WF Holding Limited (WFF) AI Stock Analysis

• Market Cap: $9.89M
• Dividend Yield: N/A
• Average Volume (3M): 652.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 138
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 25,190,000
• 10 Day Avg. Volume: 78,873
• 30 Day Avg. Volume: 652,578
• PEG Ratio: -10.52
• Price to Book (P/B): 34.09
• Price to Sales (P/S): 20.46
• P/FCF Ratio: 133.29
• Enterprise Value/Market Cap: 9.39
• 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: 54 Neutral
• Price Target: $0.44 ▲(0.91% Upside)
• Action: Upgraded Date: 01/29/26
• Date: Action: Upgraded 01/29/26

The score is primarily supported by a strong, conservatively levered balance sheet and positive 2024 cash generation, but is held back by materially weakened 2024 profitability and a weak longer-term price trend with negative MACD. Valuation impact is limited due to missing P/E and dividend yield.

Positive Factors

Conservative balance sheet

Low and improving leverage (debt-to-equity ~0.16 in 2024) and equity growth provide durable capital-structure resilience. This conservatism supports operational stability, lowers refinancing risk, and preserves capacity for strategic investments or downturn absorption over the medium term.

Positive cash generation

Consistent positive operating and free cash flow in 2024, with FCF up ~20% YoY, indicates the business can internally fund working capital and modest investments. Reliable cash conversion enhances financial flexibility and supports execution of strategic moves without over-reliance on external financing.

Strategic diversification via acquisition

Acquiring a stake in a wine and liquor importer/distributor expands revenue streams beyond core FRP manufacturing and geographically targets China/HK/Macau markets. If integrated well, this diversification can reduce concentration risk and create cross-selling or margin-smoothing opportunities over the medium term.

Negative Factors

Revenue decline & margin compression

A sharp ~20% revenue drop paired with very thin operating and net margins shows weakening core-business economics. Sustained top-line contraction and compressed margins reduce reinvestment capacity, make profitability recovery harder, and raise the bar for durable margin sustainability absent structural demand improvement.

Earnings volatility and falling ROE

The steep ROE decline across two years signals volatile earnings generation and weak return on invested capital. Persistent volatility undermines long-term shareholder returns, complicates planning, and raises execution risk for ambitious capital allocation or growth initiatives.

Rising operating costs and diversification execution risk

A rapidly rising cost base and sharply higher admin spend (including staffing, incentives, and marketing) outpacing sales growth increases breakeven risk. Combined with deploying IPO proceeds into a non-core acquisition, this raises execution and integration risk and could pressure margins if synergies fail to materialize.

WF Holding Limited Business Overview & Revenue Model

Company Description

WF Holding Limited manufactures and sells fiberglass reinforced plastic (FRP) products in Malaysia. It offers filament wound and molded tanks, thermoplastic tanks, lining products, ducting and fitting products, air pollution control equipment, and custom-made products. The company also offer delivery, installation, repair, and maintenance services, as well as on-site consultation services. It serves chemical processing, water and wastewater treatment, and power generation. The company was incorporated in 2023 and is based in Shah Alam, Malaysia. WF Holding Limited operates as a subsidiary of Lew Capital Private Limited

How the Company Makes Money

WF Holding Limited Financial Statement Overview

Summary

Balance sheet strength (low and improving leverage; debt-to-equity ~0.16 in 2024) and positive 2024 operating/free cash flow support resilience. However, financial performance is pressured by a sharp 2024 revenue decline (~20% YoY) and materially weaker profitability (net margin ~2.4%, EBIT margin ~3.1%), indicating elevated earnings volatility.

Income Statement

Profitability weakened materially in 2024: revenue declined ~20% year over year and net margin fell to ~2.4% (from ~8.6% in 2023 and ~19.7% in 2022). Gross margin improved to ~40% in 2024, but operating profitability remained thin (EBIT margin ~3.1%, EBITDA margin ~6.4%), suggesting higher operating costs and/or weaker operating leverage. Overall, the business shows it can be profitable (strong 2022–2023), but results look volatile and currently pressured.

Balance Sheet

Leverage appears conservative with debt-to-equity improving to ~0.16 in 2024 (down from ~0.52 in 2021), indicating a stronger capital structure and better balance-sheet resilience. Equity has grown over time, supporting balance-sheet stability. The main concern is profitability durability: return on equity dropped to ~4.1% in 2024 (from ~19.2% in 2023 and ~45.3% in 2022), reflecting a sharp earnings slowdown rather than balance-sheet stress.

Cash Flow

Cash generation in 2024 was solid with positive operating cash flow (~$0.75M) and free cash flow (~$0.70M), and free cash flow increased ~20% year over year. Free cash flow was close to net income in 2024, indicating earnings were largely supported by cash. However, cash flow performance has been inconsistent (notably negative operating and free cash flow in 2022), and operating cash flow relative to debt is only moderate (~0.24 in 2024), which limits flexibility if conditions soften.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.57M	5.73M	4.97M	5.80M
Gross Profit	1.85M	1.98M	2.14M	1.14M
EBITDA	293.27K	843.41K	1.41M	102.77K
Net Income	111.60K	491.40K	978.82K	-27.02K
Balance Sheet
Total Assets	6.22M	5.38M	4.82M	4.60M
Cash, Cash Equivalents and Short-Term Investments	1.06M	777.13K	689.79K	1.14M
Total Debt	428.73K	553.41K	566.86K	642.37K
Total Liabilities	3.47M	2.82M	2.66M	3.35M
Stockholders Equity	2.74M	2.56M	2.16M	1.25M
Cash Flow
Free Cash Flow	701.94K	582.71K	-292.44K	59.23K
Operating Cash Flow	753.46K	655.80K	-166.63K	154.78K
Investing Cash Flow	-51.52K	-73.09K	-116.92K	-60.56K
Financing Cash Flow	-465.64K	-442.79K	-106.20K	-247.15K

WF Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWEN	65 Neutral	$56.15M	11.11	8.20%	―	-1.47%	52.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GTEC	62 Neutral	$20.72M	0.91	21.29%	―	-1.36%	―
CVV	55 Neutral	$27.40M	-143.54	-0.73%	―	19.84%	95.71%
WFF	54 Neutral	$9.89M	―	―	―	―	―
CETY	41 Neutral	$3.09M	-0.49	-82.18%	―	-57.40%	52.85%
BURU	35 Underperform	$48.30M	-0.08	―	―	-98.20%	93.77%

WF Holding Limited Corporate Events

WF Holding Announces Resignation of Director Wah Chee Lim Effective December 31, 2025

WF Holding Limited, a Malaysia-based foreign private issuer listed in the United States, reported a boardroom change with the resignation of director Wah Chee Lim, effective December 31, 2025. The company stated that Lim’s departure did not arise from any dispute or disagreement regarding its operations, policies, or practices, suggesting the move is not tied to governance or accounting concerns, and signaling to investors that the change is expected to have limited immediate impact on the company’s operational or financial oversight.

WF Holding Posts Strong Revenue Growth but Swings to Loss on Higher Costs, Deploys IPO Proceeds for Strategic Acquisition

On December 31, 2025, WF Holding Limited reported unaudited interim financial results for the six months ended June 30, 2025, showing revenue up 70.1% year-on-year to $3.52 million as the company completed several high-value projects, but higher production wages, subcontracting costs and a sharp rise in administrative expenses reduced gross margin and pushed the company to a net loss of $0.32 million versus a profit a year earlier. The company’s cost base rose faster than sales, with administrative expenses more than doubling due to increased staffing, incentive payouts and around $398,000 spent on integrated media advertising, while cash and cash equivalents grew to $3.15 million aided by its March 28 Nasdaq initial public offering and a partial over-allotment exercise in May, and it used $3 million of those funds on May 15 to acquire Global Key Investment Limited, gaining an indirect 35% stake in Carlico International Group Holdings, thereby diversifying into the wine and liquor import and distribution market in mainland China, Hong Kong and Macau and signaling a strategic expansion beyond its core FRP manufacturing business.

WF Holding Limited Names Ka Hei Cheung as New Chief Financial Officer

On December 18, 2025, WF Holding Limited’s board of directors appointed Ka Hei Cheung as the company’s Chief Financial Officer, strengthening its senior management team. Cheung brings nearly two decades of accounting and finance experience across Hong Kong–listed companies, including roles at Furniweb Holdings Limited, China Grand Pharmaceutical and Healthcare Holdings Limited, China Fiber Optic Network System Group Limited, Sing Pao Media Enterprises Limited, and various accounting firms, and will serve as CFO until a successor is elected, with the company noting there are no special arrangements behind his selection and no family ties with other executives.