WAC Holdings Ltd. (8619) AI Stock Analysis

• Market Cap: HK$26.74M
• Dividend Yield: N/A
• Average Volume (3M): 387.15K
• Price to Earnings (P/E): 0.7
• Beta (1Y): -0.43
• 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: 67 Neutral
• Price Target: HK$0.24 ▲(30.56% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is driven by very low valuation (P/E 0.693) and constructive near-term technicals (trading above key short/mid-term moving averages with positive momentum). These positives are moderated by mixed financial performance—especially declining revenue, negative EBIT margin, and negative operating/free cash flow despite strong reported margins and a low-debt balance sheet.

Positive Factors

Low Leverage

A debt-to-equity ratio of 0.048 indicates very conservative leverage, giving the company durable financial flexibility. Low interest obligations improve resilience to project cyclicality in engineering and construction and support capacity to invest or absorb shocks without refinancing stress.

High Reported Profitability

Reported net profit margin of 61.86% and ROE of 32.69% indicate strong return generation on equity and pricing or tax advantages that support long-term capital efficiency. Persistently high ROE signals the business can generate outsized returns relative to equity base.

Healthy Equity Base

A healthy equity ratio reflects a solid capital base that reduces solvency risk and supports multi-year contracting common in construction. This stability aids long-term project bidding, secures counterparties' confidence, and reduces dependence on external funding.

Negative Factors

Weak Cash Generation

Negative operating and free cash flows point to structural cash-generation weakness: earnings are not translating into cash. Over months this constrains funding for working capital and capex, forces reliance on equity or debt, and raises risk around executing multi-stage construction projects.

Revenue Decline

A recent revenue contraction (-4.33%) signals weakening top-line momentum. For an engineering and construction firm, declining revenue can reflect loss of contract wins or lower project volumes, undermining future margins and scale benefits over the coming quarters.

Negative EBIT Margin

A negative EBIT margin shows core operations are not profitable before non-operating items, indicating cost or execution issues. Persisting operational losses threaten margin sustainability, reducing internal cash generation and raising dependence on the balance sheet to fund operations.

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

Mixed fundamentals: revenue declined (-4.33%) and EBIT margin is negative, pointing to operating pressure. Offsetting this are very strong reported profitability metrics (net profit margin 61.86%, ROE 32.69%) and conservative leverage (debt-to-equity 0.048). Cash flow is a key risk with negative operating and free cash flows.

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

WAC Holdings Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8619, the sentiment is Neutral. The current price of 0.18 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.16, and below the 200-day MA of 0.23, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.73 is Neutral, neither overbought nor oversold. The STOCH value of 54.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$63.82M	6.49	6.32%	―	46.37%	-22.94%
8619	67 Neutral	HK$26.74M	0.69	35.22%	―	-15.18%	94.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8423	56 Neutral	HK$33.60M	-0.50	-28.49%	―	-1.68%	-417.79%
8616	56 Neutral	HK$64.00M	7.17	-8.98%	―	8.51%	-217.24%
2113	44 Neutral	HK$52.31M	-10.79	-16.43%	―	-23.73%	―
8445	38 Underperform	HK$42.29M	-3.57	-17.44%	―	-41.79%	19.85%