Winox Holdings Limited (6838) AI Stock Analysis

• Market Cap: HK$130.80M
• Dividend Yield: 9.26%
• Average Volume (3M): 21.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: -4.08%
• EPS Growth: -196.66%
• Country: HK
• Employees: 2,455
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -0.02
• Shares Outstanding: 600,000,000
• 10 Day Avg. Volume: 47,400
• 30 Day Avg. Volume: 21,600
• PEG Ratio: 0.08
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -6.39
• 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: 47 Neutral
• Price Target: HK$0.23 ▼(-10.38% Downside)

The score is primarily held back by deteriorating fundamentals (declining revenue, shrinking margins, losses, and zero operating/free cash flow in 2024). Technicals also remain weak with the share price below major moving averages and negative MACD, while valuation is partially supported by a very high dividend yield but offset by negative earnings (negative P/E).

Positive Factors

Strong balance sheet and very low leverage

A very high equity ratio and minimal debt provide durable financial flexibility: the company can absorb near-term losses, fund operations or strategic initiatives from equity, and withstand economic shocks without immediate refinancing pressure, supporting medium-term stability.

Service-led, diversified revenue model

A service-centric business across consulting, software and integration with recurring maintenance creates structural revenue diversity and stickiness. Cross-selling and long-term contracts in finance, healthcare and public sectors support stable demand for digital transformation over months to years.

Substantial delivery capacity (large workforce)

A workforce of ~2,455 indicates meaningful in-house delivery capacity for complex system integration and ongoing support. This scale supports execution on large projects, reduces dependency on external contractors, and sustains recurring services critical to long-term client relationships.

Negative Factors

Declining revenue and compressed gross margins

Material margin compression and falling revenue point to structural pressure on pricing or rising costs. Persistently lower gross margins reduce operating leverage, impair ability to invest in product development or talent, and make sustained profitability recovery more difficult over the medium term.

Operating and free cash flow dropped to zero

A collapse to zero operating/free cash flow removes internal funding for working capital, capex, and strategic initiatives. Even with low debt, this forces reliance on reserves or external financing, constraining the company's ability to fund projects or support dividends sustainably.

Negative profitability metrics and ROE

Negative EBIT and net margins alongside negative ROE show the business is currently destroying shareholder value. This undermines reinvestment capacity and dividend sustainability, and signals the need for operational fixes to restore long-term return generation and investor confidence.

Winox Holdings Limited Business Overview & Revenue Model

Company Description

Winox Holdings Limited, an investment holding company, develops, manufactures, and sells stainless steel products. Its products include watch bracelets, mobile phone cases and parts, smart wearable cases and parts, costume jewelry, and leather and other fashion accessories. The company also provides management and administration services; and holds properties. It operates in Switzerland, the People's Republic of China, Liechtenstein and other European countries, Vietnam, Taiwan, Hong Kong, and internationally. The company was founded in 1999 and is headquartered in Yau Tong, Hong Kong. Winox Holdings Limited is a subsidiary of Ming Fung Investment Limited.

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

Weak operating performance: revenue declined materially from 2022 to 2024, gross margin fell to 16.1% in 2024, and EBIT/net margins turned negative. Balance sheet strength (80.6% equity ratio and low 0.075 debt-to-equity) offsets some risk, but zero operating/free cash flow in 2024 and negative ROE keep the score low.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	683.66M	681.68M	774.73M	1.15B	1.39B	1.19B
Gross Profit	98.39M	109.44M	224.29M	305.58M	297.10M	247.34M
EBITDA	11.01M	22.40M	120.74M	160.25M	132.86M	127.17M
Net Income	-43.41M	-20.33M	63.73M	112.40M	94.42M	96.08M
Balance Sheet
Total Assets	1.17B	1.17B	1.19B	1.32B	1.61B	1.23B
Cash, Cash Equivalents and Short-Term Investments	200.21M	222.25M	317.16M	270.79M	207.00M	174.64M
Total Debt	79.91M	71.09M	55.36M	122.42M	267.87M	75.72M
Total Liabilities	209.53M	227.01M	184.10M	304.11M	608.99M	334.01M
Stockholders Equity	957.72M	942.74M	1.01B	1.01B	1.00B	899.85M
Cash Flow
Free Cash Flow	-109.68M	-35.21M	156.45M	238.49M	-131.02M	74.94M
Operating Cash Flow	855.00K	-5.08M	214.76M	311.34M	-19.40M	174.08M
Investing Cash Flow	-139.26M	-98.41M	-139.66M	-76.29M	-111.78M	-99.44M
Financing Cash Flow	19.18M	-1.90M	-113.28M	-156.83M	156.25M	-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 above the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.26, and below the 200-day MA of 0.27, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 27.40 is Positive, neither overbought nor oversold. The STOCH value of 9.61 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
0887	77 Outperform	HK$2.14B	7.82	5.10%	4.05%	6.60%	-14.32%
0590	73 Outperform	$18.87B	14.69	9.54%	4.43%	10.89%	2.02%
0398	70 Outperform	HK$1.66B	9.14	10.00%	9.67%	-9.00%	-21.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0256	48 Neutral	HK$731.12M	-2.41	-7.92%	―	-18.07%	-1041.89%
6838	47 Neutral	HK$130.80M	-3.01	-4.47%	9.26%	-4.08%	-196.66%
1856	45 Neutral	HK$648.46M	-10.08	-51.81%	―	-20.65%	-616.18%

Winox Holdings Limited Corporate Events

Winox Flags Sharply Wider 2025 Loss on Weak Demand and Restructuring Costs

Winox Holdings has warned shareholders that it expects a significantly wider loss for 2025, with unaudited management accounts showing a loss of about HK$54 million for the 11 months to 30 November 2025, compared with a full-year loss of HK$20.3 million in 2024. Management attributes the downturn to a roughly 20% drop in revenue driven by sluggish demand, compressed gross margins amid intense market competition, and around HK$12 million in termination costs linked to a workforce streamlining plan, signaling operational headwinds and restructuring pressures that may weigh on profitability and investor sentiment ahead of the final 2025 results due by end-March 2026.

The most recent analyst rating on (HK:6838) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Winox Holdings Limited stock, see the HK:6838 Stock Forecast page.