Diwang Industrial Holdings Limited (1950) AI Stock Analysis

• Market Cap: HK$171.36M
• Dividend Yield: N/A
• Average Volume (3M): 2.03M
• Price to Earnings (P/E): 6.8
• Beta (1Y): -0.03
• Revenue Growth: -12.19%
• EPS Growth: 108.93%
• Country: HK
• Employees: 217
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.02
• Shares Outstanding: 720,000,000
• 10 Day Avg. Volume: 3,962,840
• 30 Day Avg. Volume: 2,032,546
• PEG Ratio: 2.13
• Price to Book (P/B): 0.14
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -2.73
• 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: 64 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 64 reflects a mixed financial performance with a strong balance sheet but concerning cash flow issues. Technical analysis indicates potential short-term weakness, while the valuation suggests the stock may be undervalued. The absence of earnings call and corporate events data limits the analysis.

Diwang Industrial Holdings Limited Business Overview & Revenue Model

Company Description

Diwang Industrial Holdings Limited, an investment holding company, engages in the research and development, manufacture, and sale of coating agents and synthetic resins in the People's Republic of China, Mexico, Turkey, and Vietnam. It offers colourants, finishes, and additives for use in apparel, footwear, handbags, automobile interior decoration, home furnishings, and sports equipment industries. The company was formerly known as Sunlight Technology Holdings Limited and changed its name to Diwang Industrial Holdings Limited in May 2022. Diwang Industrial Holdings Limited was founded in 2003 and is headquartered in Hangzhou, the People's Republic of China.

How the Company Makes Money

Diwang Industrial Holdings Limited generates revenue through multiple streams. Primarily, the company earns money from the sale of industrial products manufactured in its facilities, which are distributed across different regions. Additionally, it derives significant income from its real estate division, which involves the development, sale, and leasing of commercial and residential properties. The trading segment of the company deals with the import and export of various goods, adding another layer to its revenue. Strategic partnerships with other firms and government entities also play a crucial role in enhancing its business operations and financial performance.

Diwang Industrial Holdings Limited Financial Statement Overview

Summary

Diwang Industrial Holdings Limited shows a mixed financial performance. The balance sheet is strong with a robust capital structure, but the income statement indicates irregular growth and profitability trends. The cash flow performance raises concerns due to persistent negative flows, suggesting potential liquidity constraints.

Income Statement

The company exhibits a mixed income statement performance. It has shown strong gross profit margins, consistently above 40% in recent years, indicating effective cost management. The net profit margin improved from negative in 2020 to positive in 2024, reflecting significant recovery. However, revenue growth has been inconsistent, with a decline noted in 2024, suggesting potential market challenges. Additionally, EBIT and EBITDA margins have fluctuated, indicating some volatility in operating performance.

Balance Sheet

The company's balance sheet is strong, with a healthy equity ratio of approximately 77% in 2024, pointing to a robust capital structure. The debt-to-equity ratio remains low, demonstrating prudent leverage management. Return on equity improved to 4.66% in 2024, showcasing better profitability on shareholders' investments. However, there is a noticeable increase in total debt in 2024, which may need monitoring.

Cash Flow

The cash flow statement reveals considerable weaknesses, with negative free cash flow growth and operating cash flow over the past years. This indicates challenges in generating sufficient cash from operations to cover capital expenditures and suggests reliance on external financing. The absence of operating cash flow in 2024 further highlights potential liquidity issues. The free cash flow to net income ratio is unfavorable, underlining inefficiencies in translating profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	537.53M	566.48M	570.57M	501.44M	233.94M	134.44M
Gross Profit	243.71M	257.30M	233.38M	193.70M	38.88M	31.60M
EBITDA	37.98M	44.27M	46.54M	90.38M	12.93M	12.07M
Net Income	23.40M	30.03M	19.45M	21.85M	-2.60M	-3.16M
Balance Sheet
Total Assets	923.48M	827.68M	737.59M	446.38M	313.17M	264.01M
Cash, Cash Equivalents and Short-Term Investments	82.31M	60.70M	58.47M	57.82M	64.71M	79.64M
Total Debt	114.06M	64.96M	25.00M	10.00M	0.00	0.00
Total Liabilities	218.13M	158.94M	99.00M	96.00M	43.59M	26.66M
Stockholders Equity	654.96M	644.09M	613.92M	331.14M	269.58M	237.35M
Cash Flow
Free Cash Flow	-32.17M	-34.13M	-273.61M	-42.09M	-32.23M	-14.38M
Operating Cash Flow	27.37M	58.98M	-216.32M	-14.50M	-2.06M	5.78M
Investing Cash Flow	-51.68M	-90.18M	-61.43M	-14.85M	-87.68M	-16.34M
Financing Cash Flow	57.76M	37.11M	278.90M	48.47M	38.96M	76.80M

Diwang Industrial Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1950, the sentiment is Positive. The current price of 0.23 is above the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.24, and above the 200-day MA of 0.19, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.72 is Neutral, neither overbought nor oversold. The STOCH value of 77.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1950.

Diwang Industrial Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2116	―	HK$220.80M	12.11	7.30%	2.17%	29.04%	-1.55%
1950	―	HK$171.36M	6.78	3.61%	―	-12.19%	108.93%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1047	―	HK$112.61M	338.89	0.07%	―	5.65%	―
0701	―	HK$390.26M	―	-8.05%	―	-24.13%	-27.54%
0301	―	HK$564.55M	―	-14.53%	―	0.35%	-153.95%
1932	―	HK$139.00M	―	-15.93%	―	-25.21%	12.04%

Diwang Industrial Holdings Limited Corporate Events

Diwang Industrial Holdings Releases Supplemental Announcement on Annual Report

Diwang Industrial Holdings Limited has issued a supplemental announcement to its annual report for the year ended December 31, 2024, providing additional details on its continuing connected transactions and share option scheme. The independent non-executive directors have confirmed that these transactions were conducted in the ordinary course of business, on normal commercial terms, and in the interests of shareholders. The company’s auditor has also reviewed these transactions and found no issues. Additionally, the share option scheme remains unchanged, with 20 million shares available for grant as of the end of 2023 and 2024.

The most recent analyst rating on (HK:1950) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Diwang Industrial Holdings Limited stock, see the HK:1950 Stock Forecast page.

Diwang Industrial Holdings Schedules Board Meeting for Financial Review

Diwang Industrial Holdings Limited has announced that its Board of Directors will meet on August 29, 2025, to review and approve the unaudited consolidated financial statements for the six months ending June 30, 2025. The meeting will also consider the recommendation of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Diwang Industrial Holdings Forms Strategic Partnership to Boost Alcoholic Beverage Sales in China

Diwang Industrial Holdings Limited has announced a strategic cooperation agreement between its subsidiary, Fujian Wangchidi Sauce And Wine Company Limited, and Shanghai Jiuyue Youpin Commercial Management Co., Ltd. This partnership aims to establish a joint venture to expand the sales and distribution of premium alcoholic beverages in China. The joint venture will leverage Diwang’s brand and market resources alongside Shanghai Jiuyue’s expertise in supply chain management and distribution networks to enhance market penetration and operational efficiency. This collaboration is expected to capitalize on the growing demand for high-quality alcoholic beverages in China, thereby creating new business growth opportunities and expanding consumer reach.

Diwang Industrial Holdings Announces Executive Director Change

Diwang Industrial Holdings Limited, a company incorporated in the Cayman Islands, has announced a change in its executive leadership. Mr. Cheung Ka Wai has resigned as an executive director effective July 31, 2025, to focus on other commitments, and Mr. Zhong Wenlong will assume the role starting August 1, 2025. Mr. Zhong brings over nine years of experience in project management, marketing research, and business development, particularly in the marketing industry. His recent role was as the chief operating officer for overseas markets at Chongqing Bola Intelligent Computing Technology Co., Ltd. This leadership change is expected to bring fresh perspectives to the company’s strategic direction and operations.

Diwang Industrial Holdings Updates Board of Directors

Diwang Industrial Holdings Limited has announced an update to its board of directors, effective from July 31, 2025. The company has appointed Mr. Zhong Wenlong as an executive director starting August 1, 2025, and outlined the roles of its directors across various board committees, highlighting the leadership of Mr. Lee Cheung Yuet Horace as the chairman of all three committees.