D&G Technology Holding Company Limited (1301) AI Stock Analysis

• Market Cap: HK$216.31M
• Dividend Yield: N/A
• Average Volume (3M): 75.47K
• Price to Earnings (P/E): 34.5
• Beta (1Y): 0.20
• Revenue Growth: 47.29%
• EPS Growth: N/A
• Country: HK
• Employees: 330
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 626,984,000
• 10 Day Avg. Volume: 98,400
• 30 Day Avg. Volume: 75,466
• PEG Ratio: -0.84
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 1.18
• P/FCF Ratio: -4.90
• 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: 44 Neutral
• Price Target: HK$0.36 ▲(7.06% Upside)

The overall stock score is primarily influenced by the company's financial performance and technical analysis. The significant challenges in profitability and cash flow management, combined with bearish technical indicators, weigh heavily on the score. The high P/E ratio suggests potential overvaluation, further impacting the stock's attractiveness.

Positive Factors

Revenue Growth

The company's ability to achieve significant revenue growth indicates strong demand for its technology solutions and potential market expansion.

Low Leverage

A low debt-to-equity ratio suggests financial stability and provides the company with flexibility to invest in growth opportunities without the burden of high debt.

Market Position

The company's focus on advanced technology solutions positions it well in growing markets like smart cities and energy efficiency, providing long-term growth potential.

Negative Factors

Profitability Challenges

Ongoing profitability issues indicate difficulties in managing operating costs, which could impact long-term financial health and investment capacity.

Cash Flow Issues

The absence of operational cash flow highlights potential liquidity problems, which could limit the company's ability to fund operations and growth initiatives.

Declining Asset Base

A declining asset base raises concerns about asset management and could pose risks to the company's financial stability and ability to leverage assets for growth.

D&G Technology Holding Company Limited Business Overview & Revenue Model

Company Description

D&G Technology Holding Company Limited, together with its subsidiaries, engages in the research, development, manufacture, distribution, and leasing of asphalt mixing plants in the People's Republic of China and internationally. Its products include conventional and recycling hot-mix asphalt mixing plants. The company also engages in the selling of spare parts and components; and provides equipment modification services, including modifying conventional plants, installing components with recycling functions, upgrading control systems, and other customized services. The company was founded in 1999 and is headquartered in Sheung Wan, Hong Kong. D&G Technology Holding Company Limited is a subsidiary of Prima Dg Investment Holding Company Limited.

How the Company Makes Money

D&G Technology generates revenue through multiple channels, primarily by selling its technology products and solutions to government entities, corporations, and other businesses looking to integrate advanced technology into their operations. Key revenue streams include the sale of smart city infrastructure components, energy management systems, and consulting services related to technology implementation. The company also benefits from strategic partnerships with other technology firms and government agencies, which enhance its market reach and allow it to participate in larger projects and initiatives. Additionally, revenue may be bolstered through research grants and subsidies aimed at promoting innovation in technology.

D&G Technology Holding Company Limited Financial Statement Overview

Summary

The company faces significant challenges in profitability and cash flow management, despite some recovery in revenue growth. The balance sheet is relatively strong due to low leverage, but the declining asset base and absence of operational cash flow highlight potential liquidity constraints and operational inefficiencies.

Income Statement

The income statement shows modest revenue growth of 33.32% from 2023 to 2024, recovering from a previous decline. However, the company has struggled with profitability, evidenced by negative EBIT and fluctuating net income, indicating challenges in managing operating costs effectively.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 76.62% in 2024, supported by low debt levels, resulting in a favorable debt-to-equity ratio of 0.0023. However, the decline in stockholders' equity and total assets over the years raises concerns about asset management and potential risks to financial stability.

Cash Flow

The cash flow statement shows no operational cash flow in 2024, a drastic change from previous years and a negative trend in free cash flow, indicating potential liquidity issues. The lack of positive cash flow from operations could hinder the company's ability to invest in growth or manage debt effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	336.30M	370.56M	277.86M	345.39M	429.20M	378.93M
Gross Profit	111.19M	123.88M	85.26M	103.86M	140.42M	78.00M
EBITDA	8.89M	3.89M	-9.62M	-53.49M	6.77M	-12.40M
Net Income	7.99M	4.41M	-23.86M	-40.79M	10.66M	-17.24M
Balance Sheet
Total Assets	770.89M	737.68M	777.13M	858.10M	919.63M	923.13M
Cash, Cash Equivalents and Short-Term Investments	55.88M	48.93M	181.41M	199.94M	199.64M	188.78M
Total Debt	696.00K	1.28M	2.47M	13.84M	21.99M	34.67M
Total Liabilities	215.24M	172.40M	173.60M	232.36M	252.44M	275.91M
Stockholders Equity	555.65M	565.28M	603.52M	625.74M	667.19M	647.22M
Cash Flow
Free Cash Flow	-29.31M	-89.42M	-52.98M	9.85M	-3.83M	117.69M
Operating Cash Flow	-28.86M	-87.55M	-52.15M	12.48M	2.65M	126.52M
Investing Cash Flow	7.16M	21.72M	6.13M	3.22M	10.73M	9.68M
Financing Cash Flow	-2.67M	-47.58M	7.14M	-19.35M	213.00K	-40.30M

D&G Technology Holding Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1301, the sentiment is Negative. The current price of 0.34 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.41, and below the 200-day MA of 0.60, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 29.48 is Positive, neither overbought nor oversold. The STOCH value of -3.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1301.

D&G Technology Holding Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1556	79 Outperform	HK$525.00M	3.92	17.51%	5.71%	17.51%	1.48%
6829	64 Neutral	HK$855.36M	101.02	2.76%	―	22.30%	48.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0924	59 Neutral	HK$123.00M	-9.92	-5.92%	―	13.28%	―
1746	47 Neutral	HK$300.00M	-46.15	-4.80%	―	-30.56%	-160.00%
1301	44 Neutral	HK$216.31M	34.50	1.06%	―	47.29%	―

D&G Technology Holding Company Limited Corporate Events

D&G Technology Announces Shareholding Reorganization in Prima DG

D&G Technology Holding Company Limited announced a change in the shareholding structure of its controlling shareholder, Prima DG, as part of family planning and succession arrangements. The reorganization involved transferring shares within the Choi Family, with Mr. HN Choi initially increasing his shareholding before redistributing it equally to Mr. D Choi and Ms. G Choi. Despite these changes, Prima DG remains the controlling shareholder of D&G Technology, holding approximately 55.14% of the company’s issued share capital. The Choi Family retains full ownership of Prima DG, and a waiver was granted to avoid triggering a mandatory general offer under the Takeovers Code.