Wah Wo Holdings Group Limited (9938) AI Stock Analysis

• Market Cap: HK$139.00M
• Dividend Yield: N/A
• Average Volume (3M): 70.50K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.53
• 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: 75 Outperform
• Price Target: HK$0.16 ▲(19.23% Upside)

The score is driven primarily by solid financial performance (notably strong cash flow and improved profitability) supported by constructive technicals (price above key moving averages with positive MACD). A low P/E further boosts the rating, while earnings-call and corporate-event factors are excluded due to missing data.

Positive Factors

Revenue and margin recovery

Sustained revenue growth and rising gross margins that produced a return to profitability in 2025 indicate the company is improving core operations and cost control. This enhances durable earnings power and supports reinvestment or deleveraging over the next several quarters.

Free cash flow turnaround

A material free cash flow improvement strengthens the firm's ability to fund capex, service obligations, and opportunistic growth without relying on external financing. Robust cash conversion increases resilience to shocks and supports longer-term strategic flexibility.

Strong balance sheet / low leverage

A high equity ratio and low leverage reduce refinancing and solvency risk, enabling the company to bid on projects and weather downturns. This durable capital structure preserves financial optionality and lowers long-run cost of distress.

Negative Factors

Net profit margin volatility

Volatile net margins indicate earnings are sensitive to project mix, input costs, and execution. That variability undermines predictability of cash flows and complicates planning for dividends, reinvestment, or debt repayment over the medium term.

Exposure to construction cyclicality

Operating in construction leaves revenue and backlog exposed to macro sensitivity—housing demand, infrastructure cycles, and interest rates. Sector cyclicality can compress activity and margins for multiple quarters, challenging growth visibility.

Limited scale

A relatively small workforce suggests limited operational scale, which can constrain capacity to pursue large contracts, achieve cost efficiencies, or quickly scale operations. This may limit market share gains and responsiveness to bigger opportunities.

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

Wah Wo Holdings Group Limited generates revenue primarily through the sale of its construction materials and products to contractors, builders, and developers. The company has established multiple revenue streams that include direct sales of precast concrete products, steel fabrication services, and a growing portfolio of real estate projects. Additionally, strategic partnerships with construction firms and ongoing contracts for large-scale projects contribute significantly to its earnings. The company also benefits from economies of scale in its manufacturing processes, allowing for competitive pricing and increased margins.

Wah Wo Holdings Group Limited Financial Statement Overview

Summary

Strong overall fundamentals: revenue growth and improving profitability (positive net margin in 2025) support the income statement score. Balance sheet leverage is low with a solid equity base, and cash flow is a standout with a strong free-cash-flow turnaround and healthy cash generation.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 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: Neutral
• 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 Neutral. The current price of 0.13 is above the 20-day moving average (MA) of 0.13, above 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 51.20 is Neutral, neither overbought nor oversold. The STOCH value of 67.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	75 Outperform	HK$139.00M	5.92	10.51%	―	14.65%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8646	62 Neutral	HK$144.63M	2.02	11.61%	―	5.34%	43.91%
1897	53 Neutral	HK$198.91M	61.25	0.62%	2.34%	-48.30%	-75.98%
1937	52 Neutral	HK$200.00M	98.00	0.58%	―	-10.27%	-84.38%
1653	49 Neutral	HK$912.98M	-160.64	-3.68%	―	-0.28%	-469.70%
1592	38 Underperform	HK$48.93M	-0.44	―	―	1.43%	-83.97%

Wah Wo Holdings Group Limited Corporate Events

Wah Wo Holdings Releases Interim Financial Results for 2025

Wah Wo Holdings Group Limited has announced its unaudited interim financial results for the six months ending September 30, 2025. The results, prepared in accordance with the Hong Kong Stock Exchange’s listing rules, have been reviewed and approved by the company’s audit committee. The interim report will be made available to shareholders and published on the company’s and the Stock Exchange’s websites.

The most recent analyst rating on (HK:9938) stock is a Hold with a HK$0.12 price target. To see the full list of analyst forecasts on Wah Wo Holdings Group Limited stock, see the HK:9938 Stock Forecast page.

Wah Wo Holdings Schedules Board Meeting to Discuss Interim Results

Wah Wo Holdings Group Limited has announced a board meeting scheduled for November 28, 2025, to discuss and approve the interim results for the six months ending September 30, 2025. The meeting will also consider the declaration of an interim dividend and address other business matters, potentially impacting the company’s financial strategy and shareholder returns.