Daisho Microline Holdings Limited (0567) AI Stock Analysis

• Market Cap: HK$133.90M
• Dividend Yield: N/A
• Average Volume (3M): 255.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: -47.85%
• EPS Growth: -71.43%
• Country: HK
• Employees: 235
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): >-0.01
• Shares Outstanding: 1,613,287,600
• 10 Day Avg. Volume: 32,000
• 30 Day Avg. Volume: 255,233
• PEG Ratio: -0.15
• Price to Book (P/B): 3.34
• Price to Sales (P/S): 4.56
• P/FCF Ratio: 4.03K
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.08 ▲(2.50% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenue and profitability, and weak cash flow generation. Technical analysis indicates a bearish trend with potential for a slight rebound. Valuation metrics are poor, with a negative P/E ratio. The absence of earnings call data and corporate events further limits positive influences on the score.

Positive Factors

Low Leverage

Minimal leverage provides financial flexibility and reduces interest burden, allowing the company to potentially weather downturns better.

Strong Equity Base

A strong equity base enhances financial stability and can support future investments or absorb operational losses.

B2B Model

The B2B model ensures stable revenue streams through long-term contracts and partnerships, fostering sustained business relationships.

Negative Factors

Declining Revenue

Declining revenue indicates shrinking market presence or competitive pressures, which can undermine long-term growth prospects.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and can hinder investment in growth initiatives, affecting future profitability.

Weak Cash Flow

Weak cash flow limits the company's ability to fund operations and invest in growth, potentially leading to liquidity issues.

Daisho Microline Holdings Limited Business Overview & Revenue Model

Company Description

Daisho Microline Holdings Limited, an investment holding company, manufactures and trades in printed circuit boards. The company is also involved in the trading of petroleum and energy products, and related business; and manufacturing and trading of printing and packaging products. It has operations in the People's Republic of China, Hong Kong, South Korea, North America, Japan, Europe, and internationally. The company was incorporated in 1990 and is headquartered in Chai Wan, Hong Kong.

How the Company Makes Money

Daisho Microline Holdings Limited generates revenue primarily through the sale of its electronic components, which are supplied to various industries including telecommunications, consumer electronics, and industrial automation. The company's revenue model is largely based on direct sales to manufacturers and distributors, as well as long-term contracts with key clients. Significant partnerships with major players in the electronics sector enhance its market reach and stability, contributing to consistent earnings. Additionally, the company may benefit from economies of scale in production and improvements in operational efficiency, which further bolster its profit margins.

Daisho Microline Holdings Limited Financial Statement Overview

Summary

The company faces significant financial challenges. Revenue has declined sharply, and profitability is deeply negative. Despite a low debt-to-equity ratio, the return on equity is negative, and cash flow generation is extremely weak. Overall, the financial performance is poor, indicating substantial operational and financial inefficiencies.

Income Statement

The company has experienced a significant decline in revenue, with a negative revenue growth rate of -38.05% in the most recent year. Gross profit margin has slightly decreased to 19.26%, and the net profit margin is deeply negative at -39.79%, indicating substantial losses. EBIT and EBITDA margins are also negative, reflecting operational challenges. Overall, the income statement shows declining performance and profitability issues.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.0278, indicating minimal leverage, which is a positive aspect. However, the return on equity is negative at -29.13%, highlighting inefficiencies in generating returns from equity. The equity ratio stands at 69.10%, suggesting a strong equity base relative to total assets. Despite low leverage, the negative ROE indicates financial performance challenges.

Cash Flow

The cash flow statement reveals a drastic decline in free cash flow growth at -98.66%. The operating cash flow to net income ratio is very low at 0.0072, indicating poor cash generation relative to net income. The free cash flow to net income ratio is 0.27, showing limited free cash flow relative to losses. Overall, cash flow performance is weak, with significant challenges in generating positive cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.70M	53.10M	85.58M	83.76M	106.47M	67.89M
Gross Profit	10.41M	10.22M	17.72M	16.00M	7.80M	12.28M
EBITDA	-14.75M	-16.73M	-7.25M	-19.96M	-14.37M	-18.41M
Net Income	-19.29M	-21.13M	-11.87M	-26.02M	-29.13M	-66.98M
Balance Sheet
Total Assets	103.20M	104.91M	125.11M	144.60M	175.61M	230.16M
Cash, Cash Equivalents and Short-Term Investments	14.81M	21.00M	37.60M	49.61M	55.01M	30.33M
Total Debt	2.29M	2.02M	237.00K	985.00K	9.18M	90.17M
Total Liabilities	32.89M	32.40M	31.30M	38.69M	42.95M	135.04M
Stockholders Equity	70.31M	72.52M	93.81M	105.91M	132.66M	95.12M
Cash Flow
Free Cash Flow	-9.56M	60.00K	-11.25M	6.28M	-27.24M	39.65M
Operating Cash Flow	-9.43M	226.00K	-8.00M	6.84M	-25.97M	41.36M
Investing Cash Flow	-31.45M	-26.33M	-3.21M	-10.93M	52.00M	-16.87M
Financing Cash Flow	8.08M	8.51M	-780.00K	-1.06M	-1.62M	-26.22M

Daisho Microline Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0567, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.09, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 5.40 is Positive, neither overbought nor oversold. The STOCH value of 31.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0567.

Daisho Microline Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1621	69 Neutral	HK$123.00M	9.28	5.81%	―	-14.65%	-2.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8270	52 Neutral	HK$122.99M	-2.73	-31.34%	―	-29.86%	-791.02%
2728	45 Neutral	HK$102.47M	-6.39	-25.25%	―	-0.55%	-340.00%
8631	43 Neutral	HK$70.80M	-0.59	-632.63%	―	280.64%	-122.27%
0567	41 Neutral	HK$133.90M	-6.92	-25.40%	―	-47.85%	-71.43%
0332	40 Underperform	HK$111.28M	-0.05	―	―	-76.52%	-630.18%

Daisho Microline Holdings Limited Corporate Events

Daisho Microline Holdings Reports Interim Loss Amid Revenue Decline

Daisho Microline Holdings Limited reported its unaudited interim results for the six months ended September 30, 2025, showing a decrease in revenue from HK$37,412,000 in 2024 to HK$29,010,000 in 2025. Despite a slight increase in gross profit, the company recorded a loss of HK$2,469,000 for the period, which is an improvement from the previous year’s loss of HK$4,302,000. The announcement reflects ongoing challenges in the market, impacting the company’s financial performance and highlighting the need for strategic adjustments to improve profitability.

Daisho Microline Announces Upcoming Board Meeting for Interim Results

Daisho Microline Holdings Limited has announced a board meeting scheduled for November 20, 2025, to discuss and approve the unaudited interim results for the six months ending September 30, 2025. The meeting will also consider the possibility of declaring an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Daisho Microline Holdings Passes All Resolutions at 2025 AGM

Daisho Microline Holdings Limited announced that all proposed resolutions were successfully passed at their Annual General Meeting held on 23 September 2025. The resolutions included the re-election of directors, reappointment of the independent auditor, and granting of general mandates for share issuance and repurchase, reflecting strong shareholder support and strategic alignment for future growth.

Daisho Microline Holdings Limited Announces Contingency Plans for AGM Amid Weather Concerns

Daisho Microline Holdings Limited has announced arrangements for its Annual General Meeting (AGM) scheduled for 23 September 2025, with contingency plans in place due to potential bad weather conditions. If severe weather warnings are in effect, the AGM will be postponed to 30 September 2025, with all resolutions and proxy arrangements remaining unchanged, ensuring that shareholder entitlements are preserved.