Wise Ally International Holdings Limited (9918) AI Stock Analysis

• Market Cap: HK$105.00M
• Dividend Yield: N/A
• Average Volume (3M): 80.41K
• Price to Earnings (P/E): 1.5
• Beta (1Y): 0.20
• Revenue Growth: -6.19%
• EPS Growth: 283.08%
• Country: HK
• Employees: 1,459
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.14
• Shares Outstanding: 100,000,000
• 10 Day Avg. Volume: 44,360
• 30 Day Avg. Volume: 80,413
• 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$1.00
• Price Target Upside: -5.66% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: HK$1.00 ▼(-5.66% Downside)

The overall stock score of 64 reflects strong valuation due to a low P/E ratio, offset by concerns over cash flow issues and bearish technical indicators. The company's improved profitability and leverage management are positive, but liquidity risks need to be addressed.

Wise Ally International Holdings Limited Business Overview & Revenue Model

Company Description

Wise Ally International Holdings Limited, an investment holding company, provides electronics manufacturing services with a focus on consumer electronic products. The company provides a range of services, including design development and enhancement, technical advice and engineering solution, selection and procurement of materials, production, quality control, and logistics management solutions. Its manufacturing services include printed circuit board assembly, multifunctional modules, and finished electronic products for a range of product applications, such as vapour products; appliances; commercial controls; and heating, ventilation and air-conditionings. The company also provides Internet of Things solutions, including sustainability/energy management, asset management, and workplace environment quality. It also trades in electronic products. Wise Ally International Holdings Limited was founded in 1978 and is headquartered in Kowloon Bay, Hong Kong.

How the Company Makes Money

Wise Ally International Holdings Limited generates revenue through the sale of its electronic products, which are designed and manufactured in-house. The company capitalizes on its expertise in electronics to offer innovative solutions for consumer electronics and automotive industries. Key revenue streams include contracts with major automotive manufacturers for electronic components, partnerships with consumer electronics brands for smart home devices, and direct sales of wearable technology to end consumers. The company's earnings are significantly influenced by its ability to innovate and adapt to technological advancements, as well as maintaining strategic partnerships with industry leaders to capture emerging market demands.

Wise Ally International Holdings Limited Financial Statement Overview

Summary

Wise Ally International Holdings Limited shows strong profitability with improved margins and better leverage management. However, the cash flow statement raises significant concerns due to the absence of positive cash flow in 2024, which could impact liquidity and future growth.

Income Statement

Wise Ally International Holdings Limited shows a strong gross profit margin of 19.67% for 2024, indicating efficient cost management. The net profit margin improved significantly to 5.73% from a mere 0.10% in 2023, demonstrating enhanced profitability. Revenue growth from 2023 to 2024 was 2.74%, a positive trend but slower compared to earlier years. The company also improved its EBIT margin to 7.83% in 2024. However, the EBITDA margin slightly declined to 7.38%, suggesting increased non-operational expenses.

Balance Sheet

The debt-to-equity ratio improved to 1.18 in 2024, down from 2.52 in 2023, indicating better leverage management. Return on equity (ROE) increased significantly to 32.66% in 2024, reflecting efficient use of shareholder funds. The equity ratio improved to 23.69%, suggesting stronger financial stability. Despite these improvements, the company still holds a relatively high level of debt compared to equity.

Cash Flow

The cash flow statement reveals significant issues, with operating cash flow dropping to zero in 2024, impacting liquidity. Free cash flow also plummeted from 77.97 million in 2023 to zero in 2024. The lack of positive cash flow could hinder future investments and operational flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.26B	1.23B	1.34B	1.05B	819.50M
Gross Profit	247.90M	210.65M	194.95M	194.26M	156.89M
EBITDA	140.06M	66.94M	72.87M	70.70M	50.65M
Net Income	72.23M	1.25M	15.13M	20.12M	1.45M
Balance Sheet
Total Assets	933.50M	965.63M	977.52M	897.21M	745.57M
Cash, Cash Equivalents and Short-Term Investments	305.14M	274.57M	242.19M	207.27M	234.38M
Total Debt	261.37M	379.25M	313.28M	282.80M	300.24M
Total Liabilities	712.36M	815.34M	821.48M	744.47M	607.86M
Stockholders Equity	221.14M	150.29M	156.03M	152.74M	137.71M
Cash Flow
Free Cash Flow	150.18M	77.97M	73.36M	17.47M	28.90M
Operating Cash Flow	149.68M	91.80M	88.00M	34.32M	48.31M
Investing Cash Flow	-58.12M	2.15M	-70.46M	-15.88M	-8.51M
Financing Cash Flow	-145.18M	-29.42M	-14.40M	-45.95M	55.62M

Wise Ally International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9918, the sentiment is Neutral. The current price of 1.06 is below the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.18, and above the 200-day MA of 1.00, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 43.42 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:9918.

Wise Ally International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8070	68 Neutral	118.00M	7.27	20.70%	―	25.67%	-6.77%
9918	64 Neutral	HK$105.00M	1.48	35.49%	―	-6.19%	283.08%
0889	55 Neutral	116.80M	-2.77	-6.79%	―	-17.44%	-66.75%
2363	51 Neutral	86.80M	26.90	14.97%	―	53.37%	-75.77%
0675	46 Neutral	105.47M	-32.64	-3.54%	15.19%	-6.48%	74.69%
0515	41 Neutral	64.54M	-0.85	-86.30%	―	-84.61%	-14.10%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Wise Ally International Holdings Limited Corporate Events

Wise Ally International Issues Profit Warning Amid Revenue Decline

Wise Ally International Holdings Limited has issued a profit warning, indicating a decrease in net profit for the first half of 2025 compared to the same period in 2024. The company attributes a significant portion of its expected profit to a one-off gain from financial asset revaluation, despite a 16.6% decline in revenue due to reduced customer orders and uncertainties surrounding U.S. tariff policies. This cautious market environment has led to delayed purchasing decisions, impacting the company’s revenue performance.

Wise Ally International Secures Shareholder Approval for Key Resolutions

Wise Ally International Holdings Limited announced that all proposed resolutions at their Annual General Meeting held on June 2, 2025, were passed by a significant majority. The resolutions included the approval of audited financial statements, re-election of executive directors, re-appointment of auditors, and granting of mandates to the board for share allotment and repurchase. This outcome reflects strong shareholder support and positions the company for potential strategic financial maneuvers, enhancing its flexibility in capital management.