Directel Holdings Limited (8337) AI Stock Analysis

• Market Cap: HK$32.57M
• Dividend Yield: N/A
• Average Volume (3M): 483.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.49
• 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: 1,450
• 30 Day Avg. Volume: 483
• PEG Ratio: 0.14
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.24
• 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: ―

Directel Holdings' overall score reflects its financial struggles, marked by declining revenue and consistent losses. While the technical analysis indicates positive momentum, the negative P/E ratio and lack of dividends make the stock less appealing from a valuation perspective.

Directel Holdings Limited Business Overview & Revenue Model

Company Description

Directel Holdings Limited (8337) is a telecommunications company based in Hong Kong. It operates in the mobile communication services sector, primarily providing mobile virtual network operator (MVNO) services. The company offers a range of mobile communication solutions, including prepaid and postpaid mobile services, data services, and value-added services to individual and corporate customers. Directel Holdings Limited focuses on delivering cost-effective and flexible mobile communication options to its users.

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 with declining revenue and consistent negative net income. While the balance sheet shows strength in equity and low leverage, ongoing losses and cash flow volatility are concerning.

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
173.69M	137.42M	150.56M	151.98M	150.27M	213.79M
	Gross Profit
4.82M	4.25M	4.24M	4.17M	3.07M	1.89M
	EBIT
-12.44M	-8.11M	-10.10M	-12.51M	-14.65M	-36.36M
	EBITDA
-8.48M	-7.03M	-8.00M	-10.31M	-12.29M	3.30M
	Net Income Common Stockholders
-11.92M	-8.10M	-9.94M	-12.32M	-14.22M	-668.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.13M	26.80M	14.59M	15.86M	29.52M	37.15M
	Total Assets
45.40M	41.73M	39.14M	48.64M	63.99M	76.34M
	Total Debt
12.63M	484.00K	811.00K	1.08M	1.23M	1.41M
	Net Debt
-9.09M	-26.32M	-13.78M	-14.78M	-28.29M	-35.74M
	Total Liabilities
19.37M	6.94M	7.76M	7.61M	7.96M	6.48M
	Stockholders Equity
26.03M	34.80M	31.37M	40.99M	55.98M	69.86M
Cash Flow		Free Cash Flow
-887.00K	13.22M	-2.45M	-10.01M	-6.66M	-19.09M
	Operating Cash Flow
-887.00K	13.25M	-2.45M	-10.00M	-6.66M	-19.04M
	Investing Cash Flow
2.25M	-36.00K	2.12M	-2.18M	23.00K	202.00K
	Financing Cash Flow
11.04M	-1.08M	-958.00K	-979.00K	-1.21M	-1.05M

Directel Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.13
• 50DMA: Positive
• 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:8337, the sentiment is Neutral. The current price of 0.13 is below the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.13, and above the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.33 is Neutral, neither overbought nor oversold. The STOCH value of 75.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8337.

Directel Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8337	59 Neutral	HK$32.57M	―	-24.49%	―	-8.72%	19.74%
Sector *	54 Neutral	HK$64.45B	-1.04	-1.91%	7.94%	-2.68%	-14.14%
8117	53 Neutral	€98.30M	―		―	-12.37%	-50.88%
8091	52 Neutral	HK$15.12M	―	-35.77%	―	13.37%	-4.90%
8163	40 Underperform	HK$65.27M	―		―	―	―