Wah Sun Handbags International Holdings Ltd. (2683) AI Stock Analysis

• Market Cap: HK$355.50M
• Dividend Yield: 5.23%
• Average Volume (3M): 490.27K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.36
• Revenue Growth: 31.25%
• EPS Growth: 147.52%
• Country: HK
• Employees: 4,483
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.12
• Shares Outstanding: 408,625,980
• 10 Day Avg. Volume: 276,000
• 30 Day Avg. Volume: 490,266
• PEG Ratio: 0.03
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 3.12
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$1.00 ▼(-20.00% Downside)

Wah Sun Handbags International Holdings Ltd. has a strong financial foundation, with impressive revenue and profit growth, effective cash management, and a stable balance sheet. The stock is attractively valued with a low P/E ratio and high dividend yield. However, technical analysis indicates potential overbought conditions, which could pose short-term risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, strengthening the company's market position.

Cash Generation

Strong cash generation enhances liquidity and financial flexibility, supporting sustainable operations and potential growth investments.

Margin Sustainability

Improving margins reflect enhanced operational efficiency and effective cost management, contributing to long-term profitability.

Negative Factors

Asset Management Vigilance

While current financials are strong, ongoing asset management is crucial to avoid potential future financial instability.

Market Dependency

Reliance on large contracts can be risky if market conditions change or if major clients reduce orders, affecting revenue stability.

Industry Competition

High competition in the fashion industry can pressure pricing and margins, challenging long-term growth and market share retention.

Wah Sun Handbags International Holdings Ltd. Business Overview & Revenue Model

Company Description

Wah Sun Handbags International Holdings Ltd. (2683) is a Hong Kong-based company engaged in the design, manufacture, and sale of handbags and related accessories. Operating primarily in the fashion sector, the company offers a diverse range of products including leather handbags, casual bags, and travel accessories, catering to a wide array of consumers. Wah Sun Handbags focuses on both high-quality production and innovative designs, serving both local and international markets.

How the Company Makes Money

Wah Sun Handbags generates revenue primarily through the sale of its handbags and accessories. The company operates a business model that includes wholesale distribution to retailers as well as direct sales through its own branded outlets. Key revenue streams include bulk orders from international fashion retailers, which account for a significant portion of its sales, and online sales through e-commerce platforms. Additionally, Wah Sun Handbags may engage in partnerships with fashion brands for co-branded products, further enhancing its market presence. The company also benefits from cost-effective manufacturing processes and a strong supply chain, which help to maintain competitive pricing and profitability.

Wah Sun Handbags International Holdings Ltd. Financial Statement Overview

Summary

Wah Sun Handbags International Holdings Ltd. exhibits strong financial performance with significant revenue and profit growth. The income statement shows impressive margins, the balance sheet reflects a stable financial structure with low leverage, and the cash flow statement underscores robust cash generation capabilities.

Income Statement

Wah Sun Handbags International Holdings Ltd. has demonstrated strong revenue growth of 18.27% in the latest year, with improving profitability metrics. The gross profit margin increased to 22.04%, and the net profit margin rose to 8.88%, indicating enhanced operational efficiency. The EBIT and EBITDA margins also show positive trends, reflecting effective cost management. Overall, the income statement reflects a robust financial performance with significant growth and profitability improvements.

Balance Sheet

The balance sheet of Wah Sun Handbags shows a healthy financial position with a low debt-to-equity ratio of 0.06, indicating conservative leverage. The return on equity is strong at 21.79%, showcasing efficient use of equity to generate profits. The equity ratio stands at a solid level, reflecting a stable capital structure. However, the company should maintain vigilance on asset management to ensure continued financial stability.

Cash Flow

Cash flow analysis reveals a remarkable free cash flow growth rate of 203.28%, highlighting significant improvements in cash generation. The operating cash flow to net income ratio is 0.79, indicating strong cash conversion from earnings. The free cash flow to net income ratio of 0.92 further supports the company's ability to generate cash relative to its net income. Overall, the cash flow statement reflects a strong liquidity position and effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	612.22M	724.10M	594.41M	446.52M	617.59M	403.84M
Gross Profit	117.97M	159.58M	105.00M	67.55M	127.63M	67.21M
EBITDA	47.70M	97.06M	46.80M	22.92M	63.56M	20.58M
Net Income	34.58M	64.27M	28.50M	8.49M	39.54M	5.56M
Balance Sheet
Total Assets	423.93M	420.87M	371.31M	382.38M	416.99M	374.15M
Cash, Cash Equivalents and Short-Term Investments	156.32M	188.85M	142.68M	103.04M	116.55M	110.72M
Total Debt	20.92M	18.71M	21.54M	23.83M	22.50M	24.38M
Total Liabilities	152.23M	127.34M	115.92M	137.82M	157.88M	138.16M
Stockholders Equity	274.12M	294.94M	259.33M	247.21M	259.27M	235.99M
Cash Flow
Free Cash Flow	26.78M	81.21M	60.87M	14.97M	25.13M	38.82M
Operating Cash Flow	32.78M	88.06M	63.76M	22.20M	37.32M	39.95M
Investing Cash Flow	-5.05M	-3.75M	-621.00K	-6.54M	-12.11M	-988.00K
Financing Cash Flow	-39.66M	-35.83M	-24.14M	-26.61M	-20.38M	-15.52M

Wah Sun Handbags International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2683, the sentiment is Positive. The current price of 1.25 is above the 20-day moving average (MA) of 1.07, above the 50-day MA of 0.93, and above the 200-day MA of 0.70, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 78.69 is Negative, neither overbought nor oversold. The STOCH value of 76.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2683.

Wah Sun Handbags International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2683	73 Outperform	HK$355.50M	5.53	28.87%	5.23%	31.25%	147.52%
1023	62 Neutral	HK$500.61M	-2.81	-10.55%	11.76%	-1.38%	-275.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1842	45 Neutral	HK$69.60M	-9.67	-5.68%	―	6.38%	-275.00%
8285	44 Neutral	HK$23.52M	-5.83	―	―	-48.40%	66.36%
0738	41 Neutral	HK$155.30M	―	-18.87%	―	-30.45%	-97.13%
1058	41 Neutral	HK$204.45M	-6.04	-134.59%	―	-8.05%	33.37%

Wah Sun Handbags International Holdings Ltd. Corporate Events

Wah Sun Handbags Reports Strong Interim Financial Results

Wah Sun Handbags International Holdings Ltd. reported a significant financial improvement for the six months ending September 2025, with a 22.5% increase in revenue to HK$431.7 million and a 37.6% rise in gross profit to HK$103.4 million. The company’s net profit attributable to owners also saw a substantial increase, reaching HK$48.3 million, up from HK$27.0 million in the previous year. The Board has decided to distribute an interim dividend of HK4.0 cents per share and a special dividend of HK2.0 cents per share, reflecting the company’s robust financial performance and commitment to shareholder returns.

Wah Sun Handbags Announces Interim Dividend for 2025

Wah Sun Handbags International Holdings Ltd. has announced an interim cash dividend of HKD 0.04 per share for the six months ended 30 September 2025, with the payment date set for 09 January 2026. This announcement reflects the company’s stable financial performance and commitment to returning value to shareholders, potentially enhancing its attractiveness to investors and solidifying its position in the competitive fashion industry.

Wah Sun Handbags Announces Special Interim Dividend

Wah Sun Handbags International Holdings Ltd. has announced a special interim dividend of HKD 0.02 per share for the six months ending 30 September 2025, with payment scheduled for 9 January 2026. This announcement reflects the company’s financial health and commitment to returning value to shareholders, potentially enhancing its attractiveness to investors.

Wah Sun Handbags Schedules Board Meeting for Financial Results

Wah Sun Handbags International Holdings Ltd. has announced a board meeting scheduled for November 28, 2025, to approve the publication of its unaudited consolidated financial results for the six months ending September 30, 2025. The meeting will also consider the declaration of an interim dividend, highlighting the company’s ongoing financial activities and potential shareholder returns.

Wah Sun Handbags Projects Significant Profit Growth

Wah Sun Handbags International Holdings Ltd. has issued a positive profit alert, anticipating a significant increase in net profit to at least HK$40 million for the six months ending September 2025, compared to HK$27 million in the previous year. This growth is attributed to a 23% rise in revenue driven by new customer orders and improved cost control measures, although increased administrative, sales, and tax expenses have partially offset these gains.

Wah Sun Handbags Announces Nomination Committee Changes

Wah Sun Handbags International Holdings Ltd. announced changes in its Nomination Committee, effective from September 19, 2025. These changes include the departure of Mr. Ma Hing Ming and the appointment of Ms. Ma Lan Chu as a committee member. This restructuring aligns with the updated Listing Rules and Corporate Governance Code, aiming to enhance board diversity and corporate governance practices.

Wah Sun Handbags Announces Board and Committee Composition

Wah Sun Handbags International Holdings Ltd. has announced the composition of its board of directors and the various committees within the board. This announcement highlights the leadership structure and governance framework of the company, which is crucial for stakeholders to understand the company’s strategic direction and management oversight.