DL Holdings Group Limited (1709) AI Stock Analysis

• Market Cap: HK$5.49B
• Dividend Yield: 0.54%
• Average Volume (3M): 95.03M
• Price to Earnings (P/E): 39.4
• Beta (1Y): 0.27
• Revenue Growth: 10.14%
• EPS Growth: N/A
• Country: HK
• Employees: 92
• Sector: Financial
• Sector Strength: 72
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.09
• Shares Outstanding: 1,549,392,800
• 10 Day Avg. Volume: 67,657,691
• 30 Day Avg. Volume: 95,027,664
• PEG Ratio: 210.90
• Price to Book (P/B): 8.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.56
• 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: 50 Neutral
• Price Target: ―

DL Holdings Group Limited's overall stock score reflects strong profitability and revenue growth but is offset by significant cash flow issues and technical indicators suggesting bearish sentiment. Additionally, the high P/E ratio indicates potential overvaluation, and the low dividend yield offers limited appeal to income-seeking investors. The company's financial stability is bolstered by moderate leverage, yet rising debt levels necessitate caution.

DL Holdings Group Limited Business Overview & Revenue Model

Company Description

DL Holdings Group Limited (1709) is a diversified investment holding company that operates across multiple sectors including financial services, investment management, and real estate. The company provides a broad spectrum of services ranging from asset management, financial advisory, to wealth management solutions, catering primarily to high-net-worth individuals and institutional clients.

How the Company Makes Money

DL Holdings Group Limited generates revenue primarily through its investment management and financial advisory services. The company earns fees based on the assets under management (AUM), performance fees linked to investment returns, and advisory fees for financial consulting services. Additionally, the company may generate income through strategic investments in real estate and other ventures that align with its investment strategy. Partnerships with financial institutions and leveraging its expertise in asset management contribute significantly to its revenue streams.

DL Holdings Group Limited Financial Statement Overview

Summary

DL Holdings Group Limited displays strong profitability and growth in its income statement, indicating effective cost management and revenue generation. The balance sheet reflects a stable financial position with moderate leverage, but rising debt levels should be monitored. Cash flow weaknesses are a concern, with negative operating and free cash flows needing attention. Overall, the company shows potential but must address cash flow management to ensure long-term stability.

Income Statement

DL Holdings showed a healthy rebound in profitability with a gross profit margin of 64.46% and net profit margin of 49.37% in the latest annual report. The revenue growth rate was 12.80% from 2023 to 2024, indicating a positive growth trajectory. EBIT and EBITDA margins were strong at 58.08% and 59.70%, respectively, reflecting efficient operations. However, past volatility in revenue and earnings poses some risk.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.59, indicating manageable leverage. The return on equity is 19.18%, showcasing decent profitability from shareholders' investments. The equity ratio stands at 48.40%, suggesting a stable capital structure. However, increasing debt levels require careful monitoring.

Cash Flow

DL Holdings experienced a significant decline in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is negative, indicating cash flow issues despite reported profits. The free cash flow to net income ratio also highlights cash flow challenges, necessitating improvements in operational cash management.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	202.35M	179.41M	300.42M	422.70M	225.98M
Gross Profit	130.46M	84.03M	156.43M	234.90M	29.25M
EBITDA	120.79M	-26.94M	137.07M	226.59M	-46.48M
Net Income	99.90M	-49.18M	109.78M	200.80M	-51.41M
Balance Sheet
Total Assets	1.08B	894.69M	914.78M	627.94M	211.11M
Cash, Cash Equivalents and Short-Term Investments	39.84M	83.50M	154.64M	56.22M	50.74M
Total Debt	307.02M	174.39M	208.01M	38.86M	11.24M
Total Liabilities	555.47M	458.94M	388.62M	127.38M	523.00K
Stockholders Equity	520.97M	435.75M	526.16M	500.56M	165.01M
Cash Flow
Free Cash Flow	-34.97M	194.19M	105.96M	48.31M	-7.84M
Operating Cash Flow	-33.66M	194.61M	108.15M	49.13M	-6.27M
Investing Cash Flow	-65.23M	-50.05M	15.80M	-114.30M	19.08M
Financing Cash Flow	-30.79M	-102.45M	62.38M	98.98M	356.00K

DL Holdings Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1709, the sentiment is Negative. The current price of 3.57 is below the 20-day moving average (MA) of 3.67, above the 50-day MA of 3.35, and below the 200-day MA of 4.10, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 49.49 is Neutral, neither overbought nor oversold. The STOCH value of 34.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1709.

DL Holdings Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2318	79 Outperform	$1.12T	8.08		4.93%	11.71%	37.04%
2388	78 Outperform	$386.44B	10.11	11.58%	5.46%	8.61%	16.84%
0011	76 Outperform	$231.33B	16.12	9.20%	6.06%	-2.77%	4.04%
0991	68 Neutral	£58.34B	11.10	17.92%	3.34%	-1.05%	―
Sector *	67 Neutral	$17.06B	11.24	9.31%	3.84%	11.08%	-3.39%
1709	50 Neutral	HK$5.49B	39.44	19.02%	0.54%	10.14%	―
1129	46 Neutral	HK$173.85M	―	-33.47%	―	-26.87%	-53.44%

DL Holdings Group Limited Corporate Events

DL Holdings Announces Share Transfer and ESOP Scheme for DL Digital Family Office

DL Holdings Group Limited, a company incorporated in the Cayman Islands, has announced a significant transaction involving its subsidiary, DL Digital Family Office. The company has agreed to sell 28% of DL Digital Family Office’s shares for approximately USD 9.80 million, valuing the entire entity at USD 35 million. Additionally, DL Holdings has implemented a DFO Share Scheme to incentivize key employees by transferring 25% of its issued share capital to an ESOP platform. Following these transactions, DL Digital Family Office will no longer be a subsidiary but will be accounted for as an associate, impacting the company’s financial reporting.

DL Holdings Group Proposes New 2025 Share Incentive Scheme

DL Holdings Group Limited has announced its intention to terminate its Existing Share Option Scheme, which was adopted in 2015 and is set to expire after a ten-year period. The company plans to replace it with the 2025 Share Incentive Scheme, aligning with the latest amendments in the Listing Rules effective from January 2023. This new scheme aims to provide more flexibility in long-term planning and compliance with updated regulations, ensuring the company can continue to attract and retain talent effectively. The adoption of the new scheme is subject to shareholder approval and regulatory permissions.

DL Holdings Group Invests in Swiss Asset Manager Youngtimers AG

DL Holdings Group Limited has announced a strategic equity investment of approximately US$1.7 million in Youngtimers AG, a Swiss asset management firm. This investment is part of DL Holdings’ ‘AI+ Globalization’ strategy, aiming to expand its market penetration in Europe, enhance alternative investment capabilities, and accelerate AI technology implementation. The collaboration with Youngtimers is expected to strengthen DL Holdings’ global presence and service network for high-net-worth customers, particularly in the Asia-Pacific region.

DL Holdings Group Limited Transitions to AI with Neuralfin Technology

DL Holdings Group Limited has announced the renaming of its subsidiary from DL Digital Family Office to Neuralfin Technology. This change reflects the company’s strategic shift towards incorporating artificial intelligence into its operations, aiming to create an AI-driven financial ecosystem that leverages cutting-edge global technology for wealth management and asset management services. The move is seen as a significant step in redefining the company’s market positioning in the AI-driven financial services sector.