Wise Ally International Holdings Limited (9918) AI Stock Analysis

• Market Cap: HK$108.00M
• Dividend Yield: N/A
• Average Volume (3M): 15.35K
• Price to Earnings (P/E): 1.5
• Beta (1Y): 0.14
• 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: 17,200
• 30 Day Avg. Volume: 15,346
• PEG Ratio: <0.01
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 0.41
• 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: 64 Neutral
• Price Target: HK$1.00 ▼(-2.91% Downside)

The overall stock score of 64 reflects a mixed outlook. The company's strong valuation due to a low P/E ratio is a significant positive factor. However, concerns about liquidity and cash flow management, coupled with weak technical indicators, weigh down the score. Addressing cash flow issues and improving market momentum could enhance the stock's attractiveness.

Positive Factors

Profitability Improvement

The significant improvement in net profit margin indicates enhanced profitability, reflecting better cost management and operational efficiency, which can contribute to long-term financial health.

Leverage Management

Improved leverage management, as evidenced by a lower debt-to-equity ratio, enhances financial stability and reduces risk, supporting sustainable growth and investment capacity.

ROE Increase

A higher ROE indicates efficient use of shareholder funds, suggesting strong management performance and potential for continued shareholder value creation.

Negative Factors

Cash Flow Issues

Zero operating cash flow poses significant liquidity risks, potentially limiting the company's ability to invest in growth opportunities and maintain operational flexibility.

Revenue Growth Decline

Slower revenue growth may indicate challenges in market expansion or product adoption, which could impact long-term competitiveness and market position.

High Debt Levels

High debt levels can strain financial resources, increasing vulnerability to economic downturns and limiting strategic flexibility, potentially affecting long-term sustainability.

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 multiple streams, primarily from the sale of technology products and services, including hardware and software solutions tailored for telecommunications and industrial applications. The company also earns income from consulting and technical support services, which help clients implement and optimize their technology investments. Key revenue streams include direct sales, recurring maintenance contracts, and service agreements. Additionally, Wise Ally may engage in strategic partnerships with other technology firms to co-develop products or enhance service offerings, which can contribute to revenue growth through shared projects and joint ventures.

Wise Ally International Holdings Limited Financial Statement Overview

Summary

Wise Ally International Holdings Limited shows improved profitability with a net profit margin of 5.73% and better leverage management with a debt-to-equity ratio of 1.18. However, significant concerns arise from the cash flow statement, as operating and free cash flows dropped to zero in 2024, posing risks to 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.17B	1.26B	1.23B	1.34B	1.05B	819.50M
Gross Profit	218.18M	247.90M	210.65M	194.95M	194.26M	156.89M
EBITDA	56.06M	140.06M	66.94M	72.87M	70.70M	50.65M
Net Income	70.87M	72.23M	1.25M	15.13M	20.12M	1.45M
Balance Sheet
Total Assets	806.54M	933.50M	965.63M	977.52M	897.21M	745.57M
Cash, Cash Equivalents and Short-Term Investments	319.95M	305.14M	274.57M	242.19M	207.27M	234.38M
Total Debt	184.87M	261.37M	379.25M	313.28M	282.80M	300.24M
Total Liabilities	571.74M	712.36M	815.34M	821.48M	744.47M	607.86M
Stockholders Equity	234.80M	221.14M	150.29M	156.03M	152.74M	137.71M
Cash Flow
Free Cash Flow	146.55M	150.18M	77.97M	73.36M	17.47M	28.90M
Operating Cash Flow	160.91M	164.03M	91.80M	88.00M	34.32M	48.31M
Investing Cash Flow	32.04M	-58.12M	2.15M	-70.46M	-15.88M	-8.51M
Financing Cash Flow	-142.59M	-145.18M	-29.42M	-14.40M	-45.95M	55.62M

Wise Ally International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.03
• 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:9918, the sentiment is Positive. The current price of 1.03 is below the 20-day moving average (MA) of 1.04, below the 50-day MA of 1.04, and below the 200-day MA of 1.12, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 68.78 is Neutral, neither overbought nor oversold. The STOCH value of 52.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	HK$152.00M	8.62	16.11%	―	25.67%	-6.77%
9918	64 Neutral	HK$108.00M	1.52	35.49%	―	-6.19%	283.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0889	55 Neutral	HK$116.80M	-2.77	-5.46%	―	-17.44%	-66.75%
0675	45 Neutral	HK$101.46M	-31.82	-1.26%	14.63%	-6.48%	74.69%
2363	43 Neutral	HK$62.29M	19.30	―	―	53.37%	-75.77%
0515	38 Underperform	HK$49.40M	-0.65	―	―	-84.61%	-14.10%