WAC Holdings Ltd. (8619) AI Stock Analysis

• Market Cap: HK$28.91M
• Dividend Yield: N/A
• Average Volume (3M): 387.15K
• Price to Earnings (P/E): 0.7
• 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: 60 Neutral
• Price Target: HK$0.21 ▲(16.67% Upside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is driven by mixed financial performance—strong profitability and a conservative balance sheet are offset by declining revenue, negative EBIT margin, and weak/negative cash flows. Technicals are modestly supportive in the short-to-mid term, while valuation looks very attractive due to the extremely low P/E.

Positive Factors

High net profit margin & ROE

Reported high net profit margin and ROE indicate the company extracts strong returns from equity and retains profitability after non-operating items. Over the medium term this supports internal capital generation, resilience to shocks, and ability to fund selective investments without heavy dilution.

Very low leverage

Extremely low debt-to-equity reduces financial stress and interest burden, giving the company durable flexibility to weather project delays or cyclical downturns. Conservative leverage supports credit stability and preserves capacity to invest or refinance over the next several quarters.

Strong EPS growth

Substantial EPS growth reflects improving per-share earnings, signaling profit recovery or efficiency gains. Over a 2-6 month horizon this can underpin reinvestment or strengthening equity metrics, and it complements high ROE in indicating improved earnings quality if cash conversion follows.

Negative Factors

Negative operating & free cash flow

Persistent negative operating and free cash flows despite reported net income signal weak cash conversion and earnings quality. This constrains the company's ability to fund working capital, capex, or distributions without external financing and raises medium-term liquidity and execution risk.

Declining revenue

Material revenue decline erodes scale economics and puts pressure on sustainable margins and backlog renewal. If lower top-line trends persist over several quarters, profitability will increasingly depend on non-operating items or one-offs, limiting durable growth and strategic optionality.

Negative EBIT margin and gross margin pressure

A negative EBIT margin and falling gross margin point to core operational inefficiencies or cost pressures. Structural problems at the operating level risk reversing headline profitability and require operational fixes to restore sustainable earnings before financing and tax effects.

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.

WAC Holdings Ltd. Financial Statement Overview

Summary

Mixed fundamentals: revenue declined (-4.33%) and EBIT margin is negative, pointing to operational pressure. Offsetting this, net profit margin (61.86%) and ROE (32.69%) are strong and leverage is very low (debt-to-equity 0.048). Cash flow is a key weakness 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: Positive
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.17, and below the 200-day MA of 0.23, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.90 is Neutral, neither overbought nor oversold. The STOCH value of 37.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$62.81M	6.49	6.32%	―	46.37%	-22.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8619	60 Neutral	HK$28.91M	0.69	35.22%	―	-15.18%	94.48%
8423	56 Neutral	HK$36.00M	-0.50	-32.77%	―	-1.68%	-417.79%
8616	56 Neutral	HK$60.00M	7.17	-8.98%	―	8.51%	-217.24%
2113	44 Neutral	HK$52.31M	-10.79	-16.43%	―	-23.73%	―
8445	38 Underperform	HK$41.46M	-3.57	-17.44%	―	-41.79%	19.85%