Winox Holdings Limited (6838) AI Stock Analysis

• Market Cap: HK$159.00M
• Dividend Yield: 9.43%
• Average Volume (3M): 11.07K
• Price to Earnings (P/E): 4.8
• 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: 9,400
• 30 Day Avg. Volume: 11,066
• 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: HK$0.50
• Price Target Upside: 92.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: HK$0.50 ▲(92.31% Upside)

The overall stock score of 49 reflects significant financial challenges, with declining revenues and profitability impacting the company's financial health. Technical indicators suggest a bearish trend, though the stock is nearing oversold levels. The high dividend yield is a positive aspect, but the negative P/E ratio highlights earnings concerns. Strategic improvements are necessary to address these issues and enhance performance.

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

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	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: Neutral
• 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 0.27, below the 50-day MA of 0.27, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.76 is Neutral, neither overbought nor oversold. The STOCH value of 9.09 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	$15.08B	13.71	8.44%	4.28%	-12.95%	-37.76%
0398	70 Outperform	HK$1.64B	8.17	11.32%	10.47%	-5.19%	-19.96%
0887	66 Neutral	$2.00B	7.29	5.10%	3.57%	6.82%	42.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6838	49 Neutral	HK$159.00M	4.81	-4.47%	9.43%	-4.08%	-196.66%
0256	43 Neutral	$796.40M	62.16	-7.92%	―	-18.07%	-1041.89%
1856	43 Neutral	HK$702.50M	35.26	-51.81%	―	-20.65%	-616.18%

Winox Holdings Limited Corporate Events

Winox Holdings Limited Reports Mixed Interim Results Amid Global Challenges

Winox Holdings Limited reported a slight increase in revenue by 0.6% to HK$324,228,000 for the first half of 2025, despite facing global economic challenges. The company experienced a decline in sales for watch bracelets, mobile phone cases, and fashion accessories, but saw a significant increase of 54.7% in smart wearable cases and parts. The company has implemented cost reduction strategies, including workforce streamlining, to address the prolonged weak consumer markets. Despite these challenges, Winox maintains a strong financial position with substantial net current assets and cash reserves.

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.

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.