Diwang Industrial Holdings Limited (1950) AI Stock Analysis

• Market Cap: HK$219.60M
• Dividend Yield: N/A
• Average Volume (3M): 5.93M
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.14
• Revenue Growth: -2.38%
• EPS Growth: -54.44%
• Country: HK
• Employees: 217
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): 0.04
• Shares Outstanding: 720,000,000
• 10 Day Avg. Volume: 2,541,760
• 30 Day Avg. Volume: 5,926,052
• PEG Ratio: 0.14
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.38
• 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: 71 Outperform
• Price Target: HK$0.50 ▲(66.67%Upside)

Diwang Industrial Holdings Limited shows a solid balance sheet and attractive valuation, offset by concerns regarding cash flow and inconsistent revenue growth. Technical analysis indicates stable momentum, contributing positively to the overall score.

Diwang Industrial Holdings Limited Business Overview & Revenue Model

Company Description

Diwang Industrial Holdings Limited is a diversified industrial company operating in multiple sectors including manufacturing, real estate, and investment. The company is engaged in the production and distribution of a wide range of industrial products, managing real estate properties, and making strategic investments in various industries to drive growth and profitability.

How the Company Makes Money

Diwang Industrial Holdings Limited generates revenue through a multi-faceted approach. Its primary revenue streams include the sale of industrial products manufactured in-house or through partnerships, rental income from real estate properties, and returns on investments. The company leverages its extensive network and expertise to identify and capitalize on lucrative investment opportunities, which significantly contribute to its earnings. Additionally, strategic partnerships and joint ventures in key sectors further enhance its revenue potential by expanding its market reach and operational capabilities.

Diwang Industrial Holdings Limited Financial Statement Overview

Summary

Diwang Industrial Holdings Limited displays mixed financial performance. The balance sheet is robust with a strong equity ratio and low debt levels, but the income statement shows inconsistent revenue growth. Cash flow issues are a significant concern, with negative free cash flow and liquidity challenges.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	566.48M	570.57M	501.44M	233.94M	134.44M
Gross Profit	257.30M	233.38M	193.70M	38.88M	31.60M
EBITDA	44.27M	46.54M	94.67M	19.84M	6.86M
Net Income	30.03M	19.45M	39.62M	-2.60M	-3.16M
Balance Sheet
Total Assets	827.68M	737.59M	446.38M	313.17M	264.01M
Cash, Cash Equivalents and Short-Term Investments	60.70M	58.47M	55.88M	64.71M	79.64M
Total Debt	64.96M	25.00M	10.00M	0.00	0.00
Total Liabilities	158.94M	99.00M	96.00M	43.59M	26.66M
Stockholders Equity	644.09M	613.92M	331.14M	269.58M	237.35M
Cash Flow
Free Cash Flow	-34.13M	-273.61M	-42.09M	-32.23M	-14.38M
Operating Cash Flow	58.98M	-216.32M	-14.50M	-2.06M	5.78M
Investing Cash Flow	-90.18M	-61.43M	-14.85M	-87.68M	-16.34M
Financing Cash Flow	37.11M	278.90M	48.47M	38.96M	76.80M

Diwang Industrial Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.3 is below the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.25, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.86 is Neutral, neither overbought nor oversold. The STOCH value of 17.76 is Positive, 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
1950	71 Outperform	HK$219.60M	6.19	4.78%	―	-2.38%	-54.44%
2116	68 Neutral	HK$235.20M	15.51	6.12%	2.04%	-4.13%	-35.11%
Sector *	59 Neutral	HK$16.45B	4.63	-5.52%	4.85%	-3.57%	-61.41%
0301	56 Neutral	HK$649.23M	―	-8.95%	―	-3.09%	-480.17%
1047	56 Neutral	HK$127.37M	―	-1.32%	―	12.01%	82.32%
0701	52 Neutral	HK$397.87M	―	-6.09%	―	-30.21%	-12.78%
1932	41 Neutral	HK$151.00M	―	-11.66%	―	-31.49%	28.61%

Diwang Industrial Holdings Limited Corporate Events

Diwang Industrial Holdings Appoints New Independent Director

Diwang Industrial Holdings Limited has announced the appointment of Mr. Huang Zhenming as an independent non-executive director and a member of its Audit Committee. Mr. Huang has confirmed his independence and lack of financial or other interests in the company, ensuring compliance with relevant listing rules. This appointment is expected to strengthen the company’s governance structure.

Diwang Industrial Holdings Secures Unanimous Approval at AGM

Diwang Industrial Holdings Limited announced that all resolutions proposed at their Annual General Meeting on May 30, 2025, were successfully passed. The resolutions included the approval of financial statements, re-election of executive directors, re-appointment of auditors, and granting of mandates for share issuance and repurchase. This unanimous approval reflects strong shareholder support and positions the company for continued strategic actions in the market.

Diwang Industrial Holdings Announces AGM and Key Resolutions for 2025

Diwang Industrial Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for May 30, 2025, in Hong Kong. Key agenda items include the approval of the 2024 financial statements, re-election of executive directors, re-appointment of auditors, and authorization for the board to manage share allotments. These resolutions are expected to impact the company’s governance and financial strategies, potentially influencing shareholder value and market perception.