Wah Sun Handbags International Holdings Ltd
Wah Sun Handbags International Holdings Ltd has a market price of 1.19 and a market cap of 486,264,940, with a price-to-earnings ratio of 7.57 and a price-to-book ratio of 1.65. The company's enterprise value to EBITDA is 6.19 and enterprise value to revenue is 0.7, indicating a relatively low valuation compared to industry benchmarks. The company's return on equity is 21.79% and return on assets is 15.27%, which are strong indicators of profitability and efficient use of assets [doc:HA-latest]. The company's profitability is reflected in its gross profit of 159,577,000 and operating income of 81,594,000, with a net income of 64,274,000. The return on equity and return on assets are above the industry median, suggesting that the company is performing well in terms of generating returns for its shareholders and utilizing its assets effectively [doc:HA-latest]. Wah Sun Handbags International Holdings Ltd's revenue is primarily derived from the manufacture and sale of non-leather handbags, with a focus on mass market and middle-end priced products. The company's end customers are fashion brand names in the United States, Canada, Spain, Sweden, and Japan, indicating a diverse geographic exposure. However, the company's revenue concentration in these regions may pose a risk if there are any economic downturns or changes in consumer preferences in these markets [doc:HA-latest]. The company's growth trajectory is reflected in its operating cash flow of 88,056,000 and free cash flow of 40,719,000. The capital expenditure of -6,850,000 indicates that the company is not investing heavily in new projects or expansion, which may limit its growth potential. The company's outlook for the current fiscal year and the next fiscal year is not provided, but the company's financial performance suggests a stable growth trajectory [doc:HA-latest]. The company's risk assessment indicates a medium liquidity risk and a low dilution risk. The key flags include a negative net cash position after subtracting total debt, which may affect the company's ability to meet its short-term obligations. The company's debt-to-equity ratio is 0.06, indicating a low level of debt relative to equity, which is a positive sign for financial stability [doc:HA-latest]. Recent events and filings for Wah Sun Handbags International Holdings Ltd are not provided in the input data. However, the company's financial performance and risk assessment suggest that it is a stable and profitable company with a strong return on equity and return on assets. The company's low debt-to-equity ratio and strong cash flow position it well for future growth and expansion [doc:HA-latest].
Business. Wah Sun Handbags International Holdings Ltd is an investment holding company engaged in the manufacture and trade of non-leather handbags, including top handle bags, shoulder bags, crossbody bags, and tote bags, primarily for mass market and middle-end priced retail segments, with end customers being fashion brand names in the United States, Canada, Spain, Sweden, and Japan [doc:HA-latest].
Classification. Wah Sun Handbags International Holdings Ltd is classified under the Consumer Cyclicals economic sector, Cyclical Consumer Products business sector, and Apparel & Accessories industry, with a classification confidence of 0.92 [doc:verified market data].
- Wah Sun Handbags International Holdings Ltd has a strong return on equity of 21.79% and return on assets of 15.27%, indicating efficient use of assets and profitability.
- The company's enterprise value to EBITDA of 6.19 and enterprise value to revenue of 0.7 suggest a relatively low valuation compared to industry benchmarks.
- Wah Sun Handbags International Holdings Ltd has a low debt-to-equity ratio of 0.06, indicating a low level of debt relative to equity, which is a positive sign for financial stability.
- The company's operating cash flow of 88,056,000 and free cash flow of 40,719,000 indicate strong cash generation capabilities.
- The company's risk assessment indicates a medium liquidity risk and a low dilution risk, with a negative net cash position after subtracting total debt being a key flag.
- # RATIONALES
- margin_outlook_rationale: The company's gross profit margin is expected to remain stable due to consistent demand for its products and efficient cost management.
- rd_outlook_rationale: Research and development is not a significant focus for the company, as it primarily operates as an OEM in the handbag manufacturing sector.
- Net cash is negative after subtracting total debt.