Dowway Holdings Limited (8403) AI Stock Analysis

• Market Cap: HK$278.24M
• Dividend Yield: N/A
• Average Volume (3M): 149.30K
• 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: 84
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 148,000,000
• 10 Day Avg. Volume: 203,200
• 30 Day Avg. Volume: 149,300
• PEG Ratio: >-0.01
• Price to Book (P/B): 4.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.17
• 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: 46 Neutral
• Price Target: HK$2.00 ▲(6.38%Upside)

The overall stock score reflects significant financial challenges faced by Dowway Holdings Limited, with high leverage and negative cash flow being major concerns. While technical indicators show bullish trends, valuation metrics highlight potential overvaluation issues. The lack of earnings call or corporate events data leaves the financial distress as the dominant factor.

Dowway Holdings Limited Business Overview & Revenue Model

Company Description

Dowway Holdings Limited, an investment holding company, operates as an integrated exhibition and event management company in the People's Republic of China. The company designs, plans, coordinates, and manages exhibitions and events; conducts liaison with suppliers and/or personnel for the construction of backdrops, stages, and exhibition booths, as well as installs audio, visual, and lighting equipment and facilities; and offers on-site supervision services. It provides integrated exhibition and event management services to domestic and overseas automobile brands primarily for facilitating showcases, promotion, and/or sales of their branded cars; and undertakes projects related to automobile exhibitions and event management projects from non-automobile companies. Dowway Holdings Limited was founded in 2002 and is headquartered in Beijing, China. Dowway Holdings Limited is a subsidiary of A&B Development Holding Limited.

How the Company Makes Money

Dowway Holdings Limited generates revenue primarily through service fees charged for its exhibition and event management offerings. The company earns money by organizing and managing trade shows, conferences, and other promotional events for diverse industries. These services include end-to-end event planning, logistics coordination, venue management, and marketing support. Additionally, the company may collaborate with partners or sponsors to enhance event offerings and increase financial returns. Significant revenue streams include fees from exhibitors, attendees, and sponsors participating in the events managed by Dowway Holdings Limited.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
140.16M	117.45M	177.13M	170.02M	144.17M
	Gross Profit
16.43M	5.86M	5.38M	14.31M	624.00K
	EBIT
-5.40M	-17.33M	-13.45M	-3.95M	-14.83M
	EBITDA
-10.57M	-15.68M	-34.74M	-3.13M	-12.84M
	Net Income Common Stockholders
-5.75M	-16.92M	-36.97M	-7.65M	-17.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.28M	12.44M	4.25M	6.61M	15.31M
	Total Assets
131.12M	108.93M	137.07M	148.86M	125.73M
	Total Debt
29.89M	20.50M	16.50M	18.30M	10.70M
	Net Debt
23.68M	8.06M	12.25M	11.69M	-4.61M
	Total Liabilities
127.43M	105.35M	114.95M	98.90M	69.32M
	Stockholders Equity
4.27M	3.58M	22.12M	49.96M	56.42M
Cash Flow		Free Cash Flow
-20.87M	2.10M	-8.40M	-5.52M	-12.32M
	Operating Cash Flow
-20.85M	2.11M	-8.39M	-5.26M	-12.32M
	Investing Cash Flow
1.00K	2.00K	3.00K	-245.00K	46.00K
	Financing Cash Flow
14.63M	5.86M	6.45M	-3.40M	2.34M

Dowway Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.88 is above the 20-day moving average (MA) of 1.48, above the 50-day MA of 1.39, and above the 200-day MA of 0.98, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 67.63 is Neutral, neither overbought nor oversold. The STOCH value of 86.20 is Negative, 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
8436	66 Neutral	HK$92.00M	14.01	2.71%	―	-13.30%	-55.74%
Sector *	61 Neutral	$14.33B	5.90	-3.82%	8.01%	2.79%	-33.24%
8400	60 Neutral	HK$41.00M	10.79	20.64%	―	70.92%	―
8427	53 Neutral	HK$351.56M	889.83	0.83%	―	4.23%	-40.55%
8447	52 Neutral	HK$36.00M	―	-100.07%	―	-2.31%	-910.00%
8403	46 Neutral	HK$278.24M	―		―	―	―