New Risk • Jun 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 47% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Revenue is less than US$5m (US$4.7m revenue). Market cap is less than US$100m (HK$504.0m market cap, or US$64.3m). Board Change • Apr 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Independent Non-Executive Director James Li was the last director to join the board, commencing their role in 2023. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 27
Full year 2025 earnings released: US$0.006 loss per share (vs US$0.001 profit in FY 2024) Full year 2025 results: US$0.006 loss per share (down from US$0.001 profit in FY 2024). Revenue: US$4.66m (down 65% from FY 2024). Net loss: US$4.54m (down US$5.08m from profit in FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 93 percentage points per year, which is a significant difference in performance. Announcement • Mar 27
Powerwin Tech Group Limited, Annual General Meeting, Jun 16, 2026 Powerwin Tech Group Limited, Annual General Meeting, Jun 16, 2026. Announcement • Mar 16
Powerwin Tech Group Limited to Report Fiscal Year 2025 Final Results on Mar 26, 2026 Powerwin Tech Group Limited announced that they will report fiscal year 2025 final results on Mar 26, 2026 New Risk • Dec 09
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 10% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 33% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (10% average weekly change). New Risk • Nov 24
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: HK$768.0m (US$98.7m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 33% per year over the past 5 years. Minor Risk Market cap is less than US$100m (HK$768.0m market cap, or US$98.7m). Reported Earnings • Aug 31
First half 2025 earnings released: US$0.005 loss per share (vs US$0 in 1H 2024) First half 2025 results: US$0.005 loss per share (further deteriorated from US$0 in 1H 2024). Net loss: US$3.76m (down US$4.10m from profit in 1H 2024). Announcement • Aug 18
Powerwin Tech Group Limited to Report First Half, 2025 Results on Aug 28, 2025 Powerwin Tech Group Limited announced that they will report first half, 2025 results on Aug 28, 2025 New Risk • May 22
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 25% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.1x net interest cover). Earnings have declined by 6.5% per year over the past 5 years. High level of non-cash earnings (25% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (4.0% net profit margin). Reported Earnings • Mar 27
Full year 2024 earnings released: EPS: US$0.001 (vs US$0.01 in FY 2023) Full year 2024 results: EPS: US$0.001 (down from US$0.01 in FY 2023). Revenue: US$13.5m (down 37% from FY 2023). Net income: US$544.0k (down 92% from FY 2023). Profit margin: 4.0% (down from 33% in FY 2023). Announcement • Mar 26
Powerwin Tech Group Limited, Annual General Meeting, Jun 26, 2025 Powerwin Tech Group Limited, Annual General Meeting, Jun 26, 2025. Announcement • Mar 14
Powerwin Tech Group Limited to Report Fiscal Year 2024 Results on Mar 26, 2025 Powerwin Tech Group Limited announced that they will report fiscal year 2024 results on Mar 26, 2025 Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$2.55, the stock trades at a trailing P/E ratio of 47.8x. Average trailing P/E is 10x in the Media industry in Hong Kong. Total loss to shareholders of 53% over the past year. Valuation Update With 7 Day Price Move • Nov 01
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$2.50, the stock trades at a trailing P/E ratio of 46.8x. Average trailing P/E is 10x in the Media industry in Hong Kong. Total loss to shareholders of 59% over the past year. Reported Earnings • Sep 26
First half 2024 earnings released: EPS: US$0 (vs US$0.003 in 1H 2023) First half 2024 results: EPS: US$0 (down from US$0.003 in 1H 2023). Revenue: US$7.37m (down 16% from 1H 2023). Net income: US$338.0k (down 83% from 1H 2023). Profit margin: 4.6% (down from 23% in 1H 2023). The decrease in margin was primarily driven by lower revenue. Valuation Update With 7 Day Price Move • Sep 10
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to HK$3.05, the stock trades at a trailing P/E ratio of 56.9x. Average trailing P/E is 10x in the Media industry in Hong Kong. Total loss to shareholders of 31% over the past year. Announcement • Aug 19
Powerwin Tech Group Limited Provides Consolidated Earnings Guidance for the Six Months Ended June 30, 2024 Powerwin Tech Group Limited provided consolidated earnings guidance for the six months ended June 30, 2024. Based on the preliminary assessment of the unaudited consolidated management accounts of the Group and the information currently available to the Board for the six months ended June 30, 2024 (the "Period"), the Group is expected to record a decrease in net profit for the Period of less than 90.0% as compared to that for the six months ended June 30, 2023. The Board believes that such decrease was mainly due to (i) the Group facing more intense competition in its cross-border digital marketing business and the Group has rolled out certain promotional measures during the Period which has led to a decrease in the revenue for the Period; and (ii) the operational adjustments of certain customers of the Group which have resulted in longer collection periods and the Group has consequently increased its bad debt provisions for prudence's sake. Despite the decrease in the net profit for the Period, since the start of 2024, there is a high demand for cross-border digital marketing services due to the continuous growth of China-based cross-border e-commerce merchants and such demand has in turn driven the steady rise of the gross billing of the Group. Announcement • Aug 16
Powerwin Tech Group Limited to Report First Half, 2024 Results on Aug 28, 2024 Powerwin Tech Group Limited announced that they will report first half, 2024 results on Aug 28, 2024 New Risk • Jul 26
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 9.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (143% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (9.9% average weekly change). Valuation Update With 7 Day Price Move • Jul 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$2.90, the stock trades at a trailing P/E ratio of 41.4x. Average trailing P/E is 11x in the Media industry in Hong Kong. Total loss to shareholders of 21% over the past year. Valuation Update With 7 Day Price Move • May 22
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to HK$3.91, the stock trades at a trailing P/E ratio of 55.8x. Average trailing P/E is 12x in the Media industry in Hong Kong. Total returns to shareholders of 40% over the past year. Reported Earnings • Mar 29
Full year 2023 earnings released: EPS: US$0.01 (vs US$0.009 in FY 2022) Full year 2023 results: EPS: US$0.01 (up from US$0.009 in FY 2022). Revenue: US$21.5m (up 31% from FY 2022). Net income: US$7.19m (up 31% from FY 2022). Profit margin: 33% (in line with FY 2022). Announcement • Mar 19
Powerwin Tech Group Limited to Report Fiscal Year 2023 Results on Mar 28, 2024 Powerwin Tech Group Limited announced that they will report fiscal year 2023 results on Mar 28, 2024 Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$2.84, the stock trades at a trailing P/E ratio of 48.2x. Average trailing P/E is 10x in the Media industry in Hong Kong. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to HK$3.48, the stock trades at a trailing P/E ratio of 59x. Average trailing P/E is 9x in the Media industry in Hong Kong. New Risk • Jan 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 10% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (84% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (10% average weekly change). Valuation Update With 7 Day Price Move • Jan 18
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to HK$4.25, the stock trades at a trailing P/E ratio of 72.1x. Average trailing P/E is 9x in the Media industry in Hong Kong. New Risk • Sep 21
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (84% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (12% average weekly change). Valuation Update With 7 Day Price Move • Sep 08
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to HK$4.14, the stock trades at a trailing P/E ratio of 70x. Average trailing P/E is 9x in the Media industry in Hong Kong. Reported Earnings • Sep 03
First half 2023 earnings released First half 2023 results: EPS: US$0.003. Net income: US$2.02m (up US$2.02m from 1H 2022). Valuation Update With 7 Day Price Move • Jul 24
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to HK$4.20, the stock trades at a trailing P/E ratio of 78.2x. Average trailing P/E is 12x in the Media industry in Hong Kong. Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment improves as stock rises 35% After last week's 35% share price gain to HK$3.82, the stock trades at a trailing P/E ratio of 71x. Average trailing P/E is 11x in the Media industry in Hong Kong. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improves as stock rises 37% After last week's 37% share price gain to HK$2.17, the stock trades at a trailing P/E ratio of 55x. Average trailing P/E is 12x in the Media industry in Hong Kong. Valuation Update With 7 Day Price Move • May 04
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to HK$1.62, the stock trades at a trailing P/E ratio of 41x. Average trailing P/E is 13x in the Media industry in Hong Kong. Valuation Update With 7 Day Price Move • Apr 18
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$1.26, the stock trades at a trailing P/E ratio of 31.9x. Average trailing P/E is 13x in the Media industry in Hong Kong. Board Change • Apr 01
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. Chairman & CEO Xiang Li is the most experienced director on the board, commencing their role in 2019. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model.