Design Capital Limited (1545) AI Stock Analysis

• Market Cap: HK$146.00M
• Dividend Yield: 5.21%
• Average Volume (3M): 80.33K
• Price to Earnings (P/E): 81.1
• Beta (1Y): 0.01
• Revenue Growth: -30.83%
• EPS Growth: -89.29%
• Country: HK
• Employees: 104
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Specialty Retail
• EPS (TTM): 0.00
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 63,000
• 30 Day Avg. Volume: 80,333
• PEG Ratio: -0.70
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.62
• 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: 54 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is driven primarily by the company's financial performance and technical analysis. The strong balance sheet provides stability, but declining revenues and cash flow issues present challenges. Technical indicators point to a potential overvaluation with an overbought RSI, while the high P/E ratio further suggests the stock may be overpriced. The dividend yield offers some compensation for these risks.

Design Capital Limited Business Overview & Revenue Model

Company Description

Design Capital Limited (1545) is a company operating in the furniture and home accessories sector. It specializes in designing, manufacturing, and retailing a wide range of furniture products and home decor items. The company's offerings include modern and contemporary furniture pieces that cater to both residential and commercial markets.

How the Company Makes Money

Design Capital Limited generates revenue primarily through the sale of its furniture and home accessory products. The company operates through both physical retail outlets and an online platform, allowing it to reach a broad customer base. Key revenue streams include direct sales to consumers, bulk orders from commercial clients such as hotels and offices, and collaborations with interior designers and architects. Additionally, the company may engage in strategic partnerships with other brands to expand its product offerings and market reach, thus contributing to its earnings.

Design Capital Limited Financial Statement Overview

Summary

Design Capital Limited exhibits strengths in its balance sheet, with strong equity and moderate leverage. However, declining revenues, profitability margins, and inconsistent cash flows pose challenges. The company's financial stability is supported by its balance sheet, but operational and cash flow improvements are needed to enhance overall financial performance.

Income Statement

Design Capital Limited has experienced a declining trend in revenue over the past few years, with a significant drop from 2019 to 2024. Gross and net profit margins have also decreased, indicating reduced profitability. The revenue growth rate has been negative in recent years, which is a concern. However, the company maintains positive EBIT and EBITDA margins, showcasing operational efficiency despite the revenue decline.

Balance Sheet

The company has a strong equity position, with an improving equity ratio over the years. The debt-to-equity ratio remains moderate, suggesting manageable leverage. Return on equity has shown variability, reflecting changes in net income over time. Overall, the balance sheet remains stable with a substantial cash position contributing to liquidity.

Cash Flow

Cash flow metrics reveal challenges, with volatile operating cash flows and inconsistent free cash flow generation, particularly in recent years. The operating cash flow to net income ratio indicates that cash generation from operations is not consistently aligning with net income, which could affect financial flexibility. The lack of recent free cash flow growth is a notable risk.

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

Design Capital Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1545, the sentiment is Positive. The current price of 0.07 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.07, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 83.96 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1545.

Design Capital Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1572	58 Neutral	HK$148.76M	30.34	0.41%	―	16.97%	-59.72%
Sector *	56 Neutral	$3.37B	4.05	-1.30%	6.64%	0.16%	-63.79%
1545	54 Neutral	HK$146.00M	81.11	0.60%	5.21%	-30.83%	-89.29%
1711	52 Neutral	HK$50.40M	―	-92.80%	―	-13.99%	12.24%
1939	43 Neutral	HK$1.96B	―	-8.52%	―	-3.32%	-107.34%
8395	36 Underperform	HK$411.84M	280.00	31.07%	―	-13.93%	75.32%

Design Capital Limited Corporate Events

Design Capital Limited Appoints Independent Non-Executive Director

Design Capital Limited has announced the appointment of Mr. Hwang as an independent non-executive director. Mr. Hwang has confirmed his independence, having no financial or other interests in the company’s business or connections with any core connected persons, ensuring compliance with the relevant listing rules.

Design Capital Limited Unanimously Passes All AGM Resolutions

Design Capital Limited held its Annual General Meeting on June 16, 2025, where all proposed resolutions were unanimously approved by shareholders. Key decisions included the re-election of directors, reappointment of auditors, and granting of mandates for share buybacks and issuance, reflecting strong shareholder support and a stable governance structure.

Design Capital Limited Announces Annual General Meeting and Key Resolutions

Design Capital Limited has announced the details of its upcoming Annual General Meeting, scheduled for June 16, 2025, in Singapore. Key agenda items include the re-election of directors, re-appointment of auditors, and the consideration of resolutions to authorize the buyback of shares and the issuance of additional shares. These resolutions, if passed, could impact the company’s share structure and governance, potentially influencing its market positioning and shareholder value.