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

• Market Cap: HK$162.16M
• Dividend Yield: 5.15%
• Average Volume (3M): 7.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -29.77%
• EPS Growth: -321.55%
• Country: HK
• Employees: 472
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.07
• Shares Outstanding: 825,400,000
• 10 Day Avg. Volume: 21,000
• 30 Day Avg. Volume: 7,800
• PEG Ratio: <0.01
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.56
• 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

• Rating: 55 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score of 55 reflects significant challenges in financial performance, with declining revenue and profitability being the most impactful factor. Technical analysis provides some positive short-term momentum, but the valuation remains under pressure due to negative earnings. The lack of earnings call and corporate events data leaves the score primarily influenced by existing financial and technical data.

Watts International Maritime Engineering Ltd. Business Overview & Revenue Model

Company Description

Watts International Maritime Engineering Ltd. (2258) is a company that operates in the field of maritime engineering. It specializes in providing engineering and construction services related to marine and port infrastructure, including the design, development, and maintenance of ports, harbors, and other marine facilities. The company is known for its expertise in handling complex maritime projects and delivering comprehensive solutions tailored to the needs of its clients.

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 faces challenges with declining revenue and profitability, impacting the income statement. The balance sheet shows moderate stability but with concerns over declining assets and equity. Cash flow issues persist, with negative operating cash flow creating 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	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
EBITDA	-29.51M	89.98M	85.14M	95.91M	96.83M
Net Income	-69.25M	30.75M	27.10M	47.06M	46.84M
Balance Sheet
Total Assets	3.35B	3.24B	3.44B	3.34B	3.43B
Cash, Cash Equivalents and Short-Term Investments	342.66M	257.58M	541.48M	443.83M	423.75M
Total Debt	280.83M	207.08M	250.41M	129.44M	60.59M
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: Positive
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2258, the sentiment is Positive. The current price of 0.18 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.19, and below the 200-day MA of 0.19, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 72.77 is Negative, neither overbought nor oversold. The STOCH value of 94.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1785	78 Outperform	HK$3.51B	6.14	11.55%	5.13%	-2.20%	-12.73%
8502	75 Outperform	HK$244.00M	3.43	12.67%	―	-0.15%	8.41%
1576	71 Outperform	HK$4.12B	7.84	12.09%	5.32%	23.94%	-9.82%
Sector *	58 Neutral	HK$14.11B	4.63	-3.01%	6.76%	3.67%	-54.16%
2258	55 Neutral	HK$162.16M	―	-9.55%	5.15%	-29.77%	-321.55%
6888	49 Neutral	HK$164.43M	29.45	0.75%	―	-65.39%	-52.59%
1823	44 Neutral	HK$259.94M	128.95	-1.10%	―	-52.67%	-102.48%

Watts International Maritime Engineering Ltd. Corporate Events

Watts International Maritime Engineering Ltd. Announces Unanimous Approval of AGM Resolutions

Watts International Maritime Engineering Ltd. announced that all resolutions proposed at its Annual General Meeting (AGM) on June 24, 2025, were passed unanimously. The resolutions included adopting financial statements, re-electing directors, appointing auditors, and granting mandates for share issuance and repurchase. This outcome reflects strong shareholder support and positions the company for continued strategic operations and governance stability.

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.