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Watts International Maritime Engineering Ltd. (HK:2258)
:2258
Hong Kong Market
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Watts International Maritime Engineering Ltd. (2258) AI Stock Analysis

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HK:2258

Watts International Maritime Engineering Ltd.

(2258)

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Neutral 57 (OpenAI - Gpt-5.6Sol)
Rating:57Neutral
Price Target:
HK$0.30
▲(30.43% 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
2025 Revenue Rebound
The 2025 revenue rebound indicates renewed business activity and customer demand after the prior-year contraction. If management can sustain this recovery, greater scale should support project execution, improve operating leverage, and provide a stronger base for rebuilding earnings over the coming quarters.
Negative Factors
Thin, Choppy Margins
Thin gross and net margins leave limited protection against project-mix, pricing, or cost changes. The prior-year downturn shows that earnings can be sensitive to operating conditions, so even a revenue recovery may not translate into durable profit growth without stronger margin stability.
Read all positive and negative factors
Positive Factors
Negative Factors
2025 Revenue Rebound
The 2025 revenue rebound indicates renewed business activity and customer demand after the prior-year contraction. If management can sustain this recovery, greater scale should support project execution, improve operating leverage, and provide a stronger base for rebuilding earnings over the coming quarters.
Read all positive factors

Watts International Maritime Engineering Ltd. (2258) vs. iShares MSCI Hong Kong ETF (EWH)

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
Financials are improving but still uneven. Profitability rebounded in 2025 after a 2024 loss and revenue grew (+16.7% YoY), yet margins remain thin (gross ~9.7%, net ~1.8%) and results have been choppy. Leverage appears manageable (debt-to-equity ~0.54), but cash generation is the main weak spot: operating cash flow and free cash flow turned positive in 2025, though cash conversion has been volatile and FCF fell sharply versus 2024 (FCF growth -74.1%).
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
45
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.88B1.53B2.14B2.08B2.26B
Gross Profit181.58M98.54M173.57M171.13M207.77M
EBITDA71.92M-29.51M89.98M85.14M93.51M
Net Income33.10M-69.25M30.75M27.10M47.06M
Balance Sheet
Total Assets3.55B3.35B3.24B3.44B3.34B
Cash, Cash Equivalents and Short-Term Investments614.75M342.66M257.58M541.48M443.83M
Total Debt387.60M280.83M207.08M250.41M129.44M
Total Liabilities2.82B2.65B2.49B2.71B2.63B
Stockholders Equity724.21M696.92M752.10M731.67M703.36M
Cash Flow
Free Cash Flow19.74M-14.17M-231.75M11.80M-23.09M
Operating Cash Flow34.47M-10.06M-224.08M19.88M-14.50M
Investing Cash Flow-14.29M40.92M2.61M-31.99M-20.78M
Financing Cash Flow103.83M55.75M-63.21M101.51M59.10M

Watts International Maritime Engineering Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.23
Price Trends
50DMA
0.33
Negative
100DMA
0.30
Negative
200DMA
0.26
Positive
Market Momentum
MACD
-0.01
Positive
RSI
38.87
Neutral
STOCH
41.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2258, the sentiment is Negative. The current price of 0.23 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.33, and below the 200-day MA of 0.26, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 38.87 is Neutral, neither overbought nor oversold. The STOCH value of 41.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2258.

Watts International Maritime Engineering Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
HK$272.00M3.8410.15%8.82%-11.67%-4.05%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
HK$11.15B63.891.67%7.04%-1.23%-68.56%
60
Neutral
HK$6.60B10.3710.78%8.21%5.32%17.84%
57
Neutral
HK$241.61M6.534.30%3.83%28.86%-54.47%
55
Neutral
HK$13.13B8.014.33%9.12%14.56%-44.01%
45
Neutral
HK$106.44M0.16-5.72%5.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2258
Watts International Maritime Engineering Ltd.
0.29
0.12
67.63%
HK:0737
Shenzhen Investment Holdings Bay Area Development Company
1.99
0.24
14.01%
HK:0152
Shenzhen International Holdings
5.05
-2.65
-34.47%
HK:0697
Shoucheng Holdings Ltd.
1.38
-0.84
-37.84%
HK:0269
China Resources & Transportation Group Ltd.
0.01
0.00
0.00%
HK:8502
Ocean Line Port Development Limited
0.34
0.08
28.79%

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...
Watts International Maritime Wins Full Shareholder Backing at 2026 AGM
Jun 25, 2026
Watts International Maritime Company Limited reported that all resolutions presented at its annual general meeting on 25 June 2026 were approved by shareholders through poll voting. The meeting covered acceptance of the 2025 audited financial stat...
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.Date of analysis: Sep 12, 2026