Wealth Glory Holdings Limited (8269) AI Stock Analysis

• Market Cap: HK$414.19M
• Dividend Yield: N/A
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.17
• Revenue Growth: 8.75%
• EPS Growth: 87.90%
• Country: HK
• Employees: 38
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): >-0.01
• Shares Outstanding: 890,722,800
• 10 Day Avg. Volume: 1,215,029
• 30 Day Avg. Volume: 1,650,531
• PEG Ratio: 0.13
• Price to Book (P/B): 5.49
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 16.93
• 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: 46 Neutral
• Price Target: HK$0.49 ▼(-3.00% Downside)

The score is driven primarily by financial performance: cash flow has turned positive and losses have narrowed, but revenue is still shrinking and the equity base has weakened materially. Technical signals are neutral and do not add strong confirmation. Valuation remains constrained by ongoing losses (negative P/E) and the absence of a stated dividend yield.

Positive Factors

Cash Flow Improvement

The shift to positive cash flow indicates improved operational efficiency and financial health, enhancing the company's ability to reinvest and sustain operations.

Gross Margin Rebound

A strong rebound in gross margin suggests better cost management and pricing power, which could lead to improved profitability over time.

Debt Management

Moderate leverage with debt below equity indicates manageable financial risk, providing the company with flexibility to navigate future challenges.

Negative Factors

Revenue Decline

Ongoing revenue decline poses a risk to long-term growth and profitability, potentially limiting the company's ability to scale and compete effectively.

Equity Erosion

A significant reduction in equity weakens the financial foundation, reducing resilience against losses and limiting investment capacity.

Weak Profitability

Persistent negative margins highlight ongoing challenges in achieving sustainable profitability, affecting long-term financial stability and investor confidence.

Wealth Glory Holdings Limited Business Overview & Revenue Model

Company Description

Wealth Glory Holdings Limited, an investment holding company, engages in the trading of natural resources and commodities in Hong Kong and the People's Republic of China. It operates through four segments: Natural Resources and Commodities; Branding, Trendy Fashion Merchandise and Other Consumers Products; Money Lending; and Securities Investment. The company trades in iron ore concentrates, coal, crude palm oil, etc. It also distributes vehicles; develops and promotes brands; and designs, manufactures, and sells fashion merchandises and other consumer products, as well as invests in securities and lends money. The company is based in Central, Hong Kong.

How the Company Makes Money

Wealth Glory Holdings Limited generates revenue through several key streams. The company is involved in the trading of natural resources, such as metals and minerals, which constitutes a significant portion of its income. Additionally, it engages in the trading of consumer goods, capitalizing on market demands for various products. Another important aspect of its revenue model is the money lending segment, where the company provides loans to individuals and businesses, earning interest income. These diversified operations are supported by strategic partnerships and market positioning, allowing Wealth Glory Holdings Limited to maintain its financial performance and growth.

Wealth Glory Holdings Limited Financial Statement Overview

Summary

Wealth Glory Holdings Limited shows signs of financial distress with declining revenues, persistent losses, and high leverage. Despite recent improvements in operating cash flow, the company's financial health remains fragile and requires strategic changes.

Income Statement

The company's revenue has significantly decreased over the last few years, with a notable decline from 2020 to 2024. Gross profit margin is low, and there is a consistent pattern of negative net income, indicating ongoing losses. Both EBIT and EBITDA margins are negative, which reflects operational inefficiencies and challenges in maintaining profitability.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage. Stockholders' equity has decreased over the years, reflecting the company's financial struggles. The equity ratio also shows a declining trend, suggesting diminishing financial stability. Despite these issues, the company maintains a reasonable level of cash and short-term investments relative to its debt.

Cash Flow

The company has shown improvement in cash flow from operations, turning positive in 2024 after years of negative figures. Free cash flow has similarly improved, but the company still faces challenges in generating consistent cash flow relative to its net income. The operating cash flow to net income ratio is low, indicating difficulties in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.04M	35.41M	32.27M	48.18M	51.55M	50.51M
Gross Profit	8.60M	7.30M	2.59M	4.73M	3.73M	4.48M
EBITDA	-2.29M	-3.08M	-30.32M	-25.24M	-25.57M	-60.83M
Net Income	-4.84M	-3.56M	-30.70M	-25.51M	-28.09M	-66.69M
Balance Sheet
Total Assets	55.03M	55.03M	57.77M	79.85M	76.51M	99.90M
Cash, Cash Equivalents and Short-Term Investments	17.20M	17.20M	6.54M	6.68M	9.91M	31.23M
Total Debt	6.27M	6.27M	6.27M	6.27M	0.00	10.39M
Total Liabilities	47.77M	47.77M	46.95M	38.32M	28.51M	30.82M
Stockholders Equity	7.30M	7.30M	10.86M	41.56M	48.03M	69.10M
Cash Flow
Free Cash Flow	2.37M	2.37M	300.00K	-27.91M	-17.83M	-9.96M
Operating Cash Flow	2.37M	2.37M	300.00K	-27.91M	-17.83M	-9.96M
Investing Cash Flow	-3.50M	-2.33M	0.00	0.00	-5.00K	345.00K
Financing Cash Flow	-487.50K	-390.00K	-390.00K	25.04M	-1.54M	37.71M

Wealth Glory Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8269, the sentiment is Negative. The current price of 0.5 is above the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.50, and above the 200-day MA of 0.35, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.10 is Neutral, neither overbought nor oversold. The STOCH value of 9.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8269.

Wealth Glory Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8149	48 Neutral	HK$89.56M	-18.95	-1.24%	1.52%	1.10%	-347.83%
0862	48 Neutral	HK$168.74M	-3.01	-33.36%	―	-25.59%	0.69%
8269	46 Neutral	HK$414.19M	-122.37	-41.21%	―	8.75%	87.90%
0138	46 Neutral	HK$118.38M	-0.27	-65.19%	―	-19.75%	31.54%
0630	44 Neutral	HK$270.91M	10.69	52.14%	―	29.77%	1646.67%