Design Capital Limited (1545) AI Stock Analysis

• Market Cap: HK$148.00M
• Dividend Yield: 5.14%
• Average Volume (3M): 232.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: -27.20%
• EPS Growth: -195.83%
• Country: HK
• Employees: 104
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): >-0.01
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 151,000
• 30 Day Avg. Volume: 232,000
• PEG Ratio: -0.87
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 3.07
• 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

• Rating: 53 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 53 reflects significant challenges in financial performance, with declining profitability and cash flow concerns. Technical analysis shows some short-term bullish momentum, but valuation is negatively impacted by a negative P/E ratio, despite a high dividend yield. The absence of earnings call and corporate events data limits further insights.

Design Capital Limited Business Overview & Revenue Model

Company Description

Design Capital Limited (1545) is a company engaged in the design and sale of a diverse range of furniture and home decor products. The company focuses on creating aesthetically pleasing and functional furniture solutions for residential and commercial spaces. With a commitment to quality and innovation, Design Capital Limited offers a wide array of products including sofas, tables, chairs, and decorative accessories, catering to various customer preferences and market trends.

How the Company Makes Money

Design Capital Limited makes money primarily through the sale of its furniture and home decor products. The company generates revenue by designing, manufacturing, and retailing a broad selection of furniture items to both individual consumers and commercial clients. Key revenue streams include direct sales through retail stores, online platforms, and distribution partnerships with other retailers. Additionally, the company may engage in collaborations with interior designers and architects to supply furniture for larger projects, which can contribute significantly to its earnings. Strategic partnerships and a strong brand presence are crucial factors that enhance Design Capital Limited's market reach and profitability.

Design Capital Limited Financial Statement Overview

Summary

Design Capital Limited faces challenges with declining revenue and profitability, as indicated by the income statement. The balance sheet remains stable with manageable leverage, but asset utilization efficiency has decreased. Cash flow analysis reveals fluctuating cash generation, with concerns over free cash flow sustainability. Overall, the company needs to address declining profitability and improve cash flow management to strengthen its financial position.

Income Statement

The income statement shows a declining trend in revenue and profitability. The revenue decreased from 2020 to 2024, with a significant drop in gross profit margin from 30.8% in 2020 to 30.6% in 2024. Net profit margin also declined from 6.5% in 2020 to 0.5% in 2024. The EBIT and EBITDA margins have similarly decreased, indicating reduced operational efficiency.

Balance Sheet

The balance sheet reflects a stable equity position with a debt-to-equity ratio of 0.23 in 2024, indicating manageable leverage. However, the equity ratio has slightly decreased from 56.5% in 2020 to 66.0% in 2024, suggesting a decline in asset utilization efficiency. Return on equity has also decreased, reflecting lower profitability.

Cash Flow

The cash flow statement shows fluctuations in operating cash flow, with a significant decline in free cash flow from 2020 to 2024. The operating cash flow to net income ratio is strong at 27.6 in 2024, indicating efficient cash generation relative to net income. However, free cash flow growth has been negative, highlighting potential challenges in sustaining cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.57M	61.83M	89.51M	96.53M	89.18M	114.28M
Gross Profit	17.07M	18.92M	27.61M	28.86M	27.07M	32.53M
EBITDA	-988.00K	1.38M	5.22M	7.59M	7.08M	9.71M
Net Income	-2.33M	321.00K	2.89M	4.54M	4.80M	7.41M
Balance Sheet
Total Assets	73.97M	81.49M	86.92M	93.65M	100.21M	100.47M
Cash, Cash Equivalents and Short-Term Investments	30.55M	31.68M	28.80M	21.32M	41.21M	50.86M
Total Debt	11.11M	12.59M	14.13M	15.91M	15.97M	16.01M
Total Liabilities	21.94M	25.34M	30.37M	38.52M	45.28M	41.93M
Stockholders Equity	49.58M	53.76M	54.01M	52.98M	52.08M	56.73M
Cash Flow
Free Cash Flow	759.00K	7.80M	12.54M	-11.08M	4.10M	21.14M
Operating Cash Flow	679.00K	8.88M	13.77M	-10.87M	5.11M	22.78M
Investing Cash Flow	1.42M	12.20M	-4.99M	13.02M	10.39M	-26.57M
Financing Cash Flow	-5.96M	-6.01M	-5.86M	-9.11M	-14.23M	-6.87M

Design Capital Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 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:1545, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.07, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.33 is Neutral, neither overbought nor oversold. The STOCH value of -28.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1545.

Design Capital Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8395	―	HK$337.39M	30.87	31.07%	―	52.73%	―
1572	―	HK$167.36M	36.21	-0.06%	―	-14.12%	-104.76%
1545	―	HK$148.00M	―	-4.46%	5.14%	-27.20%	-195.83%
1939	―	HK$4.47B	-230.08	-8.52%	―	7.26%	27.70%
1711	―	HK$120.00M	―	-92.80%	―	-10.85%	-64.42%
0620	―	HK$632.81M	-19.85	-3.08%	―	-33.28%	91.18%

Design Capital Limited Corporate Events

Design Capital Limited Appoints New Non-Executive Director

Design Capital Limited has announced the appointment of Mr. Dillon Kho Tse Kai as a non-executive director, effective from October 1, 2025. Mr. Kho brings experience from his previous roles in government and consultancy, and his appointment is expected to strengthen the company’s strategic planning and operations. This move may enhance the company’s industry positioning and stakeholder relations, given Mr. Kho’s familial ties to substantial shareholders of the company.

Design Capital Limited Announces New Board Composition

Design Capital Limited has announced the composition of its board of directors effective from October 1, 2025. The board includes executive, non-executive, and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees. This update reflects the company’s governance structure and may impact its strategic direction and stakeholder engagement.

Design Capital Limited Reports Significant Financial Decline in H1 2025

Design Capital Limited reported a significant decline in its financial performance for the six months ending June 30, 2025, with revenue dropping by 26.2% to S$23.2 million and gross profit decreasing by 20.1% to S$7.3 million compared to the same period in 2024. The company also recorded a loss of S$2.3 million, a stark contrast to the profit of S$239,000 in the previous year, indicating challenges in maintaining profitability amidst rising administrative expenses and reduced other income.

Design Capital Limited Schedules Board Meeting for Interim Results

Design Capital Limited has announced that its board of directors will hold a meeting on August 22, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the publication of these results and the potential declaration of an interim dividend, which could impact the company’s financial strategy and stakeholder interests.