WK Group (Holdings) Limited (2535) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 3.86M
• Price to Earnings (P/E): 35.4
• Beta (1Y): 0.21
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 137
• Sector: General
• Sector Strength: N/A
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): <0.01
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 6,234,000
• 30 Day Avg. Volume: 3,861,000
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 65 Neutral
• Price Target: ―

The overall stock score of 65 reflects WK Group's strong financial performance, particularly its revenue growth and healthy margins, balanced against liquidity risks from negative cash flows. Technical indicators suggest a neutral stance, while the high P/E ratio indicates potential overvaluation. The absence of dividend yield could also be a concern for certain investors.

WK Group (Holdings) Limited Business Overview & Revenue Model

Company Description

WK Group (Holdings) Limited (2535) is a diversified company with interests in various sectors, including property investment, development, and management, as well as financial services. The company focuses on delivering high-quality real estate projects and offering comprehensive financial solutions to its clients.

How the Company Makes Money

WK Group (Holdings) Limited generates revenue primarily through its real estate operations, which include property sales, leasing, and management services. Additionally, the company earns income from its financial services division by providing investment products and advisory services. The firm's strategic partnerships with other real estate developers and financial institutions enhance its market presence and contribute to its revenue streams. The ability to identify lucrative investment opportunities and manage a diverse portfolio of properties and financial products is key to the company's profitability.

WK Group (Holdings) Limited Financial Statement Overview

Summary

WK Group (Holdings) Limited demonstrates solid financial health, characterized by strong revenue growth and efficient profitability margins. The low leverage enhances financial stability, although liquidity concerns arise from negative cash flow trends. Continued focus on cash generation will be crucial to sustain growth and financial health.

Income Statement

The company exhibits a strong revenue growth trajectory with a 7.63% increase in the latest year. Gross profit margin is stable at approximately 18%, and net profit margin improved to 7.91%, indicating efficient cost management. EBIT and EBITDA margins are healthy at 9.94% and 11.76%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet is robust with a debt-to-equity ratio of 0.05, indicating low leverage. Return on Equity (ROE) is strong at 12.43%, reflecting effective use of equity. The equity ratio stands at 80.89%, signifying a solid asset base backed by equity, though there is a slight concern with the decrease in cash and short-term investments year on year.

Cash Flow

The cash flow statement highlights volatility with negative operating and free cash flows in the latest year, posing a potential liquidity risk. The operating cash flow to net income ratio is not available, emphasizing the need for improved cash generation to support operational and investment activities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	398.46M	370.23M	336.38M	228.78M	324.29M
Gross Profit	71.39M	70.90M	66.04M	34.54M	54.05M
EBITDA	48.09M	40.12M	52.28M	26.59M	48.62M
Net Income	31.50M	25.20M	39.27M	17.34M	36.71M
Balance Sheet
Total Assets	313.31M	257.06M	201.38M	154.10M	166.41M
Cash, Cash Equivalents and Short-Term Investments	109.50M	11.01M	70.88M	11.73M	14.54M
Total Debt	12.75M	12.89M	19.18M	7.32M	16.87M
Total Liabilities	59.92M	120.83M	70.79M	56.26M	85.27M
Stockholders Equity	253.38M	136.23M	130.59M	97.84M	81.14M
Cash Flow
Free Cash Flow	0.00	-24.39M	78.45M	9.99M	4.58M
Operating Cash Flow	24.96M	-22.97M	78.76M	11.12M	8.25M
Investing Cash Flow	0.00	-4.18M	-6.62M	-1.17M	-4.20M
Financing Cash Flow	97.72M	-32.87M	-15.10M	-12.78M	-7.69M

WK Group (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2535, the sentiment is Negative. The current price of 0.56 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.56, and below the 200-day MA of 0.58, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.21 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2535.

WK Group (Holdings) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2318	79 Outperform	$1.10T	8.21		4.79%	11.71%	37.04%
1810	76 Outperform	HK$1.33T	33.08	17.46%	―	38.60%	94.11%
2382	75 Outperform	$86.57B	24.40	13.28%	0.65%	7.53%	87.77%
3690	73 Outperform	HK$723.55B	16.46	23.82%	―	19.20%	156.71%
3888	70 Outperform	$46.91B	24.66	7.25%	0.41%	15.08%	84.20%
2535	65 Neutral		35.44		―	―	―
Sector *	55 Neutral	$6.41B	1.59	-10.19%	6.24%	14.96%	-2.21%

WK Group (Holdings) Limited Corporate Events

WK Group Completes Share Placing, Maintains Control

WK Group (Holdings) Limited has completed the placing of 480,000,000 existing shares, representing 24% of its issued share capital, to at least six independent placees. The placing, which occurred in multiple rounds, ensures that no single placee holds 30% or more of the company’s total issued share capital, thus maintaining the vendor’s status as the controlling shareholder with 51% ownership. The company does not anticipate any adverse effects on its operations from this transaction.

WK Group Announces 2025 Annual General Meeting and Key Resolutions

WK Group (Holdings) Limited has announced its upcoming Annual General Meeting scheduled for June 23, 2025, in Hong Kong. Key agenda items include the adoption of the 2024 financial statements, re-election of executive directors, re-appointment of auditors, and authorization for the board to issue additional shares. These resolutions, if passed, will impact the company’s governance and capital structure, potentially influencing its market positioning and shareholder relations.

WK Group Clarifies Misunderstanding Over Unrelated Scheme

WK Group (Holdings) Limited has issued a clarification announcement to address a misunderstanding regarding a scheme purportedly linked to the company. The company clarified that it has no connection with the scheme, the organization behind it, or any related agreements, emphasizing that it did not authorize or promote any such activities. This announcement serves to protect the company’s reputation and ensure stakeholders are accurately informed.

WK Group Reports Revenue Growth and Stable Earnings for 2024

WK Group (Holdings) Limited reported an increase in revenue by 7.6% to approximately HK$398.5 million for the year ended 31 December 2024, with a gross profit of approximately HK$71.4 million. The company also recorded a profit attributable to owners of approximately HK$31.5 million, up from HK$25.2 million the previous year. Despite this growth, the board decided not to recommend a final dividend payment for the year. The financial results reflect a stable performance with a consistent earnings per share of HK1.7 cents, indicating a steady operational efficiency amidst rising administrative expenses.

WK Group Announces Upcoming Board Meeting to Review Annual Results

WK Group (Holdings) Limited has announced that its Board of Directors will hold a meeting on March 27, 2025. The meeting will focus on approving the audited consolidated annual results for the year ending December 31, 2024, discussing the potential recommendation of a final dividend, and considering the closure of the company’s register of members if necessary. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, as well as its focus on maintaining robust financial practices.