Wealthy Way Group Ltd. (3848) AI Stock Analysis

• Market Cap: HK$1.75B
• Dividend Yield: 0.27%
• Average Volume (3M): 115.83K
• Price to Earnings (P/E): 215.4
• Beta (1Y): 0.85
• Revenue Growth: -7.88%
• EPS Growth: -28.43%
• Country: HK
• Employees: 71
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.07
• Shares Outstanding: 156,417,000
• 10 Day Avg. Volume: 108,700
• 30 Day Avg. Volume: 115,833
• PEG Ratio: -2.16
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 8.60
• P/FCF Ratio: 47.56
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$11.00 ▼(-1.96% Downside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and inconsistent cash flows. Technical analysis indicates neutral to bearish conditions, while valuation metrics suggest overvaluation with a high P/E ratio and low dividend yield.

Positive Factors

Strong Gross Profit Margins

High gross profit margins indicate efficient cost management and a strong ability to generate profit from revenue, which is crucial for long-term sustainability.

Solid Equity Base

A strong equity base provides financial stability and reduces reliance on debt, enhancing the company's ability to withstand economic fluctuations.

Debt-Free Status

Eliminating debt reduces financial risk and interest expenses, allowing more resources to be allocated towards growth and operational improvements.

Negative Factors

Declining Revenues

Continued revenue decline can hinder growth prospects and affect the company's ability to invest in new opportunities, impacting long-term competitiveness.

Inconsistent Cash Flows

Volatile cash flows can lead to liquidity issues, limiting the company's ability to fund operations and invest in strategic initiatives, posing a risk to financial health.

Decreased Return on Equity

A declining return on equity suggests challenges in generating shareholder returns, which may affect investor confidence and the company's ability to attract capital.

Wealthy Way Group Ltd. Business Overview & Revenue Model

Company Description

Wealthy Way Group Limited, an investment holding company, provides financial leasing, factoring, and advisory services to individual and companies in the People's Republic of China and Hong Kong. The company offers small loans and related loan facilitation, asset management, investment management and advisory, securities dealing and broking, and other financial services. It also offers sale and leaseback, micro-credit, and loan facilitation related services. In addition, the company provides marketing and money lending services. It serves airline companies, health care service providers, and energy saving equipment providers. The company was founded in 2012 and is headquartered in Wanchai, Hong Kong. Wealthy Way Group Limited is a subsidiary of Wealthy Rise Investment Limited.

How the Company Makes Money

Wealthy Way Group Ltd. generates revenue through multiple streams, primarily from management fees charged on its investment funds and financial advisory services. The company earns a percentage of assets under management (AUM) as fees, which provides a stable income base. Additionally, it may receive performance-based fees from clients if investment returns exceed predefined benchmarks. Significant partnerships with financial institutions and asset managers enhance its service offerings and expand its client base, contributing further to its revenue growth. The company may also generate income through commissions on the sale of financial products and through proprietary investments in various asset classes.

Wealthy Way Group Ltd. Financial Statement Overview

Summary

The company maintains strong gross profit margins and a solid equity base, but faces declining revenues, reduced profitability, and inconsistent cash flows, posing potential risks and challenges.

Income Statement

The company has faced declining revenues, with a revenue drop from 2019 to 2024. Despite this, gross profit margins remain strong at 100% due to the nature of their business. However, net profit margin has significantly decreased from previous years. EBIT margin is healthy but has shown volatility, indicating some operational challenges.

Balance Sheet

The balance sheet shows a strong equity base with a high equity ratio, indicating stability. The company has significantly reduced its debt to zero, which lowers financial risk. However, the return on equity has decreased over time, reflecting challenges in generating returns for shareholders.

Cash Flow

Cash flow from operations has been inconsistent, with significant negative values in recent years. Free cash flow also shows large fluctuations, suggesting volatility in cash generation. The lack of recent positive cash flow from operations could pose liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.79M	107.45M	60.37M	74.71M	106.39M	-64.46M
Gross Profit	46.79M	82.14M	60.37M	73.11M	89.58M	144.23M
EBITDA	0.00	20.55M	24.73M	48.46M	72.01M	-81.48M
Net Income	7.60M	5.61M	23.17M	24.11M	30.58M	-111.64M
Balance Sheet
Total Assets	808.83M	803.15M	784.68M	729.55M	796.09M	1.37B
Cash, Cash Equivalents and Short-Term Investments	0.00	33.35M	26.34M	49.56M	83.67M	96.17M
Total Debt	0.00	174.35M	167.52M	123.48M	196.49M	616.12M
Total Liabilities	212.94M	221.76M	210.98M	175.17M	255.03M	695.01M
Stockholders Equity	595.89M	581.39M	573.70M	554.39M	541.06M	503.25M
Cash Flow
Free Cash Flow	10.14M	19.43M	-62.33M	27.79M	473.80M	521.25M
Operating Cash Flow	10.22M	19.48M	-62.26M	27.96M	474.16M	521.42M
Investing Cash Flow	2.00K	88.00K	163.00K	38.60M	39.10M	-200.42M
Financing Cash Flow	-16.61M	-13.08M	37.62M	-100.35M	-525.07M	-262.15M

Wealthy Way Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3848, the sentiment is Neutral. The current price of 11.22 is above the 20-day moving average (MA) of 11.21, below the 50-day MA of 11.23, and below the 200-day MA of 11.58, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.11 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3848.

Wealthy Way Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1577	80 Outperform	HK$680.00M	6.20	8.46%	5.46%	-24.04%	60.24%
1601	68 Neutral	HK$1.39B	3.87	9.89%	7.51%	1.11%	3.98%
6866	68 Neutral	HK$336.30M	5.57	2.75%	4.88%	-12.94%	-15.93%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1563	59 Neutral	HK$304.36M	22.38	0.49%	―	8.77%	-76.88%
3848	49 Neutral	HK$1.75B	215.36	1.28%	0.27%	-7.88%	-28.43%

Wealthy Way Group Ltd. Corporate Events

Haosen Fintech Group Provides Update on Share Schemes in 2024 Annual Report

Haosen Fintech Group Limited, incorporated in the Cayman Islands, operates within the financial technology sector. The company has provided additional details regarding its 2023 Share Option Scheme and 2023 Share Award Scheme as disclosed in its 2024 Annual Report. The company clarified that no options or awards were canceled during the financial year, and no awards had been granted under the Share Award Scheme up to the report’s date. The total number of shares available for issue under both schemes represents approximately 10% of the total shares in issue. The vesting period for these options and awards is 12 months, and the maximum entitlement for each participant is capped at 1% of the total issued shares.