WEIli Holdings Limited (2372) AI Stock Analysis

• Market Cap: HK$167.20M
• Dividend Yield: N/A
• Average Volume (3M): 53.73K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.13
• Revenue Growth: -45.42%
• EPS Growth: -546.15%
• Country: HK
• Employees: 76
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): <0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 21,600
• 30 Day Avg. Volume: 53,733
• PEG Ratio: -0.07
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 1.61
• P/FCF Ratio: -13.11
• 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: 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: 47 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and profitability, and significant cash flow challenges. Technical analysis shows mild upward trends but weak momentum. Valuation is unattractive due to a negative P/E ratio and no dividend yield.

WEIli Holdings Limited Business Overview & Revenue Model

Company Description

WEIli Holdings Limited, an investment holding company, manufactures and sells cigarette packaging paper in the People's Republic of China. The company offers transfer, laminated, and frame paper. It also provides cigarette packaging paper processing services to cigarette package manufacturers. The company was founded in 2011 and is headquartered in Huanggang, the People's Republic of China. WEIli Holdings Limited is a subsidiary of City Ease Limited.

How the Company Makes Money

WEIli Holdings Limited generates revenue primarily through the sale of its manufactured products, which include consumer electronics and lifestyle items. The company operates a business model that relies on both direct sales and partnerships with retailers to distribute its products. Key revenue streams include wholesale distribution to large retailers, online sales through e-commerce platforms, and potential licensing agreements for its brand and technology. Additionally, strategic collaborations with suppliers and manufacturers enhance its operational efficiency and product offerings, contributing positively to its overall earnings.

WEIli Holdings Limited Financial Statement Overview

Summary

WEIli Holdings Limited is facing substantial financial challenges. The income statement reflects declining revenues and profitability, while the balance sheet shows a stable but declining equity position. Cash flow issues are prominent, with negative operating and free cash flows indicating liquidity concerns. The company needs to address operational inefficiencies and improve cash generation to stabilize its financial position.

Income Statement

The income statement reveals significant challenges. Revenue has been declining consistently, with a sharp drop from 2020 to 2024. The company has been experiencing negative EBIT and net income in recent years, indicating operational inefficiencies and profitability issues. The gross profit margin has also decreased, reflecting increased costs or reduced pricing power.

Balance Sheet

The balance sheet shows a relatively strong equity position with a low debt-to-equity ratio, indicating low financial leverage. However, the decline in total assets and stockholders' equity over the years suggests potential asset management issues. The equity ratio remains stable, providing some financial stability.

Cash Flow

Cash flow analysis highlights significant concerns. Operating cash flow has been negative in recent years, indicating cash generation issues from core operations. Free cash flow has also been negative, suggesting challenges in maintaining liquidity. The free cash flow to net income ratio is unfavorable, pointing to inefficiencies in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	100.76M	111.98M	190.94M	288.96M	370.31M	318.35M
Gross Profit	4.96M	3.25M	17.60M	60.44M	81.79M	70.11M
EBITDA	-4.79M	-8.03M	-227.00K	30.64M	46.35M	53.00M
Net Income	-6.21M	-9.49M	-2.56M	24.95M	35.69M	42.17M
Balance Sheet
Total Assets	258.67M	261.75M	365.14M	322.77M	293.73M	327.57M
Cash, Cash Equivalents and Short-Term Investments	74.55M	53.20M	95.12M	110.28M	58.58M	37.56M
Total Debt	10.00K	2.00M	30.00M	0.00	10.06M	21.53M
Total Liabilities	46.93M	51.03M	144.93M	100.00M	192.73M	224.39M
Stockholders Equity	211.74M	210.72M	220.21M	222.77M	101.00M	103.18M
Cash Flow
Free Cash Flow	3.74M	-13.75M	-44.87M	9.49M	27.35M	70.22M
Operating Cash Flow	6.40M	-10.09M	-22.45M	10.18M	28.63M	70.77M
Investing Cash Flow	-2.48M	-3.33M	-22.23M	-389.00K	37.00K	-107.00K
Financing Cash Flow	-17.90M	-28.55M	29.43M	41.53M	-7.69M	-59.64M

WEIli Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2372, the sentiment is Negative. The current price of 0.21 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.22, and below the 200-day MA of 0.22, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.46 is Neutral, neither overbought nor oversold. The STOCH value of 36.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2372.

WEIli Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1876	73 Outperform	HK$102.31B	22.14	5.74%	5.65%	-9.54%	-27.75%
0506	70 Outperform	HK$11.72B	12.46	13.57%	3.95%	10.05%	9.01%
9985	66 Neutral	HK$27.13B	20.39	18.11%	4.69%	23.90%	10.72%
1579	66 Neutral	HK$11.66B	14.57	16.58%	6.12%	1.10%	-7.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
6186	55 Neutral	HK$38.13B	13.10	10.48%	6.52%	-0.64%	-24.62%
2372	47 Neutral	HK$167.20M	―	-2.89%	―	-45.42%	-546.15%

WEIli Holdings Limited Corporate Events

WEIli Holdings Limited Announces Change of Auditor

WEIli Holdings Limited announced a change in its auditor, with PricewaterhouseCoopers resigning due to a disagreement on audit fees for the financial year ending December 31, 2025. The company has appointed Deloitte Touche Tohmatsu as the new auditor, citing Deloitte’s industry knowledge, technical competence, and experience with Hong Kong-listed companies as key factors in the decision. This change is not expected to impact the company’s annual audit or the release of its annual results.

WEIli Holdings Limited Reports Revenue Decline but Returns to Profit

WEIli Holdings Limited reported a 19.7% decrease in revenue to RMB45.8 million for the first half of 2025, compared to the same period in 2024. Despite the revenue drop, the company achieved a gross profit increase of 34% to RMB6.7 million and a profit attributable to shareholders of RMB1.0 million, reversing a loss from the previous year. The Board decided not to declare an interim dividend for this period.

WEIli Holdings Limited Announces Positive Profit Alert for H1 2025

WEIli Holdings Limited has announced a positive profit alert, indicating a significant financial turnaround for the first half of 2025. The company expects to report a net profit between RMB0.8 million and RMB1.5 million, compared to a net loss of RMB2.3 million in the same period last year. This improvement is attributed to better gross profit margins due to effective cost control measures and a reversal of impairment loss from reduced trade receivables. The final results are pending, and stakeholders are advised to exercise caution.

WEIli Holdings to Review Interim Results and Dividend Proposal

WEIli Holdings Limited has announced that its Board of Directors will convene on August 22, 2025, to review and approve the company’s unaudited interim results for the six months ending June 30, 2025. The meeting will also consider the recommendation for an interim dividend payment, which could have implications for stakeholders and investors.