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): ―
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: HK$0.23 ▲(5.45% Upside)

The overall stock score of 53 reflects a mixed outlook. The most significant factor is the strong technical momentum, which is offset by poor valuation metrics and financial performance concerns, particularly in cash flow and profitability. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market expansion and product demand, supporting long-term business sustainability and competitiveness.

Gross Margin Improvement

Improved gross margins suggest better cost management and pricing strategies, enhancing profitability potential and operational efficiency.

Stable Balance Sheet

A stable balance sheet with a prudent debt-to-equity ratio indicates sound financial management, providing a solid foundation for future growth.

Negative Factors

Cash Flow Issues

The lack of free cash flow highlights challenges in converting revenue into cash, potentially impacting the company's ability to fund operations and growth.

Low Net Profit Margin

Persistent low net profit margins indicate ongoing profitability challenges, which may hinder the company's ability to reinvest in growth and innovation.

Operational Efficiency Volatility

Fluctuating EBIT margins reflect inconsistent operational efficiency, which could affect the company's ability to sustain long-term profitability.

Wing Fung Group Asia Limited Business Overview & Revenue Model

Company Description

Wing Fung Group Asia Limited (8526) is a diversified company based in Asia, primarily engaged in the manufacturing and trading of a variety of products across sectors such as textiles, electronics, and consumer goods. The company leverages its extensive supply chain network to provide quality products to both domestic and international markets, focusing on innovation and sustainability in its operations.

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

Wing Fung Group Asia Limited shows a mixed financial performance. While there is a recovery in revenue and gross margins, profitability remains a concern with a low net profit margin. The balance sheet is stable with manageable debt levels, but cash flow issues are significant, as evidenced by zero free cash flow in 2024.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	165.16M	176.76M	114.57M	184.02M	174.82M	221.22M
Gross Profit	11.28M	18.88M	3.06M	486.00K	-7.22M	41.66M
EBITDA	-1.66M	4.72M	-37.51M	-10.97M	-21.81M	27.76M
Net Income	-3.91M	1.07M	-35.91M	-11.20M	-21.82M	22.57M
Balance Sheet
Total Assets	110.44M	126.12M	130.80M	186.24M	188.11M	216.62M
Cash, Cash Equivalents and Short-Term Investments	10.83M	16.58M	6.01M	12.05M	10.65M	18.72M
Total Debt	19.49M	25.33M	28.38M	38.49M	27.70M	39.50M
Total Liabilities	46.37M	59.38M	65.14M	84.62M	75.03M	91.83M
Stockholders Equity	64.07M	66.74M	65.66M	101.63M	113.08M	124.79M
Cash Flow
Free Cash Flow	4.73M	12.40M	7.62M	-13.65M	-9.21M	-32.74M
Operating Cash Flow	4.95M	12.62M	7.62M	-13.49M	-9.20M	-32.63M
Investing Cash Flow	7.33M	1.94M	-83.00K	5.84M	5.01M	-6.88M
Financing Cash Flow	708.00K	-879.00K	-13.98M	5.96M	-958.00K	20.66M

Wing Fung Group Asia Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

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 0.22 is below the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.20, and above the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 90.09 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, 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	68 Neutral	HK$110.00M	6.55	10.51%	―	14.65%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1653	55 Neutral	HK$1.40B	-256.91	-3.68%	―	-0.28%	-469.70%
8526	53 Neutral	HK$37.32M	-9.54	-5.92%	―	34.50%	87.88%
1897	53 Neutral	HK$174.68M	19.37	0.62%	2.50%	-48.30%	-75.98%
1592	49 Neutral	HK$83.97M	-0.74	―	―	1.43%	-83.97%
3313	38 Underperform	HK$162.36M	―	-46.79%	―	0.26%	69.65%