WAC Holdings Ltd. (8619) AI Stock Analysis

• Market Cap: HK$23.13M
• Dividend Yield: N/A
• Average Volume (3M): 387.15K
• Price to Earnings (P/E): 0.4
• Beta (1Y): -0.45
• Revenue Growth: -15.18%
• EPS Growth: 94.48%
• Country: HK
• Employees: 172
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.09
• Shares Outstanding: 144,545,000
• 10 Day Avg. Volume: 66,140
• 30 Day Avg. Volume: 387,153
• PEG Ratio: <0.01
• Price to Book (P/B): 3.31
• Price to Sales (P/S): 6.27
• P/FCF Ratio: -17.16
• 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: 49 Neutral
• Price Target: HK$0.16 ▼(-13.89% Downside)

The overall stock score is driven by mixed financial performance and bearish technical indicators. While the stock appears undervalued based on its P/E ratio, operational challenges and negative market momentum weigh heavily on the score. Improvements in cash flow management and operational efficiency are necessary to enhance the company's financial health.

Positive Factors

Strong Net Profit Margin

A strong net profit margin indicates effective cost management and profitability, which can support sustainable growth and reinvestment into the business.

Low Leverage

Low leverage suggests financial stability and reduces the risk of financial distress, allowing the company to navigate economic downturns more effectively.

Strong Return on Equity

A strong return on equity reflects efficient use of shareholders' capital, which can enhance investor confidence and support long-term value creation.

Negative Factors

Declining Revenue Growth

Declining revenue growth can indicate challenges in market expansion or product demand, potentially impacting future profitability and market position.

Negative Cash Flow

Negative cash flow suggests liquidity issues, limiting the company's ability to invest in growth opportunities and meet financial obligations.

Operational Challenges

Operational challenges reflected in a negative EBIT margin can hinder profitability and require strategic adjustments to improve efficiency and cost management.

WAC Holdings Ltd. Business Overview & Revenue Model

Company Description

WAC Holdings Ltd. (8619) is a diversified investment holding company based in Hong Kong, primarily engaged in the property investment and development sector. The company focuses on acquiring, managing, and developing real estate assets, including residential and commercial properties. Additionally, WAC Holdings is involved in providing property management services, enhancing the value of its real estate portfolio through strategic investments and effective asset management.

How the Company Makes Money

WAC Holdings Ltd. generates revenue primarily through rental income from its property holdings and capital gains from the sale of developed properties. The company earns significant revenue from leasing commercial and residential spaces, which provides a steady cash flow. Furthermore, WAC Holdings capitalizes on property development projects, generating profits when these properties are sold or leased at a premium. Key partnerships with construction firms and local real estate agencies also contribute to its revenue streams, facilitating efficient project execution and market access. Additionally, the company may benefit from favorable market conditions and government policies that support real estate development, further enhancing its earnings potential.

WAC Holdings Ltd. Financial Statement Overview

Summary

WAC Holdings Ltd. demonstrates a mixed financial performance. Strong net profit margin and return on equity are offset by declining revenue growth and negative EBIT margin, indicating operational challenges. The balance sheet is robust with low leverage, but cash flow issues pose risks to financial stability.

Income Statement

The company has experienced a decline in revenue growth, with a negative growth rate of -4.33% in the most recent year. Despite a strong net profit margin of 61.86%, the EBIT margin is negative, indicating operational challenges. The gross profit margin has decreased compared to the previous year, suggesting pressure on cost management.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.048, indicating conservative leverage. Return on equity is strong at 32.69%, reflecting efficient use of equity capital. The equity ratio is healthy, suggesting a stable financial position.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, with a decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges despite reported net income. The free cash flow to net income ratio is slightly above 1, suggesting some alignment between cash flow and earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	104.27M	104.27M	100.98M	86.90M	79.12M	77.32M
Gross Profit	24.52M	24.52M	33.31M	24.51M	25.98M	28.16M
EBITDA	-13.22M	69.16M	8.52M	8.26M	-232.00K	10.56M
Net Income	64.51M	64.51M	3.72M	1.87M	-4.65M	6.32M
Balance Sheet
Total Assets	243.42M	243.42M	154.98M	137.81M	120.39M	88.48M
Cash, Cash Equivalents and Short-Term Investments	16.36M	16.36M	40.32M	41.16M	38.60M	39.78M
Total Debt	9.44M	9.44M	6.82M	9.30M	4.51M	5.37M
Total Liabilities	46.10M	46.10M	39.19M	45.85M	30.43M	18.39M
Stockholders Equity	197.32M	197.32M	115.80M	91.96M	89.95M	70.10M
Cash Flow
Free Cash Flow	-38.11M	-38.11M	-18.64M	5.83M	715.00K	11.15M
Operating Cash Flow	-37.71M	-37.71M	-18.09M	10.08M	2.04M	11.29M
Investing Cash Flow	463.00K	463.00K	712.00K	-3.83M	-1.22M	-1.12M
Financing Cash Flow	13.28M	13.28M	16.58M	-2.89M	-2.78M	-2.73M

WAC Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8619, the sentiment is Negative. The current price of 0.18 is above the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.20, and below the 200-day MA of 0.27, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 42.56 is Neutral, neither overbought nor oversold. The STOCH value of 86.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8619.

WAC Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3728	68 Neutral	HK$65.84M	7.74	6.32%	―	46.37%	-22.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8423	56 Neutral	HK$35.20M	-0.85	-28.49%	―	-1.68%	-417.79%
8619	49 Neutral	HK$23.13M	0.38	31.39%	―	-15.18%	94.48%
8616	47 Neutral	HK$48.00M	-5.22	-5.13%	―	8.51%	-217.24%
2113	40 Neutral	HK$51.50M	18.82	―	―	-23.73%	―
8445	38 Underperform	HK$42.01M	-4.71	-11.29%	―	-41.79%	19.85%