Design Capital Limited (1545) AI Stock Analysis

• Market Cap: HK$200.00M
• Dividend Yield: 3.69%
• Average Volume (3M): 200.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• 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: 273,000
• 30 Day Avg. Volume: 200,666
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.10 ▲(8.89% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining profitability and cash flow issues. Technical analysis indicates overbought conditions, suggesting potential for a price correction. Valuation concerns are highlighted by a negative P/E ratio, though the high dividend yield offers some investor return. These factors collectively suggest caution for investors.

Positive Factors

Manageable leverage

A low debt-to-equity ratio provides durable financial flexibility, lowering default and refinancing risk. This supports continued investment in product development and partnerships, and makes the company more resilient to cyclical demand swings over the next several quarters.

Diversified revenue model

Multiple sales channels and revenue streams reduce concentration risk and smooth cash flows. Licensing and custom services can deliver higher-margin, recurring or contract-based income, supporting revenue stability and scalability even if one channel underperforms.

Design and sustainability focus

A clear design and sustainability orientation is a durable competitive advantage in consumer and corporate markets. It enables premium positioning, longer product relevance, stronger B2B licensing opportunities, and alignment with regulatory and procurement trends.

Negative Factors

Declining revenue trend

A multi-year revenue decline erodes scale economics and bargaining power with suppliers and retailers. Sustained top-line contraction pressures margins, limits reinvestment in R&D and design, and increases the risk that strategic initiatives cannot regain growth without structural change.

Eroding profitability and margins

Material margin compression reduces retained earnings and the ability to fund product development or marketing. Persistently thin margins make returns more sensitive to input cost increases and weaker pricing power, threatening long-term competitiveness and investor returns.

Declining free cash flow

Deteriorating free cash flow constrains capacity to invest in new designs, maintain manufacturing partnerships, or return capital. Even with strong operating cash to net income, falling FCF increases reliance on external financing and raises liquidity risk over the medium term.

Design Capital Limited Business Overview & Revenue Model

Company Description

Design Capital Limited, an investment holding company, engages in furniture business in Singapore, the United States, Malaysia, and Brunei. Its Interior Design segment offers interior design and fitting-out services for homes, offices, and commercial projects; and supplies and installs custom-made furniture. The company's Furniture Sales segment engages in the sale of furniture and projects; operation of furniture retail shops under the Marquis, Lifestorey, and OM brand names in Singapore; and supply of furniture to individuals and corporate customers. Its U.S. Furniture Sales segment is involved in the online sale of furniture in the U.S. market under the Target Marketing Systems, TMS, Simple Living, and Lifestorey brands. The company was founded in 1981 and is headquartered in Singapore.

How the Company Makes Money

Design Capital Limited generates revenue primarily through the sale of its designed products, which include consumer electronics, furniture, and other design solutions. The company employs a direct-to-consumer sales model, as well as partnerships with retailers and distributors, allowing it to reach a broader market. Key revenue streams include product sales, licensing agreements for its designs, and custom design services for corporate clients. Significant partnerships with manufacturing firms and retail chains further bolster its earnings, enabling the company to leverage economies of scale and expand its market presence.

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: Positive
• Last Price: 0.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 0.09 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.09, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 56.36 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 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
8395	62 Neutral	HK$310.46M	24.81	35.74%	―	125.71%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1572	54 Neutral	HK$152.15M	-225.00	-0.06%	―	-14.12%	-104.76%
1711	48 Neutral	HK$96.80M	-2.97	-87.26%	―	-12.97%	-20.77%
1939	48 Neutral	HK$445.34M	-24.30	-7.74%	―	85.29%	39.63%
1545	46 Neutral	HK$200.00M	-14.49	-4.46%	3.69%	-27.20%	-195.83%
0620	39 Underperform	HK$372.48M	-11.68	-3.08%	―	-33.28%	91.18%

Design Capital Limited Corporate Events

Design Capital Limited Clarifies Lease Renewal Agreement Details

Design Capital Limited has announced a supplemental update regarding its lease renewal agreement with Beach Road Hotel (1886) Ltd, which is wholly owned by Katara Hospitality Holding B.V., itself owned by Qatar Investment Authority. This announcement clarifies the ownership structure of the landlord involved in the lease, emphasizing that Qatar Investment Authority is an independent third party, potentially impacting stakeholder perceptions of the transaction’s transparency and governance.

The most recent analyst rating on (HK:1545) stock is a Hold with a HK$0.08 price target. To see the full list of analyst forecasts on Design Capital Limited stock, see the HK:1545 Stock Forecast page.

Design Capital Limited Announces Lease Renewal for Singapore Showroom

Design Capital Limited has announced a lease renewal agreement for its subsidiary, Marquis Furniture Gallery Pte Ltd, with Beach Road Hotel (1886) Ltd. The agreement involves a 36-month lease for a furniture showroom in Singapore, with a total rental consideration of approximately S$2.1 million. This transaction will be recognized as an acquisition of an asset under the Listing Rules, impacting the company’s financial statements and requiring disclosure due to its significance.

The most recent analyst rating on (HK:1545) stock is a Hold with a HK$0.08 price target. To see the full list of analyst forecasts on Design Capital Limited stock, see the HK:1545 Stock Forecast page.