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

• Market Cap: HK$446.40M
• Dividend Yield: N/A
• Average Volume (3M): 114.83K
• Price to Earnings (P/E): 25.7
• Beta (1Y): -0.52
• Revenue Growth: 37.12%
• EPS Growth: -55.20%
• Country: HK
• Employees: 425
• Sector: Industrials
• Sector Strength: 89
• Industry: Engineering & Construction
• EPS (TTM): 0.04
• Shares Outstanding: 288,000,000
• 10 Day Avg. Volume: 83,000
• 30 Day Avg. Volume: 114,833
• PEG Ratio: 27.23
• Price to Book (P/B): 5.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -74.65
• 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: 57 Neutral
• Price Target: ―

Dragon Rise Group Holdings Ltd. scores moderately due to strong revenue growth and solid balance sheet stability, yet faces challenges with profitability and cash flow management. The technical indicators show positive momentum but caution is advised due to potential overvaluation risks. The absence of dividend yield further impacts the valuation 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 its construction and engineering services. The company's key revenue streams include contracts for civil engineering projects, building construction, and interior design services. Revenue is primarily derived from long-term construction contracts with government agencies, corporations, and private developers. The company may also engage in strategic partnerships or joint ventures to enhance its project offerings and expand its market presence. Factors such as project scale, duration, and complexity are significant contributors to its earnings, alongside its ability to maintain competitive pricing and manage construction costs effectively.

Dragon Rise Group Holdings Ltd. Financial Statement Overview

Summary

Dragon Rise Group Holdings Ltd. demonstrates robust revenue growth but struggles with profitability and cash flow management. The balance sheet is strong with low leverage, providing some financial stability. However, challenges in converting revenue growth into net income and managing cash flows could pose risks if not addressed. Improving operational efficiency and cash flow management should be a priority to enhance overall financial health.

Income Statement

The company has shown a strong revenue growth rate of 20.31% from 2023 to 2024. The gross profit margin has improved to 4.04%, up from 2.97% in the previous year, indicating better cost management. However, the net profit margin decreased to 0.44% from 1.01%, reflecting increased costs or inefficiencies affecting net income. The EBIT margin has improved but remains low at 0.84%. Overall, the income statement shows positive revenue growth but challenges in converting this growth into net profitability.

Balance Sheet

The balance sheet reflects a strong equity position with a high equity ratio of 63.81%. The debt-to-equity ratio is low at 0.23, indicating conservative leverage. Return on equity (ROE) is modest at 1.57%, suggesting limited return on shareholders' equity. Overall, the balance sheet is stable with low leverage, providing a solid foundation for future operations.

Cash Flow

The company faces challenges with negative operating cash flow of -14.25 million and negative free cash flow growth. The free cash flow to net income ratio is negative, indicating cash flow issues relative to net income. The operating cash flow to net income ratio is also negative, suggesting cash flow is not effectively supporting net income. Overall, the cash flow statement indicates liquidity challenges that need addressing.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.09B	945.85M	786.21M	613.62M	922.89M	509.30M
Gross Profit	40.09M	39.46M	23.38M	18.59M	-14.09M	4.36M
EBITDA	21.72M	26.24M	23.78M	19.49M	1.47M	3.06M
Net Income	4.72M	4.19M	7.92M	7.43M	-20.11M	-20.10M
Balance Sheet
Total Assets	384.63M	419.18M	308.02M	302.74M	302.11M	352.06M
Cash, Cash Equivalents and Short-Term Investments	29.05M	100.00M	96.26M	120.42M	60.74M	72.03M
Total Debt	55.51M	61.83M	3.38M	7.13M	12.60M	18.86M
Total Liabilities	95.49M	151.34M	44.74M	47.38M	54.18M	84.02M
Stockholders Equity	288.71M	267.50M	263.28M	255.36M	247.93M	268.04M
Cash Flow
Free Cash Flow	-104.24M	-18.44M	-18.65M	62.96M	-5.36M	-76.62M
Operating Cash Flow	-99.91M	-14.25M	-8.70M	78.56M	-2.04M	-48.62M
Investing Cash Flow	-3.30M	-13.85M	-8.90M	3.07M	-18.03M	-28.00M
Financing Cash Flow	53.99M	57.02M	-5.52M	-5.47M	-7.71M	11.84M

Dragon Rise Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.59
• 50DMA: Negative
• 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:6829, the sentiment is Negative. The current price of 1.59 is below the 20-day moving average (MA) of 1.65, below the 50-day MA of 1.76, and above the 200-day MA of 1.03, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.26 is Neutral, neither overbought nor oversold. The STOCH value of 25.16 is Neutral, 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$502.50M	3.95	16.58%	5.80%	17.12%	5.48%
1903	70 Neutral	HK$585.00M	48.43	5.92%	―	89.18%	―
1727	68 Neutral	HK$757.39M	4.09	2.79%	―	-26.45%	-3.13%
Sector *	65 Neutral	€9.21B	16.20	3.99%	3.38%	2.85%	-16.23%
0368	60 Neutral	HK$181.60M	9.75	8.97%	―	-10.49%	-14.80%
6829	57 Neutral	HK$446.40M	25.69	3.08%	―	37.12%	-55.20%
1746	41 Neutral	HK$270.00M	―	-5.03%	―	-14.18%	-1085.71%