WLS Holdings Ltd (8021) AI Stock Analysis

• Market Cap: HK$258.61M
• Dividend Yield: N/A
• Average Volume (3M): 15.26M
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.32
• Revenue Growth: -3.98%
• EPS Growth: 37.50%
• Country: HK
• Employees: 43
• Sector: Industrials
• Sector Strength: 73
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 14,367,101,000
• 10 Day Avg. Volume: 3,811,006
• 30 Day Avg. Volume: 15,256,668
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 45 Neutral
• Price Target: ―

WLS Holdings Ltd receives a low overall stock score, primarily due to significant financial challenges. The company is facing declining revenues, operational inefficiencies, and cash flow issues, which together create a bleak financial outlook. Technical analysis indicates weak market momentum, reinforcing the negative sentiment. While the valuation suggests moderate pricing, the lack of a dividend and financial instability dampen investment appeal.

WLS Holdings Ltd Business Overview & Revenue Model

Company Description

WLS Holdings Ltd (8021) is a Hong Kong-based company engaged primarily in the scaffolding and fitting-out business. The company is involved in the provision of scaffolding services, including traditional scaffolding and metal scaffolding, and offers fitting-out services which include interior renovation and decoration. Their operations are mainly local, serving the construction and renovation needs of various sectors.

How the Company Makes Money

WLS Holdings Ltd generates revenue by providing comprehensive scaffolding and fitting-out services to the construction industry in Hong Kong. The company's key revenue streams include contracts for traditional bamboo scaffolding, metal scaffolding, and fitting-out projects. They earn money by entering into contracts with construction firms, developers, and other businesses requiring scaffolding and renovation services. These contracts are often based on project scope and duration, with revenue recognized over the course of the project as milestones are achieved. Significant partnerships with construction firms and developers also contribute to their earnings, allowing them to secure a steady pipeline of projects.

WLS Holdings Ltd Financial Statement Overview

Summary

WLS Holdings Ltd is facing significant financial challenges. The income statement reveals a serious revenue contraction and negative margins, indicating profitability issues. The balance sheet shows high financial leverage with a concerning debt-to-equity ratio, and continued net losses are eroding shareholder value. Cash flow problems with negative operating and free cash flows raise liquidity concerns. Overall, the financial health is weak.

Income Statement

The company's income statement shows a declining trend in revenue, from HK$191 million in 2022 to HK$82 million in 2024, indicative of significant revenue contraction. Gross and net profit margins are negative, with net income being consistently negative over the years, highlighting challenges in profitability. The EBIT and EBITDA margins are also negative, emphasizing operational inefficiencies.

Balance Sheet

WLS Holdings Ltd has a high debt-to-equity ratio, indicating financial leverage concerns with total debt at HK$149 million against equity of HK$384 million. The equity ratio is relatively stable, suggesting a reasonable proportion of assets financed by equity. However, the negative return on equity due to continued net losses highlights profitability issues impacting shareholder value.

Cash Flow

The cash flow statement reflects ongoing issues with negative operating cash flow and free cash flow, which have persisted over several years. The free cash flow to net income ratio is not favorable, underscoring the company's struggle to convert earnings into cash. These cash flow challenges raise concerns regarding liquidity and the ability to fund operations without additional financing.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	100.69M	82.41M	145.96M	191.03M	150.21M	139.52M
Gross Profit	49.62M	50.74M	47.85M	72.03M	72.04M	58.76M
EBITDA	7.96M	4.71M	-94.35M	31.20M	3.09M	-96.79M
Net Income	31.38M	-11.15M	-112.38M	-11.97M	-12.94M	-105.00M
Balance Sheet
Total Assets	616.92M	582.04M	575.61M	703.37M	711.07M	732.12M
Cash, Cash Equivalents and Short-Term Investments	78.63M	66.14M	63.78M	108.14M	108.70M	100.98M
Total Debt	145.43M	149.35M	125.50M	143.24M	153.78M	155.73M
Total Liabilities	201.47M	198.16M	179.50M	200.83M	202.18M	207.77M
Stockholders Equity	415.44M	383.88M	396.11M	509.64M	521.35M	537.63M
Cash Flow
Free Cash Flow	2.09M	-16.26M	-6.18M	-44.93M	-53.89M	-18.95M
Operating Cash Flow	2.11M	-16.24M	-4.98M	-35.01M	-52.07M	-16.68M
Investing Cash Flow	230.00K	244.00K	13.89M	43.05M	674.00K	-1.19M
Financing Cash Flow	-2.11M	15.96M	-15.65M	-5.06M	-9.31M	10.60M

WLS Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

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 0.02 is equal to the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 28.48 is Positive, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, 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
1447	72 Outperform	HK$204.00M	8.39	6.66%	13.46%	13.59%	-12.52%
6038	68 Neutral	HK$232.70M	4.47	16.25%	17.24%	5.55%	-18.91%
Sector *	64 Neutral	$10.75B	15.57	7.24%	2.01%	2.80%	-14.32%
0896	47 Neutral	HK$284.36M	―	-8.17%	24.00%	23.10%	-37.74%
8021	45 Neutral	HK$258.61M	8.18	-1.80%	―	-3.98%	37.50%
1034	―	HK$240.00M	―		―	―	―
2163	―	HK$292.58M	―	-20.28%	―	―	―