Datronix Holdings Limited (0889) AI Stock Analysis

• Market Cap: HK$118.40M
• Dividend Yield: N/A
• Average Volume (3M): 264.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -17.44%
• EPS Growth: -66.75%
• Country: HK
• Employees: 720
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.02
• Shares Outstanding: 320,000,000
• 10 Day Avg. Volume: 65,000
• 30 Day Avg. Volume: 264,866
• PEG Ratio: -0.01
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 12.25
• 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: 55 Neutral
• Price Target: HK$0.50 ▲(35.14% Upside)

The overall stock score of 55 reflects significant financial challenges, including declining revenues and persistent losses. While technical indicators show positive momentum, the overbought RSI suggests caution. The valuation is unattractive due to negative earnings and lack of dividends. Strategic improvements are necessary to enhance financial performance and investor appeal.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal debt provides financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Cash Generation Ability

Improved free cash flow despite operational challenges indicates effective cost management and the ability to generate cash, which is crucial for funding operations and strategic initiatives.

Research and Development

Ongoing investment in R&D supports innovation, helping the company adapt to technological changes and meet evolving customer needs, which is vital for long-term competitiveness.

Negative Factors

Declining Revenue

Persistent revenue decline indicates challenges in market demand or competitive positioning, which can hinder growth and profitability if not addressed.

Profitability Challenges

Ongoing losses and negative profit margins reflect operational inefficiencies and market pressures, which could impact long-term viability if not rectified.

Cash Flow Pressure

Decreasing operating cash flow suggests difficulties in generating sufficient cash from core operations, potentially limiting the company's ability to invest in growth or manage liabilities.

Datronix Holdings Limited Business Overview & Revenue Model

Company Description

Datronix Holdings Limited, an investment holding company, manufactures and trades in electronic components. The company designs, manufactures, and sells magnetics that are used in consumer electronics, data processing appliances, and other electronics systems for coupling, isolation, filtering, interfacing, and timing control applications. It offers standard and customized magnetic components for various products, including transformers, LAN filter modules, digital delay modules, inductors/chokes, and ASDL transformers; planar magnetics; magnetics for aviation applications, hybrid network assemblies, power conversion, energy savings, medical devices/equipment, Internet equipment, and data acquisition/transmitter and signal conditioning; and magnetics components for DC/DC converters. The company also trades in electronic components; and holds properties. It serves telecommunications, communications, instrumentation, industrial equipment, computers and networking, Internet equipment, medical devices/equipment, and automotive markets. The company sells its products under the Datatronics brand name. It operates in the People's Republic of China, the United States, Vietnam, the European Union, and internationally. The company was incorporated in 2000 and is headquartered in North Point, Hong Kong. Datronix Holdings Limited is a subsidiary of Onboard Technology Limited.

How the Company Makes Money

Datronix Holdings Limited generates revenue through the sale of its magnetic components, which are integral parts of various electronic systems. The company's revenue model primarily revolves around direct sales to original equipment manufacturers (OEMs) and other industrial customers who require customized magnetic solutions. Key revenue streams include contracts with major telecommunications and electronics firms, where Datronix provides specialized components that are essential to their product functionality. Additionally, the company's emphasis on research and development enables it to maintain a competitive edge and adapt its product offerings to evolving technological demands, thereby sustaining its revenue growth. Significant partnerships with leading technology companies also contribute to its earnings by expanding its market reach and customer base.

Datronix Holdings Limited Financial Statement Overview

Summary

Datronix Holdings Limited faces significant financial challenges, with declining revenue and persistent losses impacting profitability. While the balance sheet remains strong with low leverage, cash flow generation is under pressure due to operational difficulties. Strategic improvements are necessary to enhance revenue and profitability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	172.52M	182.96M	222.43M	262.42M	243.60M	230.81M
Gross Profit	51.30M	53.33M	73.73M	80.67M	85.41M	79.89M
EBITDA	-28.74M	-33.57M	-4.92M	41.42M	19.55M	5.03M
Net Income	-42.21M	-51.26M	-24.23M	27.88M	3.83M	-6.91M
Balance Sheet
Total Assets	819.69M	816.34M	877.38M	927.08M	989.50M	959.84M
Cash, Cash Equivalents and Short-Term Investments	149.84M	151.32M	145.18M	144.68M	208.22M	256.72M
Total Debt	2.16M	2.36M	2.46M	2.47M	1.69M	1.44M
Total Liabilities	64.43M	61.70M	64.09M	76.80M	111.31M	94.25M
Stockholders Equity	755.26M	754.65M	813.28M	850.28M	878.19M	865.59M
Cash Flow
Free Cash Flow	-8.73M	6.79M	4.49M	-44.75M	-44.62M	-79.52M
Operating Cash Flow	-956.00K	15.37M	18.06M	-23.89M	-7.71M	8.77M
Investing Cash Flow	-4.79M	-11.32M	-9.02M	-44.02M	-35.94M	-85.15M
Financing Cash Flow	-2.05M	-1.62M	-1.20M	-6.14M	-7.12M	-10.02M

Datronix Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 0.37 is above the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.36, and above the 200-day MA of 0.33, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 63.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0889.

Datronix Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8070	68 Neutral	HK$138.00M	8.50	16.11%	―	25.67%	-6.77%
9918	64 Neutral	HK$105.00M	1.48	35.49%	―	-6.19%	283.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0889	55 Neutral	HK$118.40M	-2.81	-5.46%	―	-17.44%	-66.75%
0675	45 Neutral	HK$112.14M	-33.88	-1.26%	14.63%	-6.48%	74.69%
2363	44 Neutral	HK$65.35M	20.25	―	―	53.37%	-75.77%
0515	38 Underperform	HK$49.40M	-0.65	―	―	-84.61%	-14.10%

Datronix Holdings Limited Corporate Events

Datronix Holdings Secures Approval for New Supply Agreement

Datronix Holdings Limited announced that its Independent Shareholders have approved the New Master Supply Agreement with Datatronics Romoland, as well as the associated Annual Caps for the next three years, through a poll at a Special General Meeting held on November 28, 2025. This approval allows the company to proceed with the agreement, which is expected to impact its operations positively by securing a stable supply chain and potentially enhancing its market position.

The most recent analyst rating on (HK:0889) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Datronix Holdings Limited stock, see the HK:0889 Stock Forecast page.

Datronix Holdings to Approve New Supply Agreement at Upcoming SGM

Datronix Holdings Limited has announced a Special General Meeting (SGM) scheduled for November 28, 2025, to approve a New Master Supply Agreement with Datatronics Romoland. This agreement, which includes annual transaction caps for the next three years, is expected to impact the company’s operational strategy and market positioning by potentially expanding its supply chain capabilities and enhancing stakeholder value.

The most recent analyst rating on (HK:0889) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Datronix Holdings Limited stock, see the HK:0889 Stock Forecast page.

Datronix Holdings Limited Delays Circular Dispatch for New Agreement

Datronix Holdings Limited has announced a delay in the dispatch of a circular related to its New Master Supply Agreement. The circular, which includes important details and recommendations regarding the agreement, was initially scheduled for release by 31 October 2025 but will now be postponed to on or before 5 November 2025 due to the need for additional preparation time.

The most recent analyst rating on (HK:0889) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Datronix Holdings Limited stock, see the HK:0889 Stock Forecast page.