Numbers
Numbers
Figures converted from HKD at historical FX rates — see data/company.json.fx_rates. Ratios, margins, and multiples are unitless and unchanged.
Wai Kee Holdings is a Hong Kong construction holding company whose reported results are distorted by its 44.52% associate stake in Road King Infrastructure. The operating subsidiary (Build King) is growing and profitable, but two consecutive years of associate-driven impairments have cut book value in half and pushed consolidated net income deeply negative. The stock trades at $0.118, a fraction of tangible book, with a market cap of roughly $94M versus $338M of cash on the balance sheet.
Snapshot
Price ($)
Market Cap ($M)
Revenue FY24 ($M)
Net Income FY24 ($M)
Book Equity ($M)
Book / Share ($)
P/B
5yr Total Return
Quality Scorecard
Standard third-party composite scores (Quality Score, Fair Value, Piotroski, Altman Z, Beneish M) were not available in this dataset. The scorecard below is built from reported financials only.
The profile is a classic value trap silhouette on the surface — very low P/B, net cash, a growing topline — paired with a decisive break in the equity compounding story that started in FY2022 and deepened in FY2023 and FY2024.
20-Year Revenue and Margin Arc
Revenue has compounded at roughly 17% a year since 2010, lifted mainly by the Build King civil engineering subsidiary. Gross and operating margins have been remarkably stable for a construction contractor — single-digit but positive since FY2014. The net margin break from FY2022 onward is the Road King associate problem, not an operations problem.
Segment Mix
Construction is 97% of revenue and the only segment growing meaningfully. Quarrying shrank in FY2024 and Construction Materials is a small ancillary business. Geographically, virtually all revenue is booked in Hong Kong ($1,837M in FY2024) with under 2% from the PRC.
Cash Generation
Operating CF FY24 ($M)
Free Cash Flow FY24 ($M)
FCF Yield on Mkt Cap (%)
The paradox: despite net losses of $600M over FY2023-FY2024 combined, the group generated $115M of free cash flow. That is because the losses are non-cash associate impairments, while Build King collects cash against progress-billed civil projects. Capex is negligible (under 1% of revenue), so operating cash flow converts almost directly to free cash flow.
Capital Allocation
The dividend peaked at $0.041 in FY2020 — a roughly 8% yield on the then-book equity — then collapsed to $0.014 in FY2022 and was eliminated from FY2023. This is a direct capital-preservation signal: management chose to bank the Build King cash rather than distribute it through the associate downturn. Share count has been flat at 793M since 2007, so there is no dilution, and buybacks have not been meaningful.
Balance Sheet Evolution
Book equity has been halved from the FY2021 peak of $1,369M to $598M in FY2024 — a $771M writedown in three years. Gross debt has come down from $291M to $153M over the same stretch, and cash of $338M means the group runs a net cash position of roughly $185M. The capital structure has de-risked even as reported earnings collapsed.
Valuation vs History
P/B compressed from a mid-cycle 0.45 to a low of 0.09 in FY2024, meaning the market has priced the stock at under 10 cents on the stated book dollar. P/S of roughly 0.05 is extreme — for context, construction peers on HKEX typically trade at 0.2x-0.5x sales. The dividend yield went from 8% to zero, which almost always triggers a yield-buyer exodus.
Long-Term Price History
From the FY2019 peak of $0.624 the stock fell 85% to a low of $0.072 in April 2025, then recovered to $0.118. The bulk of the drawdown coincided with the two associate impairment announcements in FY2023 and FY2024. The recent bounce from $0.072 to $0.118 is a 64% move off the bottom but still leaves the stock 81% below its FY2019 high.
Peer Comparison
Wai Kee has few pure-play peers on HKEX. Road King Infrastructure (01098) is the associate that is driving the losses — included here for context, not as a peer. The broader HKEX construction and materials peer set trades at P/S of 0.2-0.5x with modest P/B ratios in a zero-yield environment.
On a per-unit-of-revenue basis, Wai Kee (P/S 0.05) is the cheapest name in the construction/industrials corner of HKEX. The discount is rational only if the Road King exposure is expected to worsen further or if the Build King subsidiary's cash is considered trapped at the holding company.
Fair Value Anchor
Third-party composite fair value models were not available for this dataset. Below is a simple analyst triangulation using the pieces that are knowable.
H1/H2 Trajectory
H2 FY2025 showed the first positive half-year EPS in three years at $0.114, suggesting the associate writedowns may have cycled through. Revenue has plateaued in the $830M-1,020M per half range for two years — consistent with a backlog-led business running at capacity rather than accelerating.
Takeaways
The quant case is a two-signal book: on the positive side, a 20-year revenue compounder trading at P/S under 0.1x, running net cash, with a profitable subsidiary (Build King, $4,070M backlog); on the negative side, two consecutive loss years driven by a 44.52% associate stake in a deeply troubled Chinese property and infrastructure business, a suspended dividend, and book value cut in half. Whether the stock is a value opportunity or a value trap depends almost entirely on whether further Road King impairments are in store.