Dowway Holdings Limited (8403) AI Stock Analysis

• Market Cap: HK$227.92M
• Dividend Yield: N/A
• Average Volume (3M): 71.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 70
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.09
• Shares Outstanding: 154,000,000
• 10 Day Avg. Volume: 116,500
• 30 Day Avg. Volume: 71,866
• PEG Ratio: 0.27
• Price to Book (P/B): 23.75
• Price to Sales (P/S): 0.72
• P/FCF Ratio: -4.85
• 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: HK$1.50
• Price Target Upside: 0.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: HK$1.50 ▲(0.67% Upside)

Dowway Holdings Limited's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, high leverage, and liquidity challenges. While technical indicators show some positive momentum, the negative P/E ratio and lack of dividend yield weaken the stock's valuation appeal.

Dowway Holdings Limited Business Overview & Revenue Model

Company Description

Dowway Holdings Limited (8403) is a company listed on the Hong Kong Stock Exchange. It primarily operates in sectors involving exhibitions and event management services. The company is known for organizing and managing various types of exhibitions, trade shows, and related events, providing comprehensive services to ensure the success of these events.

How the Company Makes Money

Dowway Holdings Limited generates revenue through its exhibition and event management services. The company charges fees for planning, organizing, and executing exhibitions and trade shows, which include services like venue sourcing, marketing, and logistical support. Additionally, it may earn income from sponsorships, partnerships with local and international businesses, and exhibitors who participate in the events. The company's earnings are influenced by the scale and frequency of events it manages, as well as its ability to attract high-profile exhibitors and sponsors.

Dowway Holdings Limited Financial Statement Overview

Summary

Dowway Holdings Limited is experiencing significant financial distress, characterized by persistent losses, high leverage, and negative cash flow metrics. The company faces challenges in achieving profitability and maintaining financial stability, with risks stemming from high debt levels and limited shareholder equity. While there is some revenue growth, the underlying financial health remains concerning, requiring strategic interventions for improvement.

Income Statement

Dowway Holdings Limited exhibits a challenging financial situation with consistent negative net income over the years, indicating ongoing profitability issues. The gross profit margin improved from 5% to 12% in the latest year, but the net profit margin remains negative at -4%, highlighting inefficiencies. Despite a revenue growth of 19% in the last year, the company continues to struggle with negative EBIT and EBITDA margins, reflecting operational difficulties and cost management concerns.

Balance Sheet

The balance sheet reflects a precarious financial position with a high debt-to-equity ratio of 7.01, suggesting significant leverage and potential risk. The equity ratio is low at 3.3%, indicating limited shareholder equity relative to total assets, which may impact financial stability. Return on equity is negative due to persistent losses, further indicating challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis highlights significant challenges with negative free cash flow growth of over -1000% from the previous year, signaling potential liquidity issues. The operating cash flow to net income ratio is unfavorable, indicating inefficiencies in converting income into cash. The free cash flow to net income ratio is negative, underscoring cash generation problems and potential sustainability risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	126.61M	140.16M	117.45M	177.13M	170.02M	144.17M
Gross Profit	14.44M	16.43M	5.86M	5.38M	14.31M	624.00K
EBITDA	-29.16M	-10.57M	-15.68M	-34.74M	-3.13M	-12.84M
Net Income	-22.31M	-5.75M	-16.92M	-36.45M	-7.65M	-17.83M
Balance Sheet
Total Assets	125.78M	131.12M	108.93M	137.07M	148.86M	125.73M
Cash, Cash Equivalents and Short-Term Investments	15.73M	25.28M	12.44M	4.25M	6.61M	15.31M
Total Debt	34.84M	29.89M	20.50M	16.50M	18.30M	10.70M
Total Liabilities	113.84M	127.43M	105.35M	114.95M	98.90M	69.32M
Stockholders Equity	13.27M	4.27M	3.58M	20.49M	49.96M	56.42M
Cash Flow
Free Cash Flow	-19.87M	-20.87M	2.10M	-8.40M	-5.52M	-12.32M
Operating Cash Flow	-19.82M	-20.85M	2.11M	-8.39M	-5.26M	-12.32M
Investing Cash Flow	-1.80M	1.00K	2.00K	3.00K	-245.00K	46.00K
Financing Cash Flow	25.87M	14.63M	5.86M	6.45M	-3.40M	2.34M

Dowway Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.49
• 50DMA: Positive
• 100DMA: Positive
• 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:8403, the sentiment is Positive. The current price of 1.49 is above the 20-day moving average (MA) of 1.49, above the 50-day MA of 1.42, and above the 200-day MA of 1.26, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.93 is Neutral, neither overbought nor oversold. The STOCH value of 50.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8403.

Dowway Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1490	49 Neutral	HK$218.22M	78.52	-0.67%	―	2.85%	-118.89%
8403	48 Neutral	HK$227.92M	―	-176.68%	―	―	―
0343	47 Neutral	HK$425.51M	―	-28.07%	―	-14.04%	-34.40%
1753	46 Neutral	HK$262.74M	―	-3.55%	―	-5.89%	-330.91%
0205	44 Neutral	HK$320.22M	―	-6.02%	―	-4.13%	76.38%
0164	41 Neutral	HK$114.97M	―	―	―	-11.81%	94.46%