Wine's Link International Holdings Limited (8509) AI Stock Analysis

• Market Cap: HK$288.00M
• Dividend Yield: N/A
• Average Volume (3M): 226.13K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.10
• Revenue Growth: 72.70%
• EPS Growth: 27.44%
• Country: HK
• Employees: 28
• Sector: Consumer Defensive
• Sector Strength: 46
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.07
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 168,800
• 30 Day Avg. Volume: 226,133
• PEG Ratio: 0.13
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 1.10
• 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: HK$1.00
• Price Target Upside: 40.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: HK$1.00 ▲(40.85% Upside)

The overall stock score of 72 reflects strong financial performance and attractive valuation, which are the most significant factors. The technical analysis suggests bullish momentum but warns of potential overbought conditions. The absence of earnings call data and corporate events does not impact the score.

Wine's Link International Holdings Limited Business Overview & Revenue Model

Company Description

Wine's Link International Holdings Limited (8509) is a Hong Kong-based company primarily engaged in the distribution and retail of wines and spirits. The company operates within the beverage sector, focusing on sourcing premium and fine wines from various regions around the world, catering to both individual consumers and businesses. Wine's Link also offers wine-related services, including wine storage solutions and wine education, thereby enhancing its product offerings and customer experience.

How the Company Makes Money

Wine's Link International Holdings Limited generates revenue through several key streams, primarily from the wholesale and retail sales of wines and spirits to both local and international markets. The company's revenue model is built on sourcing high-quality wines at competitive prices and distributing them through various channels, including online platforms and physical retail outlets. Additionally, Wine's Link earns income from its wine storage services, which cater to collectors and enthusiasts looking for secure and optimal storage conditions. Strategic partnerships with vineyards and wine producers augment the company's offerings, allowing for exclusive products that can attract a premium price. The company's focus on customer engagement and wine education also plays a role in driving sales, as knowledgeable consumers are more likely to make purchases.

Wine's Link International Holdings Limited Financial Statement Overview

Summary

Wine's Link International Holdings Limited demonstrates strong financial performance with significant revenue growth, robust profitability margins, and a healthy equity ratio. However, rising debt levels and negative cash flows from financing activities are potential concerns.

Income Statement

Wine's Link International Holdings Limited has demonstrated a robust income statement with a significant improvement in total revenue, showing an impressive year-on-year revenue growth rate of 46.6%. The gross profit margin stands strong at 35.4%, and the net profit margin has improved to 14.4%. Additionally, the EBIT margin is at 22.8%, and the EBITDA margin is at 26.7%, indicating strong operational efficiency and profitability. However, the company experienced a revenue decline in 2022, highlighting potential volatility in sales.

Balance Sheet

The balance sheet of Wine's Link shows a healthy equity ratio of 66.0%, indicative of strong financial stability. The debt-to-equity ratio is 0.45, suggesting the company has a manageable level of debt relative to equity. Return on equity has improved to 10.5%, reflecting efficient use of equity capital. Although the company maintains strong equity, there is a noticeable increase in total debt over the years, which could pose a risk if not managed carefully.

Cash Flow

The cash flow statement illustrates a positive trajectory with free cash flow growing significantly by 224.6% compared to the previous year. The operating cash flow to net income ratio is 0.73, and the free cash flow to net income ratio is 0.70, both indicating solid cash generation relative to net income. Despite this, the cash flow from financing activities has been negative, which could impact future liquidity if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	289.71M	373.99M	216.55M	147.73M	222.38M	299.62M
Gross Profit	82.99M	85.89M	76.75M	59.73M	66.56M	72.07M
EBITDA	63.75M	66.49M	57.86M	37.65M	37.56M	46.59M
Net Income	38.46M	39.76M	31.20M	16.60M	21.24M	27.61M
Balance Sheet
Total Assets	461.06M	483.05M	448.13M	431.36M	406.00M	349.67M
Cash, Cash Equivalents and Short-Term Investments	1.02M	129.08M	2.89M	5.75M	5.78M	46.78M
Total Debt	135.03M	137.01M	134.29M	144.59M	131.95M	94.30M
Total Liabilities	155.59M	148.82M	153.65M	168.06M	159.05M	123.30M
Stockholders Equity	306.85M	335.59M	295.83M	264.60M	248.02M	226.77M
Cash Flow
Free Cash Flow	8.37M	132.83M	21.91M	6.75M	-8.76M	149.45M
Operating Cash Flow	8.98M	133.87M	22.92M	6.78M	71.46M	149.83M
Investing Cash Flow	-361.00K	-911.00K	-744.00K	30.00K	-80.20M	-522.00K
Financing Cash Flow	-7.91M	-6.76M	-22.09M	-3.98M	-40.09M	-98.40M

Wine's Link International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.71
• 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:8509, the sentiment is Positive. The current price of 0.71 is above the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.62, and above the 200-day MA of 0.46, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8509.

Wine's Link International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8509	72 Outperform	HK$288.00M	7.24	12.59%	―	72.70%	27.44%
0828	63 Neutral	HK$415.48M	12.66	11.24%	1.19%	3.26%	46.30%
Sector *	63 Neutral	$20.46B	14.47	-3.60%	3.13%	2.63%	-6.18%
CATWF	―	$16.60M	―	-50.46%	―	―	―
1389	48 Neutral	HK$191.24M	―	-11.48%	―	-7.95%	24.69%
8146	47 Neutral	HK$102.48M	115.29	-23.19%	―	-18.68%	-3500.00%
8057	41 Neutral	HK$49.85M	―		―	4.42%	6.15%