Wing Fung Group Asia Limited (8526) AI Stock Analysis

• Market Cap: HK$37.32M
• Dividend Yield: N/A
• Average Volume (3M): 84.25K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.42
• Revenue Growth: 34.50%
• EPS Growth: 87.88%
• Country: HK
• Employees: 39
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): -0.02
• Shares Outstanding: 162,250,000
• 10 Day Avg. Volume: 45,000
• 30 Day Avg. Volume: 84,250
• PEG Ratio: -0.10
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 0.92
• 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: 57 Neutral
• Price Target: ―

Wing Fung Group Asia Limited's stock has a moderate overall score. The company's financial performance is mixed with concerns about profitability and cash flow, though its balance sheet remains strong. Technical analysis indicates strong momentum, despite overbought signals. The valuation suggests moderate pricing compared to peers, but the absence of a dividend yield may deter income-seeking investors.

Wing Fung Group Asia Limited Business Overview & Revenue Model

Company Description

Wing Fung Group Asia Limited, an investment holding company, provides supply, installation, and fitting-out services of mechanical ventilation and air-conditioning systems for buildings in Hong Kong and Macau. It serves contractors and subcontractors of various building projects, including infrastructural, commercial, and residential building projects. The company was formerly known as Wing Fung Capital Holdings Limited and changed its name to Wing Fung Group Asia Limited in December 2016. The company was founded in 1996 and is headquartered in Kowloon Bay, Hong Kong. Wing Fung Group Asia Limited is a subsidiary of Wing Fung Capital Limited.

How the Company Makes Money

Wing Fung Group Asia Limited generates revenue through multiple streams, including the sale of manufactured textiles, electronic components, and consumer goods. The company's revenue model is built on a combination of direct sales to retailers and wholesalers, as well as online sales through e-commerce platforms. Significant partnerships with suppliers and distributors enhance its market reach and operational efficiency, while a focus on quality control and customer satisfaction helps to retain existing clients and attract new business. Additionally, the company may benefit from strategic alliances that allow for shared resources and expanded product offerings.

Wing Fung Group Asia Limited Financial Statement Overview

Summary

Overall, Wing Fung Group Asia Limited exhibits a mixed financial performance. The income statement shows a recovery in revenue and gross margins, but profitability remains a concern. The balance sheet is relatively strong with manageable debt levels, but cash flow issues pose significant risks. The company needs to focus on improving its cash generation capabilities and maintaining cost efficiencies to stabilize its financial health.

Income Statement

Wing Fung Group Asia Limited has shown significant fluctuations in its income statement over the years. The gross profit margin improved to 10.68% in 2024 from a low of 2.67% in 2023, indicating a better control over cost of goods sold. However, the net profit margin remains low at 0.61%, reflecting ongoing challenges in profitability despite a revenue growth of 54.24% from 2023 to 2024. The EBIT margin improved to 2.58% in 2024, but it still highlights the volatility in operational efficiency. Overall, the company shows signs of recovery but struggles to maintain consistent profitability.

Balance Sheet

The balance sheet of Wing Fung Group Asia Limited indicates a stable equity position with a debt-to-equity ratio of 0.38 in 2024, down from 0.43 in 2023, suggesting prudent financial management. The return on equity improved to 1.61% in 2024 after a negative period, indicating a slight improvement in shareholder returns. The equity ratio is strong at 52.92%, reflecting a robust capital structure. Despite these strengths, the company must manage its debt levels carefully to avoid potential risks.

Cash Flow

Cash flow analysis reveals concerns, as Wing Fung Group Asia Limited reported zero free cash flow in 2024, a significant drop from 2023's positive free cash flow of 7.62 million. The operating cash flow to net income ratio is also unavailable for 2024, indicating potential cash flow issues. These trends highlight the company's struggle to convert its revenues into cash, which could impact future operations without corrective measures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	176.76M	114.57M	184.02M	174.82M	221.22M
Gross Profit	18.88M	3.06M	486.00K	-7.22M	41.66M
EBITDA	4.72M	-37.51M	-10.97M	-21.81M	27.76M
Net Income	1.07M	-35.91M	-11.20M	-21.82M	22.57M
Balance Sheet
Total Assets	126.12M	130.80M	186.24M	188.11M	216.62M
Cash, Cash Equivalents and Short-Term Investments	16.58M	6.01M	12.05M	10.65M	18.72M
Total Debt	25.33M	28.38M	38.49M	27.70M	39.50M
Total Liabilities	59.38M	65.14M	84.62M	75.03M	91.83M
Stockholders Equity	66.74M	65.66M	101.63M	113.08M	124.79M
Cash Flow
Free Cash Flow	12.40M	7.62M	-13.65M	-9.21M	-32.74M
Operating Cash Flow	12.62M	7.62M	-13.49M	-9.20M	-32.63M
Investing Cash Flow	1.94M	-83.00K	5.84M	5.01M	-6.88M
Financing Cash Flow	-879.00K	-13.98M	5.96M	-958.00K	20.66M

Wing Fung Group Asia Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8526, the sentiment is Positive. The current price of 0.23 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.15, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 90.09 is Negative, neither overbought nor oversold. The STOCH value of 91.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8526.

Wing Fung Group Asia Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9938	66 Neutral	HK$114.00M	6.79	8.46%	―	102.21%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1897	59 Neutral	HK$190.93M	21.17	1.73%	2.89%	-31.70%	-19.86%
8526	57 Neutral	HK$37.32M	18.94	-5.92%	―	34.50%	87.88%
1653	55 Neutral	HK$281.28M	―	-2.40%	―	-10.76%	-193.75%
3313	39 Underperform	HK$177.76M	―	-46.79%	―	0.26%	69.65%
1592	39 Underperform	HK$57.91M	―	―	―	1.43%	-83.96%