WLS Holdings Ltd (8021) AI Stock Analysis

• Market Cap: HK$158.04M
• Dividend Yield: N/A
• Average Volume (3M): 6.27M
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.38
• Revenue Growth: -3.98%
• EPS Growth: 37.50%
• Country: HK
• Employees: 43
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 14,367,101,000
• 10 Day Avg. Volume: 840,000
• 30 Day Avg. Volume: 6,273,583
• PEG Ratio: 1.29
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 4.18
• P/FCF Ratio: 100.20
• 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: 43 Neutral
• Price Target: HK$0.01 ▲(20.00% Upside)

WLS Holdings Ltd is currently facing significant financial and operational challenges. The most impactful factor is the company's poor financial performance, characterized by declining revenues and persistent losses. Technical analysis indicates a bearish trend with weak momentum. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Manageable Leverage

Manageable leverage indicates that the company has not overextended itself with debt, providing some financial stability and flexibility.

Stable Gross Profit Margins

Stable gross profit margins suggest that the company can maintain its pricing power and cost control, which is vital for long-term profitability.

Free Cash Flow Improvement

Improvement in free cash flow indicates better cash management, which can support future investments and operational needs.

Negative Factors

Declining Revenues

Declining revenues reflect challenges in market demand or competitive positioning, which could hinder growth and profitability.

Negative Net Profit Margins

Negative net profit margins highlight operational inefficiencies and the inability to convert sales into profits, impacting long-term viability.

Weak Cash Generation

Weak cash generation limits the company's ability to fund operations and growth initiatives, posing a risk to financial health.

WLS Holdings Ltd Business Overview & Revenue Model

Company Description

WLS Holdings Limited, an investment holding company, provides scaffolding and fitting out, and other auxiliary services for the construction and building works businesses in Hong Kong. It operates through four segments: Scaffolding, Fitting Out and Other Auxiliary Services for Construction and Buildings Work; Money Lending Business; Securities Investment Business; and Assets Management Business. The company offers various scaffolding services, including metal-bamboo matrix system scaffold, bamboo scaffold, steel/Pik Lik scaffold, and lift-shaft scaffold. It also provides permanent gondola services, such as building maintenance unit and permanent access platform; temporary gondola services; and gondolas rental services. In addition, the company offers false ceiling and fitting out services; glass fiber reinforced concrete, glass reinforced plastic, signages, artworks, and stamping concrete solutions; and transportation, management, and consultancy services. Further, it engages in the property holding, and money lending businesses; design, sale, trade, repair, and maintenance of gondolas and parapet railings; and installation and maintenance of access equipment. Additionally, the company provides securities investment, assets management, and management contracting services. The company was incorporated in 2001 and is headquartered in Aberdeen, Hong Kong.

How the Company Makes Money

WLS Holdings Ltd generates revenue primarily through its property investment and development activities. The main revenue streams include rental income from its investment properties, sales of developed properties, and fees from construction projects. The company may also engage in joint ventures or partnerships with other real estate firms and developers, which can provide additional revenue through shared profits on development projects. Moreover, favorable market conditions, such as rising property values and demand for residential and commercial spaces, significantly contribute to the company's earnings.

WLS Holdings Ltd Financial Statement Overview

Summary

WLS Holdings Ltd is facing significant financial challenges, with declining revenues and persistent losses impacting profitability. While the balance sheet shows manageable leverage, the company struggles to generate returns for shareholders. Cash flow improvements are noted, but overall cash generation remains weak. The company needs to address its operational inefficiencies and improve profitability to enhance its financial health.

Income Statement

The company has faced declining revenues over the past few years, with a significant drop of nearly 20% in the most recent period. Gross profit margins have been relatively stable, but net profit margins are negative, indicating ongoing losses. The EBIT and EBITDA margins are low, reflecting operational challenges. Overall, the income statement shows a struggling financial performance with limited profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage levels. However, the return on equity is negative, indicating that the company is not generating returns for its shareholders. The equity ratio is stable, showing a reasonable proportion of equity financing. Overall, the balance sheet reflects a stable but underperforming financial position.

Cash Flow

The company has shown some improvement in free cash flow growth, but operating cash flow remains low relative to net income. The free cash flow to net income ratio is close to 1, indicating that cash generation is aligned with reported earnings, albeit negative. Overall, the cash flow statement indicates some positive trends but remains weak in terms of cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	79.13M	79.13M	82.41M	145.96M	189.05M	150.21M
Gross Profit	15.73M	52.16M	50.74M	47.85M	71.12M	72.04M
EBITDA	773.00K	7.56M	4.71M	-94.35M	6.15M	3.09M
Net Income	-6.85M	-6.85M	-11.15M	-112.38M	-10.82M	-16.90M
Balance Sheet
Total Assets	585.10M	585.10M	582.04M	575.61M	703.37M	711.07M
Cash, Cash Equivalents and Short-Term Investments	68.77M	68.77M	66.14M	63.78M	108.14M	108.70M
Total Debt	152.88M	152.88M	149.35M	125.50M	143.24M	153.78M
Total Liabilities	207.61M	207.61M	198.16M	179.50M	200.83M	202.18M
Stockholders Equity	377.50M	377.50M	383.88M	396.11M	509.64M	521.35M
Cash Flow
Free Cash Flow	3.30M	3.30M	-16.26M	-6.18M	-44.93M	-53.89M
Operating Cash Flow	3.30M	3.30M	-16.24M	-4.98M	-35.01M	-52.07M
Investing Cash Flow	-867.00K	-414.00K	244.00K	13.89M	43.05M	674.00K
Financing Cash Flow	-8.72M	-5.83M	15.96M	-15.65M	-5.06M	-9.31M

WLS Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8021, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at <0.01 is Positive, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8021.

WLS Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6038	74 Outperform	HK$356.06M	6.84	16.25%	12.50%	5.55%	-18.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	62 Neutral	HK$182.00M	7.48	6.66%	15.38%	13.59%	-12.52%
0896	46 Neutral	HK$266.12M	-0.71	-11.13%	―	-8.54%	-25.17%
8021	43 Neutral	HK$158.04M	4.07	-1.80%	―	-3.98%	37.50%