WT Group Holdings Limited (8422) AI Stock Analysis

• Market Cap: HK$11.40M
• Dividend Yield: N/A
• Average Volume (3M): 2.03K
• Price to Earnings (P/E): 5.9
• Beta (1Y): -0.26
• Revenue Growth: 63.66%
• EPS Growth: N/A
• Country: HK
• Employees: 26
• Sector: Industrials
• Sector Strength: 91
• Industry: Engineering & Construction
• EPS (TTM): 0.02
• Shares Outstanding: 120,000,000
• 10 Day Avg. Volume: 2,000
• 30 Day Avg. Volume: 2,033
• PEG Ratio: -0.12
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.12
• 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

WT Group Holdings Limited has a solid equity base and cost management, contributing positively to its financial performance. However, challenges with cash flow and moderate profitability weigh down the score. Technical indicators show a positive trend, and the stock appears fairly valued. Continued focus on improving cash flow and profitability could enhance future prospects.

WT Group Holdings Limited Business Overview & Revenue Model

Company Description

WT Group Holdings Limited (8422) is a Hong Kong-based company primarily engaged in the provision of comprehensive interior design and fit-out services. The company caters to a wide range of sectors, including residential, commercial, and hospitality. It offers a spectrum of services from initial design to project management and execution, ensuring a seamless transition from concept to completion.

How the Company Makes Money

WT Group Holdings Limited generates revenue through its core business of providing interior design and fit-out services. The company earns by taking on design projects and executing them to meet client specifications. Revenue streams are typically derived from project fees, which encompass design consultation, project management, and construction services. Additionally, the company may form partnerships with suppliers and subcontractors to optimize project costs and timelines, enhancing profitability. Key factors contributing to its earnings include its ability to secure contracts in various sectors, maintain strong client relationships, and deliver high-quality, customized design solutions.

WT Group Holdings Limited Financial Statement Overview

Summary

WT Group Holdings Limited shows strong equity position and cost management capabilities. Healthy gross margins and a stable balance sheet are positives. However, struggles with profitability and liquidity management, reflected in negative cash flows, highlight areas for improvement.

Income Statement

The company's gross profit margin for TTM is 33.9%, indicating a strong ability to manage production costs relative to revenue. However, the net profit margin is lower at 4.5%, suggesting high operating expenses or other costs. Revenue has shown volatility, with a significant drop from 2022 to 2023 but partial recovery in TTM. EBIT and EBITDA margins of 3.8% and 4.1% respectively, highlight moderate operational efficiency.

Balance Sheet

The company has a solid equity base with an equity ratio of 88.5% in TTM, indicating financial stability and low leverage, as evidenced by a Debt-to-Equity ratio of 0. The ROE for TTM is 4.7%, showing modest profitability on equity, which could be improved.

Cash Flow

The company faces cash flow challenges with negative operating cash flow and free cash flow in TTM. The operating cash flow to net income ratio is -2.8, indicating inefficiencies in converting income into cash. The free cash flow to net income ratio is also negative, reflecting potential liquidity issues.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
42.48M	31.30M	37.42M	65.33M	33.83M	61.22M
	Gross Profit
14.40M	11.43M	-3.11M	8.21M	2.12M	2.40M
	EBIT
1.63M	3.54M	-23.52M	-7.61M	-6.35M	-7.27M
	EBITDA
1.73M	4.07M	-22.72M	-8.18M	-5.66M	-6.04M
	Net Income Common Stockholders
1.92M	3.75M	-23.20M	-8.95M	-7.40M	-5.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.21M	28.62M	33.29M	30.71M	49.45M	38.00M
	Total Assets
45.80M	46.16M	42.54M	69.63M	65.50M	73.01M
	Total Debt
0.00	107.00K	332.00K	1.05M	679.00K	630.00K
	Net Debt
-29.93M	-28.17M	-32.96M	-29.66M	-48.77M	-37.37M
	Total Liabilities
5.28M	5.87M	5.99M	9.88M	8.05M	8.17M
	Stockholders Equity
40.52M	40.29M	36.55M	59.75M	57.45M	64.84M
Cash Flow		Free Cash Flow
-5.37M	-4.90M	3.12M	-26.16M	12.05M	8.79M
	Operating Cash Flow
-5.37M	-4.90M	3.49M	-24.49M	12.08M	8.94M
	Investing Cash Flow
125.00K	125.00K	-235.00K	-1.68M	62.00K	-34.00K
	Financing Cash Flow
-217.00K	-237.00K	-670.00K	7.43M	-691.00K	-635.00K

WT Group Holdings Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8422, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 59.55 is Neutral, neither overbought nor oversold. The STOCH value of 42.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8422.

WT Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8422	68 Neutral	HK$11.40M	5.94	4.86%	―	63.66%	―
Sector *	64 Neutral	$4.43B	12.01	5.16%	249.23%	4.03%	-11.73%
8093	51 Neutral	HK$47.00M	2.44	38.36%	―	-71.92%	―
8083	47 Neutral	HK$3.02B	―	-16.87%	―	-2.35%	-837.50%
8356	45 Neutral	HK$34.33M	―		―	-16.98%	62.42%