Wing Tai Holdings Limited (W05) AI Stock Analysis

• Market Cap: S$1.09B
• Dividend Yield: 2.1%
• Average Volume (3M): 284.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: -41.20%
• EPS Growth: -154.51%
• Country: SG
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 64
• Industry: Real Estate - Diversified
• EPS (TTM): 0.01
• Shares Outstanding: 793,927,250
• 10 Day Avg. Volume: 459,890
• 30 Day Avg. Volume: 284,683
• PEG Ratio: N/A
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.45
• 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: S$1.50
• Price Target Upside: 4.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: S$1.50 ▲(4.90%Upside)

The primary drivers for Wing Tai Holdings Limited's low score are financial challenges, including declining revenue and net losses, coupled with overbought technical indicators suggesting potential short-term risks. The negative P/E ratio further highlights profitability concerns, while the modest dividend yield provides little compensation for these risks.

Wing Tai Holdings Limited Business Overview & Revenue Model

Company Description

Wing Tai Holdings Limited (W05) is a Singapore-based investment holding company primarily engaged in property development and management, hospitality investment and management, and retail operations. The company is recognized for its substantial presence in the residential and commercial property sectors, offering a diverse portfolio that includes luxurious private condominiums, commercial spaces, and hospitality assets. Wing Tai Holdings operates across key Asian markets, leveraging its strategic expertise in delivering high-quality real estate and lifestyle services.

How the Company Makes Money

Wing Tai Holdings Limited generates revenue primarily through its property development and management activities, which include the sale of residential and commercial properties. The company develops high-end condominiums and commercial spaces, targeting affluent consumers and businesses, which represents a significant portion of its income. Additionally, Wing Tai earns income from its hospitality investments, which include hotel operations that contribute to its revenue through room bookings, food and beverage services, and other hospitality-related services. The company also derives earnings from its retail operations, where it manages and franchises various fashion and lifestyle brands, generating sales revenue from its network of retail outlets. Strategic partnerships and joint ventures in real estate development and retail further enhance its revenue streams, allowing Wing Tai to leverage shared expertise and resources to optimize its market presence and financial performance.

Wing Tai Holdings Limited Financial Statement Overview

Summary

Wing Tai Holdings Limited is experiencing financial difficulties, with declining revenues and significant net losses affecting profitability. The balance sheet is stable with moderate leverage, but cash flow issues raise liquidity concerns. The company needs to enhance operational and financial strategies to boost financial health.

Income Statement

The TTM data shows a decline in revenue and profitability. Gross profit margin is approximately 51.5%, indicating solid profitability at the operational level. However, the net profit margin is negative due to significant net losses, reflecting underlying challenges. Revenue has decreased compared to previous periods, showing a negative growth trajectory. The EBIT and EBITDA margins are also modest, indicating profitability challenges.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of about 69.7%, indicating financial stability. However, the debt-to-equity ratio is approximately 0.36, reflecting a moderate level of leverage. Return on equity is negative in the TTM period due to net losses, which is a concern for profitability.

Cash Flow

The cash flow statement reflects challenges with negative operating and free cash flows in the TTM period. The free cash flow has decreased significantly compared to prior periods. The operating cash flow to net income ratio is negative due to significant losses, indicating cash flow issues. However, past periods showed positive cash flow generation.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	169.17M	476.27M	514.59M	461.40M	371.03M
Gross Profit	98.48M	142.49M	164.57M	171.09M	180.27M
EBITDA	-25.94M	36.56M	79.28M	100.91M	70.57M
Net Income	-78.69M	6.59M	140.16M	43.57M	15.97M
Balance Sheet
Total Assets	3.99B	4.15B	4.26B	4.49B	4.65B
Cash, Cash Equivalents and Short-Term Investments	605.90M	402.09M	479.02M	728.06M	605.48M
Total Debt	810.42M	828.75M	599.87M	734.35M	805.23M
Total Liabilities	957.03M	946.19M	750.79M	937.09M	1.07B
Stockholders Equity	2.97B	3.14B	3.43B	3.48B	3.51B
Cash Flow
Free Cash Flow	334.88M	-170.38M	91.68M	145.71M	274.22M
Operating Cash Flow	339.85M	-165.54M	97.53M	149.50M	277.27M
Investing Cash Flow	-8.56M	34.57M	25.86M	154.62M	50.82M
Financing Cash Flow	-104.81M	29.51M	-380.17M	-138.31M	58.75M

Wing Tai Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:W05, the sentiment is Positive. The current price of 1.43 is above the 20-day moving average (MA) of 1.33, above the 50-day MA of 1.28, and above the 200-day MA of 1.24, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 77.04 is Negative, neither overbought nor oversold. The STOCH value of 82.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:W05.

Wing Tai Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
B61	76 Outperform	S$1.15B	10.08	7.43%	3.60%	-2.18%	61.33%
F17	69 Neutral	S$1.93B	16.29	2.74%	3.45%	-10.37%	-39.46%
Sector *	65 Neutral	$2.05B	16.90	2.45%	5.19%	-0.30%	1.21%
T24	61 Neutral	€362.52M	152.63	0.20%	2.41%	-36.61%	-52.50%
W05	46 Neutral	S$1.09B	―	-3.05%	2.10%	-41.20%	-154.51%

Wing Tai Holdings Limited Corporate Events

Wing Tai Properties Issues Profit Warning for 2024

Wing Tai Properties Limited has issued a profit warning, indicating a significant estimated loss of approximately HK$2,600 million for the year ending December 31, 2024, compared to a loss of HK$890.4 million in 2023. This anticipated loss is primarily due to adverse changes in the fair value of investment properties and financial instruments, as well as impairment provisions for properties under development. Despite these non-cash losses, the company’s overall financial, business, and trading positions remain healthy, with no impact on operating cash flow.