DeTai New Energy Group (0559) AI Stock Analysis

• Market Cap: HK$58.07M
• Dividend Yield: N/A
• Average Volume (3M): 722.14K
• Price to Earnings (P/E): 1.7
• Beta (1Y): 0.32
• Revenue Growth: 8.87%
• EPS Growth: N/A
• Country: HK
• Employees: 35
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 0.05
• Shares Outstanding: 523,184,400
• 10 Day Avg. Volume: 1,130,614
• 30 Day Avg. Volume: 722,143
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 2.27
• P/FCF Ratio: 0.00
• 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: 56 Neutral
• Price Target: HK$0.15 ▲(70.00% Upside)

The overall stock score is primarily influenced by the company's strong technical momentum, despite financial challenges and poor valuation metrics. The overbought RSI suggests caution, while financial difficulties highlight the need for operational improvements.

Positive Factors

Governance Enhancement

The strategic appointment to the Nomination Committee is expected to enhance governance, potentially improving operational efficiency and stakeholder relations.

Low Leverage

A low Debt-to-Equity ratio indicates reduced financial risk, enhancing financial stability and flexibility for future investments.

Diverse Revenue Streams

Diversified revenue streams across different sectors provide resilience against industry-specific downturns, supporting long-term stability.

Negative Factors

Negative Cash Flows

Negative cash flows indicate liquidity challenges, which can constrain the company's ability to invest in growth and manage operations effectively.

Persistent Losses

Ongoing losses and negative net income reflect operational challenges, hindering the company's ability to generate returns and invest in future growth.

Negative Profit Margins

Negative profit margins indicate inefficiencies and challenges in cost management, impacting the company's ability to achieve sustainable profitability.

DeTai New Energy Group Business Overview & Revenue Model

Company Description

DeTai New Energy Group Limited, an investment holding company, engages in the hotel hospitality business. It operates One Niseko Resort Towers, a hotel located in the Niseko, Hokkaido. The company also provides money lending services; trades in and distributes liquor and wine; and invests in funds. It primarily operates in Japan, Hong Kong, and the People's Republic of China. The company was formerly known as Guocang Group Limited and changed its name to DeTai New Energy Group Limited in December 2015. DeTai New Energy Group Limited is headquartered in Central, Hong Kong.

How the Company Makes Money

DeTai New Energy Group makes money through multiple revenue streams. Its primary source of income is from its investments and operations in the renewable energy sector, particularly through the generation and sale of solar power. The company also earns revenue from its hotel operations by providing accommodation and related services to guests. Additionally, the production and distribution of alcoholic beverages contribute to its earnings, with sales to both domestic and international markets. Partnerships with energy companies, hospitality entities, and distributors also play a significant role in enhancing the company's revenue potential.

DeTai New Energy Group Financial Statement Overview

Summary

DeTai New Energy Group faces significant financial challenges with persistent losses impacting profitability. The company has a strong equity position but struggles with negative cash flows, indicating potential liquidity issues. Improvement in revenue growth and profitability is crucial for stability.

Income Statement

The company has been struggling with profitability, evidenced by a consistently negative net income and EBIT over recent years. The Gross Profit Margin has increased slightly from 55.9% to 46.6%, but the Net Profit Margin remains negative. Revenue growth is minimal, at 0.3% from 2023 to 2024. The company's EBIT and EBITDA margins are also negative, indicating ongoing operational challenges.

Balance Sheet

The balance sheet shows a stable equity position with a high equity ratio of 86.6% in 2024, indicating low leverage. The Debt-to-Equity ratio has decreased to 0.06, suggesting reduced financial risk from debt. However, the Return on Equity (ROE) is negative due to persistent net losses, reflecting challenges in generating returns on shareholders' equity.

Cash Flow

Operating cash flow has deteriorated into negative territory, and free cash flow also shows a significant decline. The Free Cash Flow to Net Income ratio is negative, indicating cash flow challenges. The company has been able to maintain a positive cash balance, but the negative cash flows suggest potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.04M	34.04M	31.27M	31.16M	41.05M	24.09M
Gross Profit	15.77M	15.77M	14.57M	17.41M	-17.06M	10.92M
EBITDA	6.46M	-2.98M	-66.77M	-65.66M	-131.12M	-31.55M
Net Income	33.61M	33.61M	-70.77M	-69.83M	-135.84M	-44.40M
Balance Sheet
Total Assets	555.73M	555.73M	501.15M	620.59M	718.85M	1.00B
Cash, Cash Equivalents and Short-Term Investments	280.21M	280.21M	247.18M	242.47M	368.51M	343.58M
Total Debt	21.29M	21.29M	24.61M	46.18M	54.90M	128.87M
Total Liabilities	65.70M	65.70M	67.10M	94.44M	109.28M	197.54M
Stockholders Equity	490.03M	490.03M	434.04M	526.15M	609.57M	802.91M
Cash Flow
Free Cash Flow	-8.14M	0.00	-15.04M	8.02M	113.21M	-24.89M
Operating Cash Flow	-7.21M	0.00	-13.49M	9.45M	113.94M	-20.01M
Investing Cash Flow	-932.00K	0.00	15.22M	45.56M	-280.38M	9.87M
Financing Cash Flow	-3.12M	0.00	-6.95M	-8.06M	-69.80M	-12.26M

DeTai New Energy Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0559, the sentiment is Positive. The current price of 0.09 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.12, and below the 200-day MA of 0.15, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.71 is Neutral, neither overbought nor oversold. The STOCH value of 5.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0559.

DeTai New Energy Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0559	56 Neutral	HK$58.07M	1.73	7.28%	―	8.87%	―
0181	49 Neutral	HK$106.54M	21.02	1.89%	―	-32.86%	―
1355	47 Neutral	HK$146.75M	-2.01	―	―	-16.39%	-10.74%
0193	46 Neutral	HK$51.54M	-3.30	-1.69%	―	-4.96%	-332.17%
8237	42 Neutral	HK$46.24M	-0.25	―	―	-38.95%	-132.68%

DeTai New Energy Group Corporate Events

DeTai New Energy Group Secures Shareholder Approval for AGM Resolutions

DeTai New Energy Group Limited announced that all resolutions proposed at its Annual General Meeting held on December 2, 2025, were approved by shareholders. These resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting mandates related to securities and share repurchases, reflecting strong shareholder support and confidence in the company’s governance and strategic direction.

The most recent analyst rating on (HK:0559) stock is a Hold with a HK$0.15 price target. To see the full list of analyst forecasts on DeTai New Energy Group stock, see the HK:0559 Stock Forecast page.

DeTai New Energy Seeks Review of Listing Decision Amidst Operational Concerns

DeTai New Energy Group Limited has requested a review of the Hong Kong Stock Exchange’s decision regarding its failure to maintain sufficient operations and asset value, which could lead to a suspension of its share trading. The outcome of this review is uncertain and could significantly impact the company’s market presence and investor relations.

DeTai New Energy Group Faces Potential Trading Suspension

DeTai New Energy Group Limited faces a potential suspension of its stock trading on the Hong Kong Stock Exchange due to insufficient operations and asset value. The Stock Exchange expressed concerns over the company’s viability, citing low revenue and losses in its hotel business, and questioned the feasibility of its renovation plans and future projections. The company’s other ventures, including money lending and securities investments, are also deemed unsustainable.

DeTai New Energy Group Announces 2025 AGM and Share Issuance Plans

DeTai New Energy Group Limited has announced its 2025 Annual General Meeting, scheduled for December 2, 2025, in Hong Kong. The meeting will address standard business matters, including the adoption of financial statements, re-election of directors, and re-appointment of auditors. Additionally, the company seeks approval to issue new shares and securities, which could impact its capital structure and market positioning.