Directel Holdings Limited (8337) AI Stock Analysis

• Market Cap: HK$32.08M
• Dividend Yield: N/A
• Average Volume (3M): 6.32K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.56
• Revenue Growth: -8.72%
• EPS Growth: 19.74%
• Country: HK
• Employees: 18
• Sector: Communication Services
• Sector Strength: 84
• Industry: Telecommunications Services
• EPS (TTM): -0.04
• Shares Outstanding: 244,875,000
• 10 Day Avg. Volume: 12,000
• 30 Day Avg. Volume: 6,316
• PEG Ratio: N/A
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -36.17
• 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: 45 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

Directel Holdings faces significant financial and valuation challenges. The company's declining revenue, consistent negative income, and weak valuation metrics heavily impact its score. Technical indicators suggest bearish momentum, further contributing to a low overall stock score.

Directel Holdings Limited Business Overview & Revenue Model

Company Description

Directel Holdings Limited, a mobile virtual network operator, provides mobile telecommunication and value-added services in Hong Kong, Mainland China, and Singapore. The company operates through two segments, Telecommunications Services and Distribution Business. It is involved in distributing mobile phones and electronic products, and mobile and data top-up e-vouchers; and trading airtime and mobile data sourced from channels and in various forms to users and dealers, including prepaid SIM cards and recharge vouchers. The company also offers telesales dealership and other services. Directel Holdings Limited was incorporated in 2009 and is headquartered in Hong Kong, Hong Kong.

How the Company Makes Money

Directel Holdings Limited generates revenue primarily through its mobile communication services. As an MVNO, the company does not own its own wireless infrastructure but rather leases network capacity from established mobile network operators. Its key revenue streams include subscription fees from prepaid and postpaid mobile plans, charges for data services, and revenue from various value-added services such as international roaming and messaging services. The company may also earn from partnerships with other telecom operators and service providers, enhancing its service offerings and expanding its market reach. Additionally, Directel Holdings Limited might engage in strategic collaborations to offer bundled services, thus attracting a diversified customer base and boosting its revenue potential.

Directel Holdings Limited Financial Statement Overview

Summary

Directel Holdings faces significant financial challenges, especially in achieving consistent revenue and profitability. Although the balance sheet is strong with low leverage, ongoing losses and cash flow volatility require strategic realignment.

Income Statement

Directel Holdings has seen a decline in total revenue over the years, with a significant drop from 2019 to 2024. The company consistently posts negative net income, reflecting weak net profit margins. Despite a slight improvement in gross profit margin over time, EBIT and EBITDA margins remain negative, indicating ongoing operational challenges.

Balance Sheet

The company maintains a healthy equity position relative to its assets, with a strong equity ratio. The debt-to-equity ratio is low, suggesting limited leverage risk. However, the ongoing net losses have eroded return on equity, presenting a challenge to overall financial health.

Cash Flow

Directel Holdings shows an improvement in free cash flow, especially from 2023 to 2024, after previous years of negative cash flow. The operating cash flow to net income ratio is positive for the latest period, indicating better cash conversion, but the volatility in past cash flows remains a concern.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	137.42M	150.56M	151.98M	150.27M	213.79M
Gross Profit	4.25M	4.24M	4.17M	3.07M	1.89M
EBITDA	-7.03M	-8.00M	-10.31M	-12.29M	3.30M
Net Income	-8.10M	-9.94M	-12.32M	-14.22M	-668.00K
Balance Sheet
Total Assets	41.73M	39.14M	48.64M	63.99M	76.34M
Cash, Cash Equivalents and Short-Term Investments	26.80M	14.59M	15.86M	29.52M	37.15M
Total Debt	484.00K	811.00K	1.08M	1.23M	1.41M
Total Liabilities	6.94M	7.76M	7.61M	7.96M	6.48M
Stockholders Equity	34.80M	31.37M	40.99M	55.98M	69.86M
Cash Flow
Free Cash Flow	13.22M	-2.45M	-10.01M	-6.66M	-19.09M
Operating Cash Flow	13.25M	-2.45M	-10.00M	-6.66M	-19.04M
Investing Cash Flow	-36.00K	2.12M	-2.18M	23.00K	202.00K
Financing Cash Flow	-1.08M	-958.00K	-979.00K	-1.21M	-1.05M

Directel Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8337, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.13, and above the 200-day MA of 0.10, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 29.79 is Positive, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8337.

Directel Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	¥365.60B	14.77	2.24%	2.49%	5.40%	-15.25%
8337	45 Neutral	HK$32.08M	―	-24.49%	―	-8.72%	19.74%
CCTTF	―	$1.19B	10.21	8.46%	9.52%	―	―
HKBNF	―	$940.12M	35.18	4.51%	6.21%	―	―
HTCTF	―	$669.16M	600.00	0.06%	11.10%	―	―
STTFF	―	$642.35M	8.94	9.25%	12.66%	―	―
8167	―	HK$199.97M	―		―	―	―