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

• Market Cap: HK$326.90M
• Dividend Yield: 20%
• Average Volume (3M): 721.47K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.29
• Revenue Growth: 14.78%
• EPS Growth: 56.67%
• Country: HK
• Employees: 4,483
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.09
• Shares Outstanding: 408,625,980
• 10 Day Avg. Volume: 958,000
• 30 Day Avg. Volume: 721,466
• PEG Ratio: -0.20
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.01
• 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: 78 Outperform
• Price Target: ―

Wah Sun Handbags International Holdings Ltd. is well-positioned with strong financial performance, notably in revenue growth and cash flow efficiency. Despite some technical indicators showing short-term pressure, the stock's valuation suggests it is undervalued, offering a high dividend yield. The company's low leverage and solid equity further bolster its stability and potential for future growth.

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 International Holdings Ltd. generates revenue primarily through the sale of its handbags and accessories. The company's revenue model is based on both direct sales to retailers and distributors, as well as direct-to-consumer sales through online channels and retail outlets. Key revenue streams include wholesale agreements with department stores, specialty retailers, and boutiques around the world. Additionally, the company may engage in strategic partnerships or collaborations with fashion designers and influencers to enhance its brand appeal and reach. Factors such as brand reputation, product quality, and distribution network significantly contribute to Wah Sun Handbags' earnings.

Wah Sun Handbags International Holdings Ltd. Financial Statement Overview

Summary

Wah Sun Handbags International Holdings Ltd. shows strong financial performance with significant revenue growth, improved profitability, and efficient cash flow management. The balance sheet indicates low leverage and a robust equity position. Despite not fully recovering to 2020 revenue levels, the company's financial health is solid.

Income Statement

Wah Sun Handbags International Holdings Ltd. has demonstrated strong growth in revenue, with a significant increase from the previous year, leading to a revenue growth rate of approximately 33.1%. Gross Profit Margin stands at a healthy 17.67%, and Net Profit Margin is 4.79%, indicating solid profitability. The EBIT and EBITDA margins have improved to 5.71% and 7.88% respectively, showcasing operational efficiency. However, the company has not yet fully recovered to its 2020 revenue levels, indicating some market challenges.

Balance Sheet

The balance sheet of Wah Sun Handbags is robust, with a Debt-to-Equity Ratio of 0.08, indicating low leverage and financial stability. The Return on Equity (ROE) has improved to 10.99%, reflecting effective utilization of shareholder funds. The Equity Ratio is strong at 69.83%, highlighting a solid capital structure with significant equity backing. Overall, the company is in a strong financial position with low debt levels and high equity.

Cash Flow

Cash flow analysis reveals a substantial increase in Free Cash Flow, growing by approximately 306.6% compared to the previous year. The Operating Cash Flow to Net Income Ratio is 2.24, indicating strong cash generation relative to net earnings. The Free Cash Flow to Net Income Ratio is 2.14, signifying efficient conversion of income to free cash. This strong cash flow position provides the company with ample flexibility for investments and debt servicing.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	612.22M	594.41M	446.52M	617.59M	403.84M	756.15M
Gross Profit	117.97M	105.00M	67.55M	127.63M	67.21M	128.31M
EBITDA	47.70M	46.80M	22.92M	63.56M	20.58M	30.86M
Net Income	34.58M	28.50M	8.49M	39.54M	5.56M	11.09M
Balance Sheet
Total Assets	423.93M	371.31M	382.38M	416.99M	374.15M	401.66M
Cash, Cash Equivalents and Short-Term Investments	156.32M	142.68M	103.04M	116.55M	110.72M	84.51M
Total Debt	20.92M	21.54M	23.83M	22.50M	24.38M	30.23M
Total Liabilities	152.23M	115.92M	137.82M	157.88M	138.16M	163.76M
Stockholders Equity	274.12M	259.33M	247.21M	259.27M	235.99M	237.90M
Cash Flow
Free Cash Flow	26.78M	60.87M	14.97M	25.13M	38.82M	29.34M
Operating Cash Flow	32.78M	63.76M	22.20M	37.32M	39.95M	33.68M
Investing Cash Flow	-3.06M	-621.00K	-6.54M	-12.11M	-988.00K	-4.67M
Financing Cash Flow	-40.70M	-24.14M	-26.61M	-20.38M	-15.52M	-36.38M

Wah Sun Handbags International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.80
• 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 0.8 is above the 20-day moving average (MA) of 0.72, above the 50-day MA of 0.61, and above the 200-day MA of 0.51, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 77.94 is Negative, neither overbought nor oversold. The STOCH value of 72.60 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	78 Outperform	HK$326.90M	5.09	23.19%	20.00%	14.78%	56.67%
Sector *	62 Neutral	$16.85B	11.50	-7.38%	2.96%	1.59%	-23.36%
0738		HK$161.65M	―	-18.39%	―	―	―
1023	56 Neutral	HK$471.72M	5.10	-1.08%	12.24%	-4.68%	-112.44%
8285	51 Neutral	HK$19.60M	―		―	-35.21%	-19.75%
1058	49 Neutral	HK$204.45M	―	-110.92%	―	8.58%	49.15%
1842	45 Neutral	HK$75.60M	―	-3.32%	―	5.42%	-511.11%