WT Group Holdings Limited (8422) AI Stock Analysis

• Market Cap: HK$12.24M
• Dividend Yield: N/A
• Average Volume (3M): 38.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• 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: 40 Underperform
• Price Target: HK$0.10 ▼(-4.00% Downside)

The overall stock score is primarily impacted by the company's poor financial performance and valuation metrics. The technical analysis indicates bearish momentum, further contributing to the low score. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Diversified Revenue Streams

The company's diversified revenue streams from real estate and construction provide stability and resilience against sector-specific downturns.

Low Leverage

Low leverage enhances financial stability and reduces risk, providing flexibility for future investments and growth opportunities.

Stable Capital Structure

A stable capital structure supports long-term operational sustainability and can attract potential investors or partners.

Negative Factors

Declining Revenue

Declining revenue indicates potential market share loss and challenges in maintaining competitive positioning, impacting long-term growth.

Negative Cash Flow

Negative cash flow constrains the company's ability to invest in growth opportunities and meet financial obligations, threatening long-term viability.

Operational Inefficiencies

Operational inefficiencies reduce profitability and competitiveness, necessitating strategic changes to improve cost management and margins.

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

WT Group Holdings Limited is facing significant financial challenges, with declining revenues and persistent losses impacting profitability. While the balance sheet remains relatively stable with low leverage, cash flow issues pose a risk to liquidity. The company needs to address operational inefficiencies and improve cash generation to stabilize its financial position.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8422, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.11, and above the 200-day MA of 0.10, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of -13.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
8532	61 Neutral	HK$8.49M	-0.06	-3118.37%	―	-75.80%	-6540.74%
8460	53 Neutral	HK$276.68M	-403.23	-1.55%	―	-46.96%	98.17%
8208	52 Neutral	HK$44.64M	9.84	23.66%	―	11.56%	―
8431	45 Neutral	HK$54.36M	-0.96	-114.36%	―	156.20%	-101.70%
8516	44 Neutral	HK$47.19M	-1.48	-126.14%	―	-15.62%	-11.50%
8422	40 Underperform	HK$12.24M	-2.01	-16.34%	―	11.29%	-262.50%