Design Capital Limited (1545) AI Stock Analysis

• Market Cap: HK$152.00M
• Dividend Yield: 5.07%
• Average Volume (3M): 358.33K
• Price to Earnings (P/E): 88.9
• 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: 389,000
• 30 Day Avg. Volume: 358,333
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 54 reflects significant challenges in financial performance, particularly declining profitability and cash flow concerns. While technical analysis shows some positive momentum, valuation metrics highlight potential profitability issues. The high dividend yield provides some appeal, but the negative P/E ratio is a concern. No earnings call or corporate events data were available to influence the score further.

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 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	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: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.08 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.08, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.98 is Neutral, neither overbought nor oversold. The STOCH value of 113.23 is Negative, 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	63 Neutral	HK$326.30M	29.86	31.07%	―	52.73%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1545	54 Neutral	HK$152.00M	88.89	-4.46%	5.07%	-27.20%	-195.83%
1572	54 Neutral	HK$169.05M	36.21	-0.06%	―	-14.12%	-104.76%
1939	54 Neutral	HK$5.01B	―	-8.52%	―	7.26%	27.70%
0620	46 Neutral	HK$785.00M	―	-3.08%	―	-33.28%	91.18%
1711	45 Neutral	HK$71.20M	―	-92.80%	―	-10.85%	-64.42%

Design Capital Limited Corporate Events

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.

Design Capital Limited Issues Profit Warning Amid Revenue Decline

Design Capital Limited has issued a profit warning, indicating a significant expected decrease in revenue of 20% to 30% for the first half of 2025 compared to the same period in 2024. The company anticipates an unaudited loss of S$2.0 million to S$2.5 million, primarily due to foreign exchange losses from the depreciating U.S. dollar and reduced furniture sales in the U.S. and Singapore markets. Despite these challenges, the company maintains a healthy financial position to navigate this period.

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.