Daisho Microline Holdings Limited (0567) AI Stock Analysis

• Market Cap: HK$208.11M
• Dividend Yield: N/A
• Average Volume (3M): 65.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: 15.37%
• EPS Growth: -6.06%
• Country: HK
• Employees: 235
• Sector: Industrials
• Sector Strength: 92
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): >-0.01
• Shares Outstanding: 1,613,287,600
• 10 Day Avg. Volume: 76,200
• 30 Day Avg. Volume: 65,666
• PEG Ratio: -7.38
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 47.61
• 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: 54 Neutral
• Price Target: ―

Daisho Microline Holdings Limited faces significant financial challenges, with declining revenues and cash flow issues, heavily impacting its overall score. Despite strong technical momentum, the negative P/E ratio and absence of a dividend yield suggest the stock remains risky. Addressing profitability and liquidity issues is crucial for improving its financial health.

Daisho Microline Holdings Limited Business Overview & Revenue Model

Company Description

Daisho Microline Holdings Limited (0567) is a Hong Kong-based investment holding company primarily engaged in the manufacturing and trading of printed circuit boards (PCBs). The company operates in the electronics sector, providing key components used in a wide range of electronic devices. Its core services include the design, development, production, and sale of high-quality PCBs to various industries, including consumer electronics, telecommunications, and automotive sectors.

How the Company Makes Money

Daisho Microline Holdings Limited generates its revenue primarily through the manufacturing and sale of printed circuit boards. The company earns money by supplying PCBs to a diverse clientele, serving industries such as consumer electronics, telecommunications, and automotive. Its revenue model is based on fulfilling orders for these essential electronic components, which are critical in the assembly and functionality of electronic devices. Additionally, the company may engage in strategic partnerships or collaborations that enhance its production capabilities and expand its market reach, although specific partnerships are not detailed. The company's earnings are influenced by factors such as technological advancements, demand for electronic devices, and the efficiency of its manufacturing processes.

Daisho Microline Holdings Limited Financial Statement Overview

Summary

Daisho Microline Holdings Limited is struggling with declining revenues and persistent net losses. While the balance sheet shows a strong equity position, cash flow challenges are evident, with negative operating and free cash flows. The company needs to address profitability and liquidity issues to improve its financial health.

Income Statement

The company has experienced declining revenues over the past few years, with a noticeable decrease from 2020 to 2024. Gross profit margins have been low, reflecting cost challenges. Net profit margins are negative, indicating sustained losses. Despite some slight improvements in EBIT and EBITDA margins in the latest year, profitability remains weak.

Balance Sheet

The balance sheet shows a strong equity position relative to debt, with a low debt-to-equity ratio. However, the company has faced a decline in total assets and stockholders' equity over time. The equity ratio remains solid, but the return on equity is negative due to ongoing net losses.

Cash Flow

Cash flow from operations turned negative in the latest reporting period, indicating cash flow challenges. Free cash flow has also deteriorated, and the ratio of operating cash flow to net income is unfavorable. There is a significant decline in free cash flow compared to previous periods, suggesting liquidity issues.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
85.71M	85.58M	83.76M	106.47M	67.89M	1.21B
	Gross Profit
18.74M	17.72M	16.00M	7.80M	12.28M	26.13M
	EBIT
-13.35M	-13.23M	-15.34M	-27.11M	-29.93M	-58.03M
	EBITDA
-13.26M	-7.09M	-20.44M	-14.37M	-18.41M	-76.74M
	Net Income Common Stockholders
-11.35M	-11.87M	-26.02M	-29.13M	-66.98M	-87.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
62.54M	37.60M	49.61M	55.01M	30.33M	18.54M
	Total Assets
792.82M	125.11M	144.60M	175.61M	230.16M	257.62M
	Total Debt
172.01M	237.00K	985.00K	9.18M	90.17M	81.86M
	Net Debt
109.47M	-37.37M	-48.62M	-45.83M	59.83M	63.32M
	Total Liabilities
563.61M	31.30M	38.69M	42.95M	135.04M	124.53M
	Stockholders Equity
229.21M	93.81M	105.91M	132.66M	95.12M	133.09M
Cash Flow		Free Cash Flow
4.47M	-11.25M	6.28M	-27.24M	39.65M	-24.05M
	Operating Cash Flow
5.26M	-8.00M	6.84M	-25.97M	41.36M	-22.32M
	Investing Cash Flow
-750.00K	-3.21M	-10.93M	52.00M	-16.87M	101.11M
	Financing Cash Flow
-1.22M	-780.00K	-1.06M	-1.62M	-26.22M	-112.60M

Daisho Microline Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• 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:0567, the sentiment is Positive. The current price of 0.13 is below the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.12, and above the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.25 is Neutral, neither overbought nor oversold. The STOCH value of 72.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0567.

Daisho Microline Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1044	73 Outperform	$25.51B	10.05	11.12%	7.01%	-6.53%	-18.43%
0763	67 Neutral	$153.32B	11.93	11.39%	3.01%	-2.65%	-14.96%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%
0035	58 Neutral	$2.84B	―	-6.89%	18.23%	-7.62%	-328.97%
0228	57 Neutral	HK$559.61M	15.33	1.56%	―	-9.62%	-58.90%
0567	54 Neutral	HK$208.11M	―	-11.94%	―	15.37%	-6.06%
0399	44 Neutral	HK$389.95M	33.97		―	-23.08%	-85.52%

Daisho Microline Holdings Limited Corporate Events

Daisho Microline Announces Capital Injection in Target Company

Daisho Microline Holdings Limited, through its indirect wholly-owned subsidiary, has entered into a Capital Injection Agreement to subscribe for registered capital in a target company for RMB28,500,000. This transaction will result in Daisho Microline holding approximately 15.12% of the enlarged registered capital of the target company, which will be accounted as an associated company, but its financial results will not be consolidated into Daisho’s financial statements. The transaction is classified as a discloseable transaction under the Hong Kong Listing Rules, subject to reporting and announcement requirements, but exempt from shareholders’ approval.