MeritValue

Wellchange Holdings Co Ltd

WCTdata completeness 88%4 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

Wellchange Holdings Co Ltd earns about 28% on invested capital, and has bought back 92% of its shares over 4 years. The applicable estimate puts fair value near $1.17 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025
Revenue$1.67M1$2.49M2$2.31M2$1.35M2
Net income$780,6483$937,6094−$431,5444−$7.32M4
Operating cash flow$1.17M5$797,2056−$316,1266−$6.32M6
Capital expenditure$125,5337$8188——
Free cash flow (derived)$1.04M5$796,3876——
Total debt—$993,0349$867,98210$831,89410
Cash & equivalents$261,37711$12,78312$250,31213$2.81M13
Diluted shares20.0M400,000406,0951.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$72.09
your share of equity
Profit it earned you last year
−$47.34
Free cash flow it threw off
—
Debt you’d be carrying
$5.38

10 shares is a claim on $72.09 of net worth that earned you −$47.34 last year, against $5.38 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
28% avg · 4y
FY22 142%FY23 31%FY24 -7%FY25 -55%

It earned an average 28% on invested capital over 4 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−92% shares · 4y

Share count is down 92% over 4 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 16% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$1.17
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$174,552
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2022-12-31 · accession 0001213900-25-044576 (Revenues)
  2. 20-F · period ending 2023-12-31 · accession 0001213900-26-055994 (Revenues)
  3. 20-F · period ending 2022-12-31 · accession 0001213900-25-044576 (NetIncomeLoss)
  4. 20-F · period ending 2023-12-31 · accession 0001213900-26-055994 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001213900-25-044576 (NetCashProvidedByUsedInOperatingActivities)
  6. 20-F · period ending 2023-12-31 · accession 0001213900-26-055994 (NetCashProvidedByUsedInOperatingActivities)
  7. 20-F · period ending 2022-12-31 · accession 0001213900-25-044576 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 20-F · period ending 2023-12-31 · accession 0001213900-26-055994 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 20-F · period ending 2023-12-31 · accession 0001213900-25-044576 (LongTermDebt)
  10. 20-F · period ending 2024-12-31 · accession 0001213900-26-055994 (LongTermDebt)
  11. 20-F · period ending 2022-12-31 · accession 0001213900-26-055994 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  12. 20-F · period ending 2023-12-31 · accession 0001213900-25-044576 (CashAndCashEquivalentsAtCarryingValue)
  13. 20-F · period ending 2024-12-31 · accession 0001213900-26-055994 (CashAndCashEquivalentsAtCarryingValue)