Diwang Industrial Holdings Limited (1950) AI Stock Analysis

• Market Cap: HK$179.28M
• Dividend Yield: N/A
• Average Volume (3M): 3.02M
• Price to Earnings (P/E): 5.5
• Beta (1Y): <0.01
• Revenue Growth: -2.38%
• EPS Growth: -54.44%
• Country: HK
• Employees: 217
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 720,000,000
• 10 Day Avg. Volume: 5,212,584
• 30 Day Avg. Volume: 3,021,928
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$0.50
• Price Target Upside: 100.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: HK$0.50 ▲(100.00% Upside)

The overall stock score of 64 reflects a mixed financial performance with strong balance sheet fundamentals but significant cash flow concerns. The technical analysis indicates a neutral market position, while the valuation suggests the stock may be undervalued. The absence of earnings call data and corporate events limits additional insights.

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 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: Negative
• Last Price: 0.25
• 50DMA: Negative
• 100DMA: Positive
• 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 Negative. The current price of 0.25 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.28, and above the 200-day MA of 0.17, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 45.10 is Neutral, neither overbought nor oversold. The STOCH value of 23.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	68 Neutral	HK$218.40M	14.40	6.12%	2.20%	-4.13%	-35.11%
1950	64 Neutral	HK$179.28M	5.51	4.78%	―	-2.38%	-54.44%
Sector *	61 Neutral	$10.32B	6.25	0.71%	2.93%	3.36%	-36.41%
1047	56 Neutral	HK$118.14M	―	-1.32%	―	12.01%	82.32%
0701	52 Neutral	HK$415.00M	―	-8.05%	―	-24.13%	-27.54%
0301	44 Neutral	HK$606.89M	―	-8.95%	―	-3.09%	-480.17%
1932	43 Neutral	HK$146.00M	―	-11.66%	―	-31.49%	28.61%

Diwang Industrial Holdings Limited Corporate Events

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.

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.