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

• Market Cap: HK$322.81M
• Dividend Yield: 8.86%
• Average Volume (3M): 547.00K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.27
• Revenue Growth: 21.82%
• EPS Growth: 125.68%
• Country: HK
• Employees: 4,483
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.09
• Shares Outstanding: 408,625,980
• 10 Day Avg. Volume: 519,600
• 30 Day Avg. Volume: 547,000
• 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: HK$1.00
• Price Target Upside: 26.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 82 Outperform
• Price Target: HK$1.00 ▲(26.58% Upside)

Wah Sun Handbags International Holdings Ltd. receives a strong overall stock score driven by robust financial performance and attractive valuation. The company's impressive revenue and profit growth, coupled with a stable financial structure and strong cash generation, are significant strengths. Additionally, the stock's low P/E ratio and high dividend yield make it appealing for value and income investors. Positive technical indicators further support the stock's favorable outlook.

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

Company Description

Wah Sun Handbags International Holdings Limited, an investment holding company, engages in the manufacture and trade of non-leather hand-bag products in the United States, Spain, Canada, and internationally. Its non-leather handbags are made of PU, PVC, and various textile materials. The company was founded in 1989 and is headquartered in Shatin, Hong Kong. Wah Sun Handbags International Holdings Limited is a subsidiary of Wah Sun International Holdings Limited.

How the Company Makes Money

Wah Sun Handbags generates revenue primarily through the sale of its handbags and fashion accessories to wholesalers and retailers. The company's revenue model is based on bulk orders and contracts with large retail chains, which provide a steady income stream. Additionally, Wah Sun may engage in direct-to-consumer sales through online platforms, enhancing its market reach. Key revenue streams include international sales, particularly in markets like North America and Europe, as well as strategic partnerships with fashion brands that may involve co-branding initiatives or exclusive collections. The company also benefits from economies of scale due to large production volumes, allowing it to maintain competitive pricing while maximizing profit margins.

Wah Sun Handbags International Holdings Ltd. Financial Statement Overview

Summary

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

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: 0.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.79 is above the 20-day moving average (MA) of 0.76, above the 50-day MA of 0.74, and above the 200-day MA of 0.57, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 62.82 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 is Negative, 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	82 Outperform	HK$322.81M	5.02	23.19%	8.86%	21.82%	125.68%
1023	62 Neutral	HK$500.61M	5.10	-1.08%	11.54%	-4.68%	-112.44%
Sector *	56 Neutral	HK$25.46B	5.06	-2.69%	5.60%	-0.43%	-53.15%
1058	49 Neutral	HK$236.73M	―	-110.92%	―	8.58%	49.15%
1842	45 Neutral	HK$80.40M	―	-3.32%	―	5.42%	-511.11%
0738	43 Neutral	HK$169.41M	―	-18.39%	―	-27.74%	-321.58%
8285	39 Underperform	HK$18.48M	―		―	-35.21%	-19.75%

Wah Sun Handbags International Holdings Ltd. Corporate Events

Wah Sun Handbags Announces AGM with Key Financial Decisions

Wah Sun Handbags International Holdings Ltd. has announced its upcoming annual general meeting scheduled for September 1, 2025, where key agenda items include the approval of financial statements, dividend payments, and the re-election of directors. The meeting will also address the authorization of the board to manage share allotments, which could impact the company’s strategic financial maneuvers and shareholder value.

Wah Sun Handbags Reports Strong Financial Growth in 2025

Wah Sun Handbags International Holdings Ltd. reported a strong financial performance for the year ended 31 March 2025, with a 21.8% increase in revenue to HK$724.1 million and a 125.5% rise in net profit to HK$64.3 million. The company also announced an increase in gross profit margin and earnings per share, alongside a proposed final and special dividend, reflecting its robust market positioning and positive outlook for stakeholders.

Wah Sun Handbags Announces Final Dividend for FY2025

Wah Sun Handbags International Holdings Ltd. announced a final ordinary cash dividend of HKD 0.04 per share for the financial year ending March 31, 2025. The dividend reflects the company’s financial health and commitment to shareholder returns, with key dates including an ex-dividend date of October 6, 2025, and a payment date of October 31, 2025.

Wah Sun Handbags Proposes Amendments to Articles of Association

Wah Sun Handbags International Holdings Ltd. has announced proposed amendments to its articles of association to align with the latest regulatory requirements, including the expanded paperless listing regime and changes related to treasury shares. These amendments are subject to approval at the upcoming annual general meeting, and a circular detailing the changes will be sent to shareholders.

Wah Sun Handbags Schedules Board Meeting for Financial Results and Dividend Decision

Wah Sun Handbags International Holdings Ltd. has announced a board meeting scheduled for June 23, 2025, to discuss the approval of the audited consolidated financial results for the fiscal year ending March 31, 2025. The meeting will also consider the recommendation of a final dividend, which could impact shareholder returns and the company’s financial strategy.

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 for the year ending March 2025, compared to the previous year. This growth is attributed to improved market sentiment, increased demand, and effective cost control measures, despite rising expenses in sales, distribution, and administration.