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

• Market Cap: HK$264.00M
• Dividend Yield: N/A
• Average Volume (3M): 245.07K
• Price to Earnings (P/E): 6.9
• Beta (1Y): -0.14
• Revenue Growth: 15.66%
• EPS Growth: -1.25%
• Country: HK
• Employees: 28
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.02
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 380,400
• 30 Day Avg. Volume: 245,066
• 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: 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: 65 Neutral
• Price Target: HK$0.57 ▼(-24.00% Downside)

The overall stock score of 65 reflects strong financial performance and attractive valuation, offset by bearish technical indicators. The company's robust cash flow and revenue growth are significant strengths, but declining profit margins and technical weakness pose risks. The low P/E ratio suggests potential undervaluation, offering upside potential if technical conditions improve.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and demand for premium wines, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Stable Leverage

A stable leverage position reduces financial risk and enhances the company's ability to manage economic downturns effectively.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate rising cost pressures, which could impact long-term profitability if not managed effectively.

Equity Ratio Decline

A declining equity ratio may signal weakening financial health, potentially limiting the company's ability to finance future growth.

Earnings Growth Challenges

Negative EPS growth suggests challenges in profit generation, which could hinder the company's ability to deliver shareholder value.

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

Company Description

Wine's Link International Holdings Limited (8509) is a Hong Kong-based investment holding company specializing in the import and distribution of fine wines and related products. The company operates primarily in the wine sector, focusing on sourcing premium wines from renowned vineyards around the world and supplying them to retail and hospitality sectors. In addition to its core wine distribution business, Wine's Link also engages in wine-related services, including wine storage and logistics, catering to the growing demand for high-quality wines in the Asian market.

How the Company Makes Money

Wine's Link International Holdings Limited generates revenue primarily through the sale of imported wines to various customers, including restaurants, hotels, and wine retailers. The company's revenue model is based on a wholesale distribution approach, where it purchases wines from suppliers at a lower price and sells them at a markup to its clients. Additionally, the company may earn income from wine storage services, providing secure storage solutions for clients who require climate-controlled environments for their collections. Strategic partnerships with vineyards and suppliers enhance the company's product offerings and supply chain efficiency, contributing to its overall earnings. Factors such as market demand for premium wines and the growth of the hospitality sector in Asia play a significant role in driving the company's financial performance.

Wine's Link International Holdings Limited Financial Statement Overview

Summary

Wine's Link International Holdings Limited exhibits strong revenue growth and cash flow generation, positioning it well in the Beverages industry. However, declining profit margins and a slight decrease in equity ratio warrant attention. The company shows operational efficiency and stable leverage, contributing to its overall financial health.

Income Statement

Wine's Link International Holdings Limited has shown strong revenue growth of 29.09% in the latest year, indicating a positive trajectory. However, the gross profit margin has decreased from 35.44% to 22.97%, suggesting increased cost pressures. The net profit margin also declined from 14.41% to 10.63%, reflecting reduced profitability. Despite these challenges, the company maintains a solid EBIT margin of 15.59% and EBITDA margin of 17.78%, showcasing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.41, indicating a stable leverage position. Return on equity stands at 11.85%, showing effective use of equity to generate profits. The equity ratio is healthy, with stockholders' equity making up a significant portion of total assets. Overall, the balance sheet reflects stability, though the declining equity ratio over the years could be a concern if the trend continues.

Cash Flow

The cash flow statement reveals a remarkable free cash flow growth of 1486.81%, highlighting significant improvements in cash generation. The operating cash flow to net income ratio of 0.90 indicates strong cash conversion. The free cash flow to net income ratio is nearly 1, demonstrating efficient cash management. These metrics suggest robust cash flow health, supporting the company's financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	335.10M	373.99M	216.55M	147.73M	222.38M	299.62M
Gross Profit	81.10M	85.89M	76.75M	59.73M	66.56M	72.07M
EBITDA	61.91M	66.49M	57.86M	37.65M	37.56M	46.59M
Net Income	38.00M	39.76M	31.20M	16.60M	21.24M	27.61M
Balance Sheet
Total Assets	500.49M	483.05M	448.13M	431.36M	406.00M	349.67M
Cash, Cash Equivalents and Short-Term Investments	4.53M	129.08M	2.89M	5.75M	5.78M	46.78M
Total Debt	145.57M	137.01M	134.29M	144.59M	131.95M	94.30M
Total Liabilities	157.02M	148.82M	153.65M	168.06M	159.05M	123.30M
Stockholders Equity	344.84M	335.59M	295.83M	264.60M	248.02M	226.77M
Cash Flow
Free Cash Flow	257.00K	132.83M	21.91M	6.75M	-8.76M	149.45M
Operating Cash Flow	1.48M	133.87M	22.92M	6.78M	71.46M	149.83M
Investing Cash Flow	-1.77M	-911.00K	-744.00K	30.00K	-80.20M	-522.00K
Financing Cash Flow	10.48M	-6.76M	-22.09M	-3.98M	-40.09M	-98.40M

Wine's Link International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 0.75 is above the 20-day moving average (MA) of 0.58, above the 50-day MA of 0.68, and above the 200-day MA of 0.60, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.65 is Neutral, neither overbought nor oversold. The STOCH value of 64.48 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	65 Neutral	HK$264.00M	6.95	11.66%	―	15.66%	-1.25%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0828	54 Neutral	HK$380.27M	16.46	7.46%	1.30%	-4.14%	-21.15%
8146	51 Neutral	HK$212.16M	-4.86	-23.19%	―	-18.68%	-3305.88%
1389	40 Underperform	HK$177.39M	-22.54	-7.08%	―	-32.89%	57.23%
8057	40 Underperform	HK$37.39M	-2.08	―	―	3.35%	17.48%