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

• Market Cap: HK$252.00M
• Dividend Yield: N/A
• Average Volume (3M): 323.87K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.28
• Revenue Growth: 69.22%
• EPS Growth: 115.70%
• Country: HK
• Employees: 28
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.07
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 489,200
• 30 Day Avg. Volume: 323,866
• PEG Ratio: 1.37
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.10
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ―

Wine's Link International Holdings Limited shows strong financial fundamentals with notable revenue growth and profitability. The valuation is attractive with a low P/E ratio, but technical indicators provide limited trend confirmation. The company should monitor its debt and cash flow from financing activities to maintain stability.

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

Company Description

Wine's Link International Holdings Limited (8509) is a company primarily engaged in the wholesale and retail distribution of a wide range of wine products. The company operates within the wine industry, offering an extensive portfolio of wines sourced from various regions around the world. Its product offerings cater to both individual consumers and businesses, including restaurants and hotels, emphasizing quality and variety.

How the Company Makes Money

Wine's Link International Holdings Limited generates revenue through the sale of its wine products. The company's primary revenue stream comes from its wholesale business, where it supplies wines to restaurants, hotels, and other businesses in the hospitality sector. Additionally, the company operates retail outlets and an online platform to reach individual consumers directly. Partnerships with wineries and vineyards are crucial for Wine's Link, as they allow the company to maintain a diverse and high-quality wine selection. The company's earnings are significantly influenced by its ability to manage supply chain logistics, customer relationships, and market demand for wine products.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	216.55M	147.73M	222.38M	299.62M	279.40M
Gross Profit	76.75M	59.73M	66.56M	72.07M	55.28M
EBITDA	57.86M	37.65M	37.56M	46.59M	30.47M
Net Income	31.20M	16.60M	21.24M	27.61M	11.94M
Balance Sheet
Total Assets	448.13M	431.36M	406.00M	349.67M	437.64M
Cash, Cash Equivalents and Short-Term Investments	2.89M	5.75M	5.78M	46.78M	2.36M
Total Debt	134.29M	144.59M	131.95M	94.30M	192.86M
Total Liabilities	153.65M	168.06M	159.05M	123.30M	238.48M
Stockholders Equity	295.83M	264.60M	248.02M	226.77M	199.17M
Cash Flow
Free Cash Flow	21.91M	6.75M	-8.76M	149.45M	-97.14M
Operating Cash Flow	22.92M	6.78M	71.46M	149.83M	-96.26M
Investing Cash Flow	-744.00K	30.00K	-80.20M	-522.00K	-611.00K
Financing Cash Flow	-22.09M	-3.98M	-40.09M	-98.40M	48.59M

Wine's Link International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.64
• 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:8509, the sentiment is Positive. The current price of 0.64 is above the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.53, and above the 200-day MA of 0.42, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 75.20 is Negative, neither overbought nor oversold. The STOCH value of 65.00 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
1830	73 Outperform	HK$2.14B	10.32	47.16%	26.59%	-9.98%	-12.36%
3393	72 Outperform	HK$9.09B	11.92	13.34%	4.12%	18.17%	33.08%
8509	70 Outperform	HK$252.00M	6.44	12.59%	―	69.22%	115.70%
3399	63 Neutral	HK$1.23B	4.80	11.85%	6.40%	-2.22%	14.34%
Sector *	61 Neutral	HK$20.09B	11.89	0.81%	4.82%	2.72%	-47.45%
1707	51 Neutral	HK$176.40M	―	-9.34%	―	-40.18%	3.09%
8042	50 Neutral	HK$32.00M	―	-4.27%	―	48.57%	38.46%