WAC Holdings Ltd. (8619) AI Stock Analysis

• Market Cap: HK$44.09M
• Dividend Yield: N/A
• Average Volume (3M): 776.94K
• Price to Earnings (P/E): 6.5
• Beta (1Y): -0.58
• Revenue Growth: 3.26%
• EPS Growth: 1648.15%
• Country: HK
• Employees: 172
• Sector: Industrials
• Sector Strength: 70
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 144,545,000
• 10 Day Avg. Volume: 774,144
• 30 Day Avg. Volume: 776,941
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 66.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: HK$0.50 ▲(66.67% Upside)

The overall stock score of 60 reflects a balance between strong valuation and mixed financial performance. The low P/E ratio suggests undervaluation, while financial performance is hindered by declining revenue and cash flow challenges. Technical indicators show mixed signals, with some bullish momentum but potential undervaluation.

Positive Factors

Strong Profitability Metrics

The company's strong net profit margin and return on equity indicate efficient operations and effective use of equity capital, which are positive indicators for long-term profitability and shareholder value.

Low Leverage

A low debt-to-equity ratio suggests conservative financial management, providing the company with greater financial stability and flexibility to invest in growth opportunities without the burden of excessive debt.

Diverse Revenue Streams

The company's diversified revenue streams across real estate, financial services, and technology sectors reduce dependency on a single market, enhancing resilience against sector-specific downturns and supporting sustainable growth.

Negative Factors

Declining Revenue Growth

The decline in revenue growth indicates potential challenges in maintaining market share or competitive positioning, which could impact the company's ability to generate consistent long-term revenue.

Cash Flow Challenges

Negative cash flows highlight difficulties in converting earnings into cash, which can limit the company's ability to fund operations, invest in growth, or return capital to shareholders, posing a risk to financial health.

Operational Efficiency Issues

A negative EBIT margin suggests inefficiencies in core operations, which could hinder profitability and competitiveness if not addressed, impacting long-term financial performance.

WAC Holdings Ltd. Business Overview & Revenue Model

Company Description

WAC Holdings Ltd. (8619) is a diversified investment company based in Hong Kong, primarily focused on the sectors of real estate, financial services, and technology. The company engages in property development, investment, and management, as well as providing financial advisory and asset management services. Additionally, WAC Holdings explores opportunities in technology-driven ventures, aiming to leverage innovation for growth and enhanced operational efficiencies.

How the Company Makes Money

WAC Holdings Ltd. generates revenue through multiple streams, predominantly from its real estate operations, where it earns income from property sales, leasing, and management services. The company also derives a significant portion of its earnings from its financial services segment, which offers advisory and asset management services to clients. Furthermore, WAC Holdings invests in technology ventures, potentially generating revenue through equity stakes, partnerships, and project collaborations. Strategic partnerships with other firms and institutions in the real estate and finance sectors also contribute to its revenue, enhancing its market reach and service offerings.

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 operational inefficiencies. The balance sheet is robust with low leverage, but cash flow issues present risks.

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	108.99M	104.27M	100.98M	86.90M	79.12M	77.32M
Gross Profit	20.51M	24.52M	33.31M	24.51M	25.98M	28.16M
EBITDA	-30.18M	69.16M	3.25M	8.26M	1.54M	10.56M
Net Income	27.82M	64.51M	3.72M	1.87M	-4.65M	6.32M
Balance Sheet
Total Assets	190.51M	243.42M	154.98M	137.81M	120.39M	88.48M
Cash, Cash Equivalents and Short-Term Investments	59.27M	16.36M	40.32M	41.16M	38.60M	39.78M
Total Debt	5.34M	9.44M	6.82M	9.30M	4.51M	5.37M
Total Liabilities	37.47M	46.10M	39.19M	45.85M	30.43M	18.39M
Stockholders Equity	153.04M	197.32M	115.80M	91.96M	89.95M	70.10M
Cash Flow
Free Cash Flow	-42.67M	-38.11M	-18.64M	5.83M	715.00K	11.15M
Operating Cash Flow	-42.13M	-37.71M	-18.09M	10.08M	2.04M	11.29M
Investing Cash Flow	886.00K	463.00K	712.00K	-3.83M	-1.22M	-1.12M
Financing Cash Flow	32.67M	13.28M	16.58M	-2.89M	-2.78M	-2.73M

WAC Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 0.3 is below the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.27, and below the 200-day MA of 0.39, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 23.81 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
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%
8619	60 Neutral	HK$44.09M	6.46	41.20%	―	3.26%	1648.15%
3728	57 Neutral	HK$51.66M	5.48	7.15%	―	42.91%	-12.26%
8423	56 Neutral	HK$43.20M	2.76	-8.14%	―	40.98%	-222.22%
8616	49 Neutral	HK$44.00M	―	-7.37%	―	-2.10%	-1562.50%
2113	45 Neutral	HK$90.94M	―		―	-66.55%	87.50%
8445	40 Neutral	HK$44.22M	―	-11.50%	―	1.52%	21.51%