Directel Holdings Limited (8337) AI Stock Analysis

• Market Cap: HK$28.65M
• Dividend Yield: N/A
• Average Volume (3M): 42.80K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.68
• Revenue Growth: -35.91%
• EPS Growth: 38.89%
• Country: HK
• Employees: 18
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.02
• Shares Outstanding: 244,875,000
• 10 Day Avg. Volume: 69,000
• 30 Day Avg. Volume: 42,800
• PEG Ratio: 0.10
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 1.21
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$0.12 ▲(0.83% Upside)

The overall stock score of 52 reflects significant financial challenges, with ongoing losses and cash flow volatility being major concerns. While technical indicators show some positive momentum, valuation remains a critical issue due to the negative P/E ratio and lack of dividends. The absence of recent earnings call insights or notable corporate events limits further analysis.

Positive Factors

Strong Equity Position

A strong equity position with low leverage provides a solid foundation for financial stability, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Improvement in Cash Flow

Improved cash flow indicates better cash management and operational efficiency, enhancing the company's ability to fund operations and strategic initiatives without relying heavily on external financing.

Positive Cash Conversion

A positive cash conversion ratio suggests that the company is effectively turning its earnings into cash, which is crucial for sustaining operations and supporting future growth.

Negative Factors

Revenue Decline

A declining revenue trend indicates challenges in market competitiveness and customer retention, which could hinder long-term growth and market position.

Negative Profit Margins

Persistent negative profit margins highlight ongoing operational inefficiencies and cost management issues, which may impact the company's ability to achieve profitability.

Cash Flow Volatility

Cash flow volatility poses risks to financial planning and stability, potentially affecting the company's ability to meet its obligations and invest in growth consistently.

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 through multiple channels, primarily by charging customers for its telecommunications services, including voice and data plans. The company's key revenue streams include subscription fees from residential and business clients for fixed-line and mobile services, as well as internet service plans. Additionally, Directel may earn income from value-added services such as international calling, SMS, and digital services. Partnerships with other telecom providers and infrastructure companies can also enhance its service offerings and contribute to revenue growth. The company's ability to attract and retain customers in a competitive market is crucial for sustaining its earnings.

Directel Holdings Limited Financial Statement Overview

Summary

Directel Holdings faces significant financial challenges, particularly in generating consistent revenue and profitability. Despite a solid equity base and low leverage, ongoing losses and past cash flow volatility suggest a need for strategic realignment to achieve long-term financial stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	126.00M	137.42M	150.56M	151.98M	150.27M	213.79M
Gross Profit	4.90M	4.25M	4.24M	4.17M	3.07M	1.89M
EBITDA	-8.61M	-7.03M	-8.00M	-10.31M	-12.29M	3.30M
Net Income	-8.49M	-8.10M	-9.94M	-12.32M	-14.22M	-668.00K
Balance Sheet
Total Assets	37.32M	41.73M	39.14M	48.64M	63.99M	76.34M
Cash, Cash Equivalents and Short-Term Investments	26.48M	26.80M	14.59M	16.06M	29.72M	37.15M
Total Debt	1.02M	484.00K	811.00K	1.08M	1.23M	1.41M
Total Liabilities	6.70M	6.94M	7.76M	7.61M	7.96M	6.48M
Stockholders Equity	30.62M	34.80M	31.37M	40.99M	55.98M	69.86M
Cash Flow
Free Cash Flow	13.70M	13.22M	-2.45M	-10.01M	-6.66M	-19.09M
Operating Cash Flow	13.74M	13.25M	-2.45M	-10.00M	-6.66M	-19.04M
Investing Cash Flow	374.00K	407.00K	2.12M	-2.18M	23.00K	202.00K
Financing Cash Flow	-13.09M	-1.26M	-958.00K	-979.00K	-1.21M	-1.05M

Directel Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 equal to the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.12, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 32.41 is Neutral, neither overbought nor oversold. The STOCH value of 47.37 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
0315	81 Outperform	HK$5.23B	10.93	9.18%	6.74%	0.52%	2.07%
1883	73 Outperform	HK$9.51B	10.38	8.67%	7.32%	-0.62%	-5.10%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0215	58 Neutral	HK$5.64B	234.00	0.26%	6.46%	6.79%	―
1310	57 Neutral	HK$9.66B	43.59	8.55%	4.90%	4.48%	1820.51%
8337	52 Neutral	HK$28.65M	-3.67	-24.93%	―	-35.91%	38.89%