WAC Holdings Ltd. (8619) AI Stock Analysis

• Market Cap: HK$26.45M
• Dividend Yield: N/A
• Average Volume (3M): 387.15K
• Price to Earnings (P/E): 0.4
• Beta (1Y): -0.61
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$0.23 ▲(18.95% Upside)

The overall stock score reflects mixed financial performance with strong profitability metrics but operational and cash flow challenges. Technical analysis indicates weak momentum, while the low P/E ratio suggests potential undervaluation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Net Profit Margin

A robust net profit margin indicates efficient cost management and profitability, which can support future investments and growth.

Low Leverage

Conservative leverage enhances financial stability and flexibility, reducing risk in volatile market conditions.

Strong Return on Equity

High return on equity reflects effective use of equity capital, indicating strong management performance and shareholder value creation.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests challenges in market expansion and competitiveness, potentially impacting long-term profitability.

Negative EBIT Margin

A negative EBIT margin indicates operational inefficiencies, which can erode profitability and hinder reinvestment capabilities.

Cash Flow Challenges

Negative cash flows can limit the company's ability to fund operations and growth initiatives, posing risks to financial health.

WAC Holdings Ltd. Business Overview & Revenue Model

Company Description

WAC Holdings Limited, a construction engineering consultant company, provides structural and geotechnical engineering consultancy services in Hong Kong and Macau. The company offers structural engineering services, such as loading calculation and stress design; geotechnical engineering services, including calculation of earth sub-surface conditions and assessment of risks posed by site conditions; and material engineering services that include analyzing the use of and selecting building materials in a construction project. It also undertakes infrastructure works comprising roads and drainage works; and provides registered structural engineers and authorized person services related to alteration and addition works, as well as expert services. In addition, the company engages in provision of computer aided drawings; design of construction and back office support; and equipment rental services. The company was founded in 1987 and is headquartered in Cheung Sha Wan, Hong Kong.

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. shows mixed financial performance. Strong net profit margin and return on equity are offset by declining revenue growth and negative EBIT margin. The balance sheet is robust with low leverage, but cash flow issues are concerning.

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: 0.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.19 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.23, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 39.03 is Neutral, neither overbought nor oversold. The STOCH value of 18.52 is Positive, 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$54.70M	6.43	6.32%	―	46.37%	-22.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8619	51 Neutral	HK$26.45M	0.44	31.39%	―	-15.18%	94.48%
8616	47 Neutral	HK$50.00M	-3.76	-5.13%	―	8.51%	-217.24%
8423	45 Neutral	HK$39.20M	-3.18	-28.49%	―	-1.68%	-417.79%
2113	40 Neutral	HK$61.16M	―	―	―	-23.73%	―
8445	38 Underperform	HK$46.98M	-4.96	-11.29%	―	-41.79%	19.85%