Winox Holdings Limited (6838) AI Stock Analysis

• Market Cap: HK$156.00M
• Dividend Yield: 8.62%
• Average Volume (3M): 174.51K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.02
• Revenue Growth: -12.01%
• EPS Growth: -131.92%
• Country: HK
• Employees: 2,455
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Luxury Goods
• EPS (TTM): -0.05
• Shares Outstanding: 600,000,000
• 10 Day Avg. Volume: 201,600
• 30 Day Avg. Volume: 174,506
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$0.50
• Price Target Upside: 92.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: HK$0.50 ▲(92.31% Upside)

The overall stock score of 45.5 reflects significant financial challenges, including declining revenues and profitability, which are the most impactful factors. The bearish technical indicators further contribute to a negative outlook. Although the high dividend yield is a positive aspect, the negative P/E ratio and financial losses undermine the stock's valuation appeal.

Winox Holdings Limited Business Overview & Revenue Model

Company Description

Winox Holdings Limited, listed under the stock code 6838, is a Hong Kong-based company primarily engaged in the design, production, and sale of stainless steel products. It operates through two main business segments: the Stainless Steel Products segment and the Watch Component segment. The Stainless Steel Products segment focuses on manufacturing a variety of stainless steel products, including watch bracelets, mobile phone cases, and other functional components. The Watch Component segment specializes in producing and supplying high-quality watch bands and other related components for renowned international watch brands.

How the Company Makes Money

Winox Holdings Limited generates revenue through the sale of its stainless steel products and watch components. The company primarily earns its income by manufacturing and supplying high-quality stainless steel watch bands, cases, and other related components to international watch brands, which rely on Winox for their precision and craftsmanship. Additionally, the company produces various stainless steel components for use in electronics, mobile devices, and other applications, further diversifying its revenue streams. Significant partnerships with globally recognized brands and a reputation for quality and reliability contribute to its earnings, as these relationships ensure steady demand for its products.

Winox Holdings Limited Financial Statement Overview

Summary

Winox Holdings Limited faces significant financial challenges with declining revenues and profitability, impacting its income statement and cash flow. While the balance sheet remains strong due to low leverage, the negative return on equity and cash flow concerns highlight operational inefficiencies and potential liquidity risks.

Income Statement

Winox Holdings Limited has faced a decline in revenue, with a significant drop from 2022 to 2024. The gross profit margin decreased from 27.6% in 2022 to 16.1% in 2024. The company experienced negative EBIT and net profit margins in 2024, indicating operational challenges and financial losses.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 80.6% in 2024, indicating financial stability. The debt-to-equity ratio is low at 0.075, reflecting prudent leverage. However, the return on equity has turned negative due to net losses, posing a risk to long-term profitability.

Cash Flow

The cash flow situation is concerning as operating and free cash flows are zero in 2024, following a year of strong free cash flow generation in 2023. This decline indicates potential liquidity issues and challenges in converting revenue into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	681.68M	774.73M	1.15B	1.39B	1.19B
Gross Profit	109.44M	224.29M	305.58M	297.10M	247.34M
EBITDA	22.40M	120.74M	139.31M	132.86M	127.17M
Net Income	-20.33M	63.73M	112.40M	94.42M	96.08M
Balance Sheet
Total Assets	1.17B	1.19B	1.32B	1.61B	1.23B
Cash, Cash Equivalents and Short-Term Investments	222.25M	317.16M	270.79M	207.00M	174.64M
Total Debt	71.09M	55.36M	122.42M	267.87M	75.72M
Total Liabilities	227.01M	184.10M	304.11M	608.99M	334.01M
Stockholders Equity	942.74M	1.01B	1.01B	1.00B	899.85M
Cash Flow
Free Cash Flow	-35.21M	156.45M	238.49M	-131.02M	74.94M
Operating Cash Flow	-5.08M	214.76M	311.34M	-19.40M	174.08M
Investing Cash Flow	-107.33M	-144.06M	-76.29M	-111.78M	-99.44M
Financing Cash Flow	-1.90M	-113.28M	-156.83M	160.33M	-40.82M

Winox Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6838, the sentiment is Negative. The current price of 0.26 is below the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.27, and below the 200-day MA of 0.32, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 28.62 is Positive, neither overbought nor oversold. The STOCH value of 3.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6838.

Winox Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0590	76 Outperform	HK$13.74B	12.49	8.44%	5.09%	-12.95%	-37.76%
0887	69 Neutral	HK$2.76B	10.03	4.99%	2.78%	8.44%	-14.06%
0398	66 Neutral	HK$1.66B	8.26	11.32%	15.28%	-5.19%	-19.96%
Sector *	61 Neutral	$17.23B	11.51	-5.97%	3.09%	1.47%	-15.79%
1856	47 Neutral	HK$536.78M	35.26	-35.55%	―	-39.83%	-351.13%
6838	46 Neutral	HK$156.00M	4.81	-2.08%	8.62%	-12.01%	-131.92%
0256	43 Neutral	$1.61B	62.16	-6.53%	―	-8.30%	-661.54%

Winox Holdings Limited Corporate Events

Winox Holdings Limited Issues Profit Warning Amid Market Challenges

Winox Holdings Limited, listed on the Hong Kong Stock Exchange, has issued a profit warning for the first half of 2025, anticipating a loss between HK$13 million and HK$15 million. This downturn is attributed to a HK$10 million termination compensation under a workforce streamlining plan and a decrease in gross profit margin due to intense market competition. The announcement advises shareholders and potential investors to exercise caution when dealing with the company’s securities.

Winox Holdings Limited Announces Relocation of Hong Kong Office

Winox Holdings Limited has announced a change in the address of its head office and principal place of business in Hong Kong, effective from June 1, 2025. This relocation to Sunray Industrial Centre in Kowloon signifies a strategic move that could impact the company’s operational logistics and stakeholder interactions.

Winox Holdings Limited Announces Board Composition and Roles

Winox Holdings Limited has announced the composition of its Board of Directors, highlighting the roles and functions of each member within the company’s committees. This announcement provides clarity on the governance structure, which may impact the company’s strategic direction and stakeholder confidence.

Winox Holdings Updates Nomination Committee Terms

Winox Holdings Limited has announced amendments to the terms of reference for its Nomination Committee, which is responsible for overseeing the appointment and re-appointment of directors. The changes, effective from May 2025, emphasize compliance with the Hong Kong Stock Exchange’s Listing Rules, ensuring transparency and regular re-election of directors. This move is likely to enhance the company’s governance practices, potentially impacting its market perception and stakeholder confidence positively.

Winox Holdings Announces Unanimous Approval of AGM Resolutions

Winox Holdings Limited, listed on the Hong Kong Stock Exchange, announced the results of its Annual General Meeting held on May 26, 2025. All proposed resolutions, including the re-election of directors and the re-appointment of Deloitte Touche Tohmatsu as auditors, were passed with unanimous support. The company’s decision to maintain its current board and auditor reflects stability in its governance structure, potentially reassuring stakeholders about its operational continuity and strategic direction.