Winto Group (Holdings) Ltd. (8238) AI Stock Analysis

• Market Cap: HK$19.86M
• Dividend Yield: N/A
• Average Volume (3M): 208.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: 22.85%
• EPS Growth: 76.33%
• Country: HK
• Employees: 12
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): >-0.01
• Shares Outstanding: 87,091,200
• 10 Day Avg. Volume: 464,640
• 30 Day Avg. Volume: 208,989
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 31 Underperform
• Price Target: ―

Winto Group (Holdings) Ltd. is facing severe financial distress, as evidenced by declining revenues, negative equity, and cash flow challenges. The technical analysis supports a bearish outlook with all major indicators showing negative trends. Valuation concerns further exacerbate the risk, given the negative P/E ratio and lack of dividends. The stock is highly speculative, and significant strategic changes are required to improve its financial health and market position.

Winto Group (Holdings) Ltd. Business Overview & Revenue Model

Company Description

Winto Group (Holdings) Limited, an investment holding company, engages in the provision of exhibition and trade show, and publication and media advertising services in Guangdong-Hong Kong-Macau Greater Bay Area. The company owns and publishes Exmoo News, a Chinese-language daily newspaper and covers various local and international news, finance and economy, entertainment, sports, fashion and lifestyle, cultural knowledge, etc.; Travel Macao, a Chinese-language travel leisure fortnightly magazine, which provides information to readers relating to travel, dining, shopping, culture, and entertainment in Macau; Motoz Trader, a fortnightly magazine that focuses on new car models, second-hand car market, and properties, as well as offers lifestyle information, including dinning, fashion, and beauty; Motoz Trader, a free fortnightly magazine; Shopping Monthly, a fortnightly magazine, which focuses on updated information on consumer products; and Shopping Monthly, a free fortnightly magazine. It also provides exhibition and trade show, print and online media advertising, and outdoor advertising services. The company was incorporated in 2012 and is headquartered in Kowloon, Hong Kong. Winto Group (Holdings) Limited is a subsidiary of Source Creation International Limited.

How the Company Makes Money

Winto Group (Holdings) Ltd. generates revenue primarily through the leasing of advertising space on various outdoor media platforms. The company's key revenue streams include the rental income from billboards and signage, as well as sales from their advertising-related publications. By leveraging strategic locations and high-traffic areas, Winto Group attracts businesses seeking to enhance their visibility and market presence. The company may also form partnerships or collaborations with other advertising firms or media agencies to expand its reach and service offerings, contributing further to its income.

Winto Group (Holdings) Ltd. Financial Statement Overview

Summary

Winto Group (Holdings) Ltd. faces significant financial challenges across all major financial statements. The income statement reflects declining revenues and persistent losses, the balance sheet shows a precarious financial position with negative equity, and the cash flow statement reveals ongoing cash generation issues. The company's current financial trajectory poses substantial risks, indicating the need for strategic restructuring or turnaround efforts to stabilize and improve financial health.

Income Statement

The income statement shows a concerning downward trend in revenue and profitability. Revenue has consistently decreased from 2019 to 2024, with the most recent year showing a decline from the previous year. The gross profit margin is fluctuating but has generally declined, and the company consistently reports negative EBIT and net profit margins. The revenue growth rate has been negative for most years, indicating a challenging market environment or declining market position.

Balance Sheet

The balance sheet reveals significant financial instability, with a negative stockholders' equity position indicating potential solvency issues. The debt-to-equity ratio is not calculable due to negative equity, but the company's total liabilities exceed its assets, reflecting high leverage. The equity ratio is negative, further demonstrating the company's financial distress. These factors indicate a high-risk financial structure with potential for financial distress.

Cash Flow

The cash flow statement highlights ongoing cash flow challenges. Operating cash flow was negative in several recent years, and free cash flow remains negative or zero, pointing to difficulties in generating cash. The lack of capital expenditures in the latest year suggests limited investment in growth or maintenance, potentially impacting future performance. Overall, the cash flow situation is weak, suggesting a need for improved cash management and operational efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.84M	23.55M	34.65M	61.13M	29.87M
Gross Profit	9.20M	6.38M	24.11M	40.17M	15.14M
EBITDA	-17.93M	-73.09M	14.49M	26.11M	2.14M
Net Income	-19.79M	-73.72M	10.10M	21.53M	-3.04M
Balance Sheet
Total Assets	28.49M	41.02M	63.86M	49.78M	30.76M
Cash, Cash Equivalents and Short-Term Investments	9.63M	3.55M	1.91M	10.95M	3.21M
Total Debt	2.80M	8.66M	12.16M	20.20M	26.49M
Total Liabilities	67.22M	70.71M	32.13M	35.86M	38.03M
Stockholders Equity	-36.15M	-27.68M	31.89M	14.01M	-7.52M
Cash Flow
Free Cash Flow	2.38M	-5.13M	-7.89M	16.75M	1.87M
Operating Cash Flow	2.38M	-5.13M	-7.89M	18.42M	1.90M
Investing Cash Flow	0.00	1.75M	-873.00K	-1.69M	-11.07M
Financing Cash Flow	3.66M	5.02M	-274.00K	-9.00M	8.78M

Winto Group (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8238, the sentiment is Positive. The current price of 0.23 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.20, and below the 200-day MA of 0.24, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 62.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8238.

Winto Group (Holdings) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8326	72 Outperform	HK$204.91M	2.45	20.06%	―	34.44%	83.60%
8208	60 Neutral	HK$51.84M	11.43	―	―	11.56%	―
8299	56 Neutral	HK$3.60B	52.72	10.37%	―	94.75%	5.75%
8137	46 Neutral	HK$8.08B	-13.73	-11.60%	―	-56.83%	-257.89%
8163	41 Neutral	HK$92.53M	-6.17	-130.10%	―	―	―
8238	31 Underperform	HK$19.86M	―	-1039.35%	―	22.85%	76.33%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%