DLC Asia Ltd. (8210) AI Stock Analysis

• Market Cap: HK$41.16M
• Dividend Yield: N/A
• Average Volume (3M): 89.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -26.76%
• EPS Growth: -1511.11%
• Country: HK
• Employees: 27
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 5,000
• 30 Day Avg. Volume: 89,333
• PEG Ratio: -3.72
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 17.27
• 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: 50 Neutral
• Price Target: HK$0.05 ▼(-15.00% Downside)

DLC Asia Ltd.'s overall stock score is primarily influenced by its financial stability, which is offset by weak profitability and revenue growth. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to negative earnings. The absence of earnings call insights and corporate events leaves the financial performance and technical analysis as the primary drivers of the score.

Positive Factors

Financial Stability

A strong balance sheet with low leverage and high equity ratio indicates financial stability, providing resilience against economic fluctuations and supporting long-term growth.

Cash Flow Liquidity

Positive free cash flow suggests good liquidity, allowing the company to reinvest in its business, pay down debt, or return capital to shareholders, supporting sustainable growth.

Cost Management

Stable gross profit margins suggest effective cost management, which can help maintain profitability even amid revenue fluctuations, enhancing long-term competitiveness.

Negative Factors

Revenue Decline

Declining revenue poses a challenge to growth, potentially impacting the company's ability to scale operations and invest in new opportunities, affecting long-term prospects.

Profitability Challenges

Negative EBIT and shrinking net profit margins indicate profitability issues, which could hinder the company's ability to generate sufficient returns and invest in future growth.

Cash Generation Efficiency

Decreased free cash flow suggests inefficiencies in cash generation, which may limit the company's ability to fund operations and strategic initiatives, impacting long-term sustainability.

DLC Asia Ltd. Business Overview & Revenue Model

Company Description

DLC Asia Limited, an investment holding company, operates as an interdealer broker in Hong Kong. It provides derivatives brokerage services to professional investors for Singapore Exchange listed derivatives, Hong Kong Exchanges and Clearing Limited listed single stock options, and Eurex Exchange as well as non-listed derivatives executed on over-the-counter market. The company was founded in 2009 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

DLC Asia Ltd. generates revenue primarily through its brokerage services, where it earns commissions and fees from facilitating securities trades for its clients. Additionally, the company earns income from providing investment advisory services, which may include performance-based fees or management fees depending on the structure of the client's investment portfolio. The company may also engage in proprietary trading and investment activities, contributing to its revenue generation. Significant partnerships with financial institutions and strategic alliances may further enhance its earnings, allowing it to offer comprehensive financial solutions.

DLC Asia Ltd. Financial Statement Overview

Summary

DLC Asia Ltd. shows a strong balance sheet with low leverage and a high equity ratio, indicating financial stability. However, the income statement reveals challenges with profitability and revenue growth, and cash flows, although positive, show reduced efficiency. Overall, financial performance is mixed, with strengths in financial stability but weaknesses in profitability and revenue generation.

Income Statement

DLC Asia Ltd. has experienced fluctuating revenue with a notable decline from the previous period, leading to a negative revenue growth rate. The company also faced challenges with profitability, evidenced by negative EBIT and shrinking net profit margins. Despite these challenges, gross profit margins remain relatively stable, indicating potential efficiency in cost management.

Balance Sheet

The balance sheet of DLC Asia Ltd. shows financial stability with a strong equity base and low total debt, resulting in a favorable debt-to-equity ratio. The equity ratio is high, signaling a low-risk financial structure. However, the ROE is low, reflecting challenges in generating returns from equity.

Cash Flow

Cash flow analysis reveals a positive free cash flow, which is a positive indicator of liquidity. However, the free cash flow has decreased from the previous period, indicating potential issues in cash generation efficiency. The operating cash flow to net income ratio suggests that cash flows are not fully supporting earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.95M	46.82M	54.87M	56.94M	39.70M	53.99M
Gross Profit	21.09M	16.43M	19.67M	20.41M	10.90M	14.67M
EBITDA	-4.40M	1.82M	3.67M	3.94M	-6.29M	-779.00K
Net Income	-10.56M	132.00K	1.85M	3.91M	-8.82M	-3.54M
Balance Sheet
Total Assets	82.96M	93.10M	91.80M	94.02M	83.43M	94.92M
Cash, Cash Equivalents and Short-Term Investments	55.06M	60.40M	57.64M	54.62M	53.23M	63.56M
Total Debt	3.45M	4.04M	1.49M	2.90M	1.51M	3.10M
Total Liabilities	6.63M	7.40M	6.23M	10.31M	3.63M	6.62M
Stockholders Equity	76.34M	85.70M	85.57M	83.71M	79.80M	88.30M
Cash Flow
Free Cash Flow	-3.68M	2.59M	3.12M	2.74M	-8.67M	8.67M
Operating Cash Flow	-2.95M	3.01M	3.13M	2.80M	-8.54M	8.94M
Investing Cash Flow	-208.00K	1.28M	1.42M	123.00K	-123.00K	-268.00K
Financing Cash Flow	-1.72M	-1.53M	-1.53M	-1.53M	-1.67M	-1.69M

DLC Asia Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8210, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 9.67 is Positive, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8210.

DLC Asia Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8365	55 Neutral	HK$337.40M	―	-44.10%	―	-16.56%	-769.12%
8333	52 Neutral	HK$31.68M	14.29	1.83%	―	30.59%	―
8439	51 Neutral	HK$46.95M	-3.40	-3.06%	6.25%	-10.35%	86.76%
8210	50 Neutral	HK$41.16M	―	-12.48%	―	-26.76%	-1511.11%
8221	49 Neutral	HK$51.88M	-3.53	-5.53%	―	-31.51%	-584.06%
8193	41 Neutral	HK$34.98M	1.78	47.82%	―	34.66%	―