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

• Market Cap: HK$510.78M
• Dividend Yield: 5.45%
• Average Volume (3M): 490.27K
• Price to Earnings (P/E): 1.9
• Beta (1Y): 0.42
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$1.50 ▲(32.74% Upside)
• Action: Reiterated Date: 11/14/25
• Date: Action: Reiterated 11/14/25

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 trend

Sustained double-digit revenue growth (18.27% in the latest year) indicates durable demand for the company’s products and expanding market penetration. Over 2–6 months this supports scale advantages, reinvestment capacity and underpins longer-term margin improvement and competitive positioning.

Strong cash generation

A very large free cash flow expansion (203.28%) and FCF/NetIncome near 0.92 demonstrate the company’s ability to convert earnings into cash. This durable cash generation supports dividends, working capital needs and selective investment, improving financial resilience and strategic optionality.

Conservative leverage and high ROE

Extremely low leverage (D/E 0.06) combined with a high ROE (21.79%) signals efficient capital use with strong solvency. This structural balance sheet strength reduces financial risk, preserves flexibility for growth or volatility, and supports sustainable capital returns over time.

Negative Factors

Modest net profit margin

A net margin of 8.88%—while improved—is still moderate for durable earnings cushions. Over the medium term, limited margin headroom can leave profits sensitive to rising input, labor or distribution costs, constraining long-term free cashflow expansion and resilience under stress.

Sub-1 cash conversion ratio

An OCF/NetIncome ratio of 0.79 indicates not all reported earnings convert to cash, which may reflect working capital absorption or timing effects. If persistent, below‑one conversion can reduce dependable free cashflow and limit sustainable funding for capex, dividends, or paydown.

Asset management vigilance required

The explicit need for vigilance on asset management highlights potential risks in inventory, receivables or fixed-asset efficiency. Structural lapses could erode liquidity and margins over months, making operational oversight and working-capital discipline critical to maintain stability.

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

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Wah Sun Handbags International Holdings Ltd. Financial Statement Overview

Summary

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

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	803.54M	724.10M	594.41M	446.52M	617.59M	403.84M
Gross Profit	187.85M	159.58M	105.00M	67.55M	127.63M	67.21M
EBITDA	121.91M	97.06M	46.80M	22.92M	63.56M	20.58M
Net Income	85.56M	64.27M	28.50M	8.49M	39.54M	5.56M
Balance Sheet
Total Assets	482.90M	420.87M	371.31M	382.38M	416.99M	374.15M
Cash, Cash Equivalents and Short-Term Investments	217.19M	188.85M	142.68M	103.04M	116.55M	110.72M
Total Debt	21.98M	18.71M	21.54M	23.83M	22.50M	24.38M
Total Liabilities	163.01M	127.34M	115.92M	137.82M	157.88M	138.16M
Stockholders Equity	318.60M	294.94M	259.33M	247.21M	259.27M	235.99M
Cash Flow
Free Cash Flow	70.86M	81.21M	60.87M	14.97M	25.13M	38.82M
Operating Cash Flow	71.98M	88.06M	63.76M	22.20M	37.32M	39.95M
Investing Cash Flow	-902.00K	-3.75M	-621.00K	-6.54M	-12.11M	-988.00K
Financing Cash Flow	-34.11M	-35.83M	-24.14M	-26.61M	-20.38M	-15.52M

Wah Sun Handbags International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 1.13 is below the 20-day moving average (MA) of 1.27, below the 50-day MA of 1.21, and above the 200-day MA of 0.89, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 53.84 is Neutral, neither overbought nor oversold. The STOCH value of 54.55 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$510.78M	1.91	28.87%	5.45%	31.25%	147.52%
1023	62 Neutral	HK$490.98M	8.99	-10.55%	11.54%	-1.38%	-275.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0738	48 Neutral	HK$215.30M	-1.27	-18.87%	―	-30.45%	-97.13%
1842	48 Neutral	HK$58.80M	-2.15	-5.68%	―	6.38%	-275.00%
8285	44 Neutral	HK$20.72M	119.63	―	―	-48.40%	66.36%
1058	42 Neutral	HK$207.14M	-8.96	-134.59%	―	-8.05%	33.37%