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

• Market Cap: HK$14.24M
• Dividend Yield: N/A
• Average Volume (3M): 40.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 11.10%
• EPS Growth: 74.59%
• Country: HK
• Employees: 75
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Packaging & Containers
• EPS (TTM): N/A
• Shares Outstanding: 160,000,000
• 10 Day Avg. Volume: 64,600
• 30 Day Avg. Volume: 40,283
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.40
• 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: 32 Underperform
• Price Target: ―

Wan Cheng Metal Packaging Company Limited's overall stock score reflects significant financial and valuation challenges. The company's weak profitability, concerning balance sheet with negative equity, and unstable cash flows are major risk factors. Technically, the stock is under bearish pressure with oversold conditions. The lack of earnings call data and corporate events further limits visibility into potential turnaround strategies, resulting in a low overall stock score.

Wan Cheng Metal Packaging Company Limited Business Overview & Revenue Model

Company Description

Wan Cheng Metal Packaging Company Limited (8291) is a company engaged in the production and sale of metal packaging products. The company operates within the manufacturing sector, specializing in a wide range of metal packaging solutions that cater to various industries, including food and beverage, pharmaceuticals, and consumer goods. Its core products include tin cans, aerosol cans, and other metal containers designed to meet the packaging needs of its clients.

How the Company Makes Money

Wan Cheng Metal Packaging Company Limited generates revenue through the manufacture and sale of metal packaging products. The company's primary revenue stream is the sale of its products to businesses in need of packaging solutions, particularly in industries such as food and beverage, pharmaceuticals, and consumer goods. By providing customized packaging solutions and maintaining long-term relationships with its clients, the company ensures a steady flow of orders and repeat business. Additionally, strategic partnerships with raw material suppliers and efficient production processes contribute to cost management, enhancing profitability. Wan Cheng Metal Packaging Company Limited may also engage in contracts or agreements with major companies to supply large volumes of packaging products, further boosting its revenue.

Wan Cheng Metal Packaging Company Limited Financial Statement Overview

Summary

Wan Cheng Metal Packaging Company Limited faces significant financial challenges. Despite a revenue increase of 12.21% from 2023 to 2024, profitability is weak with negative net profit and EBIT margins. The balance sheet is concerning with negative stockholders' equity, indicating insolvency, and a high reliance on debt financing. Cash flow is unstable, with negative operating cash flow and no free cash flow in 2024, raising liquidity concerns.

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
	EBIT
-1.58M	-23.24M	-12.48M	-5.01M	-10.00M
	EBITDA
285.00K	-22.08M	-4.28M	414.00K	-7.77M
	Net Income Common Stockholders
-6.95M	-27.04M	-190.91M	-54.70M	-22.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.64M	33.31M	36.01M	22.22M	25.76M
	Total Assets
46.70M	113.65M	110.19M	203.28M	260.11M
	Total Debt
74.57M	120.75M	114.38M	137.21M	148.96M
	Net Debt
70.47M	100.40M	88.56M	127.99M	123.19M
	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
0.00	-7.30M	28.18M	-35.28M	-69.33M
	Operating Cash Flow
0.00	-6.79M	36.52M	-24.54M	49.70M
	Investing Cash Flow
0.00	-1.90M	-10.33M	-32.37M	-120.87M
	Financing Cash Flow
0.00	2.44M	-9.52M	39.27M	96.83M

Wan Cheng Metal Packaging Company Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.09
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8291, the sentiment is Neutral. The current price of 0.09 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.09, and below the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 52.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
2380	76 Outperform	$38.22B	10.48	8.59%	44.55%	20.21%	23.24%
3303	69 Neutral	HK$1.53B	7.35	8.83%	4.17%	-20.69%	-30.40%
6898	64 Neutral	HK$640.97M	34.72	17.56%	0.83%	-3.27%	-16.88%
Sector *	62 Neutral	$6.76B	11.07	2.80%	6.34%	2.68%	-24.87%
2393	51 Neutral	HK$328.48M	0.33	1417.08%	―	-20.01%	―
2349	45 Neutral	HK$190.82M	―	-10.46%	―	-7.60%	41.01%
8291	32 Underperform	HK$14.24M	―		―	11.10%	74.59%