Donaco International Ltd. (DNA) AI Stock Analysis

• Market Cap: AU$53.07M
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): 1.4
• Beta (1Y): 1.27
• Revenue Growth: 23.66%
• EPS Growth: 589.13%
• Country: AU
• Employees: 850
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): <0.01
• Shares Outstanding: 1,235,389,400
• 10 Day Avg. Volume: 5,275,951
• 30 Day Avg. Volume: 2,290,360
• PEG Ratio: -0.30
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ―

Donaco International Ltd. scores well overall with strong financial performance, driven by impressive profitability and growth, supported by a robust balance sheet and healthy cash flow generation. The stock's valuation is attractive, with a low P/E ratio suggesting potential undervaluation. Technical analysis shows positive price trends, further enhancing the stock's appeal. The absence of earnings call data and corporate events does not detract from the strong fundamentals and market performance.

Donaco International Ltd. Business Overview & Revenue Model

Company Description

Donaco International Limited engages in the leisure and entertainment business in the Asia Pacific region. It operates Star Vegas Resort & Club, a casino and hotel complex that comprises approximately 100 gaming tables, 800 slot machines, and 385 hotel rooms in Poipet, Cambodia; and Aristo International Hotel, a boutique casino, which includes 400 hotel rooms in northern Vietnam located in Yunnan, China. The company was incorporated in 1990 and is based in Sydney, Australia.

How the Company Makes Money

Donaco International Ltd. generates its revenue primarily through its gaming and casino operations. The company's revenue model includes earnings from table games, slot machines, and other gaming activities within its casinos. Additionally, the hospitality segment contributes to its income through hotel room bookings, dining services, and entertainment events hosted at its properties. Key revenue streams include gaming revenue, hospitality services, and ancillary services offered to guests. Strategic partnerships with local businesses and tourism companies enhance its market presence and customer base, further contributing to its earnings.

Donaco International Ltd. Financial Statement Overview

Summary

Donaco International Ltd. demonstrates strong financial performance, with impressive profitability and growth in its income statement. The balance sheet is robust with low leverage, and cash flow generation is healthy, supporting operational and financial strategies. Despite past volatility, the company shows resilience and potential for future growth.

Income Statement

Donaco International Ltd. has shown significant improvement in its income statement metrics over the past periods. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 65.8%, and the net profit margin is impressive at 93.3%, indicating robust profitability. The revenue growth rate from the previous annual period is 71.6%, demonstrating substantial growth. Despite past volatility, the company has achieved positive EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The balance sheet shows a healthy equity ratio of 79.2%, suggesting a strong equity base. The debt-to-equity ratio is low at 0.11, indicating low leverage and financial stability. The return on equity (ROE) is high at 22.1%, showcasing effective use of equity to generate profits. Overall, the balance sheet indicates strong financial health, with ample liquidity and low financial risk.

Cash Flow

The cash flow statement reveals a positive trend with a free cash flow growth rate of 51.5% in the latest TTM period. The operating cash flow to net income ratio is 0.46, and the free cash flow to net income ratio is 0.43, indicating efficient cash generation relative to net income. This performance highlights the company's ability to generate cash flow and invest in its operations.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	39.53M	24.33M	2.44M	10.30M	53.42M
Gross Profit	26.07M	23.38M	2.18M	9.92M	49.98M
EBITDA	45.55M	-26.39M	-6.58M	41.82M	-42.17M
Net Income	37.06M	-36.75M	-16.49M	25.18M	-58.95M
Balance Sheet
Total Assets	200.85M	181.76M	199.23M	199.12M	211.40M
Cash, Cash Equivalents and Short-Term Investments	29.69M	16.72M	6.09M	6.32M	12.63M
Total Debt	23.21M	27.46M	25.51M	18.79M	28.23M
Total Liabilities	47.65M	61.09M	45.34M	36.38M	73.46M
Stockholders Equity	152.02M	120.70M	152.27M	160.93M	135.90M
Cash Flow
Free Cash Flow	14.70M	11.12M	-5.71M	-4.73M	-4.29M
Operating Cash Flow	15.03M	11.25M	-5.71M	-4.54M	-3.21M
Investing Cash Flow	-331.51K	-108.44K	-1.89K	-187.82K	-1.03M
Financing Cash Flow	-2.46M	721.63K	4.63M	-1.55M	-9.70M

Donaco International Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DNA, the sentiment is Positive. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 94.26 is Negative, neither overbought nor oversold. The STOCH value of -100.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DNA.

Donaco International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNA	79 Outperform	AU$53.07M	1.36	26.04%	―	23.66%	589.13%
Sector *	64 Neutral	£1.73B	10.31	6.12%	3.19%	0.57%	-34.61%
AINSF	―	$215.53M	10.77	9.12%	―	―	―
PBTHF	―	$265.39M	―	-30.20%	39.49%	―	―
RCTUF	―	$115.31M	14.33	45.08%	6.08%	―	―
TPBTF	―	$91.86M	―	-36.49%	―	―	―
BBT	40 Underperform	AU$317.91M	―	-99.47%	―	76.49%	-75.29%

Donaco International Ltd. Corporate Events

Donaco International Faces Revenue Challenges Amid Border Dispute

Donaco International Limited reported a decline in net revenue and EBITDA for Q4 FY2025, primarily due to a border dispute affecting its Star Vegas operations in Cambodia. Despite challenges, Aristo International Hotel in Vietnam showed improved performance. The company is progressing with a proposed acquisition by On Nut Road Limited, with a Scheme Meeting scheduled for August 2025, and the board recommends shareholders vote in favor of the scheme.

Donaco International Advances Acquisition Proposal with Scheme Booklet Registration

Donaco International Limited has announced the registration of its Scheme Booklet with the Australian Securities and Investments Commission, a significant step in the proposed acquisition by On Nut Road Limited of all shares it does not already own. The Scheme Booklet, which includes an Independent Expert’s Report deeming the proposal fair and reasonable, will be distributed to shareholders by the end of June. Shareholders are encouraged to review the document thoroughly before the Scheme Meeting on August 4, 2025, where they will vote on the acquisition. The directors of Donaco recommend voting in favor of the Scheme, highlighting its alignment with shareholder interests in the absence of a superior proposal.

Court Approves Donaco’s Scheme Booklet Distribution for Acquisition

Donaco International Limited has received approval from the Supreme Court of New South Wales to distribute a Scheme Booklet and convene a Scheme Meeting as part of On Nut Road Limited’s proposed acquisition of the remaining shares in Donaco. The Independent Expert’s Report deems the Scheme fair and reasonable, and the Donaco Board recommends shareholders vote in favor of it, barring a superior proposal. This development is a significant step in the acquisition process, potentially impacting Donaco’s market position and shareholder interests.

Donaco’s Star Vegas Operations Hit by Thailand-Cambodia Border Tensions

Donaco International Limited has reported a significant impact on its Star Vegas operations due to heightened tensions and border restrictions between Thailand and Cambodia. Following a military clash, the Thai government has imposed measures such as reduced border crossing hours and a ban on non-essential travel, which have led to a 62% reduction in daily headcount and a 42% decrease in hotel occupancy at Star Vegas. These restrictions are expected to affect the casino’s profitability for June, and the company is closely monitoring the situation while both governments express a commitment to resolving the tensions.

Donaco International Faces Acquisition Delay and New Tax Liabilities

Donaco International Limited has announced a delay in the timeline for its acquisition by On Nut Road Limited due to extended valuation processes and legal analyses. Additionally, Donaco faces potential tax liabilities in Cambodia, as the government has clarified that a 10% VAT on gross gaming revenue, effective from January 2025, is applicable, despite previous deferments. This development could significantly impact Donaco’s financial obligations and operational costs.