Winto Group (Holdings) Ltd. (8238) AI Stock Analysis

• Market Cap: HK$27.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: 22.85%
• EPS Growth: 76.33%
• Country: HK
• Employees: 12
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): >-0.01
• Shares Outstanding: 87,091,200
• 10 Day Avg. Volume: 3,959,482
• 30 Day Avg. Volume: 1,622,660
• PEG Ratio: -0.07
• Price to Book (P/B): -4.87
• Price to Sales (P/S): 8.45
• P/FCF Ratio: 74.09
• 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: 31 Underperform
• Price Target: ―

Winto Group (Holdings) Ltd. is facing severe financial distress, as evidenced by declining revenues, negative equity, and cash flow challenges. The technical analysis supports a bearish outlook with all major indicators showing negative trends. Valuation concerns further exacerbate the risk, given the negative P/E ratio and lack of dividends. The stock is highly speculative, and significant strategic changes are required to improve its financial health and market position.

Winto Group (Holdings) Ltd. Business Overview & Revenue Model

Company Description

Winto Group (Holdings) Ltd. (8238) is a company based in Hong Kong that primarily engages in the provision of outdoor advertising services. The company offers a range of advertising products and services, including the rental of advertising space on billboards, outdoor signage, and other platforms. Winto Group also engages in the publication of outdoor advertising magazines and periodicals, focusing on delivering effective marketing solutions to its clients across various industries.

How the Company Makes Money

Winto Group (Holdings) Ltd. generates revenue primarily through the leasing of advertising space on various outdoor media platforms. The company's key revenue streams include the rental income from billboards and signage, as well as sales from their advertising-related publications. By leveraging strategic locations and high-traffic areas, Winto Group attracts businesses seeking to enhance their visibility and market presence. The company may also form partnerships or collaborations with other advertising firms or media agencies to expand its reach and service offerings, contributing further to its income.

Winto Group (Holdings) Ltd. Financial Statement Overview

Summary

Winto Group (Holdings) Ltd. faces significant financial challenges across all major financial statements. The income statement reflects declining revenues and persistent losses, the balance sheet shows a precarious financial position with negative equity, and the cash flow statement reveals ongoing cash generation issues. The company's current financial trajectory poses substantial risks, indicating the need for strategic restructuring or turnaround efforts to stabilize and improve financial health.

Income Statement

The income statement shows a concerning downward trend in revenue and profitability. Revenue has consistently decreased from 2019 to 2024, with the most recent year showing a decline from the previous year. The gross profit margin is fluctuating but has generally declined, and the company consistently reports negative EBIT and net profit margins. The revenue growth rate has been negative for most years, indicating a challenging market environment or declining market position.

Balance Sheet

The balance sheet reveals significant financial instability, with a negative stockholders' equity position indicating potential solvency issues. The debt-to-equity ratio is not calculable due to negative equity, but the company's total liabilities exceed its assets, reflecting high leverage. The equity ratio is negative, further demonstrating the company's financial distress. These factors indicate a high-risk financial structure with potential for financial distress.

Cash Flow

The cash flow statement highlights ongoing cash flow challenges. Operating cash flow was negative in several recent years, and free cash flow remains negative or zero, pointing to difficulties in generating cash. The lack of capital expenditures in the latest year suggests limited investment in growth or maintenance, potentially impacting future performance. Overall, the cash flow situation is weak, suggesting a need for improved cash management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.99M	20.84M	23.55M	34.65M	61.13M	29.87M
Gross Profit	10.25M	9.20M	6.38M	24.11M	40.17M	15.14M
EBITDA	-17.91M	-17.93M	-73.09M	12.64M	26.75M	1.21M
Net Income	-20.00M	-19.79M	-73.72M	10.10M	21.53M	-2.85M
Balance Sheet
Total Assets	28.74M	28.49M	41.02M	63.86M	49.78M	30.76M
Cash, Cash Equivalents and Short-Term Investments	5.03M	9.63M	3.55M	1.91M	10.95M	3.21M
Total Debt	7.30M	2.80M	8.66M	12.16M	20.20M	26.49M
Total Liabilities	67.88M	67.22M	70.71M	32.13M	35.86M	38.03M
Stockholders Equity	-36.46M	-36.15M	-27.68M	31.89M	14.01M	-7.52M
Cash Flow
Free Cash Flow	-9.70M	2.38M	-5.13M	-7.89M	16.75M	1.87M
Operating Cash Flow	-9.70M	2.38M	-5.13M	-7.89M	18.42M	1.90M
Investing Cash Flow	0.00	0.00	1.75M	-873.00K	-1.69M	-11.07M
Financing Cash Flow	3.90M	3.66M	5.02M	-274.00K	-9.00M	8.78M

Winto Group (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8238, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.24, and below the 200-day MA of 0.24, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 44.23 is Neutral, neither overbought nor oversold. The STOCH value of 27.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8238.

Winto Group (Holdings) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
8121	54 Neutral	HK$21.61M	10.47	-3.24%	―	38.94%	-71.65%
8429	49 Neutral	HK$23.04M	―	-7.87%	―	7.97%	53.72%
8091	47 Neutral	HK$29.52M	―	-41.73%	―	-20.97%	1.37%
8112	45 Neutral	HK$28.45M	―	-17.19%	―	-1.50%	72.47%
1736	44 Neutral	HK$28.09M	―	―	―	-1.46%	71.80%
8238	31 Underperform	HK$27.00M	―	―	―	22.85%	76.33%