Wing Chi Holdings Limited (6080) AI Stock Analysis

• Market Cap: HK$92.44M
• Dividend Yield: N/A
• Average Volume (3M): 9.58M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.56
• Revenue Growth: 58.64%
• EPS Growth: 106.25%
• Country: HK
• Employees: 573
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 933,750,000
• 10 Day Avg. Volume: 1,127,400
• 30 Day Avg. Volume: 9,579,600
• PEG Ratio: 0.24
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.34
• 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

Wing Chi Holdings Limited demonstrates solid financial stability with strong revenue growth and a well-managed balance sheet. However, concerns about profitability margins and cash flow, combined with a high valuation, temper the overall outlook. The strong upward technical trend is a positive, but overbought signals suggest caution.

Wing Chi Holdings Limited Business Overview & Revenue Model

Company Description

Wing Chi Holdings Limited (6080) is a Hong Kong-based investment holding company primarily engaged in foundation and site formation works. The company's core services include excavation, piling, and construction of foundations for residential and commercial buildings. Wing Chi Holdings operates within the construction and engineering sector, providing essential groundwork services critical for the development of infrastructure projects.

How the Company Makes Money

Wing Chi Holdings Limited generates revenue through contracts for foundation and site formation works in the construction industry. The company earns money by securing project-based contracts, often through a bidding process. These contracts typically involve services such as site foundation preparation, excavation, and piling, which are billed to clients at agreed rates. The company may also form partnerships or joint ventures with other construction firms to undertake large-scale projects, which can provide additional income streams. Factors contributing to its earnings include the overall demand for construction services in Hong Kong and its ability to successfully bid for and execute contracts efficiently.

Wing Chi Holdings Limited Financial Statement Overview

Summary

Wing Chi Holdings Limited shows a strong revenue growth trajectory and maintains a solid balance sheet with low leverage, indicating financial stability. However, the decline in net profit margin and negative free cash flow highlight areas that need attention to ensure sustainable profitability and liquidity.

Income Statement

Wing Chi Holdings Limited has shown a consistent increase in revenue over the years, with a noticeable growth from 2023 to 2024. The gross profit margin improved to 6.15% in 2024, although the net profit margin decreased to 0.55% indicating cost pressures or other expenses impacting net income. The EBIT and EBITDA margins improved, suggesting better operational efficiency, but the decline in net income is a concern.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 37.98% in 2024, indicating stability. The debt-to-equity ratio is relatively low at 0.19, showing prudent leverage. Return on equity decreased to 2.83% in 2024, which could be improved to enhance shareholder returns.

Cash Flow

Operating cash flow remains positive and stable, but the decline in free cash flow to -2,966,000 in 2024 raises concerns about capital expenditures and cash management. The operating cash flow to net income ratio is healthy, but the negative free cash flow indicates potential issues with cash reserves for investment activities.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
817.65M	671.91M	537.30M	421.12M	411.85M	326.50M
	Gross Profit
48.09M	41.32M	43.32M	29.61M	-29.57M	7.27M
	EBIT
9.61M	5.02M	4.58M	2.28M	-50.92M	-13.56M
	EBITDA
26.64M	24.70M	24.90M	18.07M	-31.62M	250.00K
	Net Income Common Stockholders
6.17M	3.70M	9.82M	4.37M	-46.35M	-13.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.63M	45.63M	45.58M	25.36M	38.76M	48.63M
	Total Assets
344.47M	344.47M	234.24M	214.98M	217.79M	199.64M
	Total Debt
25.00M	25.00M	20.37M	8.19M	8.42M	4.20M
	Net Debt
-20.64M	-20.64M	-25.21M	-17.17M	-30.34M	-44.44M
	Total Liabilities
213.65M	213.65M	107.12M	97.68M	104.86M	40.35M
	Stockholders Equity
130.82M	130.82M	127.13M	117.30M	112.94M	159.29M
Cash Flow		Free Cash Flow
-11.20M	-2.97M	16.40M	-19.11M	-8.53M	-4.65M
	Operating Cash Flow
45.27M	25.59M	25.72M	1.59M	3.92M	10.62M
	Investing Cash Flow
-54.77M	-27.13M	-6.43M	-9.82M	-8.92M	-14.62M
	Financing Cash Flow
13.80M	1.58M	935.00K	-5.16M	-4.87M	-2.94M

Wing Chi Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6080, the sentiment is Neutral. The current price of 0.1 is below the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.09, and above the 200-day MA of 0.06, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.77 is Neutral, neither overbought nor oversold. The STOCH value of 10.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6080.

Wing Chi Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1681	78 Outperform	€7.88B	7.89	23.28%	7.67%	12.70%	9.91%
1999	70 Outperform	$16.44B	7.97	16.66%	7.08%	4.58%	18.73%
6080	67 Neutral	HK$92.44M	15.00	4.66%	―	58.64%	106.25%
Sector *	64 Neutral	$4.42B	11.99	5.16%	249.23%	4.02%	-11.68%
2314	60 Neutral	$9.06B	6.90	4.75%	5.62%	4.24%	25.30%
0865	51 Neutral	HK$315.25M	30.00	-5.30%	―	-72.42%	-1037.50%
0277	49 Neutral	HK$499.02M	―	-2.97%	0.94%	1.66%	-51.60%