Wison Engineering Services Co., Ltd. (2236) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Wison Engineering Services Co., Ltd.

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HKE Holdings Ltd.

SINOPEC Engineering (Group) Co., Ltd.

Why is Wison Engineering Services Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 1.03%

Poor long term growth as Net Sales has grown by an annual rate of 7.46% and Operating profit at 36.33% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -3.58

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at HKD 2,915.3 MM
PRE-TAX PROFIT(Q) At HKD 103.36 MM has Grown at 358.54%
NET PROFIT(Q) At HKD 97.77 MM has Grown at 362.72%

With ROE of 5.13%, it has a Very Attractive valuation with a 0.63 Price to Book Value

Over the past year, while the stock has generated a return of 85.71%, its profits have risen by 160.8% ; the PEG ratio of the company is 0.1

Market Beating Performance

The stock has generated a return of 85.71% in the last 1 year, much higher than market (Hang Seng Hong Kong) returns of 8.25%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wison Engineering Services Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Wison Engineering Services Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wison Engineering Services Co., Ltd.

85.71%

1.75

70.01%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.46%

EBIT Growth (5y)

36.33%

EBIT to Interest (avg)

-3.58

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-1.36

Sales to Capital Employed (avg)

1.30

Tax Ratio

7.83%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

1.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.63

EV to EBIT

-24.19

EV to EBITDA

-17.77

EV to Capital Employed

2.03

EV to Sales

-0.34

PEG Ratio

0.08

Dividend Yield

ROCE (Latest)

-8.39%

ROE (Latest)

5.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 2,915.3 MM

PRE-TAX PROFIT(Q)

At HKD 103.36 MM has Grown at 358.54%

NET PROFIT(Q)

At HKD 97.77 MM has Grown at 362.72%

ROCE(HY)

Highest at 9.56%

NET SALES(Q)

At HKD 3,923.98 MM has Grown at 97.03%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.01 times

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Wison Engineering Services Co., Ltd.

Pre-Tax Profit

At HKD 103.36 MM has Grown at 358.54%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD 97.77 MM has Grown at 362.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (HKD MM)

Operating Cash Flow

Highest at HKD 2,915.3 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Net Sales

At HKD 3,923.98 MM has Grown at 97.03%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (HKD MM)

Debtors Turnover Ratio

Highest at 4.01 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

At HKD 17.88 MM has Grown at 28.08%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Wison Engineering Services Co., Ltd.

Non Operating Income

Highest at HKD 1.18 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income