Hong Wei (Asia) Holdings Co Ltd (8191) AI Stock Analysis

• Market Cap: HK$8.47M
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -55.81%
• EPS Growth: -15292.41%
• Country: HK
• Employees: 219
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -1.12
• Shares Outstanding: 63,187,187
• 10 Day Avg. Volume: 43,560
• 30 Day Avg. Volume: 1,772,860
• PEG Ratio: <0.01
• Price to Book (P/B): 0.06
• Price to Sales (P/S): 0.04
• P/FCF Ratio: -0.66
• 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: 41 Neutral
• Price Target: HK$0.13 ▼(-14.67% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues, negative profitability, and increased leverage. Technical analysis indicates a bearish trend with weak momentum, while valuation metrics are unattractive due to the negative P/E ratio and lack of dividend yield. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Stable Income Stream

Long-term contracts and repeat business provide a stable income stream, enhancing financial predictability and reducing revenue volatility.

Strategic Partnerships

Partnerships improve market reach and operational efficiency, potentially leading to better cost management and competitive positioning.

Positive Free Cash Flow Growth

Positive free cash flow growth indicates improved cash generation, which can support debt reduction and investment in growth opportunities.

Negative Factors

Declining Revenue

Declining revenue suggests weakening demand or competitive pressures, which could impact long-term growth and market position.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth or weather downturns.

Negative Profitability

Negative profitability reflects operational inefficiencies and could hinder reinvestment in the business, affecting long-term sustainability.

Hong Wei (Asia) Holdings Co Ltd Business Overview & Revenue Model

Company Description

Hong Wei (Asia) Holdings Co Ltd (8191) is a Hong Kong-based investment holding company primarily engaged in the manufacturing and trading of industrial materials, particularly in the sectors of construction and building materials. The company focuses on the production of concrete and related products, catering to both local and international markets. Through its subsidiaries, Hong Wei also explores investment opportunities in other sectors, aiming to diversify its operations and revenue streams.

How the Company Makes Money

Hong Wei (Asia) Holdings Co Ltd generates revenue primarily through the sale of concrete and construction materials to various clients, including contractors, builders, and government projects. The company benefits from long-term contracts and repeat business from established clients, which provides a stable income stream. Additionally, Hong Wei's strategic partnerships with suppliers and distributors enhance its market reach and operational efficiency. The company may also engage in investment activities, seeking returns from its diversified portfolio, which can contribute to its overall earnings.

Hong Wei (Asia) Holdings Co Ltd Financial Statement Overview

Summary

Hong Wei (Asia) Holdings Co Ltd is facing significant financial challenges, with declining revenues, negative profitability, and increased leverage. The company needs to address its operational inefficiencies and financial leverage to improve its financial health.

Income Statement

The company has experienced a significant decline in revenue, with a revenue growth rate of -28.98% in the latest year. Gross profit margin has decreased to 10.79%, and the net profit margin is negative at -14.72%, indicating profitability challenges. EBIT and EBITDA margins have also declined, reflecting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio has increased to 2.03, indicating higher leverage and potential financial risk. Return on equity is negative at -24.01%, highlighting poor returns for shareholders. The equity ratio stands at 25.87%, suggesting a moderate level of equity financing.

Cash Flow

Free cash flow growth is positive at 130.78%, but the free cash flow to net income ratio is highly negative at -40.24, indicating cash flow challenges. The operating cash flow to net income ratio is very low at 0.13%, suggesting weak cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	268.44M	314.38M	481.81M	402.25M	404.29M	330.16M
Gross Profit	-2.07M	33.93M	83.97M	76.31M	76.20M	55.27M
EBITDA	-91.67M	16.06M	63.42M	74.08M	36.60M	-11.83M
Net Income	-144.93M	-46.28M	1.45M	8.35M	-34.78M	-70.21M
Balance Sheet
Total Assets	690.76M	744.55M	774.32M	745.25M	773.09M	716.14M
Cash, Cash Equivalents and Short-Term Investments	560.00K	19.03M	7.80M	2.54M	11.43M	17.52M
Total Debt	369.01M	391.70M	371.71M	332.40M	370.22M	326.59M
Total Liabilities	477.75M	551.84M	522.91M	490.76M	496.07M	429.92M
Stockholders Equity	213.00M	192.71M	251.40M	254.48M	277.03M	286.22M
Cash Flow
Free Cash Flow	-27.92M	-17.02M	-49.30M	31.52M	-28.54M	885.00K
Operating Cash Flow	-10.48M	423.00K	-45.47M	74.32M	59.10M	41.52M
Investing Cash Flow	-9.83M	-8.06M	9.16M	-46.19M	-72.86M	-41.20M
Financing Cash Flow	16.01M	7.21M	37.23M	-45.85M	9.61M	-53.80M

Hong Wei (Asia) Holdings Co Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.15
• 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:8191, the sentiment is Negative. The current price of 0.15 is above the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.15, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.36 is Neutral, neither overbought nor oversold. The STOCH value of 5.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8191.

Hong Wei (Asia) Holdings Co Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3363	58 Neutral	HK$185.00M	7.21	2.13%	5.95%	0.80%	81.27%
1822	56 Neutral	HK$116.79M	1.08	-17.27%	―	-17.96%	-95.06%
8277	52 Neutral	HK$35.70M	0.78	―	―	-56.67%	―
0094	41 Neutral	HK$150.25M	-1.32	-9.04%	―	-33.99%	42.25%
8191	41 Neutral	HK$8.47M	―	-49.13%	―	-55.81%	-15292.41%
1580	23 Underperform	HK$164.35M	-23.81	-395.28%	―	-35.61%	89.32%