Dragon King Group Holdings Ltd. (8493) AI Stock Analysis

• Market Cap: HK$13.06M
• Dividend Yield: N/A
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: -77.80%
• EPS Growth: -586.04%
• Country: HK
• Employees: 41
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Restaurants
• EPS (TTM): -0.05
• Shares Outstanding: 290,304,000
• 10 Day Avg. Volume: 1,256,400
• 30 Day Avg. Volume: 1,737,200
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 26 Underperform
• Price Target: ―

Dragon King Group Holdings Ltd. scores poorly due to severe financial distress, marked by declining revenues and persistent losses, which dominate the overall assessment. Technical analysis suggests potential oversold conditions but lacks strong bullish signals. The valuation highlights fundamental weaknesses with a negative P/E ratio, signaling investor caution. Immediate financial restructuring is essential to improve the company's prospects.

Dragon King Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Dragon King Group Holdings Ltd. (8493) is a Hong Kong-based investment holding company primarily engaged in the operation of Cantonese full-service restaurants. The company offers a wide range of traditional Cantonese cuisine, specializing in seafood dishes. It operates several upscale dining venues across Hong Kong, Macau, and the People's Republic of China, targeting high-end consumers and catering to a variety of dining occasions including banquets and corporate events.

How the Company Makes Money

Dragon King Group Holdings Ltd. generates revenue primarily through its chain of Cantonese restaurants. The company's revenue model is based on the sale of food and beverages, including both dine-in and take-away services. Key revenue streams include revenue from a la carte dining, banquet services, and special events. The company also benefits from its reputation for high-quality Cantonese cuisine, which attracts a steady clientele willing to pay premium prices. Additionally, any significant partnerships with suppliers or event organizers contribute to its earnings by ensuring consistent quality and service availability. The company might also engage in promotional activities or partnerships to attract more customers and enhance its market presence.

Dragon King Group Holdings Ltd. Financial Statement Overview

Summary

Dragon King Group Holdings Ltd. faces severe financial distress, with declining revenues, persistent losses, and highly leveraged financials. The negative equity and erratic cash flows highlight significant operational and financial challenges. Urgent measures are needed to stabilize operations, improve profitability, and address solvency concerns to secure the company's future.

Income Statement

The income statement reveals significant revenue decline from 2019 to 2024, with 2024 revenue at just 13.5% of 2019 levels. Gross profit margin is relatively healthy at 71.42% in 2024, but the company's consistent net losses, highlighted by a net profit margin of -49.68% in 2024, indicate severe profitability issues. Additionally, EBITDA margin is negative at -39.64%, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows concerning financial health, with negative stockholders' equity consistently since 2020, indicating insolvency. The debt-to-equity ratio cannot be calculated due to negative equity, and the equity ratio is negative at -236.55% for 2024, highlighting extreme leverage and financial instability. The company's liabilities significantly outweigh its assets, posing a substantial risk.

Cash Flow

The cash flow statement indicates volatility with erratic operating cash flow patterns. Free cash flow was negative in 2024, reflecting cash strain. While 2023 saw positive free cash flow, the inability to sustain positive operating cash flow, especially with zero free cash flow in 2024, underscores liquidity challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.44M	104.45M	79.47M	224.19M	196.04M
Gross Profit	38.88M	74.71M	54.07M	152.03M	134.98M
EBITDA	-21.59M	5.63M	1.82M	-17.20M	-21.27M
Net Income	-27.04M	1.33M	-5.29M	-50.77M	-74.76M
Balance Sheet
Total Assets	51.12M	44.78M	55.38M	65.09M	139.52M
Cash, Cash Equivalents and Short-Term Investments	6.89M	1.01M	4.88M	8.39M	16.62M
Total Debt	93.91M	65.65M	72.84M	87.27M	132.51M
Total Liabilities	172.01M	147.16M	162.53M	167.24M	196.53M
Stockholders Equity	-120.90M	-102.38M	-107.15M	-102.15M	-57.00M
Cash Flow
Free Cash Flow	-7.64M	5.82M	-4.30M	28.09M	-2.85M
Operating Cash Flow	-7.64M	5.82M	-4.28M	29.06M	-524.00K
Investing Cash Flow	120.00K	0.00	2.32M	1.97M	-976.00K
Financing Cash Flow	13.40M	-9.69M	516.00K	-36.37M	-251.00K

Dragon King Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8493, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 30.11 is Neutral, neither overbought nor oversold. The STOCH value of -19.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8493.

Dragon King Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$17.97B	12.87	-5.30%	2.97%	1.26%	-14.45%
8096	41 Neutral	HK$23.48M	―	-31.67%	―	-19.25%	65.38%
8367	41 Neutral	HK$16.02M	1.62	-80.18%	―	6.44%	-294.12%
8493	26 Underperform	HK$13.06M	―		―	-77.80%	-586.04%
1007	―	HK$13.27M	―		―	―	―
8475	38 Underperform	HK$4.70M	―		―	―	―
8510	―	HK$19.91M	―		―	―	―