Watts International Maritime Engineering Ltd. (HK:2258)
:2258
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Watts International Maritime Engineering Ltd.
(2258)
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Rating:61Neutral
Price Target:
HK$0.23
▲(0.87% Upside)
Action:Reiterated
Date:05/08/26
The score is driven primarily by improving but still uneven fundamentals: earnings rebounded in 2025 and leverage remains manageable, but thin margins and volatile cash-flow conversion limit confidence. Technicals show the price above key moving averages, but overbought RSI/Stoch readings increase near-term pullback risk. Valuation is a positive offset due to the low P/E.
Positive Factors
Earnings recovery to profitability
Return to operating profit and net income in 2025 after a 2024 loss demonstrates improving operational execution and project profitability. That recovery creates a more sustainable earnings base, reducing restructuring tail risks and supporting medium-term cash generation if performance is maintained.
Negative Factors
Thin profitability margins
Gross margins around 9.7% and net margins near 1.8% leave little buffer for input-cost inflation or pricing pressure. Thin margins make profitability highly sensitive to project mix, execution variances, and cost overruns, increasing the likelihood that modest revenue setbacks erase earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Earnings recovery to profitability
Return to operating profit and net income in 2025 after a 2024 loss demonstrates improving operational execution and project profitability. That recovery creates a more sustainable earnings base, reducing restructuring tail risks and supporting medium-term cash generation if performance is maintained.
Read all positive factors
Watts International Maritime Engineering Ltd. (2258) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$173.63M
Dividend Yield4.64%
Average Volume (3M)170.85K
Price to Earnings (P/E)4.5
Beta (1Y)0.65
Revenue Growth22.78%
EPS GrowthN/A
CountryHK
Employees472
SectorIndustrials
Sector Strength72
IndustryIndustrial - Infrastructure Operations
Share Statistics
EPS (TTM)0.04
Shares Outstanding825,400,000
10 Day Avg. Volume70,800
30 Day Avg. Volume170,853
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)0.22
Price to Sales (P/S)0.09
P/FCF Ratio8.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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...
Watts International Maritime Engineering Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.88B | 1.53B | 2.14B | 2.08B | 2.26B |
| Gross Profit | 181.58M | 98.54M | 173.57M | 171.13M | 207.77M |
| EBITDA | 71.92M | -29.51M | 89.98M | 85.14M | 93.51M |
| Net Income | 33.10M | -69.25M | 30.75M | 27.10M | 47.06M |
Balance Sheet | |||||
| Total Assets | 3.55B | 3.35B | 3.24B | 3.44B | 3.34B |
| Cash, Cash Equivalents and Short-Term Investments | 614.75M | 342.66M | 257.58M | 541.48M | 443.83M |
| Total Debt | 387.60M | 280.83M | 207.08M | 250.41M | 129.44M |
| Total Liabilities | 2.82B | 2.65B | 2.49B | 2.71B | 2.63B |
| Stockholders Equity | 724.21M | 696.92M | 752.10M | 731.67M | 703.36M |
Cash Flow | |||||
| Free Cash Flow | 19.74M | -14.17M | -231.75M | 11.80M | -23.09M |
| Operating Cash Flow | 34.47M | -10.06M | -224.08M | 19.88M | -14.50M |
| Investing Cash Flow | -14.29M | 40.92M | 2.61M | -31.99M | -20.78M |
| Financing Cash Flow | 103.83M | 55.75M | -63.21M | 101.51M | 59.10M |
Watts International Maritime Engineering Ltd. Technical Analysis
Neutral
0.23
Price Trends
0.20
Positive
0.21
Negative
0.21
Negative
Market Momentum
<0.01
Positive
53.74
Neutral
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2258, the sentiment is Neutral. The current price of 0.23 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.20, and above the 200-day MA of 0.21, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.74 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2258.
Watts International Maritime Engineering Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | HK$276.00M | 4.56 | 9.33% | ― | -10.28% | -20.25% | |
64 Neutral | HK$6.04B | 10.75 | 10.13% | 8.67% | 14.76% | 4.22% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | HK$173.63M | 4.53 | 10.40% | 4.64% | 22.78% | ― | |
61 Neutral | HK$14.45B | 46.54 | 3.06% | 6.70% | 18.24% | -23.26% | |
55 Neutral | HK$14.54B | 6.50 | 6.54% | 6.96% | 4.98% | -22.67% | |
40 Underperform | HK$106.44M | -0.34 | 2.58% | ― | 5.76% | -138.78% |
* Industrials Sector Average
HK:2258
Watts International Maritime Engineering Ltd.
0.21
0.01
6.00%
HK:0737
Shenzhen Investment Holdings Bay Area Development Company
1.96
0.29
17.72%
HK:0152
Shenzhen International Holdings
5.95
-0.72
-10.78%
HK:0697
Shoucheng Holdings Ltd.
1.72
0.25
17.09%
HK:0269
China Resources & Transportation Group Ltd.
0.01
0.00
0.00%
HK:8502
Ocean Line Port Development Limited
0.35
0.05
18.97%
Watts International Maritime Engineering Ltd. Corporate Events
Watts International Maritime Sets 2026 AGM to Approve Dividend, Board Mandates
Apr 22, 2026
Watts International Maritime Company Limited has convened its annual general meeting for 25 June 2026 in Shanghai, where shareholders will review and adopt the audited consolidated financial statements for the year ended 31 December 2025. The agen...
Watts International Maritime Declares Final Dividend for 2025
Mar 26, 2026
Watts International Maritime Company Limited has declared a final ordinary cash dividend of HKD 0.0111 per share for the financial year ended 31 December 2025. The dividend, payable in Hong Kong dollars, underscores the company’s intent to r...
Watts International Maritime Swings to Profit on Higher 2025 Revenue
Mar 26, 2026
Watts International Maritime Company Limited reported a strong turnaround for the year ended 31 December 2025, with revenue rising to RMB1.88 billion from RMB1.53 billion and gross profit nearly doubling. The company swung from a loss to a profit,...
Watts International Maritime Sets March Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 16, 2026
Watts International Maritime Company Limited has scheduled a board meeting for 26 March 2026 to review and approve the audited annual results for the financial year ended 31 December 2025. The board will also consider whether to recommend a final ...
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.