Dynamic Holdings Limited (0029) AI Stock Analysis

• Market Cap: HK$3.11B
• Dividend Yield: 0.15%
• Average Volume (3M): 122.79K
• Price to Earnings (P/E): 0.5
• Beta (1Y): 0.77
• Revenue Growth: -23.73%
• EPS Growth: -101.00%
• Country: HK
• Employees: 50
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.23
• Shares Outstanding: 237,703,670
• 10 Day Avg. Volume: 90,800
• 30 Day Avg. Volume: 122,786
• PEG Ratio: -4.97
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 133.08
• 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: HK$14.00
• Price Target Upside: 6.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: HK$13.50 ▲(2.74%Upside)

The primary strength of Dynamic Holdings Limited is its robust revenue growth and efficient operations, as seen in its financial performance. However, significant risks stem from its poor cash flow management and unfavorable valuation metrics, including a negative P/E ratio. Technical indicators further contribute to a bearish outlook, emphasizing the need for caution.

Dynamic Holdings Limited Business Overview & Revenue Model

Company Description

Dynamic Holdings Limited, an investment holding company, engages in the investment and development of properties in the People's Republic of China and Hong Kong. The company's investment properties portfolio comprises offices, shopping malls, and car parks, as well as residential properties. It is also involved in the provision of nominee, management, financing, and management consultancy services. Dynamic Holdings Limited was founded in 1992 and is based in Causeway Bay, Hong Kong.

How the Company Makes Money

Dynamic Holdings Limited generates revenue through multiple streams within the real estate sector. The primary sources of income include sales of developed properties, rental income from leased properties, and property management services. The company also earns revenue through strategic property investments and joint ventures, which may include partnerships with other real estate firms or financial institutions. Market conditions, property values, and occupancy rates significantly impact the company's earnings, along with its ability to successfully develop and manage its property portfolio.

Dynamic Holdings Limited Financial Statement Overview

Summary

Dynamic Holdings Limited shows strong revenue growth and efficient cost management but faces challenges with negative free cash flow and cash conversion, posing risks to financial sustainability.

Income Statement

Dynamic Holdings Limited has shown a substantial increase in total revenue from HK$87.4 million in 2023 to HK$12.7 billion in 2024, indicating significant growth. The gross profit margin is exceptionally high at 99.8%, suggesting efficient cost management. However, the net profit margin at 42.1% is slightly lower due to high operational expenses. The EBIT margin is strong at 99.6%, though the negative EBITDA suggests potential issues in cash generation from operations. Overall, the income statement reflects strong revenue growth and efficient operations, albeit with some cash flow concerns.

Balance Sheet

The balance sheet of Dynamic Holdings Limited is robust, with a debt-to-equity ratio of 0.0008, indicating low leverage and a strong equity base. The equity ratio stands at 48.7%, reflecting balanced asset management. However, the return on equity is relatively modest at 72.8%, which could be improved by more efficient use of equity. The company maintains reasonable liquidity with substantial cash reserves, mitigating potential financial risks.

Cash Flow

Cash flow analysis indicates a concerning trend with negative free cash flow of HK$-41.8 million in 2024, down from positive HK$19.5 million in 2023. The operating cash flow to net income ratio is negative, highlighting challenges in converting net income into cash flow. Despite a high free cash flow to net income ratio in 2023, the recent decline suggests operational cash constraints. This area presents potential risks that need addressing to stabilize cash flow.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	67.05M	66.57M	87.45M	90.17M	91.37M	95.06M
Gross Profit	53.84M	39.96M	62.47M	65.20M	63.27M	68.60M
EBITDA	11.60M	-8.17M	24.01M	23.23M	21.41M	-44.34M
Net Income	-53.92M	5.35B	6.63M	31.15M	-14.06M	-28.41M
Balance Sheet
Total Assets	14.81B	15.08B	2.40B	2.69B	2.77B	2.52B
Cash, Cash Equivalents and Short-Term Investments	232.84M	422.34M	222.28M	323.11M	339.53M	280.40M
Total Debt	0.00	5.65M	1.13M	95.34M	101.46M	100.64M
Total Liabilities	7.56B	7.69B	372.15M	509.25M	561.16M	497.92M
Stockholders Equity	7.20B	7.35B	1.99B	2.13B	2.17B	1.99B
Cash Flow
Free Cash Flow	-25.89M	-41.80M	19.47M	5.34M	45.47M	31.11M
Operating Cash Flow	-25.89M	-41.19M	19.49M	5.41M	46.29M	31.28M
Investing Cash Flow	-4.78M	48.49M	5.55M	-2.61M	55.53M	15.12M
Financing Cash Flow	-4.57M	-4.66M	-96.75M	-9.82M	-8.49M	-13.02M

Dynamic Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.14
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0029, the sentiment is Negative. The current price of 13.14 is below the 20-day moving average (MA) of 13.21, below the 50-day MA of 13.55, and above the 200-day MA of 10.67, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 45.60 is Neutral, neither overbought nor oversold. The STOCH value of 41.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0029.

Dynamic Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$26.93B	15.26	-4.27%	3.16%	1.02%	1.89%
0105	64 Neutral	HK$1.85B	―	-7.47%	3.12%	2.38%	-13941.59%
0029	57 Neutral	HK$3.11B	0.55	-0.74%	0.15%	-23.73%	-101.00%
SOHOF		$390.82M	―	-0.31%	―	―	―
0277	49 Neutral	HK$499.02M	―	-2.14%	0.67%	1.66%	-51.60%
0266	48 Neutral	HK$1.00B	―	-7.76%	7.58%	1.98%	-1127.19%
0108	46 Neutral	HK$2.22B	―	-45.23%	―	-12.09%	-610.64%

Dynamic Holdings Limited Corporate Events

Dynamic Holdings Updates Nomination Committee Terms

Dynamic Holdings Limited has revised and adopted the terms of reference for its Nomination Committee, effective from July 1, 2025. The committee, established in 2012, will consist of at least three members, including a majority of independent non-executive directors and at least one director of a different gender. This move is expected to enhance the governance structure of the company, ensuring a diverse and independent board, which could positively impact its decision-making processes and stakeholder confidence.

Dynamic Holdings Announces Key Board Appointments

Dynamic Holdings Limited has announced changes in its board composition, appointing Mrs. TAN Carmen K. to the Nomination Committee, aligning with updated corporate governance codes. Additionally, Mrs. PASCUAL Sheila Tan has been appointed as an alternate director, bringing her extensive managerial experience in banking and airlines to the board, potentially enhancing the company’s strategic direction.

Dynamic Holdings Limited Announces Board Composition and Committee Roles

Dynamic Holdings Limited has announced the composition of its board of directors, which includes a mix of executive and independent non-executive directors. The board is led by Chairman Dr. Tan Lucio C. and CEO Mr. Chiu Siu Hung, Allan. The company has also outlined the members of its three key committees: Audit, Remuneration, and Nomination, each chaired by different board members. This announcement provides clarity on the governance structure of Dynamic Holdings Limited, which may impact its strategic decision-making and corporate governance practices.

Dynamic Holdings Announces Change in Share Registrar

Dynamic Holdings Limited has announced a change in its Hong Kong share registrar and transfer office, effective from May 16, 2025. This operational shift to Tricor Investor Services Limited is expected to streamline the company’s share registration and transfer processes, potentially impacting shareholder interactions and administrative efficiency.