Waton Financial Ltd
WTF · Security & Commodity Brokers, Dealers, Exchanges & Services · EDGAR filings ↗
Grade
D43Small HK fintech/broker that swung to a large net loss with negative returns and heavy related-party dependence.
Strengths
- Modestly positive operating and free cash flow (OCF margin ~60th pct, FCF ~47th pct)
- Current/quick ratio ~1.4 provides adequate near-term liquidity
Risks
- FY2025 net loss of ~US$12M; ROE -94% and ROA -39% sit in the bottom decile (6th–7th pct)
- Extreme customer/related-party concentration — top customer ~64% of revenue, much of it from related party WGI; revenue fell ~26%
- HK/PRC governance and HKSFC regulatory inquiries add binary overhang
Notable findings
- Net lossNet loss (net margin -160.7%)
- Customer concentration~28% of revenue from one customer/distributor — 1%, 27
- Revenue declineRevenue -25.9% YoY
Key metrics
Operating margin
-143.0%
Net margin
-160.7%
Return on equity
-93.7%
Return on assets
-39.0%
Revenue growth (QoQ)
-25.9%
Net-income growth
-579.4%
Current ratio
1.4×
Free cash flow
$346K
EBITDA
-$11M
Tangible book value
$13M
Cash & investments
$11M
Stock comp / revenue
118.0%
Recent filings
| Form | Filed | Period | Accession |
|---|---|---|---|
| 20-F | 2025-07-24 | 2025-03-31 | 0001140361-25-027147 ↗ |