Dragon Rise Group Holdings Ltd. (6829) AI Stock Analysis

• Market Cap: HK$391.68M
• Dividend Yield: N/A
• Average Volume (3M): 73.40K
• Price to Earnings (P/E): 36.2
• Beta (1Y): -0.48
• Revenue Growth: 38.94%
• EPS Growth: 66.67%
• Country: HK
• Employees: 425
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): 0.01
• Shares Outstanding: 288,000,000
• 10 Day Avg. Volume: 133,695
• 30 Day Avg. Volume: 73,398
• PEG Ratio: 3.43
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -8.90
• 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$1.50
• Price Target Upside: 11.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: HK$1.50 ▲(11.11% Upside)

The overall stock score is primarily influenced by financial performance, which shows strong revenue growth but significant profitability and cash flow challenges. Technical analysis indicates a bearish trend, and valuation metrics suggest the stock is overvalued. These factors combined result in a moderate overall score.

Dragon Rise Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Dragon Rise Group Holdings Limited, an investment holding company, undertakes foundation works as a subcontractor in Hong Kong. Its activities include excavation and lateral support works, and pile cap construction works; and disposal of excavated materials from piling. The company also provides ancillary services, including dismantling of shoring, site formation, steel fixing, and site clearance, as well as trades in construction materials. It offers its services primarily for the construction of commercial and residential buildings. The company was founded in 1993 and is headquartered in Sha Tin, Hong Kong.

How the Company Makes Money

Dragon Rise Group Holdings Ltd. generates revenue through multiple streams. The primary revenue source comes from its real estate development projects, where the company earns profits from the sale and leasing of residential and commercial properties. Additionally, the company generates income from property management services, which provide ongoing revenue through service fees and maintenance contracts. Another significant revenue stream stems from its investments in technology firms, where it benefits from capital appreciation and potential dividends. Strategic partnerships with other businesses in the technology sector also enhance its revenue potential by providing access to innovative solutions and market expansion opportunities.

Dragon Rise Group Holdings Ltd. Financial Statement Overview

Summary

Dragon Rise Group Holdings Ltd. shows strong revenue growth and a stable balance sheet with low leverage. However, profitability margins are low, and cash flow metrics indicate significant challenges. The company needs to focus on improving profitability and cash flow generation to enhance its financial health.

Income Statement

Dragon Rise Group Holdings Ltd. has shown a strong revenue growth rate of 20.97% in the latest year, indicating a positive trajectory. However, the gross profit margin is relatively low at 3.68%, and the net profit margin is also modest at 0.69%. The EBIT and EBITDA margins are 1.06% and 1.95% respectively, suggesting limited profitability. Overall, while revenue growth is promising, profitability remains a challenge.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.12, indicating low leverage and financial stability. The return on equity is modest at 2.83%, reflecting moderate efficiency in generating profits from shareholders' equity. The equity ratio is strong, suggesting a solid financial position with a good proportion of assets financed by equity.

Cash Flow

The cash flow situation is concerning, with negative operating cash flow and free cash flow. The free cash flow growth rate is significantly negative at -53.07%, indicating cash flow challenges. The operating cash flow to net income ratio is negative, highlighting issues in converting income into cash. Despite a positive free cash flow to net income ratio, the overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.09B	1.31B	945.85M	786.21M	613.62M	922.89M
Gross Profit	40.09M	48.31M	39.46M	23.38M	18.59M	-14.09M
EBITDA	21.72M	25.58M	26.24M	23.78M	19.49M	1.47M
Net Income	4.72M	9.03M	4.19M	7.92M	7.43M	-20.11M
Balance Sheet
Total Assets	384.63M	515.96M	419.18M	308.02M	302.74M	302.11M
Cash, Cash Equivalents and Short-Term Investments	29.05M	92.73M	100.00M	96.26M	120.42M	60.74M
Total Debt	55.51M	38.15M	61.83M	3.38M	7.13M	12.60M
Total Liabilities	95.49M	198.18M	151.34M	44.74M	47.38M	54.18M
Stockholders Equity	288.71M	318.97M	267.50M	263.28M	255.36M	247.93M
Cash Flow
Free Cash Flow	-104.24M	-48.92M	-18.44M	-18.65M	62.96M	-5.36M
Operating Cash Flow	-99.91M	-46.66M	-14.25M	-8.70M	78.56M	-2.04M
Investing Cash Flow	-3.86M	21.54M	-13.85M	-8.90M	3.07M	-18.03M
Financing Cash Flow	56.18M	7.45M	57.02M	-5.52M	-5.47M	-7.71M

Dragon Rise Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6829, the sentiment is Negative. The current price of 1.35 is below the 20-day moving average (MA) of 1.46, below the 50-day MA of 1.56, and above the 200-day MA of 1.24, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 28.95 is Positive, neither overbought nor oversold. The STOCH value of 18.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6829.

Dragon Rise Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1556	79 Outperform	HK$510.00M	4.01	16.58%	5.88%	17.12%	5.48%
0368	73 Outperform	HK$240.00M	12.71	8.97%	5.57%	-10.49%	-14.80%
1727	69 Neutral	HK$1.00B	5.52	2.79%	―	-26.45%	-3.13%
1903	64 Neutral	HK$700.00M	55.12	5.92%	―	89.18%	―
Sector *	58 Neutral	HK$13.91B	4.82	-3.70%	5.62%	2.15%	-62.33%
6829	50 Neutral	HK$391.68M	36.22	3.08%	―	38.94%	66.67%
1746	49 Neutral	HK$450.00M	―	-5.03%	―	-14.18%	-1085.71%

Dragon Rise Group Holdings Ltd. Corporate Events

Dragon Rise Group Holdings Announces 2025 AGM and Key Resolutions

Dragon Rise Group Holdings Limited has announced its upcoming annual general meeting, scheduled for September 29, 2025, in Hong Kong. The meeting will address several key agenda items, including the approval of audited financial statements, the re-election of directors, and the reappointment of Grant Thornton Hong Kong Limited as auditors. Additionally, the company seeks shareholder approval for a general mandate to issue additional shares and securities, which could potentially impact the company’s capital structure and shareholder value.

Dragon Rise Group Holdings Limited Announces 2025 Annual Results

Dragon Rise Group Holdings Limited reported its annual financial results for the year ending March 31, 2025. The company achieved a revenue of approximately HK$1,314.1 million, showing significant growth from the previous year. Despite the increase in revenue, the gross profit margin slightly decreased to 3.7%. The profit attributable to equity holders rose to approximately HK$9.0 million, more than doubling from the previous year. The board decided not to declare a final dividend for the year.

Dragon Rise Group Holdings Announces Positive Profit Alert

Dragon Rise Group Holdings Ltd., a company incorporated in the Cayman Islands, has announced a positive profit alert. The company expects a significant increase in net profit for the year ended March 31, 2025, with figures ranging from HK$8.5 million to HK$9.5 million, compared to HK$4.2 million the previous year. This anticipated growth is attributed to an increase in contracting revenue due to more sizable projects. The information is based on preliminary unaudited accounts and may be subject to adjustments.

Dragon Rise Group Announces Strategic Cooperation for New Energy Infrastructure

Dragon Rise Group Holdings Ltd. announced a strategic cooperation framework agreement with an automotive trader, a mobile energy solutions provider, and a digital energy service provider to develop new energy infrastructure in Hong Kong. This collaboration aims to establish a comprehensive battery-swapping network and promote electrification in transportation, aligning with government initiatives for sustainable transportation. The agreement is expected to enhance the company’s revenue diversification and profitability while laying the foundation for regional expansion and strengthening sustainability efforts.

Dragon Rise Group Holdings Ltd. Schedules Board Meeting to Approve Annual Results

Dragon Rise Group Holdings Ltd. has announced a board meeting scheduled for June 26, 2025, to discuss and approve the company’s annual results for the fiscal year ending March 31, 2025. The meeting will also consider the declaration of a final dividend, highlighting the company’s focus on financial performance and potential shareholder returns.