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WK Group (Holdings) Limited
(2535)
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Rating:56Neutral
Price Target:
HK$0.60
▲(32.67% Upside)
Action:Reiterated
Date:10/23/26
The score is anchored by a strong, low-debt balance sheet that lowers financial risk, but is pulled down by weakening recent profitability (2025 revenue and margin compression), inconsistent cash flow quality, and a clearly bearish technical setup (price below all major moving averages with negative MACD and low RSI). Negative P/E and no dividend data provide little valuation support.
Positive Factors
Very low leverage
The exceptionally low debt burden reduces financial risk and preserves flexibility through changing business conditions. A lightly leveraged balance sheet can support continued investment, protect liquidity during weaker periods, and give management more capacity to respond to opportunities without excessive financing pressure.
Negative Factors
Revenue contraction
The latest revenue decline signals weaker demand, reduced activity, or other pressure on the top line, limiting operating leverage and growth capacity. If contraction persists, it could reduce the scale available to absorb fixed costs and make a sustained recovery in earnings more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
The exceptionally low debt burden reduces financial risk and preserves flexibility through changing business conditions. A lightly leveraged balance sheet can support continued investment, protect liquidity during weaker periods, and give management more capacity to respond to opportunities without excessive financing pressure.
Read all positive factors
WK Group (Holdings) Limited (2535) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.16B
Dividend YieldN/A
Average Volume (3M)2.04M
Price to Earnings (P/E)―
Beta (1Y)0.28
Revenue Growth-31.18%
EPS Growth-121.38%
CountryHK
Employees132
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding2,000,000,000
10 Day Avg. Volume2,924,000
30 Day Avg. Volume2,044,666
Financial Highlights & Ratios
PEG Ratio-2.18
Price to Book (P/B)6.69
Price to Sales (P/S)5.18
P/FCF Ratio124.60
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
WK Group (Holdings) Limited Business Overview & Revenue Model
Company Description
WK Group (Holdings) Ltd functions as a specialized structural steelwork contractor, providing procurement, manufacturing, and erection services for steel components utilized in construction projects across Hong Kong. Established in 1999, the firm'...
WK Group (Holdings) Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
84
Very Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 269.97M | 347.73M | 398.46M | 370.23M | 336.38M | 228.78M |
| Gross Profit | 22.47M | 46.66M | 71.39M | 70.90M | 66.94M | 35.42M |
| EBITDA | 5.19M | 32.39M | 48.09M | 40.12M | 52.28M | 26.59M |
| Net Income | -6.24M | 16.11M | 31.50M | 25.20M | 39.27M | 17.34M |
Balance Sheet | ||||||
| Total Assets | 526.41M | 311.89M | 313.31M | 257.06M | 201.38M | 154.10M |
| Cash, Cash Equivalents and Short-Term Investments | 329.43M | 113.88M | 109.50M | 11.01M | 72.64M | 11.73M |
| Total Debt | 2.73M | 6.37M | 12.75M | 12.89M | 19.18M | 7.32M |
| Total Liabilities | 269.20M | 42.75M | 59.92M | 120.83M | 70.79M | 56.26M |
| Stockholders Equity | 257.31M | 269.14M | 253.38M | 136.23M | 130.59M | 97.84M |
Cash Flow | ||||||
| Free Cash Flow | -8.83M | 14.45M | 7.71M | -24.39M | 78.45M | 9.99M |
| Operating Cash Flow | -5.83M | 19.29M | 24.75M | -22.97M | 78.76M | 11.46M |
| Investing Cash Flow | -2.37M | 444.00K | -31.31M | -4.18M | -6.62M | -1.16M |
| Financing Cash Flow | -7.21M | -10.84M | 97.72M | -32.87M | -15.10M | -13.13M |
WK Group (Holdings) Limited Technical Analysis
Negative
0.45
Price Trends
0.65
Negative
0.57
Positive
0.69
Negative
Market Momentum
-0.02
Negative
48.68
Neutral
85.23
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2535, the sentiment is Negative. The current price of 0.45 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.65, and below the 200-day MA of 0.69, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.68 is Neutral, neither overbought nor oversold. The STOCH value of 85.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2535.
WK Group (Holdings) Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | HK$1.12B | 4.49 | 7.26% | 6.68% | -4.88% | -0.62% | |
58 Neutral | HK$3.50B | 12.55 | 20.97% | 3.58% | 7.37% | 32.57% | |
57 Neutral | HK$881.27M | -29.89 | -1.92% | 14.39% | -17.65% | -538.68% | |
56 Neutral | HK$1.16B | -182.40 | -2.37% | ― | -31.18% | -121.38% | |
46 Neutral | HK$259.19M | -6.07 | -3.69% | 4.95% | >-0.01% | 15.55% | |
46 Neutral | HK$499.82M | 43.18 | 0.61% | 5.89% | 23.21% | 11.11% |
* Industrials Sector Average
HK:2535
WK Group (Holdings) Limited
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WK Group (Holdings) Limited Corporate Events
WK Group Clarifies Unused Share Option Capacity in 2025 Annual Report
Oct 8, 2026
WK Group (Holdings) Limited has issued a supplemental announcement to its 2025 annual report to clarify details of its share option scheme adopted in February 2024 under Hong Kong listing rules. The company reported that no share options were gran...
WK Group’s Takeover Bid by WellLuck Lapses After Minimal Shareholder Acceptance
Oct 2, 2026
WK Group (Holdings) Limited, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange under stock code 2535, has a significant minority shareholder in WellLuck Limited, an investment entity based in the British Virgin Islands....
WK Group Launches Conditional Mandatory Cash Offer Following Composite Document Despatch
Sep 11, 2026
WK Group (Holdings) Limited, incorporated in the Cayman Islands and listed in Hong Kong under stock code 2535, sits within the financial and corporate sector as a publicly traded entity. Its shareholding structure and regulatory profile have drawn...
WK Group Swings to Interim Loss as Revenue Drops 47%
Aug 31, 2026
WK Group (Holdings) Limited reported a sharp deterioration in interim performance for the six months ended 30 June 2026, as revenue fell 47% year-on-year to HK$87.8 million and gross profit slumped to HK$1.4 million from HK$25.6 million. The rever...
WK Group delays composite document for WellLuck cash offer
Aug 25, 2026
WK Group (Holdings) Limited and WellLuck Limited have announced a delay in sending shareholders a composite document related to WellLuck’s conditional mandatory general cash offer for all issued shares of WK Group not already owned or agreed...
WK Group Sets August Board Meeting to Review Interim Results and Possible Dividend
Aug 17, 2026
WK Group (Holdings) Limited has scheduled a board meeting for 31 August 2026 to review and approve the unaudited consolidated interim results for the six months ended 30 June 2026. The company also plans to consider a possible interim dividend, a ...
WK Group appoints independent adviser for takeover-related offer review
Aug 6, 2026
WK Group (Holdings) Limited, a Cayman Islands-incorporated company listed in Hong Kong under stock code 2535, is overseen by a board that includes executive, non-executive and independent non-executive directors. The company is presently involved ...
WK Group Faces Mandatory Takeover Offer After 39% Stake Acquisition
Aug 4, 2026
WellLuck Limited has acquired 780,000,000 shares of WK Group (Holdings) Limited, representing 39% of the company’s issued share capital, from the vendor for a total cash consideration of HK$70,200,000 at HK$0.09 per share. The transaction wa...
WK Group Halts Trading Ahead of Takeover-Related Announcement
Jul 30, 2026
WK Group (Holdings) Limited has requested a halt in trading of its shares on the Hong Kong Stock Exchange effective from the morning of 30 July 2026. The suspension is pending the release of an announcement under the Hong Kong Code on Takeovers an...
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.