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

• Market Cap: HK$204.00M
• Dividend Yield: N/A
• Average Volume (3M): 98.40K
• Price to Earnings (P/E): 5.4
• Beta (1Y): -0.16
• 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: 136,400
• 30 Day Avg. Volume: 98,400
• 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, which are offset by negative technical indicators. The company's robust revenue growth and cash flow generation are significant strengths, while the bearish market momentum presents a risk. The stock's undervaluation offers potential upside, but investors should be cautious of the current negative trend.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and successful product offerings, supporting long-term business expansion.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, allowing for strategic investments and debt management, supporting sustainable growth.

Operational Efficiency

Strong operational efficiency reflects effective cost management and competitive advantage, ensuring profitability even amid cost pressures.

Negative Factors

Declining Profit Margins

Decreasing profit margins suggest rising costs or pricing pressures, potentially impacting future profitability and competitive positioning.

Equity Ratio Decline

A declining equity ratio may indicate increasing reliance on debt, which could limit financial flexibility and increase risk during downturns.

Profitability Challenges

Reduced profitability can strain resources and limit the ability to invest in growth opportunities, impacting long-term competitive strength.

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

Company Description

Wine's Link International Holdings Limited, an investment holding company, engages in the wholesale and retail of various wine products and other alcoholic beverages in Hong Kong and the People's Republic of China. The company offers wine products, such as premium collectible red, fine red, and white wine products; other alcoholic beverages comprising champagne, whisky, and sake; and wine accessory products, including wine decanters, wine glasses, and wine openers. It also trades in premium wines and wine cellars. The company was founded in 2008 and is headquartered in San Po Kong, Hong Kong.

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 demonstrates strong revenue growth and impressive cash flow generation, indicating robust financial health. However, declining profit margins and a slight decrease in equity ratio are areas of concern. The company maintains operational efficiency and stable leverage, which are positive indicators.

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	373.99M	373.99M	216.55M	147.73M	222.38M	299.62M
Gross Profit	85.89M	85.89M	76.75M	59.73M	66.56M	72.07M
EBITDA	64.23M	66.49M	57.86M	37.65M	37.56M	46.59M
Net Income	39.76M	39.76M	31.20M	16.60M	21.24M	27.61M
Balance Sheet
Total Assets	483.05M	483.05M	448.13M	431.36M	406.00M	349.67M
Cash, Cash Equivalents and Short-Term Investments	129.08M	129.08M	2.89M	5.75M	5.78M	46.78M
Total Debt	137.01M	137.01M	134.29M	144.59M	131.95M	94.30M
Total Liabilities	148.82M	148.82M	153.65M	168.06M	159.05M	123.30M
Stockholders Equity	335.59M	335.59M	295.83M	264.60M	248.02M	226.77M
Cash Flow
Free Cash Flow	132.83M	132.83M	21.91M	6.75M	-8.76M	149.45M
Operating Cash Flow	133.87M	133.87M	22.92M	6.78M	71.46M	149.83M
Investing Cash Flow	-1.37M	-911.00K	-744.00K	30.00K	-80.20M	-522.00K
Financing Cash Flow	-1.57M	-6.76M	-22.09M	-3.98M	-40.09M	-98.40M

Wine's Link International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8509, the sentiment is Negative. The current price of 0.75 is above the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.72, and above the 200-day MA of 0.58, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 24.15 is Positive, neither overbought nor oversold. The STOCH value of 2.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$204.00M	5.37	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$401.40M	17.38	7.46%	1.25%	-4.14%	-21.15%
8146	47 Neutral	HK$83.26M	-1.91	-23.19%	―	-18.68%	-3305.88%
1389	43 Neutral	HK$321.51M	―	-7.08%	―	-32.89%	57.23%
8057	40 Underperform	HK$43.00M	-2.83	―	―	3.35%	17.48%