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Watts International Maritime Engineering Ltd.
(2258)
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Rating:57Neutral
Price Target:
HK$0.37
▲(62.17% Upside)
Action:Reiterated
Date:09/12/26
The score is held back primarily by weak and bearish technicals and inconsistent cash-flow conversion despite a 2025 rebound in profitability. Offsetting these risks, valuation is supportive with a low P/E and a solid dividend yield, and the balance sheet remains manageable.
Positive Factors
Revenue Recovery
Revenue grew 16.7% year over year in 2025 after the prior-year decline, showing that the company can regain activity when conditions improve. If this recovery persists, a larger revenue base could support better fixed-cost absorption and provide a foundation for rebuilding earnings, although the record remains uneven.
Negative Factors
Thin Profit Margins
Thin gross and net margins leave limited protection when project mix, pricing, or costs move unfavorably. With only about 1.8% of revenue reaching net income in 2025, relatively small operational changes can materially affect earnings, making durable profit expansion harder to establish.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
Revenue grew 16.7% year over year in 2025 after the prior-year decline, showing that the company can regain activity when conditions improve. If this recovery persists, a larger revenue base could support better fixed-cost absorption and provide a foundation for rebuilding earnings, although the record remains uneven.
Read all positive factors
Watts International Maritime Engineering Ltd. (2258) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$294.84M
Dividend Yield3.08%
Average Volume (3M)31.93K
Price to Earnings (P/E)7.7
Beta (1Y)0.50
Revenue Growth28.86%
EPS Growth-54.47%
CountryHK
Employees463
SectorIndustrials
Sector Strength72
IndustryIndustrial - Infrastructure Operations
Share Statistics
EPS (TTM)0.04
Shares Outstanding825,400,000
10 Day Avg. Volume15,600
30 Day Avg. Volume31,933
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)0.22
Price to Sales (P/S)0.09
P/FCF Ratio8.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Watts International Maritime Engineering Ltd. Business Overview & Revenue Model
Company Description
Watts International Maritime Company Limited functions as an investment holding enterprise, delivering a broad spectrum of engineering services throughout the People's Republic of China, encompassing port, waterway, marine, and municipal public wo...
Watts International Maritime Engineering Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.96B | 1.88B | 1.53B | 2.14B | 2.08B | 2.26B |
| Gross Profit | 187.98M | 181.58M | 98.54M | 173.57M | 171.13M | 207.77M |
| EBITDA | 50.38M | 73.12M | -29.51M | 89.98M | 85.14M | 93.51M |
| Net Income | 31.09M | 33.10M | -69.25M | 30.75M | 27.10M | 47.06M |
Balance Sheet | ||||||
| Total Assets | 3.55B | 3.55B | 3.35B | 3.24B | 3.44B | 3.34B |
| Cash, Cash Equivalents and Short-Term Investments | 676.90M | 614.75M | 342.66M | 257.58M | 541.48M | 443.83M |
| Total Debt | 448.22M | 387.60M | 280.83M | 207.08M | 250.41M | 129.44M |
| Total Liabilities | 2.82B | 2.82B | 2.65B | 2.49B | 2.71B | 2.63B |
| Stockholders Equity | 722.73M | 724.21M | 696.92M | 752.10M | 731.67M | 703.36M |
Cash Flow | ||||||
| Free Cash Flow | 100.56M | 19.74M | -14.17M | -231.75M | 11.80M | -23.09M |
| Operating Cash Flow | 112.91M | 34.47M | -10.06M | -224.08M | 19.88M | -14.50M |
| Investing Cash Flow | -14.07M | -14.29M | 40.92M | 2.61M | -31.99M | -20.78M |
| Financing Cash Flow | 96.56M | 103.83M | 55.75M | -63.21M | 101.51M | 59.10M |
Watts International Maritime Engineering Ltd. Technical Analysis
Positive
0.23
Price Trends
0.34
Positive
0.34
Positive
0.28
Positive
Market Momentum
<0.01
Positive
53.63
Neutral
84.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2258, the sentiment is Positive. The current price of 0.23 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.34, and below the 200-day MA of 0.28, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.63 is Neutral, neither overbought nor oversold. The STOCH value of 84.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2258.
Watts International Maritime Engineering Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | HK$292.00M | 4.10 | 10.15% | 8.57% | -11.67% | -4.05% | |
70 Outperform | HK$6.41B | 10.33 | 10.23% | 13.75% | 10.80% | 10.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | HK$10.12B | 55.79 | 1.67% | 7.04% | -1.23% | -68.56% | |
57 Neutral | HK$294.84M | 7.72 | 4.30% | 3.08% | 28.86% | -54.47% | |
55 Neutral | HK$11.70B | 7.58 | 4.33% | 9.63% | 14.56% | -44.01% | |
46 Neutral | HK$106.44M | 0.16 | -5.72% | ― | 5.47% | ― |
* Industrials Sector Average
HK:2258
Watts International Maritime Engineering Ltd.
0.36
0.17
86.53%
HK:0737
Shenzhen Investment Holdings Bay Area Development Company
1.93
0.24
14.31%
HK:0152
Shenzhen International Holdings
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-2.73
-36.36%
HK:0697
Shoucheng Holdings Ltd.
1.21
-0.88
-42.32%
HK:0269
China Resources & Transportation Group Ltd.
0.01
0.00
0.00%
HK:8502
Ocean Line Port Development Limited
0.37
0.07
25.43%
Watts International Maritime Engineering Ltd. Corporate Events
Watts International Maritime Revamps Company Secretary and Regulatory Roles
Sep 11, 2026
Watts International Maritime Company Limited has announced a board-approved change in key corporate administration roles, following the resignation of joint company secretary and authorised representative Ms. Zhang Xiao due to a change in work arr...
Watts International Maritime Engineering Grows Revenue But Interim Profits Slip
Aug 27, 2026
Watts International Maritime Engineering Ltd. reported interim unaudited results for the six months to 30 June 2026, showing revenue rising to RMB829.3 million from RMB749.7 million a year earlier, alongside higher gross profit. However, profit be...
Watts International Maritime Schedules Board Meeting to Review Interim Results
Aug 17, 2026
Watts International Maritime Company Limited has scheduled a board meeting for 27 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider the potential declaration of an interim div...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.