WT Group Holdings Limited (8422) AI Stock Analysis

• Market Cap: HK$12.96M
• Dividend Yield: N/A
• Average Volume (3M): 67.37K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.22
• 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: 1,300
• 30 Day Avg. Volume: 67,366
• PEG Ratio: -0.03
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.40
• P/FCF Ratio: -2.55
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 68 reflects a balance of strong valuation and solid technical indicators, offset by concerns about cash flow and profitability. The company's undervalued status and stable technical indicators are its strengths, while the liquidity and operational efficiency challenges are areas for improvement.

WT Group Holdings Limited Business Overview & Revenue Model

Company Description

WT Group Holdings Limited, an investment holding company, engages in the business of specialized and general building works in Hong Kong. It undertakes specialized works, including foundation and site formation, demolition, and ground investigation field works; and general building works, such as superstructure building, slope maintenance, hoarding, alteration and addition, and other miscellaneous construction works. The company was founded in 2002 and is headquartered in Tai Kok Tsui, Hong Kong. WT Group Holdings Limited was formerly a subsidiary of Talent Gain Ventures Limited.

How the Company Makes Money

WT Group Holdings Limited generates revenue through its construction contracts, which serve as the primary source of income. The company's revenue streams include fees from general building construction services, interior fit-out works, and renovation projects. These contracts are often secured through bidding processes, and the company earns revenue as it completes various phases of the construction projects. Additionally, WT Group Holdings Limited may enter into strategic partnerships or collaborations with other construction firms or suppliers to enhance its project delivery capabilities and cost efficiencies, further contributing to its financial performance.

WT Group Holdings Limited Financial Statement Overview

Summary

WT Group Holdings Limited demonstrates strong equity and cost management, as seen in a healthy gross profit margin and stable balance sheet. However, challenges in profitability and cash flow, with negative operating cash flow and a low net profit margin, suggest operational inefficiencies and liquidity management issues.

Income Statement

The company's gross profit margin for TTM is 33.9%, indicating a strong ability to manage production costs relative to revenue. However, the net profit margin is lower at 4.5%, suggesting high operating expenses or other costs. Revenue has shown volatility, with a significant drop from 2022 to 2023 but partial recovery in TTM. EBIT and EBITDA margins of 3.8% and 4.1% respectively, highlight moderate operational efficiency.

Balance Sheet

The company has a solid equity base with an equity ratio of 88.5% in TTM, indicating financial stability and low leverage, as evidenced by a Debt-to-Equity ratio of 0. The ROE for TTM is 4.7%, showing modest profitability on equity, which could be improved.

Cash Flow

The company faces cash flow challenges with negative operating cash flow and free cash flow in TTM. The operating cash flow to net income ratio is -2.8, indicating inefficiencies in converting income into cash. The free cash flow to net income ratio is also negative, reflecting potential liquidity issues.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	42.48M	31.30M	37.42M	65.33M	33.83M	61.22M
Gross Profit	14.40M	11.43M	-3.11M	8.21M	2.12M	2.40M
EBITDA	1.73M	4.07M	-22.72M	-8.18M	-5.66M	-6.04M
Net Income	1.92M	3.75M	-23.20M	-8.95M	-7.40M	-5.87M
Balance Sheet
Total Assets	45.80M	46.16M	42.54M	69.63M	65.50M	73.01M
Cash, Cash Equivalents and Short-Term Investments	30.21M	28.62M	33.29M	31.46M	51.55M	38.00M
Total Debt	0.00	107.00K	332.00K	1.05M	679.00K	630.00K
Total Liabilities	5.28M	5.87M	5.99M	9.88M	8.05M	8.17M
Stockholders Equity	40.52M	40.29M	36.55M	59.75M	57.45M	64.84M
Cash Flow
Free Cash Flow	-5.37M	-4.90M	3.12M	-26.16M	12.05M	8.79M
Operating Cash Flow	-5.37M	-4.90M	3.49M	-24.49M	12.08M	8.94M
Investing Cash Flow	125.00K	125.00K	-235.00K	-1.68M	62.00K	-34.00K
Financing Cash Flow	-217.00K	-237.00K	-670.00K	7.43M	-691.00K	-635.00K

WT Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 0.11 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.10, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 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
8422	68 Neutral	HK$12.96M	6.75	-16.34%	―	11.29%	-262.50%
8532	61 Neutral	HK$20.37M	8.89	―	―	―	―
8208	60 Neutral	HK$52.56M	11.59	―	―	11.56%	―
8460	49 Neutral	HK$13.50M	-19.68	-8.70%	―	-46.96%	98.17%
8516	46 Neutral	HK$26.14M	-3.13	-99.30%	―	107.20%	60.18%
8431	44 Neutral	HK$13.65M	-0.56	-343.02%	―	11.98%	-45.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%