Wan Cheng Metal Packaging Company Limited (8291) AI Stock Analysis

• Market Cap: HK$10.56M
• Dividend Yield: N/A
• Average Volume (3M): 44.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 11.10%
• EPS Growth: 74.59%
• Country: HK
• Employees: 75
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Packaging & Containers
• EPS (TTM): N/A
• Shares Outstanding: 160,000,000
• 10 Day Avg. Volume: 64,150
• 30 Day Avg. Volume: 44,916
• PEG Ratio: -0.02
• Price to Book (P/B): -0.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.67
• 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: 38 Underperform
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is significantly impacted by poor financial performance and technical analysis. The company's weak profitability, negative equity, and unstable cash flows underscore financial vulnerabilities. Technical indicators show bearish momentum, and valuation ratios highlight risk due to lack of profitability. These factors contribute to a low overall score, suggesting high risk for potential investors.

Wan Cheng Metal Packaging Company Limited Business Overview & Revenue Model

Company Description

Wan Cheng Metal Packaging Company Limited (8291) is a company that specializes in the production and sale of metal packaging products. The company operates in the manufacturing sector, focusing on providing high-quality metal packaging solutions to various industries. Its core products include metal cans and containers used for packaging a wide range of goods, including food, beverages, and industrial products.

How the Company Makes Money

Wan Cheng Metal Packaging Company Limited generates revenue primarily through the sale of its metal packaging products. The company's key revenue streams include direct sales to manufacturers and distributors in the food and beverage industry, as well as other sectors requiring durable packaging solutions. Significant factors contributing to its earnings include its ability to maintain strong relationships with key clients, efficient manufacturing processes, and the capability to deliver customized packaging solutions that meet specific client needs. Additionally, the company may engage in partnerships or collaborations to expand its market reach and enhance its product offerings, though specific details on such partnerships are unavailable.

Wan Cheng Metal Packaging Company Limited Financial Statement Overview

Summary

Wan Cheng Metal Packaging Company Limited faces significant financial challenges. Despite some revenue growth, profitability is weak, with negative net profit margins and low gross profit margins. The balance sheet is precarious, showing negative stockholders' equity and excessive leverage. Cash flow performance is unstable, with frequent negative operating cash flows, raising liquidity concerns. Overall, the company's financial health is weak, necessitating strategic improvements.

Income Statement

The company has shown some revenue growth, with a 12.21% increase from 2023 to 2024, which is a positive indicator. However, profitability remains a significant issue as evidenced by a consistent negative net profit margin and EBIT margin over the years. The gross profit margin is low at 3.25% in 2024, indicating challenges in cost management. The negative EBITDA in previous years turning positive in 2024 suggests slight operational improvement, but the overall profitability remains weak.

Balance Sheet

The balance sheet reflects a concerning financial structure with negative stockholders' equity, indicating insolvency. The debt-to-equity ratio cannot be computed due to negative equity, highlighting excessive leverage. The equity ratio is negative, reinforcing the company's high financial risk. These factors suggest a precarious financial position with high reliance on debt financing and potential solvency issues.

Cash Flow

The cash flow performance is unstable, with operating cash flow frequently in the negative territory. There is no free cash flow available in 2024, and the operating cash flow to net income ratio is undefined due to zero operating cash flow. This indicates potential issues with cash generation relative to earnings, raising concerns about liquidity and operational sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.47M	48.55M	37.01M	45.62M	40.26M
Gross Profit	1.77M	1.45M	4.08M	8.95M	9.39M
EBITDA	285.00K	-22.08M	-4.28M	414.00K	-7.77M
Net Income	-6.95M	-27.04M	-190.91M	-54.70M	-22.92M
Balance Sheet
Total Assets	46.70M	113.65M	110.19M	203.28M	260.11M
Cash, Cash Equivalents and Short-Term Investments	13.64M	33.31M	36.01M	22.22M	25.76M
Total Debt	74.57M	120.75M	114.38M	137.21M	148.96M
Total Liabilities	140.30M	200.99M	171.65M	185.02M	200.62M
Stockholders Equity	-93.56M	-87.33M	-61.46M	18.25M	59.49M
Cash Flow
Free Cash Flow	8.60M	-7.30M	28.18M	-35.28M	-69.33M
Operating Cash Flow	9.08M	-6.79M	36.52M	-24.54M	49.70M
Investing Cash Flow	19.15M	-1.90M	-10.33M	-32.37M	-120.87M
Financing Cash Flow	-44.78M	2.44M	-9.52M	39.27M	96.83M

Wan Cheng Metal Packaging Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 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:8291, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.13 is Neutral, neither overbought nor oversold. The STOCH value of 12.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8291.

Wan Cheng Metal Packaging Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6898	64 Neutral	HK$822.74M	44.56	17.56%	0.65%	-3.27%	-16.88%
1626	57 Neutral	HK$1.74B	78.13	1.47%	1.39%	-47.79%	-78.74%
Sector *	56 Neutral	HK$25.30B	3.94	-2.03%	6.16%	-0.31%	-67.70%
1820	56 Neutral	HK$1.20B	416.67	-3.49%	2.00%	4.56%	-186.08%
8291	38 Underperform	HK$10.56M	―		―	11.10%	74.59%