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

• Market Cap: HK$80.12M
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: 22.85%
• EPS Growth: 76.33%
• Country: HK
• Employees: 12
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 348,364,800
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$0.24 ▲(3.91% Upside)

The score is held down primarily by deteriorated profitability and negative equity, which elevate turnaround and balance-sheet risk despite improved 2024 cash flow and reduced debt. Technicals are comparatively stronger with price trading above major moving averages, but valuation remains unattractive/unclear given ongoing losses and the lack of a dividend yield.

Positive Factors

Improved cash generation

Sustained positive operating and free cash flow provides a durable funding source to cover near-term obligations and reduces short-term liquidity risk. If maintained, this supports operational stability and gives management time to restructure costs and pursue revenue recovery without immediate refinancing.

Material debt reduction

A large reduction in absolute debt lowers refinancing pressure and interest burden, improving financial flexibility. This durable decline in leverage reduces immediate solvency risk and frees cash for operations or restructuring, easing one structural constraint on a turnaround plan.

Gross margin recovery

A marked improvement in gross margin signals better pricing, client mix, or direct cost control, which is fundamental to restoring profitability. If sustained alongside revenue stabilization, higher gross margins can translate into operating leverage and faster rebuilding of equity over the medium term.

Negative Factors

Negative shareholders' equity

Negative equity reflects accumulated losses and materially weakens the capital base, limiting the company’s ability to raise equity or borrow on favorable terms. This structural impairment constrains strategic options, increases creditor scrutiny, and heightens the need for an equity recapitalization to restore financial health.

Severe profitability deterioration

A swing from strong profits to deep losses indicates a broken operating model or sharp demand loss. Persistent large negative margins erode cash reserves and shareholder value, meaning recovery requires durable revenue traction and structural cost reductions rather than short-term fixes to restore long-term viability.

Sustained revenue decline and thin capital base

A multiyear revenue decline reduces scale, weakens client relationships, and raises per-unit costs, making margins harder to recover. Combined with a small asset base (~HK$28.5m) and negative equity, this structural shrinkage limits resources to invest in sales, product development, or marketing needed for durable growth.

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

Company Description

Winto Group (Holdings) Limited, an investment holding company, engages in the provision of exhibition and trade show, and publication and media advertising services in Guangdong-Hong Kong-Macau Greater Bay Area. The company owns and publishes Exmoo News, a Chinese-language daily newspaper and covers various local and international news, finance and economy, entertainment, sports, fashion and lifestyle, cultural knowledge, etc.; Travel Macao, a Chinese-language travel leisure fortnightly magazine, which provides information to readers relating to travel, dining, shopping, culture, and entertainment in Macau; Motoz Trader, a fortnightly magazine that focuses on new car models, second-hand car market, and properties, as well as offers lifestyle information, including dinning, fashion, and beauty; Motoz Trader, a free fortnightly magazine; Shopping Monthly, a fortnightly magazine, which focuses on updated information on consumer products; and Shopping Monthly, a free fortnightly magazine. It also provides exhibition and trade show, print and online media advertising, and outdoor advertising services. The company was incorporated in 2012 and is headquartered in Kowloon, Hong Kong. Winto Group (Holdings) Limited is a subsidiary of Source Creation International Limited.

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

Financial profile is stressed: profitability flipped from strong profits (2021–2022) to deep losses (2023–2024) alongside a steep multi-year revenue decline. Balance-sheet risk is elevated with negative shareholders’ equity in 2023–2024, though debt has been reduced materially and 2024 operating/free cash flow turned positive.

Income Statement

Profitability deteriorated sharply after 2022: the company moved from solid profits in 2021–2022 (net margin ~35% and ~29%) to deep losses in 2023–2024 (net margin about -313% in 2023 and ~-95% in 2024). Revenue has also trended down meaningfully from 2021 to 2024 (roughly HK$61.1m to HK$20.8m), including an ~11.5% decline in 2024. A positive offset is gross margin improvement in 2024 (~44%) versus 2023 (~27%), but operating profitability remains heavily negative, indicating the cost structure has not resized to the lower revenue base.

Balance Sheet

The balance sheet is the key weakness: shareholders’ equity is negative in 2023 and 2024 (about -HK$27.7m and -HK$36.1m), which signals accumulated losses and limits financial flexibility. Total debt has come down materially (about HK$12.2m in 2022 to HK$2.8m in 2024), which is a clear positive and reduces refinancing pressure, but the company still has a thin capital base (negative equity) against total assets (~HK$28.5m in 2024). Overall, leverage risk is elevated primarily because equity is impaired, even though absolute debt is not large.

Cash Flow

Cash generation is mixed but improved recently: operating cash flow and free cash flow turned positive in 2024 (both ~HK$2.4m) after being negative in 2022–2023, suggesting better working-capital control and/or tighter spending. However, cash flow quality is still fragile given the ongoing net losses and high year-to-year volatility (large swings from strong positive in 2021 to negative in 2022–2023). Sustaining positive operating cash flow while restoring profitability remains the key test.

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: Positive
• Last Price: 0.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.23 is above the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.22, and above the 200-day MA of 0.19, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.40 is Neutral, neither overbought nor oversold. The STOCH value of 41.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	55 Neutral	HK$27.61M	-6.83	-7.45%	―	34.13%	-139.87%
8429	53 Neutral	HK$28.80M	-11.26	-7.87%	―	7.97%	53.72%
8238	49 Neutral	HK$80.12M	-1.12	―	―	22.85%	76.33%
8091	48 Neutral	HK$25.92M	-3.83	-31.64%	―	-17.56%	37.33%
1736	46 Neutral	HK$28.70M	-1.43	―	―	-1.46%	71.80%
8112	46 Neutral	HK$27.53M	-1.61	-17.19%	―	-1.50%	72.47%