Wah Sun Handbags International Holdings Ltd. (2683) AI Stock Analysis

Wah Sun Handbags International Holdings Ltd.

(HKEX:2683)

Select Model

Rating:79Outperform

Price Target:HKD 1.50▲(36.36% Upside)

Action:reiterated

Date:10/22/26

The score is primarily supported by strong profitability, conservative leverage, and attractive valuation. Positive but mixed technical signals and weakening free cash flow momentum reduce the overall score.

Positive Factors

Revenue Scale and GrowthThe substantial increase in revenue over five years indicates that Wah Sun has expanded its business scale and recovered from earlier weakness. Continued recent growth provides a stronger base for operating leverage, customer development, and sustained earnings generation over the next several quarters.

Negative Factors

Weaker Cash ConversionAlthough cash generation remains positive, the sharp latest-year decline relative to reported profitability weakens confidence in earnings quality. Persistently lower conversion could constrain internally funded investment and distributions, while making future results more dependent on a recovery in working cash generation.

Wah Sun Handbags International Holdings Ltd. (2683) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 449.49M
Dividend Yield: 7.41%
Average Volume (3M): 119.50K
Price to Earnings (P/E): 5.2
Beta (1Y): 0.34
Revenue Growth: 17.32%
EPS Growth: 34.39%
Country: Hong Kong
Employees: 4,514
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Personal Products & Services

Wah Sun Handbags International Holdings Ltd. Business Overview & Revenue Model

Company Description

Wah Sun Handbags International Holdings Limited, an investment holding company, manufactures and trades in non-leather hand-bag products in the United States, Canada, the Netherlands, China, and internationally. Its non-leather handbags are made of s...

Wah Sun Handbags International Holdings Ltd. Financial Statement Overview

Summary

Strong profitability, improving margins, low leverage, and positive cash generation support a healthy financial profile. The main weakness is the sharp recent decline in free cash flow.

Income Statement

84Very Positive

Balance Sheet

86Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	849.54M	849.54M	724.10M	594.41M	446.52M	617.59M
Gross Profit	200.12M	200.12M	159.58M	105.00M	67.55M	127.63M
EBITDA	120.75M	119.97M	97.06M	48.95M	23.99M	63.56M
Net Income	86.37M	86.37M	64.27M	28.50M	8.49M	39.54M
Balance Sheet
Total Assets	476.85M	476.85M	420.87M	371.31M	382.38M	416.99M
Cash, Cash Equivalents and Short-Term Investments	205.64M	205.64M	188.85M	142.68M	103.04M	116.55M
Total Debt	19.83M	19.83M	18.71M	21.54M	23.83M	22.50M
Total Liabilities	142.05M	142.05M	127.34M	115.92M	137.82M	157.88M
Stockholders Equity	332.36M	332.36M	294.94M	259.33M	247.21M	259.27M
Cash Flow
Free Cash Flow	44.06M	44.06M	81.21M	60.87M	14.97M	25.13M
Operating Cash Flow	52.01M	52.01M	88.06M	63.76M	22.20M	37.32M
Investing Cash Flow	-7.95M	-7.95M	-3.75M	-621.00K	-6.54M	-12.11M
Financing Cash Flow	-54.63M	-54.63M	-35.83M	-24.14M	-26.61M	-20.38M

Wah Sun Handbags International Holdings Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1.10

Price Trends

50DMA1.07Positive

100DMA1.06Positive

200DMA1.10Negative

Market Momentum

MACD0.00Positive

RSI53.98Neutral

STOCH26.67Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2683, the sentiment is Positive. The current price of 1.10 is below the 20-day moving average (MA) of 1.10, above the 50-day MA of 1.07, and below the 200-day MA of 1.10, indicating a neutral trend. The MACD of 0.00 indicates Positive momentum. The RSI at 53.98 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2683.

Wah Sun Handbags International Holdings Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:2683 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:2683	79Outperform	HKD 441.32M	5.16	26.54%	7.41%	17.32%	34.39%
HK:1836	73Outperform	HKD 11.01B	11.32	11.35%	10.22%	2.33%	-22.20%
HK:0551	72Outperform	HKD 21.96B	7.23	6.60%	9.54%	-3.17%	-24.14%
HK:1910	68Neutral	HKD 17.97B	8.71	16.79%	6.18%	1.27%	-8.74%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HK:1170	42Neutral	HKD 269.68M	-3.75	-6.97%	12.61%	-2.99%	-111.29%
HK:1023	39Underperform	HKD 351.39M	-2.91	-8.17%	16.44%	-6.14%	31.24%

* Consumer Cyclical Sector Average

Performance Comparison

HK:2683 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:2683	Wah Sun Handbags International Holdings Ltd.	1.10	0.32	40.31%
HK:1910	Samsonite International OTC	12.96	-2.37	-15.46%
HK:1170	Kingmaker Footwear Holdings	0.40	-0.06	-12.47%
HK:1836	Stella International Holdings	13.21	-1.74	-11.62%
HK:0551	Yue Yuen Industrial (Holdings)	13.63	0.47	3.55%
HK:1023	Sitoy Group Holdings Limited	0.36	-0.10	-21.17%

Wah Sun Handbags International Holdings Ltd. Corporate Events

Wah Sun Handbags Wins Shareholder Backing for Dividends and Share Issue Mandate

Aug 31, 2026

Wah Sun Handbags International Holdings Ltd. announced that all resolutions at its annual general meeting on 31 August 2026 were approved by shareholders via poll, covering adoption of the 2026 financial statements, director re-elections and remunera...

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: Oct 22, 2026

Wah Sun Handbags International Holdings Ltd. AI Stock Analysis