Da Ming International Holdings Limited (1090) AI Stock Analysis

• Market Cap: HK$1.03B
• Dividend Yield: N/A
• Average Volume (3M): 17.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: -8.38%
• EPS Growth: -86.16%
• Country: HK
• Employees: 6,738
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): <0.01
• Shares Outstanding: 1,274,528,000
• 10 Day Avg. Volume: 19,200
• 30 Day Avg. Volume: 17,133
• PEG Ratio: -0.02
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.02
• P/FCF Ratio: -187.69
• 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: 46 Neutral
• Price Target: HK$0.86 ▲(1.41% Upside)

The score is primarily held back by weak financial performance (declining revenue, negative margins, and high leverage), only partly offset by a neutral technical backdrop (RSI in the mid-50s and price above key moving averages). Valuation provides limited support because the company is loss-making (negative P/E) and dividend yield data is unavailable.

Positive Factors

Diversified integrated business model

Da Ming operates across processing, trading and logistics for steel, serving construction, manufacturing and infrastructure sectors. This vertical integration and multi-end-market exposure supports more stable revenue channels and operational synergies over months, cushioning single-market shocks.

Positive free cash flow

A return to positive free cash flow enhances the firm's ability to fund working capital and maintenance capex internally, reduce reliance on new debt, and gradually restore liquidity. Persisting FCF provides structural flexibility to manage leverage and support operations over the medium term.

Stable asset base supporting operations

A stable asset base underpins capacity for steel processing and logistics, enabling fulfillment of large contracts and sustained production. In capital-intensive industries like steel, tangible assets and scale support competitive positioning and operational continuity over several months.

Negative Factors

Declining revenue trend

An 8% revenue decline signals weakening demand or lost market share, reducing utilization and operating leverage. Over months this depresses margins and cash generation, making recovery harder without structural demand improvement or successful repositioning in end markets.

Persistent weak profitability and thin margins

Very thin gross margins and a negative net margin indicate pricing pressure, cost or mix issues, and limited pricing power. Persistently negative EBIT/EBITDA margins constrain reinvestment, weaken returns, and make sustainable profitability dependent on meaningful operational improvements or cost restructuring.

High financial leverage and low equity buffer

A debt-to-equity near 2.9 and low equity ratio elevate liquidity and refinancing risk in a cyclical steel sector. High leverage increases interest burden and limits strategic flexibility, making the firm more vulnerable to demand slumps and cost shocks absent sustained cash flow improvement.

Da Ming International Holdings Limited Business Overview & Revenue Model

Company Description

Da Ming International Holdings Limited processes, distributes, and sells stainless steel and carbon steel products in the People's Republic of China and internationally. It offers high strength steel, wear-resistant steel, regular stainless steel, duel phase steel, heat-resistant steel, nickel based alloy, super austenitic-steel, and 6mo steel products. The company is also involved in the purchase and sale of metal materials; and distribution and sale of fixed assets. It serves machineries, distributors, petrochemical, home hardware and appliances, automobile and transport, construction, renewable energy, and other industries. The company was incorporated in 2007 and is headquartered in Wuxi, the People's Republic of China. Da Ming International Holdings Limited is a subsidiary of Ally Good Group Limited.

How the Company Makes Money

Da Ming International Holdings Limited generates revenue primarily through the sale of its steel products to various industries. The company's revenue model is driven by its steel processing and trading operations, which involve sourcing raw materials, processing them into finished goods, and distributing these products to customers. Key revenue streams include the sale of processed steel products, trading activities in the steel market, and logistics services related to the transportation and distribution of steel. Additionally, Da Ming may benefit from partnerships with suppliers and distributors, allowing for streamlined operations and increased market reach, contributing to its overall earnings.

Da Ming International Holdings Limited Financial Statement Overview

Summary

Overall financial health is weak: revenue declined (-8.13% YoY), profitability is negative (net margin -0.89%, EBIT margin -0.42%), and leverage is high (debt-to-equity 2.89; equity ratio 19.49%). A partial offset is that free cash flow turned positive, but cash conversion remains limited.

Income Statement

The income statement shows a concerning trend with declining revenues and negative net income in recent years. The revenue decreased by 8.13% from the previous year. Margins are under pressure, with the gross profit margin at approximately 1.48% and the net profit margin at -0.89% for the latest year. The company experienced a negative EBIT margin of -0.42% and a negative EBITDA margin of 0.49%, indicating operational challenges.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 2.89, which is concerning and indicates potential liquidity risks. The equity ratio stands at 19.49%, reflecting a relatively low equity buffer. Return on equity is negative at -16.40%, further highlighting profitability issues. Despite these challenges, the company maintains a stable asset base.

Cash Flow

Cash flow analysis indicates some improvement in free cash flow, which turned positive in the latest year. However, the operating cash flow to net income ratio is relatively low, indicating inefficiencies in converting sales to cash. The free cash flow to net income ratio is 0.22, showing a slight improvement but remains low, suggesting limited cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.85B	46.45B	50.56B	50.12B	46.35B	35.13B
Gross Profit	724.91M	685.69M	921.53M	908.63M	1.83B	1.43B
EBITDA	244.64M	226.89M	503.89M	503.36M	1.42B	1.03B
Net Income	-411.44M	-414.58M	-219.07M	-178.30M	495.04M	347.98M
Balance Sheet
Total Assets	17.12B	12.97B	13.19B	12.78B	11.96B	10.77B
Cash, Cash Equivalents and Short-Term Investments	511.04M	203.65M	324.35M	503.24M	183.28M	103.19M
Total Debt	11.66B	7.32B	7.37B	6.95B	5.88B	5.36B
Total Liabilities	14.23B	10.11B	9.91B	9.27B	8.21B	7.45B
Stockholders Equity	2.54B	2.53B	2.94B	3.17B	3.41B	2.96B
Cash Flow
Free Cash Flow	583.72M	-4.65M	-599.27M	-386.56M	-252.30M	-237.74M
Operating Cash Flow	754.24M	439.46M	67.28M	272.28M	436.24M	340.97M
Investing Cash Flow	-269.89M	-432.33M	-654.46M	-649.17M	-644.81M	-567.27M
Financing Cash Flow	-413.72M	-118.77M	444.39M	635.90M	248.89M	171.69M

Da Ming International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.85
• 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:1090, the sentiment is Negative. The current price of 0.85 is below the 20-day moving average (MA) of 0.85, below the 50-day MA of 0.86, and above the 200-day MA of 0.79, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.15 is Neutral, neither overbought nor oversold. The STOCH value of 17.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1090.

Da Ming International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1118	73 Outperform	HK$740.95M	4.43	12.17%	6.28%	-9.66%	21.61%
1553	73 Outperform	HK$637.69M	4.02	13.01%	7.84%	17.69%	-9.99%
6890	72 Outperform	HK$236.44M	5.35	4.73%	―	-20.52%	-68.47%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0103	51 Neutral	HK$1.59B	75.63	1.06%	2.77%	-8.90%	-79.06%
1090	46 Neutral	HK$1.03B	-2.31	-15.58%	―	-8.38%	-86.16%
1231	46 Neutral	HK$1.18B	-73.75	-7.12%	―	-49.95%	-310.53%