DLC Asia Ltd. (8210) AI Stock Analysis

• Market Cap: HK$32.46M
• Dividend Yield: N/A
• Average Volume (3M): 39.67K
• Price to Earnings (P/E): 205.0
• Beta (1Y): 0.54
• Revenue Growth: -20.20%
• EPS Growth: -81.63%
• Country: HK
• Employees: 27
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Capital Markets
• EPS (TTM): >-0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 61,000
• 30 Day Avg. Volume: 39,666
• PEG Ratio: -0.06
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.69
• 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: 59 Neutral
• Price Target: ―

DLC Asia Ltd. benefits from strong financial performance, particularly in terms of balance sheet strength and cash flow management. However, the lack of revenue growth and the high P/E ratio pose significant risks. Technical indicators suggest bearish momentum, further impacting the stock's attractiveness. Overall, while the company's financial health is solid, market sentiment and valuation concerns weigh on its stock score.

DLC Asia Ltd. Business Overview & Revenue Model

Company Description

DLC Asia Ltd. (8210) is a Hong Kong-based company engaged primarily in the provision of financial services. The company operates within the financial sector, focusing on offering a wide range of financial advisory and asset management services. Its core services include securities trading, investment advisory, and wealth management solutions tailored to meet the needs of both individual and institutional investors.

How the Company Makes Money

DLC Asia Ltd. generates revenue through multiple streams primarily revolving around its financial services. The company earns commission and fees from its securities trading operations, where it facilitates the buying and selling of financial instruments for its clients. Additionally, it collects management fees from its asset and wealth management services, where it provides investment advice and portfolio management. DLC Asia Ltd. may also derive income from performance fees, contingent upon achieving specific investment targets or benchmarks for its clients. Partnerships with financial institutions and strategic alliances further bolster its revenue by expanding its service offerings and client reach.

DLC Asia Ltd. Financial Statement Overview

Summary

DLC Asia Ltd. displays a commendable financial recovery with improved profitability and robust balance sheet metrics, though challenges remain in sustaining revenue growth. The company's strong cash flow position further enhances its financial stability, providing a solid foundation for future operations.

Income Statement

DLC Asia Ltd. has demonstrated a significant turnaround in its financial performance with a positive swing in EBIT and net income from prior losses, indicating improved operational efficiency. The gross profit margin is robust at 37.3%, and the net profit margin has increased to 3.3%, highlighting profitability improvements. However, the revenue has decreased by 1.4% compared to the previous year, which may be a concern for future growth.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.02, indicating minimal leverage and financial risk. The equity ratio stands high at 93.2%, underscoring a solid capital structure. The company's return on equity (ROE) is modest at 2.2%, suggesting room for improvement in generating returns for shareholders.

Cash Flow

DLC Asia Ltd. has shown positive cash flow dynamics, with a 13.9% growth in free cash flow, indicating effective cash management. The operating cash flow to net income ratio is 1.68, demonstrating healthy cash generation from operations. The free cash flow to net income ratio is strong at 1.68, reinforcing the company's ability to convert profits into cash.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	52.33M	56.16M	56.94M	39.70M	53.99M	54.46M
Gross Profit	51.60M	20.97M	20.41M	10.90M	14.67M	24.11M
EBITDA	5.87M	3.67M	3.94M	-2.26M	-928.00K	2.55M
Net Income	757.00K	1.85M	3.91M	-8.82M	-3.54M	-457.00K
Balance Sheet
Total Assets	91.32M	91.80M	94.02M	83.43M	94.92M	94.45M
Cash, Cash Equivalents and Short-Term Investments	60.09M	57.64M	54.62M	53.23M	63.56M	56.58M
Total Debt	0.00	1.49M	2.90M	1.51M	3.10M	1.67M
Total Liabilities	4.82M	6.23M	10.31M	3.63M	6.62M	8.27M
Stockholders Equity	86.50M	85.57M	83.71M	79.80M	88.30M	86.18M
Cash Flow
Free Cash Flow	-160.00K	3.12M	2.74M	-8.67M	8.67M	-836.00K
Operating Cash Flow	-143.00K	3.13M	2.80M	-8.54M	8.94M	-551.00K
Investing Cash Flow	1.08M	1.42M	123.00K	-123.00K	-268.00K	-162.00K
Financing Cash Flow	-1.88M	-1.53M	-1.53M	-1.67M	-1.69M	-1.85M

DLC Asia Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 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:8210, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 30.84 is Neutral, neither overbought nor oversold. The STOCH value of -11.11 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
8136	71 Outperform	HK$45.00M	4.68	9.85%	―	-7.08%	-23.53%
8210	59 Neutral	HK$32.46M	205.00	0.15%	―	-20.20%	-81.63%
Sector *	58 Neutral	$12.53B	5.19	-2.71%	5.24%	5.88%	-56.03%
8125	51 Neutral	HK$51.47M	―	-32.68%	―	47.54%	91.35%
8083	51 Neutral	$3.12B	―	-16.87%	―	-2.35%	-837.50%
8181	46 Neutral	HK$64.35M	―	-14.12%	―	1.24%	-56.85%
8080	46 Neutral	HK$149.99M	―	-0.58%	―	-22.84%	-103.13%