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Winto Group (Holdings) Ltd. (HK:8238)
:8238
Hong Kong Market

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

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HK

Winto Group (Holdings) Ltd.

(8238)

Rating:31Underperform
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. (8238) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionWinto 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 MoneyWinto 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
20
Very Negative
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
30
Negative
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
25
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.84M23.55M34.65M61.13M29.87M
Gross Profit9.20M6.38M24.11M40.17M15.14M
EBITDA-17.93M-73.09M14.49M26.11M2.14M
Net Income-19.79M-73.72M10.10M21.53M-3.04M
Balance Sheet
Total Assets28.49M41.02M63.86M49.78M30.76M
Cash, Cash Equivalents and Short-Term Investments9.63M3.55M1.91M10.95M3.21M
Total Debt2.80M8.66M12.16M20.20M26.49M
Total Liabilities67.22M70.71M32.13M35.86M38.03M
Stockholders Equity-36.15M-27.68M31.89M14.01M-7.52M
Cash Flow
Free Cash Flow2.38M-5.13M-7.89M16.75M1.87M
Operating Cash Flow2.38M-5.13M-7.89M18.42M1.90M
Investing Cash Flow0.001.75M-873.00K-1.69M-11.07M
Financing Cash Flow3.66M5.02M-274.00K-9.00M8.78M

Winto Group (Holdings) Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.19
Price Trends
50DMA
0.19
Positive
100DMA
0.23
Negative
200DMA
0.33
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
46.48
Neutral
STOCH
61.77
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 0.19 is below the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.19, and below the 200-day MA of 0.33, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.48 is Neutral, neither overbought nor oversold. The STOCH value of 61.77 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$193.87M2.3423.45%45.29%175.68%
66
Neutral
HK$2.34B34.2412.45%957.74%194.12%
60
Neutral
HK$20.16M9.339.31%7.40%
55
Neutral
HK$64.26B-2.00-3.62%7.15%-4.24%-17.51%
50
Neutral
HK$89.95M
45
Neutral
HK$8.08B-9.66%-44.43%-281.08%
31
Underperform
HK$15.07M-1039.35%-11.50%81.10%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8238
Winto Group (Holdings) Ltd.
0.17
-0.40
-70.18%
HK:8326
Tonking New Energy Group Holdings Ltd.
0.16
0.04
33.33%
HK:8299
Grand T G Gold Holdings Ltd
0.30
0.12
66.67%
HK:8208
WMCH Global Investment Limited
0.03
-0.02
-40.00%
HK:8137
Honbridge Holdings
0.56
0.36
180.00%
HK:8163
Merdeka Financial Group Limited
0.11
<0.01
10.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025