Deson Development International Holdings Limited (0262) AI Stock Analysis

• Market Cap: HK$121.75M
• Dividend Yield: N/A
• Average Volume (3M): 990.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -47.80%
• EPS Growth: 11.98%
• Country: HK
• Employees: 162
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): >-0.01
• Shares Outstanding: 1,466,820,600
• 10 Day Avg. Volume: 1,977,800
• 30 Day Avg. Volume: 990,000
• PEG Ratio: 0.46
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 3.87
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.08 ▼(-23.00% Downside)

The score is primarily held down by weak financial performance, including steep revenue decline, heavy operating losses, and pressured cash flow trends. Technicals also reflect bearish momentum with the stock below key moving averages and a negative MACD. Valuation provides limited offset because the negative P/E indicates ongoing losses and there is no dividend yield data to support the investment case.

Positive Factors

Low Financial Leverage

A low debt-to-equity ratio of 0.20 provides durable balance-sheet flexibility, reducing refinancing and interest-rate risk. This supports the firm's ability to bid on large construction projects and absorb cyclical revenue swings without immediate pressure to deleverage or sell core assets.

Diversified Revenue Streams

Multiple revenue channels—construction contracts, property sales/leasing and management—plus government and private partnerships create a more resilient project pipeline. This structural diversification reduces dependence on any single market and supports steadier cash flows over a 2–6 month to multi-year horizon.

Healthy Gross Profit Margin

A gross margin of ~42% indicates the company earns healthy spreads on direct construction and development work before overhead. That suggests underlying pricing power or cost control in core operations, giving scope to restore overall profitability if operating expenses and project execution are improved.

Negative Factors

Sharp Revenue Decline

A sharp revenue decline undermines scale economics and project pipeline visibility, reducing the firm's ability to spread fixed costs and negotiate favorable subcontractor terms. Sustained top-line contraction can materially impair margins and make it harder to restore sustainable profitability.

Deep Operating Losses

Severely negative EBIT and net margins indicate core operations are loss-making after overhead. Persistent operating losses erode equity, limit reinvestment in project execution and business development, and increase the risk that turnaround requires structural changes or asset disposals.

Weak Cash Generation

Declining free cash flow and an OCF-to-net-income ratio of 0.12 signal poor cash conversion. Weak cash generation constrains the company's ability to fund working-capital needs and new projects internally, increasing reliance on external financing or asset sales and raising execution risk.

Deson Development International Holdings Limited Business Overview & Revenue Model

Company Description

Deson Development International Holdings Limited, an investment holding company, primarily engages in the property investment and redevelopment businesses in Hong Kong and Mainland China. It invests in and develops residential and commercial properties. The company also trades in medical equipment, wellness, pandemic prevention, cosmetic, and home security and automation products; and provides related installation and maintenance services, as well as human resources services. In addition, it operates a hotel. The company was founded in 1988 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

Deson Development International Holdings Limited generates revenue primarily through its construction and property development activities. The company's key revenue streams include income from construction contracts, where it undertakes projects for governmental and private entities, and profits from the sale and leasing of developed properties. Additionally, the company may also earn income through property management services. Significant partnerships with government agencies and private developers contribute to its project pipeline, while a diversified portfolio in both commercial and residential segments helps stabilize its earnings. Fluctuations in the real estate market and government infrastructure spending can impact its revenue, making these factors critical to its financial performance.

Deson Development International Holdings Limited Financial Statement Overview

Summary

Financial performance is weak: revenue declined sharply (-27.23%) and profitability is deeply negative (net margin -54.42%, EBIT margin -42.59%). Leverage is manageable (debt-to-equity 0.20), but returns remain negative (ROE -5.87%) and cash flow trends are pressured (free cash flow growth -32.91%, low operating cash flow to net income at 0.12).

Income Statement

The company has experienced a significant decline in revenue over the past year, with a revenue growth rate of -27.23%. Margins are concerning, with a negative net profit margin of -54.42% and an EBIT margin of -42.59%. The gross profit margin is relatively healthy at 42.46%, but overall profitability is severely impacted by high operating losses.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.20, indicating a manageable level of debt. However, the return on equity is negative at -5.87%, reflecting ongoing losses. The equity ratio is not explicitly calculated, but the company maintains a substantial equity base relative to its assets.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate of -32.91%. The operating cash flow to net income ratio is low at 0.12, indicating limited cash generation relative to net losses. However, the free cash flow to net income ratio is 0.59, suggesting some ability to cover losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.17M	135.47M	128.07M	97.56M	110.00M	103.80M
Gross Profit	55.98M	57.52M	42.90M	40.33M	9.64M	48.76M
EBITDA	-41.08M	-43.31M	-22.99M	-36.53M	-27.52M	2.50M
Net Income	-64.70M	-73.72M	-75.69M	-90.97M	-27.27M	-36.74M
Balance Sheet
Total Assets	1.79B	1.74B	1.98B	2.26B	2.47B	2.39B
Cash, Cash Equivalents and Short-Term Investments	20.96M	36.07M	43.98M	25.36M	44.15M	20.59M
Total Debt	253.06M	249.19M	367.08M	477.47M	460.74M	485.46M
Total Liabilities	535.54M	500.18M	637.19M	795.53M	797.73M	804.62M
Stockholders Equity	1.27B	1.26B	1.35B	1.48B	1.68B	1.59B
Cash Flow
Free Cash Flow	-72.16M	21.97M	-32.78M	-56.02M	-32.68M	-38.34M
Operating Cash Flow	-40.40M	37.32M	-32.44M	-55.66M	-21.54M	-26.68M
Investing Cash Flow	100.56M	115.19M	148.25M	789.00K	33.94M	-17.72M
Financing Cash Flow	-78.25M	-154.36M	-102.87M	24.99M	18.88M	49.53M

Deson Development International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0262, the sentiment is Negative. The current price of 0.1 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.10, and above the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 32.56 is Neutral, neither overbought nor oversold. The STOCH value of 19.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0262.

Deson Development International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2286	51 Neutral	HK$142.80M	-0.49	-24.92%	―	-81.10%	-114.54%
6999	49 Neutral	HK$120.15M	-0.05	―	―	-54.30%	-57.24%
1201	46 Neutral	HK$1.04B	-7.32	-23.48%	―	-51.64%	55.46%
0262	41 Neutral	HK$121.75M	-1.86	-4.90%	―	-47.80%	11.98%
1232	39 Underperform	HK$72.86M	-0.14	―	―	-69.85%	55.83%

Deson Development International Holdings Limited Corporate Events

Deson Development Updates Board and Committee Composition Effective 31 December 2025

Deson Development International Holdings Limited has announced an updated composition of its board of directors effective 31 December 2025, confirming Tjia Boen Sien as Managing Director and Chairman alongside executive directors Wang Jing Ning, Tjia Wai Yip (William) and Tse Hoi Ying, and three independent non-executive directors: Siu Man Po, Siu Kam Chau and Song Sio Chong. The company has also detailed the refreshed structure of its key governance committees, appointing Siu Kam Chau as chairman of both the Audit and Remuneration Committees and Song Sio Chong as chairman of the Nomination Committee, with various directors serving as members across these bodies, signaling a continued emphasis on independent oversight and strengthened corporate governance for stakeholders.

The most recent analyst rating on (HK:0262) stock is a Hold with a HK$0.10 price target. To see the full list of analyst forecasts on Deson Development International Holdings Limited stock, see the HK:0262 Stock Forecast page.

Deson Development Announces Board and Committee Changes Effective End-2025

Deson Development International Holdings has announced that independent non-executive director Dr. Ho Chung Tai, Raymond will resign from the board and step down from the audit, remuneration and nomination committees with effect from 31 December 2025, citing personal commitments and confirming there is no disagreement with the board or issues requiring shareholder attention. To maintain continuity in oversight and governance, the company has appointed existing independent non-executive director Ir Siu Man Po to take up memberships on all three key board committees from the same date, ensuring these functions remain fully staffed and signalling a stable transition for stakeholders.

The most recent analyst rating on (HK:0262) stock is a Hold with a HK$0.10 price target. To see the full list of analyst forecasts on Deson Development International Holdings Limited stock, see the HK:0262 Stock Forecast page.

Deson Development Reports Decreased Revenue and Loss for Interim 2025

Deson Development International Holdings Limited reported its unaudited interim results for the six months ended September 30, 2025, revealing a significant decrease in revenue to HK$53,685,000 from HK$91,978,000 in the same period in 2024. Despite a reduction in losses compared to the previous year, the company still faced a loss of HK$5,606,000, attributed to higher administrative expenses and finance costs, impacting its profitability and market positioning.

The most recent analyst rating on (HK:0262) stock is a Hold with a HK$0.10 price target. To see the full list of analyst forecasts on Deson Development International Holdings Limited stock, see the HK:0262 Stock Forecast page.

Deson Development Schedules Board Meeting to Approve Interim Results

Deson Development International Holdings Limited has scheduled a board meeting for November 26, 2025, to discuss and approve its interim financial results for the six months ending September 30, 2025. The meeting will also consider the declaration and payment of an interim dividend, highlighting the company’s focus on shareholder returns and financial performance.