International to continue pr...
Watts International Enhances Governance with New Nomination Committee
Dec 1, 2025
Watts International Maritime Engineering Ltd. has established a Nomination Committee as per a resolution passed by its Board of Directors. The committee, which will consist of at least three members, primarily independent non-executive directors, ...
Watts International Announces Board Changes with New Executive Director Appointment
Dec 1, 2025
Watts International Maritime Engineering Ltd. announced a significant change in its board composition, appointing Ms. Wang Lifang as an executive director and a member of the nomination committee, effective December 1, 2025. This appointment follo...
Watts International Maritime Engineering Ltd. Announces Board Composition and Roles
Dec 1, 2025
Watts International Maritime Engineering Ltd. has announced the composition of its Board of Directors and the roles and functions of its members. The board includes both executive and independent non-executive directors, with specific members assi...
Watts International Maritime Engineering Ltd. Updates Share Award Scheme Details
Oct 14, 2025
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 e...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 18, 2025