Dmall Inc. (2586) AI Stock Analysis

• Market Cap: HK$7.83B
• Dividend Yield: N/A
• Average Volume (3M): 3.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: 13.19%
• EPS Growth: -496.93%
• Country: HK
• Employees: 1,453
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Software - Application
• EPS (TTM): -2.38
• Shares Outstanding: 937,170,960
• 10 Day Avg. Volume: 2,344,432
• 30 Day Avg. Volume: 3,909,727
• PEG Ratio: >-0.01
• Price to Book (P/B): 9.66
• Price to Sales (P/S): 2.94
• P/FCF Ratio: -65.88
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: HK$6.50 ▲(0.62% Upside)

Dmall Inc.'s overall stock score is primarily impacted by its weak financial performance and poor valuation metrics. The stock's bearish technical indicators further contribute to the low score, reflecting significant challenges in profitability, financial stability, and market sentiment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term market position.

Technological Innovation

Investment in AI and big data analytics strengthens competitive advantage by improving customer engagement and operational efficiency.

Strategic Partnerships

Partnerships with retail brands expand market reach and service offerings, supporting sustainable growth and competitive positioning.

Negative Factors

Profitability Challenges

Persistent operating losses and negative margins highlight inefficiencies, posing risks to long-term financial health and sustainability.

High Leverage

High leverage and negative equity indicate financial instability, limiting flexibility and increasing risk during economic downturns.

Negative Cash Flow

Negative cash flows and reliance on external funding challenge liquidity, necessitating strategic adjustments for financial sustainability.

Dmall Inc. Business Overview & Revenue Model

Company Description

Dmall Inc is a holding company primarily engaged in the provision of retail digitalization solutions to retailers in the local retail industry. The Company mainly operates its business through three segments. The Retail Core Service Cloud segment is engaged in the provision of retail core service cloud solutions that are anchored on Dmall OS software and artificial intelligent of things (AIoT) solutions, with businesses covering supply chain management, store management, and e-commerce operations. The E-commerce Service Cloud segment is engaged in the provision of online-to-offline (O2O) platform services as well as logistic services. The Others segment is engaged in the offline marketing services, offline marketing products and the provision of discounts, coupons and shopping and payment subsidies. The Company conducts its business in the domestic and overseas markets

How the Company Makes Money

Dmall Inc. generates revenue primarily through its online marketplace, where it charges commissions on sales made through its platform. Additional revenue streams include advertising services for brands looking to promote their products on the site, subscription fees from retailers utilizing its digital solutions, and partnerships with various suppliers and logistics companies that enhance its service offerings. The company’s strategic collaborations with leading retail brands and its investments in technology also contribute to its earnings by expanding its market reach and improving operational efficiency.

Dmall Inc. Financial Statement Overview

Summary

Dmall Inc. is experiencing revenue growth but struggles with profitability and financial stability. Negative profit margins, high leverage, and dependency on financing pose risks to long-term viability.

Income Statement

Dmall Inc. has shown consistent revenue growth over the years, with a notable jump from 2023 to 2024. However, the company has been struggling with profitability, evidenced by negative net income and EBIT margins over the years. Despite a positive trajectory in revenue, the persistent operating losses and negative EBITDA indicate significant challenges in achieving cost efficiency and profit margins.

Balance Sheet

The balance sheet reflects a high level of debt relative to equity, with a negative stockholders' equity position over several years, indicating financial instability. The debt-to-equity ratio is concerning, and the equity ratio is negative due to accumulated losses. Although cash reserves have been relatively stable, the overall financial position suggests significant leverage and risk.

Cash Flow

Dmall Inc. has faced ongoing challenges with negative operating and free cash flows, although there is a slight improvement in operating cash flow from 2023 to 2024. The company has consistently relied on financing activities to support operations, which raises concerns about sustainability. The cash flow position indicates a need for strategic adjustments to improve liquidity and reduce dependency on external funding.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.86B	1.59B	1.33B	848.19M	546.96M
Gross Profit	746.38M	554.70M	505.20M	172.74M	-78.97M
EBITDA	-2.38B	-683.13M	-833.00M	-1.74B	-1.14B
Net Income	-2.20B	-592.36M	-807.41M	-1.75B	-1.21B
Balance Sheet
Total Assets	1.66B	1.38B	1.31B	1.28B	1.86B
Cash, Cash Equivalents and Short-Term Investments	888.14M	568.11M	598.17M	537.55M	1.35B
Total Debt	557.09M	7.53B	6.72B	5.32B	4.69B
Total Liabilities	1.02B	8.14B	7.38B	6.02B	5.69B
Stockholders Equity	565.67M	-6.86B	-6.16B	-4.82B	-3.92B
Cash Flow
Free Cash Flow	-82.99M	-185.79M	-222.50M	-1.29B	-796.94M
Operating Cash Flow	-74.20M	-179.25M	-205.50M	-1.27B	-542.31M
Investing Cash Flow	-31.91M	-31.03M	68.85M	-321.40M	599.37M
Financing Cash Flow	373.00M	207.06M	282.43M	833.72M	1.06B

Dmall Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2586, the sentiment is Negative. The current price of 6.46 is below the 20-day moving average (MA) of 7.28, below the 50-day MA of 8.40, and below the 200-day MA of 9.78, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 30.36 is Neutral, neither overbought nor oversold. The STOCH value of 13.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2586.

Dmall Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1364	73 Outperform	HK$51.18B	―	―	―	―	―
2460	70 Outperform	HK$25.18B	12.27	―	6.28%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
6868	61 Neutral	HK$3.13B	24.58	6.81%	3.75%	-16.51%	-35.38%
1115	44 Neutral	HK$2.87B	-4.16	-20.18%	―	-9.19%	-67.34%
0186	41 Neutral	HK$878.76M	800.00	-12.13%	―	-85.44%	-172.45%
2586	38 Underperform	HK$7.83B	-3.65	―	―	13.19%	-496.93%

Dmall Inc. Corporate Events

Dmall Inc. Announces Share Repurchase to Enhance Shareholder Value

Dmall Inc. has announced a proposed share repurchase under the Share Repurchase Mandate, allowing the company to buy back up to 10% of its issued shares using its own funds. This move reflects the company’s confidence in its intrinsic value and long-term business prospects, aiming to safeguard shareholder interests and enhance value recognition. The company maintains strong financial health with sufficient cash reserves, ensuring the repurchase will not impact its operations or development plans. The initiative is expected to promote stable returns for shareholders and align with the company’s overall interests.

Dmall Inc. Announces EGM to Approve Revised Annual Caps with Wumei Group

Dmall Inc. has announced an extraordinary general meeting to discuss and approve revised annual caps for its ongoing transactions with Wumei Group. The proposed caps for the years ending 2025 and 2026 are RMB1,387.4 million and RMB1,795.2 million, respectively. This move is significant for Dmall Inc. as it aims to strengthen its partnership with Wumei Group and enhance its market position in providing digital solutions to the retail industry.

Dmall Inc. Revises Annual Caps for Key Agreements with Wumei Group

Dmall Inc. has announced revisions to its existing annual caps for continuing connected transactions under two key agreements with Wumei Group. The company anticipates increased demand for office space and retail core service cloud solutions, prompting the need to raise the annual caps for these transactions to meet the expected demand. These changes reflect Dmall’s strategic positioning to accommodate growth and strengthen its operational ties with Wumei Group, which is a significant stakeholder due to its association with Dmall’s controlling shareholder.

Dmall Inc. Eyes Expansion into Regulated Financial Services with Potential Acquisitions

Dmall Inc. has announced its intention to acquire two licensed corporations in Hong Kong, which will allow it to enter the regulated financial services sector. This strategic move aims to accelerate the company’s expansion into the Web3 and digital asset ecosystem, enabling it to offer virtual asset dealing services and participate more deeply in the digital asset sector.