Wah Wo Holdings Group Limited (9938) AI Stock Analysis

• Market Cap: HK$149.00M
• Dividend Yield: N/A
• Average Volume (3M): 70.50K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.57
• Revenue Growth: 14.65%
• EPS Growth: N/A
• Country: HK
• Employees: 130
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): <0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 43,000
• 30 Day Avg. Volume: 70,500
• PEG Ratio: -0.04
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 2.07
• 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: 74 Outperform
• Price Target: HK$0.17 ▲(28.46% Upside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is driven mainly by improving fundamentals (strong cash flow and recovering profitability) and a low P/E valuation, supported by a positive technical trend with moderate momentum.

Positive Factors

Revenue Growth

Consistent double-digit revenue growth and a significant year-over-year increase indicate expanding project wins and market penetration. Over the next 2-6 months, sustained top-line momentum supports higher utilization and better fixed-cost absorption, improving earnings durability.

Free Cash Flow Generation

A notable free cash flow turnaround reflects improved operating efficiency and disciplined capex. Durable cash generation enhances liquidity, reduces refinancing risk and provides internal funding for working capital, debt reduction or reinvestment into projects over the medium term.

Balance Sheet Strength

A conservative capital structure with low leverage and a high equity ratio provides resilience versus construction cyclicality. This financial flexibility supports bidding on larger contracts, absorbs project delays, and preserves credit capacity across 2-6 months of potential volatility.

Negative Factors

Margin Volatility

Historic net profit margin swings point to uneven project profitability or cost-control challenges. For a construction firm, such variability reduces earnings predictability and can impair cash conversion and planning, raising operational risk over upcoming quarters.

Unestablished EPS Trend

Absence of reported EPS growth suggests an unclear or inconsistent per-share earnings trajectory. This limits visibility into sustainable shareholder returns and complicates assessment of long-term earnings power and dividend or buyback capacity over the medium term.

Limited Operational Scale

A relatively small workforce implies limited operational scale for a construction peer group. This can constrain the ability to execute multiple large projects, limit geographic expansion and reduce margin leverage, making growth and diversification more challenging over the next several months.

Wah Wo Holdings Group Limited Business Overview & Revenue Model

Company Description

Wah Wo Holdings Group Limited, an investment holding company, engages in the provision of aluminum works and related services in Hong Kong. The company offers façade works, including windows, window wall systems, curtain wall systems, and other façade members. It also provides design and build, and renovation services for various types of buildings, including residential apartments, commercial buildings, retail premises, universities, and hotels. The company's services include developing designs, conducting structural calculations, and preparing shop drawings, as well as management and coordination of various aspects of a project, which is involved in the procurement of building materials from material suppliers and/or subcontracting of installation works to its subcontractors, on-site project management, and post-project completion and maintenance services. It also trades in tools and equipment. The company was incorporated in 2018 and is headquartered in Kwai Chung, Hong Kong. Wah Wo Holdings Group Limited is a subsidiary of Ornate Bright Limited.

How the Company Makes Money

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Wah Wo Holdings Group Limited Financial Statement Overview

Summary

Overall financials are solid: strong revenue growth and improving margins (income statement score 72), a stable low-leverage balance sheet (score 68), and a standout cash flow turnaround with strong free cash flow generation (cash flow score 80).

Income Statement

Wah Wo Holdings Group Limited has demonstrated strong revenue growth, with a significant increase in total revenue from 2024 to 2025. The gross profit margin improved notably, indicating efficient cost management. However, the net profit margin has been volatile but turned positive in 2025, reflecting improved profitability. The EBIT and EBITDA margins have also shown recovery, contributing to a more stable financial performance.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio, indicating financial stability and low leverage risk. The return on equity remains positive, showing effective utilization of shareholder funds. The equity ratio is high, suggesting a solid capital structure supported by a substantial proportion of equity over total assets.

Cash Flow

Wah Wo Holdings has shown a remarkable turnaround in cash flows, with substantial free cash flow growth in 2025. The operating cash flow to net income ratio indicates strong cash generation capabilities. The company has effectively managed its capital expenditures, contributing to healthy free cash flow levels.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	459.36M	482.12M	238.43M	208.35M	223.06M	350.85M
Gross Profit	59.00M	55.73M	21.25M	25.26M	16.37M	21.38M
EBITDA	30.40M	26.35M	-58.54M	7.71M	4.28M	12.59M
Net Income	21.28M	16.83M	-55.11M	2.85M	1.42M	5.95M
Balance Sheet
Total Assets	337.65M	280.37M	269.77M	281.59M	267.75M	266.21M
Cash, Cash Equivalents and Short-Term Investments	87.22M	53.21M	31.58M	63.55M	62.78M	84.83M
Total Debt	840.00K	6.34M	10.13M	437.00K	1.73M	3.25M
Total Liabilities	124.50M	73.00M	79.14M	35.85M	24.86M	24.74M
Stockholders Equity	213.16M	207.36M	190.63M	245.75M	242.89M	241.47M
Cash Flow
Free Cash Flow	18.55M	44.45M	-10.88M	42.69M	55.23M	-72.44M
Operating Cash Flow	18.91M	44.82M	-9.95M	45.65M	55.41M	-65.86M
Investing Cash Flow	27.39M	-21.64M	-28.61M	-43.58M	-65.94M	-25.53M
Financing Cash Flow	-6.62M	-678.00K	5.71M	-1.29M	-1.52M	-1.26M

Wah Wo Holdings Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Positive
• 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:9938, the sentiment is Positive. The current price of 0.13 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.13, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 68.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9938.

Wah Wo Holdings Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9938	74 Outperform	HK$149.00M	5.19	10.12%	―	14.65%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8646	62 Neutral	HK$153.85M	1.77	11.61%	―	5.34%	43.91%
1653	58 Neutral	HK$1.03B	18.00	-3.78%	―	-0.28%	-469.70%
1897	53 Neutral	HK$202.97M	53.04	0.62%	2.34%	-48.30%	-75.98%
1937	52 Neutral	HK$187.00M	-69.68	0.58%	―	-10.27%	-84.38%
1592	38 Underperform	HK$48.07M	-2.03	148.20%	―	1.43%	-83.97%