Deewin Tianxia Co. Ltd Class H (2418) AI Stock Analysis

• Market Cap: HK$5.31B
• Dividend Yield: 0.43%
• Average Volume (3M): 3.19M
• Price to Earnings (P/E): 149.4
• Beta (1Y): 0.12
• Revenue Growth: -14.92%
• EPS Growth: -15.82%
• Country: HK
• Employees: 1,702
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.04
• Shares Outstanding: 552,436,500
• 10 Day Avg. Volume: 3,575,660
• 30 Day Avg. Volume: 3,189,380
• PEG Ratio: 3.77
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.98
• P/FCF Ratio: -21.78
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: HK$9.00 ▲(0.22% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and high leverage. Despite strong technical indicators suggesting positive market momentum, the high P/E ratio raises concerns about overvaluation. Improvements in financial health and valuation metrics are necessary for a more favorable outlook.

Positive Factors

Operational Efficiency

Despite revenue challenges, maintaining positive EBIT and EBITDA margins indicates strong operational efficiency, which can support long-term profitability.

Market Position

Focusing on technology to improve user experience can strengthen market position by attracting and retaining more users in the competitive online gaming industry.

Revenue Diversification

Diversified revenue streams from gaming operations and transaction fees can provide stability and growth potential, reducing reliance on any single income source.

Negative Factors

Declining Revenue

A declining revenue trend suggests challenges in market demand or competitive pressures, which could impact long-term growth prospects if not addressed.

High Leverage

High leverage can strain financial flexibility and increase risk, especially if earnings do not improve, potentially affecting long-term stability.

Weak Cash Flow Generation

Weak cash flow generation can limit the company's ability to invest in growth opportunities and meet financial obligations, impacting long-term sustainability.

Deewin Tianxia Co. Ltd Class H Business Overview & Revenue Model

Company Description

Deewin Tianxia Co., Ltd provides logistics and supply chain services, financial services, and internet of vehicles (IoV) data services in China. It provides logistics services and warehousing services to upstream components suppliers and midstream commercial automobile manufacturers; sells commercial automobiles manufactured by Shaanxi Heavy Duty Automobile and Shaanxi Commercial Automobile, as well as aftermarket products, such as tyres and lubricants; and offers third party logistics services to independent customers. The company also offers commercial automobile purchase financing solutions to a range of downstream commercial automobile end-users; and factoring services to upstream components suppliers and mid-downstream logistics companies. In addition, it sells IoV-related products, including pre-installation of IoV devices on commercial automobiles, as well as provides IoV data analytic services and solutions. The company was founded in 2005 and is headquartered in Xi'an, China. Deewin Tianxia Co., Ltd operates as a subsidiary of Shaanxi Automobile Group Co Ltd.

How the Company Makes Money

Deewin Tianxia generates revenue primarily through its online gaming operations, which include various gaming products such as slot machines, table games, and sports betting platforms. The company earns money by charging players a percentage of their wagers as a house edge, and it also benefits from player deposits and transaction fees. Additionally, Deewin Tianxia may engage in partnerships with other gaming companies or technology providers to enhance its offerings and reach a broader audience, which can further contribute to its revenue growth. Advertising and affiliate marketing may also serve as supplementary revenue streams, as the company collaborates with third-party platforms to promote its gaming services.

Deewin Tianxia Co. Ltd Class H Financial Statement Overview

Summary

Deewin Tianxia Co. Ltd Class H faces challenges with declining revenue and profitability margins, coupled with high leverage. While operational efficiency remains, the company's cash flow generation is weak, posing potential liquidity risks. Strategic improvements in revenue growth and cash flow management are necessary to enhance financial health.

Income Statement

The company shows a declining revenue trend with a negative revenue growth rate of -3.1% in the TTM period. Gross profit margin and net profit margin have decreased compared to previous years, indicating pressure on profitability. However, the company maintains a positive EBIT and EBITDA margin, suggesting operational efficiency despite revenue challenges.

Balance Sheet

The debt-to-equity ratio is relatively high at 1.38, indicating significant leverage, which could pose a risk if earnings do not improve. Return on equity is modest at 3.87%, reflecting limited profitability relative to shareholder equity. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

The company faces challenges in cash flow generation, with a significant decline in free cash flow growth and low operating cash flow to net income ratio. The free cash flow to net income ratio is positive but low, indicating limited cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.47B	2.63B	3.12B	2.73B	3.13B	3.26B
Gross Profit	385.02M	430.61M	515.41M	494.04M	732.41M	653.41M
EBITDA	207.28M	286.19M	301.75M	364.20M	503.30M	440.86M
Net Income	130.32M	153.23M	149.26M	226.41M	362.72M	273.99M
Balance Sheet
Total Assets	9.81B	9.49B	9.20B	9.17B	10.19B	11.37B
Cash, Cash Equivalents and Short-Term Investments	781.35M	1.01B	1.09B	1.24B	580.36M	717.23M
Total Debt	4.67B	5.11B	4.69B	4.67B	5.94B	6.01B
Total Liabilities	6.43B	6.13B	5.89B	5.84B	7.74B	9.22B
Stockholders Equity	3.38B	3.36B	3.32B	3.34B	2.44B	2.15B
Cash Flow
Free Cash Flow	492.00K	-118.57M	204.60M	-180.08M	-495.62M	-725.86M
Operating Cash Flow	36.43M	-76.62M	267.39M	-142.72M	-470.75M	-705.87M
Investing Cash Flow	-230.81M	-36.66M	-58.01M	-32.06M	-19.35M	-14.50M
Financing Cash Flow	-592.95M	30.63M	-381.16M	1.11B	506.52M	187.14M

Deewin Tianxia Co. Ltd Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2418, the sentiment is Positive. The current price of 8.98 is below the 20-day moving average (MA) of 9.10, above the 50-day MA of 7.85, and above the 200-day MA of 3.37, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 53.48 is Neutral, neither overbought nor oversold. The STOCH value of 78.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2418.

Deewin Tianxia Co. Ltd Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2418	56 Neutral	HK$5.31B	149.38	3.86%	0.43%	-14.92%	-15.82%
1728	52 Neutral	$1.43B	-0.25	―	―	-9.07%	-26.94%
1872	51 Neutral	HK$3.66B	―	-8.58%	―	71.00%	-579.14%
1959	46 Neutral	HK$1.56B	-25.88	-48.30%	―	-41.19%	30.99%
3836	45 Neutral	HK$1.36B	―	-4.42%	4.02%	11.33%	56.94%
1771	45 Neutral	HK$153.00M	―	-8.81%	―	-24.42%	-115.68%

Deewin Tianxia Co. Ltd Class H Corporate Events

Deewin Tianxia Faces High Shareholding Concentration

Deewin Tianxia Co. Ltd, a company listed on the Hong Kong Stock Exchange, has a high concentration of its H shares held by a small group of shareholders. As of November 18, 2025, 98.90% of the company’s H shares were owned by just 10 shareholders, leading to significant price volatility. The Securities and Futures Commission (SFC) has noted a 330% increase in the share price from September to December 2025. Despite this concentration, the company maintains compliance with public float requirements.

High Shareholding Concentration in Deewin Tianxia Co., Ltd Raises Volatility Concerns

The Securities and Futures Commission has announced a significant concentration of shareholding in Deewin Tianxia Co., Ltd, with 98.90% of its H shares held by just 10 shareholders as of November 18, 2025. This high concentration poses a risk of substantial price fluctuations for the company’s H shares, which have already seen a dramatic increase of 330% from HK$2.30 to HK$9.88 between September 29 and December 1, 2025, prompting a warning for shareholders and potential investors to exercise caution.

Deewin Tianxia Co., Ltd Enters Strategic Partnership for Overseas Logistics Enhancement

Deewin Tianxia Co., Ltd has announced a strategic cooperation agreement with Eternal Tsingshan Group Limited to enhance digitalized and intelligent logistics in overseas industrial parks, particularly focusing on the Morowali Industrial Park in Indonesia. This collaboration aims to reduce logistics costs and improve operational efficiency through integrated transportation management and smart logistics solutions. The partnership aligns with Deewin Tianxia’s long-term development strategy and is expected to facilitate the company’s overseas business expansion, presenting new market opportunities.