Datronix Holdings Limited (0889) AI Stock Analysis

• Market Cap: HK$89.60M
• Dividend Yield: N/A
• Average Volume (3M): 10.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -17.74%
• EPS Growth: -111.62%
• Country: HK
• Employees: 720
• Sector: Technology
• Sector Strength: 91
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.16
• Shares Outstanding: 320,000,000
• 10 Day Avg. Volume: 13,400
• 30 Day Avg. Volume: 10,333
• PEG Ratio: <0.01
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.40
• 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$0.50
• Price Target Upside: 78.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: HK$0.50 ▲(78.57%Upside)

Datronix Holdings Limited's stock score is primarily affected by its weak financial performance, reflected by declining revenues and profitability challenges. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to ongoing losses. The balance sheet's strength cannot fully offset these weaknesses.

Datronix Holdings Limited Business Overview & Revenue Model

Company Description

Datronix Holdings Limited (0889) is a Hong Kong-based company primarily engaged in the design, manufacturing, and sale of magnetics products. The company offers a wide range of products including power supply devices, transformers, inductors, and other electronic components used in various sectors such as telecommunications, information technology, and consumer electronics. Datronix Holdings Limited is known for its innovation in developing efficient and reliable magnetics solutions tailored to the needs of its global clientele.

How the Company Makes Money

Datronix Holdings Limited generates revenue primarily through the sale of its magnetics products to various industries. The company designs and manufactures these products, which are essential components in electronic devices and systems. Revenue streams include direct sales to original equipment manufacturers (OEMs) and through distributors who supply these components to end-users across different sectors. Additionally, the company may engage in partnerships or collaborations with technology firms to develop customized solutions, contributing to its earnings. The demand for electronic components in telecommunications, IT, and consumer electronics plays a significant role in driving the company's revenue.

Datronix Holdings Limited Financial Statement Overview

Summary

Datronix Holdings Limited faces significant financial challenges with declining revenue and persistent losses impacting profitability. The balance sheet remains strong with low leverage, but cash flow generation is under pressure due to operational difficulties.

Income Statement

Datronix Holdings Limited shows a consistent decline in revenue over the past few years, with a significant drop of 17.74% from 2023 to 2024. The gross profit margin decreased from 33.16% in 2023 to 29.15% in 2024, and the company has been operating at a net loss for two consecutive years, with a net profit margin of -28.03% in 2024. Negative EBIT and EBITDA margins further highlight profitability challenges.

Balance Sheet

The company maintains a strong equity position with a high equity ratio of 92.45% in 2024. The debt-to-equity ratio is low at 0.003, indicating minimal reliance on debt. However, the return on equity turned negative at -6.79% in 2024, reflecting profitability issues affecting shareholder returns.

Cash Flow

Operating cash flow decreased by 14.89% from 2023 to 2024, while free cash flow improved due to reduced capital expenditures. The free cash flow to net income ratio is positive, indicating that the company generates cash despite net losses. However, the overall cash flow situation remains challenging due to declining revenues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	182.96M	222.43M	262.42M	243.60M	230.81M
Gross Profit	53.33M	73.73M	80.67M	85.41M	79.89M
EBITDA	-33.57M	-4.92M	41.42M	19.55M	5.03M
Net Income	-51.26M	-24.23M	27.88M	3.83M	-6.91M
Balance Sheet
Total Assets	816.34M	877.38M	927.08M	989.50M	959.84M
Cash, Cash Equivalents and Short-Term Investments	151.32M	145.18M	144.68M	208.22M	256.72M
Total Debt	2.36M	2.46M	1.42M	1.27M	859.00K
Total Liabilities	61.70M	64.09M	76.80M	111.31M	94.25M
Stockholders Equity	754.65M	813.28M	850.28M	878.19M	865.59M
Cash Flow
Free Cash Flow	6.79M	4.49M	-44.75M	-44.62M	-79.52M
Operating Cash Flow	15.37M	18.06M	-23.89M	-7.71M	8.77M
Investing Cash Flow	-16.86M	-9.02M	-44.02M	-35.94M	-85.15M
Financing Cash Flow	-1.62M	-1.20M	-6.14M	-7.12M	-10.02M

Datronix Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0889, the sentiment is Negative. The current price of 0.28 is above the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.29, and below the 200-day MA of 0.28, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0889.

Datronix Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$34.16B	5.78	-11.85%	1.82%	5.31%	-18.32%
8070	62 Neutral	HK$81.00M	4.61	19.19%	―	-12.09%	2.21%
9918	62 Neutral	HK$115.00M	1.59	38.89%	―	2.74%	5678.40%
0675	46 Neutral	HK$98.79M	―	-3.26%	21.62%	-5.04%	65.30%
0889	45 Neutral	HK$89.60M	―	-6.54%	―	-17.74%	-111.62%
0515	45 Neutral	HK$139.93M	―	-92.80%	―	-84.61%	-14.10%
2363	41 Neutral	HK$67.39M	5.06		―	-21.55%	83.95%

Datronix Holdings Limited Corporate Events

Datronix Holdings Announces Passing of Key Board Member

Datronix Holdings Limited, a company incorporated in Bermuda and listed on the Hong Kong Stock Exchange, has announced the passing of Mr. Chung Pui Lam, an Independent Non-executive Director. Mr. Chung was a key figure in the company, serving as the chairman of both the Remuneration and Nomination Committees and a member of the Audit Committee. His passing is a significant loss for the company, and the board has expressed their deepest condolences to his family and appreciation for his contributions.

Datronix Holdings Limited Announces Board and Committee Structure

Datronix Holdings Limited, a company incorporated in Bermuda, has announced the composition of its board of directors and their respective roles within the company. The board consists of executive directors, including Mr. Siu Ronald as Chairman and CEO, and independent non-executive directors. Additionally, the release details the membership of various board committees, highlighting the roles of each director in the audit, remuneration, and nomination committees. This announcement provides stakeholders with clarity on the governance structure of the company, which is crucial for ensuring effective oversight and strategic decision-making.

Datronix Holdings Limited Announces Board Composition and Committee Roles

Datronix Holdings Limited, a company incorporated in Bermuda, has announced the composition of its board of directors and their respective roles and functions. The board comprises both executive and independent non-executive directors, with Mr. Siu Ronald serving as the Chairman and CEO. The announcement also details the membership of various board committees, which is crucial for stakeholders to understand the governance structure and oversight within the company.

Datronix Holdings Limited Forms Nomination Committee to Enhance Board Governance

Datronix Holdings Limited has established a Nomination Committee to ensure a transparent and structured approach to board appointments and governance. This committee, primarily composed of independent non-executive directors, is tasked with formulating nomination policies, assessing board composition, and ensuring compliance with Hong Kong’s listing rules. The committee’s efforts are aimed at enhancing corporate governance and aligning the board’s composition with the company’s strategic objectives, which may positively impact stakeholders by promoting diversity and effective leadership.

Datronix Holdings Appoints New Independent Non-Executive Director

Datronix Holdings Limited has announced the appointment of Mr. Won Chik Kee as an independent non-executive director, effective from June 30, 2025. Mr. Won will also join the company’s nomination, remuneration, and audit committees. This strategic appointment is expected to enhance the governance and oversight capabilities of the company, potentially impacting its operational effectiveness and stakeholder confidence positively.