Onewo, Inc. Class H (2602) AI Stock Analysis

• Market Cap: HK$22.10B
• Dividend Yield: 1.74%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.12
• Revenue Growth: 5.75%
• EPS Growth: -31.63%
• Country: HK
• Employees: 102,441
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.75
• Shares Outstanding: 1,168,053,100
• 10 Day Avg. Volume: 490,120
• 30 Day Avg. Volume: 1,039,033
• PEG Ratio: -0.48
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 15.26
• 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: HK$23.17
• Price Target Upside: 22.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: HK$21.00 ▲(10.99% Upside)

The overall stock score is primarily influenced by financial performance and technical analysis. Strong revenue growth and a solid balance sheet are offset by cash flow concerns and declining profit margins. Bearish technical indicators further weigh on the score, while valuation metrics suggest the stock is fairly priced.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and strong demand for the company's smart building solutions, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future growth investments and strategic initiatives.

Recurring Revenue Model

Recurring revenue from subscription services ensures a stable cash flow, reducing volatility and supporting long-term financial health and strategic planning.

Negative Factors

Cash Flow Inconsistencies

Inconsistent cash flow generation can lead to liquidity challenges, impacting the company's ability to fund operations and invest in growth opportunities.

Declining Profit Margins

Declining profit margins may indicate rising costs or pricing pressures, potentially affecting long-term profitability and competitive positioning.

Earnings Volatility

Volatile earnings growth can undermine investor confidence and limit the company's ability to plan and execute long-term strategic initiatives effectively.

Onewo, Inc. Class H Business Overview & Revenue Model

Company Description

Onewo, Inc. Class H (2602) is a diversified technology company operating primarily in the fields of smart building solutions and digital infrastructure. The company specializes in providing integrated services that encompass building management systems, IoT solutions, and cloud-based platforms aimed at enhancing operational efficiency and sustainability for commercial and residential properties. Through its innovative products and services, Onewo seeks to transform traditional buildings into intelligent environments that optimize energy consumption and improve user experiences.

How the Company Makes Money

Onewo, Inc. generates revenue through several key streams, including the sale of smart building hardware, software licenses for its IoT platforms, and subscription-based services for ongoing system support and upgrades. The company also partners with real estate developers and property management firms to integrate its technology into new and existing buildings, which creates additional revenue through installation and maintenance contracts. Furthermore, Onewo benefits from strategic alliances with technology providers that enhance its service offerings, allowing it to tap into new markets and customer segments. The recurring nature of subscription services, combined with the demand for smart building technologies, positions Onewo for sustained growth and profitability.

Onewo, Inc. Class H Financial Statement Overview

Summary

The company demonstrates strong revenue growth and a solid balance sheet with a low debt-to-equity ratio. However, there are concerns regarding cash flow consistency and declining profit margins, which need to be addressed to enhance financial health.

Income Statement

The company shows a strong revenue growth trend with a consistent increase over the years. The gross profit margin remains stable, although the net profit margin has shown some fluctuations. The EBIT and EBITDA margins indicate a reasonable level of operational efficiency, but recent declines in EBIT and net income margins suggest room for improvement.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio, reflecting prudent financial management. The equity ratio is robust, indicating a strong capital base. Return on equity has been positive, reflecting effective use of shareholders' equity, although there is room for improvement in profitability.

Cash Flow

The cash flow statement shows inconsistencies, particularly in free cash flow and operating cash flow metrics. The lack of data for TTM makes it difficult to assess recent performance. The company's ability to generate sufficient cash relative to net income has been variable, suggesting potential liquidity concerns in the short to medium term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.80B	36.22B	33.18B	30.11B	23.70B	18.15B
Gross Profit	4.79B	4.70B	4.81B	4.23B	4.02B	3.36B
EBITDA	2.74B	2.52B	3.68B	2.89B	2.73B	2.34B
Net Income	1.17B	1.15B	1.95B	1.51B	1.67B	1.46B
Balance Sheet
Total Assets	37.76B	38.61B	39.38B	36.96B	28.78B	19.00B
Cash, Cash Equivalents and Short-Term Investments	10.99B	14.13B	15.75B	13.37B	6.93B	7.13B
Total Debt	893.81M	335.96M	351.36M	233.54M	266.13M	239.85M
Total Liabilities	21.45B	21.45B	21.16B	19.96B	18.47B	12.44B
Stockholders Equity	15.47B	16.42B	17.61B	16.46B	9.89B	6.26B
Cash Flow
Free Cash Flow	3.34B	1.48B	2.22B	2.30B	2.56B	2.41B
Operating Cash Flow	3.50B	1.92B	2.59B	2.76B	2.83B	2.56B
Investing Cash Flow	-1.91B	-898.66M	152.40M	-36.49M	518.93M	-1.95B
Financing Cash Flow	-2.86B	-3.16B	-516.83M	4.18B	-2.32B	-390.49M

Onewo, Inc. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2602, the sentiment is Negative. The current price of 18.92 is below the 20-day moving average (MA) of 19.68, below the 50-day MA of 21.45, and below the 200-day MA of 21.58, indicating a bearish trend. The MACD of -0.80 indicates Positive momentum. The RSI at 24.71 is Positive, neither overbought nor oversold. The STOCH value of 7.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2602.

Onewo, Inc. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6049	78 Outperform	HK$18.53B	11.02	15.94%	4.43%	6.54%	3.26%
2869	70 Outperform	HK$14.50B	17.19	10.30%	2.78%	-0.95%	14.89%
2669	69 Neutral	HK$15.20B	9.11	30.27%	3.81%	―	―
6098	66 Neutral	HK$20.66B	13.89	3.72%	4.94%	7.23%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2602	58 Neutral	HK$22.10B	17.16	7.08%	1.74%	5.75%	-31.63%
6666	51 Neutral	HK$12.65B	11.59	185.17%	―	4.74%	-21.33%

Onewo, Inc. Class H Corporate Events

Onewo Inc. Announces On-Market Share Repurchase Plan

Onewo Inc., a joint stock company incorporated in China, has announced its intention to conduct an on-market share repurchase. The company plans to repurchase up to 10% of its H shares, utilizing a maximum of RMB0.5 billion, as a demonstration of confidence in its business prospects. This move is expected to benefit the company and its shareholders by potentially enhancing shareholder value. The repurchase will be funded from the company’s financial resources and will comply with relevant regulations. The implementation is subject to market conditions and the discretion of the board.

Onewo Inc.’s Controlling Shareholder Pledges Shares in Loan Agreement

Onewo Inc., a joint stock company incorporated in China, announced that its controlling shareholder, China Vanke, has pledged 15,321,078 shares of Onewo as part of a loan framework agreement with Shenzhen Metro Group Co., Ltd. This pledge represents approximately 1.33% of Onewo’s total issued share capital. The arrangement will not impact China Vanke’s control over Onewo or affect the company’s normal operations. Onewo will continue to monitor the situation and provide updates as necessary.

Onewo Inc. Finalizes Equity Transfer Agreements with Supplementary Arrangements

Onewo Inc. has entered into a Supplementary Agreement and Pledge and Mortgage Agreement to finalize the terms of its equity transfers with Shanghai Vanke Investment and Hangzhou Hongwang Investment. The agreements involve substantial financial transactions and asset pledges, which are expected to impact the company’s financial operations and strengthen its market positioning. These transactions are classified as connected transactions due to the involvement of China Vanke, the controlling shareholder, and are subject to specific reporting requirements under Hong Kong’s Listing Rules.