WAC Holdings Ltd. (8619) AI Stock Analysis

• Market Cap: HK$30.35M
• Dividend Yield: N/A
• Average Volume (3M): 248.31K
• Price to Earnings (P/E): 9.8
• Beta (1Y): -0.31
• Revenue Growth: 17.35%
• EPS Growth: N/A
• Country: HK
• Employees: 172
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 144,545,000
• 10 Day Avg. Volume: 265,380
• 30 Day Avg. Volume: 248,313
• PEG Ratio: -0.18
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.09
• 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

• Rating: 60 Neutral
• Price Target: ―

WAC Holdings Ltd. exhibits robust revenue growth and financial stability with a low debt structure, which are significant strengths. However, challenges in operating profitability and negative cash flows weigh heavily on the overall assessment. The technical indicators suggest a bearish trend, and while the stock appears undervalued, the lack of a dividend yield and potential liquidity concerns could impact investor sentiment. Overall, the stock is moderately positioned, with improvements in cash flow and operational efficiency needed to enhance its attractiveness.

WAC Holdings Ltd. Business Overview & Revenue Model

Company Description

WAC Holdings Ltd. (8619) is an investment holding company primarily engaged in the provision of comprehensive architectural and engineering consultancy services. It operates in sectors including building construction, urban planning, interior design, and landscape architecture. The company's core services encompass project management, feasibility studies, and design solutions tailored to meet the specific needs of its clients.

How the Company Makes Money

WAC Holdings Ltd. generates revenue through its consultancy services, which include fees for project management, design, and engineering solutions. The company engages in long-term contracts with clients from both the public and private sectors, providing tailored consultancy services for various construction and infrastructure projects. Revenue streams are primarily derived from service fees charged based on project scope, complexity, and duration. Strategic partnerships with construction firms, government entities, and private developers also contribute to its earnings, allowing the company to leverage expertise and expand its service offerings.

WAC Holdings Ltd. Financial Statement Overview

Summary

WAC Holdings Ltd. demonstrates strong revenue growth and a solid equity base, but faces challenges with operating profitability and cash flow management. While the company is financially stable with low leverage, efforts are needed to improve operational efficiency and cash generation to support continued growth and shareholder value.

Income Statement

WAC Holdings Ltd. has shown robust revenue growth with a 16.2% increase from the previous year. The gross profit margin improved to 33.0%, indicating efficient cost management. However, the EBIT margin turned negative due to increased operating expenses, impacting profitability. Despite this, the net profit margin rose to 3.7% from 2.2%, reflecting improved net income.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 74.7%, suggesting financial stability. The debt-to-equity ratio is low at 0.06, indicating low financial leverage and risk. However, return on equity declined to 3.2% from 2.0%, showing a need for improved asset utilization to enhance shareholder returns.

Cash Flow

Operating cash flow has turned negative, impacting liquidity. The free cash flow decreased significantly, reflecting higher capital expenditures and reduced operating cash. These trends pose potential risks to cash sustainability, despite a positive free cash flow to net income ratio indicating some efficiency in translating income to cash.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	108.99M	100.98M	86.90M	79.12M	77.32M	58.86M
Gross Profit	20.51M	33.31M	24.51M	25.98M	28.16M	18.01M
EBITDA	-30.18M	3.25M	8.26M	1.54M	10.56M	-4.10M
Net Income	27.82M	3.72M	1.87M	-4.65M	6.32M	-6.96M
Balance Sheet
Total Assets	190.51M	154.98M	137.81M	120.39M	88.48M	75.14M
Cash, Cash Equivalents and Short-Term Investments	59.27M	40.32M	41.16M	38.60M	39.78M	32.32M
Total Debt	5.34M	6.82M	9.30M	4.51M	5.37M	3.20M
Total Liabilities	37.47M	39.19M	45.85M	30.43M	18.39M	11.23M
Stockholders Equity	153.04M	115.80M	91.96M	89.95M	70.10M	63.90M
Cash Flow
Free Cash Flow	-42.67M	-18.64M	5.83M	715.00K	11.15M	-7.92M
Operating Cash Flow	-42.13M	-18.09M	10.08M	2.04M	11.29M	-7.60M
Investing Cash Flow	886.00K	712.00K	-3.83M	-1.22M	-1.12M	274.00K
Financing Cash Flow	32.67M	16.58M	-2.89M	-2.78M	-2.73M	-2.64M

WAC Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.21
• 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 0.21 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.28, and below the 200-day MA of 0.48, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 30.45 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 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
8619	60 Neutral	HK$30.35M	9.81	23.15%	―	17.35%	―
1875	59 Neutral	HK$1.41B	35.20	4.92%	―	38.48%	―
Sector *	58 Neutral	$1.34B	4.24	-2.93%	7.38%	3.67%	-51.13%
1703	56 Neutral	HK$55.20M	4.44		―	―	―
1707	51 Neutral	HK$161.28M	―	-9.34%	―	-40.18%	3.09%
1725	48 Neutral	HK$393.18M	―	-115.47%	―	-47.58%	22.99%
6158	40 Underperform	€179.08M	―		―	-15.39%	19.69%