K Wah International Holdings (0173) AI Stock Analysis

• Market Cap: HK$6.97B
• Dividend Yield: 3.17%
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.67
• Revenue Growth: 66.68%
• EPS Growth: -38.14%
• Country: HK
• Employees: 812
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.04
• Shares Outstanding: 3,152,728,500
• 10 Day Avg. Volume: 1,634,920
• 30 Day Avg. Volume: 2,239,451
• PEG Ratio: -0.29
• Price to Book (P/B): 0.14
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 1.71
• 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: HK$2.64
• Price Target Upside: 20.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: HK$2.00 ▼(-9.09% Downside)

The overall stock score is primarily impacted by weak financial performance, with declining revenue and profitability. Technical analysis and valuation provide mixed signals, neither strongly positive nor negative. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Stable Balance Sheet

A stable balance sheet with a strong equity ratio indicates financial resilience, providing a solid foundation for future growth and stability.

Diversified Revenue Streams

Diversified revenue streams from property development, leasing, and hospitality enhance the company's ability to withstand market fluctuations and sustain long-term growth.

Manageable Leverage

Improving debt-to-equity ratio suggests effective management of leverage, which can enhance financial flexibility and reduce risk.

Negative Factors

Declining Revenue

A consistent decline in revenue over three years signals potential challenges in market demand or competitive positioning, impacting long-term growth prospects.

Weak Profitability

Declining profit margins indicate reduced pricing power or increased costs, which could erode competitive advantage and profitability over time.

Liquidity Concerns

Lack of positive operating cash flow raises concerns about liquidity, potentially limiting the company's ability to invest in growth or weather economic downturns.

K Wah International Holdings Business Overview & Revenue Model

Company Description

K Wah International Holdings Limited (stock code: 0173) is a prominent property development and investment company based in Hong Kong. The company primarily operates in the real estate sector, focusing on residential, commercial, and industrial properties. In addition to property development, K Wah engages in hotel operations, leisure and entertainment, and resort management, leveraging its expertise to enhance value across its diverse portfolio.

How the Company Makes Money

K Wah International generates revenue primarily through its property development activities, which involve the sale of residential and commercial properties in Hong Kong and Mainland China. The company also earns income from leasing its investment properties, which include retail and office spaces. Additionally, K Wah operates several hotels and resorts, contributing to its revenue through hospitality services. Strategic partnerships with financial institutions and local governments facilitate project financing and land acquisitions, which are crucial for future development projects. The company's diversified portfolio and adaptability to market demands enable it to maintain robust revenue streams.

K Wah International Holdings Financial Statement Overview

Summary

K Wah International Holdings demonstrates declining revenue and profitability, with significant challenges in maintaining cash generation and liquidity. While the debt levels are manageable, the decreasing return on equity and lack of recent cash flow data indicate financial difficulties that need addressing to ensure long-term stability.

Income Statement

The company's income statement shows declining revenue over the past three years, from HK$8.79 billion in 2022 to HK$7.19 billion in 2024, indicating a negative growth trend. Gross profit margin dropped from 30.3% in 2022 to 18.9% in 2024, and net profit margin decreased from 15.6% to 4.7% over the same period. This reflects weakening profitability, which might be concerning in a competitive real estate industry.

Balance Sheet

The balance sheet displays a stable equity ratio, with stockholders' equity at 60.4% of total assets in 2024. The debt-to-equity ratio improved slightly from 0.35 in 2023 to 0.36 in 2024, indicating manageable leverage. However, the return on equity dropped from 1.9% in 2023 to 0.8% in 2024, suggesting decreased efficiency in generating profits from equity.

Cash Flow

The cash flow statement lacks recent operating and free cash flow data for 2024, raising concerns about cash generation and liquidity. In 2023, the free cash flow was HK$676.98 million, down from HK$6.74 billion in 2022, reflecting a significant decline. The lack of positive operating cash flow in 2024 further highlights potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.03B	7.19B	6.10B	8.79B	16.22B	11.73B
Gross Profit	1.04B	1.36B	2.02B	2.67B	5.56B	5.99B
EBITDA	906.78M	1.12B	1.75B	2.22B	5.15B	4.86B
Net Income	295.18M	335.07M	802.16M	1.37B	3.35B	3.27B
Balance Sheet
Total Assets	65.63B	66.37B	72.51B	76.64B	78.50B	81.75B
Cash, Cash Equivalents and Short-Term Investments	8.71B	9.43B	8.09B	8.82B	9.30B	9.65B
Total Debt	13.44B	14.57B	15.19B	14.95B	19.00B	25.05B
Total Liabilities	23.09B	24.41B	27.41B	29.99B	33.28B	36.93B
Stockholders Equity	40.63B	40.08B	42.33B	43.86B	43.90B	43.58B
Cash Flow
Free Cash Flow	2.47B	3.27B	676.98M	6.74B	7.56B	805.79M
Operating Cash Flow	2.47B	3.28B	713.95M	6.75B	7.57B	812.43M
Investing Cash Flow	-1.12B	40.69M	-589.66M	-2.38B	-372.51M	-2.49B
Financing Cash Flow	-1.11B	-1.81B	-463.37M	-2.99B	-6.88B	3.66B

K Wah International Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.20
• 50DMA: Negative
• 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:0173, the sentiment is Positive. The current price of 2.2 is above the 20-day moving average (MA) of 2.15, below the 50-day MA of 2.23, and above the 200-day MA of 1.91, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.56 is Neutral, neither overbought nor oversold. The STOCH value of 74.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0173.

K Wah International Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0081	52 Neutral	HK$8.15B	21.44	1.10%	0.44%	-24.86%	-76.06%
0604	51 Neutral	HK$7.47B	―	-8.73%	10.71%	62.19%	-168.07%
0028	50 Neutral	$6.85B	3.32	7.40%	2.14%	216.43%	186.77%
0173	49 Neutral	HK$6.97B	23.50	0.73%	3.17%	66.68%	-38.14%
0119	49 Neutral	$6.73B	400.00	0.04%	1.19%	22.28%	-98.68%
0588	42 Neutral	HK$6.07B	―	-37.02%	2.62%	-44.25%	-406.20%

K Wah International Holdings Corporate Events

K. Wah International Holdings Announces 2025 AGM Details

K. Wah International Holdings Limited has announced the schedule for its 2025 Annual General Meeting (AGM), set to take place on June 18, 2025. The AGM will address key corporate matters including the adoption of financial statements, declaration of dividends, re-election of directors, and the reappointment of auditors. Additionally, the meeting will consider resolutions granting the company’s directors the authority to repurchase shares and issue new shares, which could impact the company’s market operations and shareholder value.

K. Wah International Holdings Reports 2024 Annual Results with Strategic Focus on Growth

K. Wah International Holdings Limited reported its annual results for the year ended December 31, 2024, with a consolidated revenue of HK$7,187 million and a total attributable revenue of HK$8,426 million. The company achieved an underlying profit of HK$361 million and a profit attributable to equity holders of HK$335 million. Despite a decrease in profit compared to the previous year, the company maintained a strong financial position with a gearing ratio reduced to 12% and a net asset value per share of HK$12.7. The company plans to cautiously explore opportunities to expand its landbank in key regions, indicating a strategic focus on long-term growth.

K. Wah International Declares Final Dividend for 2024

K. Wah International Holdings Limited announced a final ordinary dividend of HKD 0.05 per share for the financial year ending December 31, 2024. This announcement reflects the company’s commitment to returning value to its shareholders, with the dividend set for payment on July 31, 2025, following shareholder approval in June. The decision underscores the company’s stable financial performance and its strategic focus on maintaining investor confidence.

K. Wah International Announces Key Leadership Appointments

K. Wah International Holdings Limited has announced significant leadership changes effective March 27, 2025. Mr. Francis Lui Yiu Tung has been appointed as the Chairman of the Board, the chairman of the Nomination Committee, and a member of the Remuneration Committee. Additionally, Mrs. Paddy Tang Lui Wai Yu and Mr. Alexander Lui Yiu Wah have been appointed as Co-Managing Directors. The Board expressed confidence that these appointments will positively impact the company’s development and business growth.

K. Wah International Holdings Announces Board Composition and Roles

K. Wah International Holdings Limited has announced the composition of its board of directors and their roles within the company. The board includes executive directors, non-executive directors, and independent non-executive directors, with specific members serving on various board committees such as the Audit, Executive, Nomination, and Remuneration Committees. This announcement is crucial for stakeholders as it outlines the leadership structure and governance, which can impact the company’s strategic direction and operational decisions.

K. Wah International to Announce Annual Results and Dividend Consideration

K. Wah International Holdings Limited has announced a board meeting scheduled for March 27, 2025, to approve the annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend or other distribution, which could impact the company’s financial strategy and shareholder returns.