Dowway Holdings Limited (8403) AI Stock Analysis

• Market Cap: HK$218.68M
• Dividend Yield: N/A
• Average Volume (3M): 119.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 70
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 154,000,000
• 10 Day Avg. Volume: 119,400
• 30 Day Avg. Volume: 119,870
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$1.50 ▲(0.67% Upside)

Dowway Holdings Limited's overall stock score is primarily impacted by its poor financial performance, with significant challenges in revenue, profitability, and cash flow. Technical analysis further indicates bearish trends, while valuation metrics reflect the company's unprofitable status. These factors collectively suggest a high-risk investment with potential for further decline unless strategic improvements are made.

Positive Factors

Strategic Partnerships

Strategic partnerships can provide access to lucrative projects and investment opportunities, enhancing revenue potential and market position.

Diversified Revenue Streams

Diversified revenue streams from construction, sales, and rentals provide resilience against market fluctuations and enhance financial stability.

Industry Expertise

Expertise in construction allows for efficient project management and cost control, potentially improving margins and competitive advantage.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and affecting long-term stability.

Declining Revenue

Declining revenue indicates challenges in maintaining market share and competitiveness, potentially impacting long-term profitability and growth.

Negative Cash Flow

Negative cash flow highlights liquidity challenges, which can constrain operational capabilities and limit investment in future growth.

Dowway Holdings Limited Business Overview & Revenue Model

Company Description

Dowway Holdings Limited (8403) is a diversified investment holding company based in Hong Kong, primarily engaged in the construction and property development sectors. The company focuses on providing a range of services including project management, construction works, and real estate investment. Dowway aims to capitalize on opportunities within the property market by investing in residential and commercial developments, as well as leveraging its expertise in construction to enhance project efficiency and profitability.

How the Company Makes Money

Dowway Holdings Limited generates revenue primarily through its construction contracts and property development projects. The company earns money by undertaking construction projects for third-party clients, which typically involve bidding processes to secure contracts. Additionally, Dowway generates income from the sale and leasing of developed properties. Key revenue streams include fees from construction services, profit margins on property sales, and rental income from its investment properties. The company may also benefit from strategic partnerships with real estate developers and local government entities, which can provide access to lucrative projects and investment opportunities, thus enhancing its overall revenue potential.

Dowway Holdings Limited Financial Statement Overview

Summary

Dowway Holdings Limited is facing significant financial challenges. The income statement shows declining revenues and negative profit margins, while the balance sheet indicates high leverage and poor returns on equity. Cash flow analysis reveals liquidity concerns with negative operating and free cash flows. Strategic measures are needed to improve financial health.

Income Statement

Dowway Holdings Limited has faced declining revenue with a negative growth rate of -5.08% in the TTM. The company is struggling with profitability, as evidenced by negative net profit margins (-17.62%) and EBIT margins (-23.25%). The gross profit margin is relatively low at 11.40%, indicating challenges in managing cost of goods sold. Overall, the income statement reflects significant financial difficulties and a need for strategic improvements.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.63, indicating significant leverage and potential financial risk. The return on equity is negative (-254.44%), reflecting poor profitability and returns for shareholders. However, the equity ratio is 10.55%, suggesting some level of asset financing through equity. The company needs to address its high leverage to improve financial stability.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow, with a slight decline in free cash flow growth (-2.45%). The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is slightly above 1, suggesting that the company is generating enough free cash flow to cover its net losses. Overall, cash flow management requires improvement to ensure liquidity and operational sustainability.

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 1.47, above the 50-day MA of 1.49, and above the 200-day MA of 1.37, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 58.33 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 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%
0205	54 Neutral	HK$347.83M	-25.40	-6.02%	―	-4.13%	76.38%
1490	51 Neutral	HK$206.67M	-52.65	-0.67%	―	2.85%	-118.89%
1753	45 Neutral	HK$239.05M	―	-3.55%	―	-5.89%	-330.91%
8403	41 Neutral	HK$218.68M	―	-176.68%	―	―	―
0164	41 Neutral	HK$112.06M	-19.54	―	―	-1.65%	92.30%
0343	41 Neutral	HK$383.79M	-13.69	-57.02%	―	-0.57%	-159.63%