Winson Holdings Hong Kong Ltd (6812) AI Stock Analysis

• Market Cap: HK$87.60M
• Dividend Yield: 4.98%
• Average Volume (3M): 95.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: 4.26%
• EPS Growth: -142.18%
• Country: HK
• Employees: 1,589
• Sector: Industrials
• Sector Strength: 86
• Industry: Waste Management
• EPS (TTM): >-0.01
• Shares Outstanding: 600,000,000
• 10 Day Avg. Volume: 87,000
• 30 Day Avg. Volume: 95,166
• PEG Ratio: 0.42
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.59
• 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: 54 Neutral
• Price Target: ―

Winson Holdings faces challenges with declining profitability and cash flow constraints, despite maintaining a strong equity position. Technical analysis suggests weak stock momentum, and a negative P/E ratio signals valuation concerns. The high dividend yield is a positive aspect but does not outweigh the financial and technical weaknesses.

Winson Holdings Hong Kong Ltd Business Overview & Revenue Model

Company Description

Winson Holdings Hong Kong Limited, an investment holding company, provides environmental hygiene and related, and airline catering support services in Hong Kong. The company offers environmental hygiene and related services, including public area and office cleaning, and waste management, as well as specialized services, such as external curtain wall and window cleaning, marble floor maintenance and restoration, intensive cleaning and pest control services, etc. for residential, commercial and shopping complexes, public utilities, transportation systems, and government bodies. It also provides waste recovery, transportation, and disposal solutions; mist disinfection services; robotic cleaning services; and pest management services, including indoor pest management, and rodent prevention and control services for government departments, educational institutes, public utilities, and transportation systems, as well as residential, commercial, and shopping complexes. In addition, the company offers airline catering support services, such as food plating, tray-setting, packaging, and internal logistic for equipment flow, etc. to airline catering operators. Further, it provides property holding services. The company was incorporated in 1983 and is headquartered in Tsuen Wan, Hong Kong. Winson Holdings Hong Kong Limited is a subsidiary of Sze's Holdings Limited.

How the Company Makes Money

Winson Holdings Hong Kong Ltd generates revenue primarily through its waste management and recycling services. The company charges fees for the collection, treatment, and disposal of waste materials. Additionally, it may earn income from the sale of recyclable materials processed through its facilities. Significant partnerships with local municipalities and industrial clients play a crucial role in securing ongoing contracts and projects, which contribute to the company's earnings. The emphasis on sustainable practices may also attract government incentives or subsidies aimed at promoting environmental sustainability.

Winson Holdings Hong Kong Ltd Financial Statement Overview

Summary

Winson Holdings exhibits mixed financial health. The balance sheet shows strength with low leverage and financial stability, but income statement metrics indicate declining profitability. Cash flow issues are significant, with negative free cash flow, highlighting the need for improved cash management.

Income Statement

Winson Holdings' revenue has shown slight fluctuations, with a decrease in recent years. The gross profit margin has been relatively stable, but the net profit margin has significantly declined, indicating pressure on profitability. The EBIT and EBITDA margins also depict a downward trend, suggesting challenges in maintaining operating efficiency.

Balance Sheet

The company maintains a strong equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting conservative leverage. However, the return on equity has decreased over time, reflecting a decline in profitability relative to shareholders' equity.

Cash Flow

Winson Holdings has experienced a significant downturn in operating cash flow and free cash flow, indicating cash management issues. The free cash flow to net income ratio has turned negative, emphasizing the cash flow constraints. The company needs to address these cash flow challenges to improve financial flexibility.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	479.45M	470.71M	462.20M	473.69M	529.99M	569.56M
Gross Profit	50.18M	66.56M	77.48M	76.35M	74.82M	83.70M
EBITDA	-7.71M	19.69M	35.19M	33.18M	82.42M	30.79M
Net Income	-9.55M	10.90M	24.75M	22.10M	73.81M	20.70M
Balance Sheet
Total Assets	270.62M	282.03M	275.01M	264.23M	276.46M	207.65M
Cash, Cash Equivalents and Short-Term Investments	117.94M	93.56M	154.37M	117.66M	122.38M	40.47M
Total Debt	1.34M	2.40M	2.59M	4.53M	6.00M	9.21M
Total Liabilities	71.31M	70.73M	63.73M	68.86M	67.78M	72.78M
Stockholders Equity	199.32M	211.30M	211.28M	195.38M	208.68M	134.87M
Cash Flow
Free Cash Flow	-18.13M	-51.13M	47.53M	33.25M	84.40M	19.27M
Operating Cash Flow	9.11M	-23.89M	51.09M	38.51M	93.82M	20.34M
Investing Cash Flow	-1.03M	-24.81M	-3.56M	-5.27M	-9.35M	-1.08M
Financing Cash Flow	-6.38M	-11.70M	-10.79M	-37.71M	-3.27M	-12.64M

Winson Holdings Hong Kong Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.15
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6812, the sentiment is Neutral. The current price of 0.15 is above the 20-day moving average (MA) of 0.15, above the 50-day MA of 0.14, and below the 200-day MA of 0.16, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.49 is Neutral, neither overbought nor oversold. The STOCH value of 46.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6812.

Winson Holdings Hong Kong Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
8309	63 Neutral	HK$38.40M	2.67	-5.33%	―	-5.91%	-30.84%
8320	57 Neutral	HK$70.28M	―	-14.20%	―	-3.68%	-136.36%
8201	56 Neutral	HK$37.80M	―	-6.39%	―	14.00%	-366.00%
6812	54 Neutral	HK$87.60M	―	-5.33%	4.98%	4.26%	-142.18%
0923	36 Underperform	HK$67.52M	―	-105.24%	―	7.90%	-44.09%
0646	30 Underperform	HK$55.17M	―		―	79.56%	43.36%