WT Group Holdings Limited (8422) AI Stock Analysis

• Market Cap: HK$21.00M
• Dividend Yield: N/A
• Average Volume (3M): 38.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: 11.29%
• EPS Growth: -262.50%
• Country: HK
• Employees: 26
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.05
• Shares Outstanding: 120,000,000
• 10 Day Avg. Volume: 44,000
• 30 Day Avg. Volume: 38,066
• PEG Ratio: <0.01
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -2.09
• 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: 46 Neutral
• Price Target: HK$0.18 ▲(83.00% Upside)

The score is weighed down primarily by weak fundamentals (declining revenue, ongoing losses, and negative operating/free cash flow). Technicals are a partial offset due to a clear trend above moving averages, but the very overbought RSI raises near-term risk. Valuation is constrained by negative earnings and no provided dividend yield.

Positive Factors

Diversified revenue streams

A multi‑stream revenue model across real estate investment, rental income and construction/engineering creates structural resilience. Over months this reduces dependence on any single contract or market, smoothing cash inflows and allowing project mix rebalancing to absorb sector swings.

Conservative leverage

Relatively low debt-to-equity provides durable financial flexibility and lowers refinancing risk. This conservative leverage profile supports sustaining operations, funding selective projects or weathering short-term revenue stress without immediate strain on liquidity or covenant pressures.

Stable equity ratio / capital structure

A stable equity ratio indicates a meaningful capital buffer against operational losses. Structurally, this helps preserve creditor and counterparty confidence, improves access to financing if needed, and provides capacity to pursue turnaround initiatives over a multi-month horizon.

Negative Factors

Declining revenue trend

A near‑term top‑line decline of ~18% signals sustained pressure on project volumes or pricing. Over 2–6 months this reduces scale benefits, worsens fixed-cost absorption, and makes restoring margins dependent on a credible rebound in contract wins or higher utilization of existing assets.

Negative operating and free cash flow

Persistent negative operating and free cash flows point to structural cash-generation weakness. This constrains reinvestment and working capital for projects, increases dependence on external funding, and elevates liquidity and execution risk across ongoing developments in the medium term.

Sustained unprofitable operations

Negative EBIT and net margins reflect structural profitability issues—likely from cost control, pricing, or project execution gaps. Over months this erodes ROE, limits retained earnings for reinvestment, and requires either margin improvement or capital injections to return to sustainable profitability.

WT Group Holdings Limited Business Overview & Revenue Model

Company Description

WT Group Holdings Limited (8422) is a diversified investment holding company based in Hong Kong. The company primarily operates in the sectors of real estate investment and development, construction, and engineering services. WT Group Holdings focuses on delivering high-quality projects and solutions, leveraging its expertise in various industries to enhance its portfolio of assets.

How the Company Makes Money

WT Group Holdings generates revenue through multiple key streams. Primarily, the company earns income from its real estate investments, including rental income from commercial and residential properties. Additionally, WT Group Holdings engages in construction and engineering projects, providing services that include project management, design, and construction works for both public and private sectors. The company may also collaborate with strategic partners and local governments to secure contracts, enhancing its project pipeline and financial stability. Overall, its revenue model is supported by the continuous demand for real estate development and infrastructure projects within its operational regions.

WT Group Holdings Limited Financial Statement Overview

Summary

Financial performance is weak: revenue declined sharply (-17.99%) and profitability is negative (net margin and EBIT margin below zero). While leverage is conservative, negative operating and free cash flows point to ongoing liquidity and cash-generation risk.

Income Statement

The company has experienced a significant decline in revenue over the past year, with a negative revenue growth rate of -17.99%. Profitability metrics are concerning, with a negative net profit margin and EBIT margin, indicating operational inefficiencies and losses. The gross profit margin has also decreased, suggesting challenges in cost management.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, reflecting the company's inability to generate profits from its equity base. The equity ratio is stable, suggesting a solid capital structure despite profitability issues.

Cash Flow

Cash flow metrics reveal negative operating and free cash flows, indicating liquidity challenges. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, highlighting cash generation issues relative to reported losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.83M	34.83M	31.30M	37.42M	65.33M	33.83M
Gross Profit	2.92M	2.92M	11.43M	-3.11M	8.21M	2.12M
EBITDA	-5.93M	-5.93M	4.07M	-22.72M	-8.18M	-5.66M
Net Income	-6.09M	-6.09M	3.75M	-23.20M	-8.95M	-7.40M
Balance Sheet
Total Assets	39.08M	39.08M	46.16M	42.54M	69.63M	65.50M
Cash, Cash Equivalents and Short-Term Investments	24.19M	24.19M	28.62M	33.29M	31.46M	51.55M
Total Debt	332.00K	332.00K	107.00K	332.00K	1.05M	679.00K
Total Liabilities	4.88M	4.88M	5.87M	5.99M	9.88M	8.05M
Stockholders Equity	34.20M	34.20M	40.29M	36.55M	59.75M	57.45M
Cash Flow
Free Cash Flow	-4.91M	-4.91M	-4.90M	3.12M	-26.16M	12.05M
Operating Cash Flow	-4.91M	-4.91M	-4.90M	3.49M	-24.49M	12.08M
Investing Cash Flow	51.00K	51.00K	125.00K	-235.00K	-1.68M	62.00K
Financing Cash Flow	-233.00K	-233.00K	-237.00K	-670.00K	7.43M	-691.00K

WT Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8422, the sentiment is Positive. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.11, and below the 200-day MA of 0.10, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 80.86 is Negative, neither overbought nor oversold. The STOCH value of 66.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8422.

WT Group 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%
8208	53 Neutral	HK$135.36M	29.84	23.66%	―	11.56%	―
8460	51 Neutral	HK$419.66M	-509.68	-1.55%	―	-46.96%	98.17%
8431	48 Neutral	HK$81.89M	-1.44	-114.36%	―	156.20%	-101.70%
8422	46 Neutral	HK$21.00M	-3.45	-16.34%	―	11.29%	-262.50%
8516	41 Neutral	HK$52.94M	-1.66	-126.14%	―	-15.62%	-11.50%
8532	40 Underperform	HK$5.35M	-0.04	-3118.37%	―	-75.80%	-6540.74%