DIT Group Limited (0726) AI Stock Analysis

• Market Cap: HK$133.35M
• Dividend Yield: N/A
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: -67.66%
• EPS Growth: -46.23%
• Country: HK
• Employees: 321
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.09
• Shares Outstanding: 3,101,095,700
• 10 Day Avg. Volume: 2,891,500
• 30 Day Avg. Volume: 2,620,233
• PEG Ratio: -0.01
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 8.06
• 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: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 38 Underperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

DIT Group Limited's stock is significantly impacted by its poor financial performance, characterized by declining revenues, substantial losses, and liquidity challenges. Technical analysis further indicates bearish momentum, with the stock being oversold. The negative P/E ratio and lack of dividend yield contribute to an unfavorable valuation. Overall, the stock faces considerable risks and challenges.

DIT Group Limited Business Overview & Revenue Model

Company Description

DIT Group Limited (0726) is a diversified company operating primarily in the technology and telecommunications sectors. The company focuses on providing innovative solutions and services that enhance connectivity and communications for businesses and consumers. DIT Group Limited's core offerings include telecommunications infrastructure, digital solutions, and technology consultancy services, catering to a wide range of clients from small businesses to large enterprises.

How the Company Makes Money

DIT Group Limited generates revenue through multiple streams, including the sale of telecommunications infrastructure, subscription services for digital solutions, and consultancy fees for technology advisory services. The company benefits from long-term contracts with clients, ensuring a steady flow of income. Additionally, strategic partnerships with technology providers and telecommunications companies enhance its service offerings and expand its market reach, contributing significantly to its overall earnings.

DIT Group Limited Financial Statement Overview

Summary

DIT Group Limited faces severe financial difficulties across its financial statements. The income statement shows significant net losses and declining revenues. The balance sheet reveals high leverage with a debt-to-equity ratio of 1.22, and the cash flow statement indicates liquidity challenges with erratic and negative cash flows.

Income Statement

DIT Group Limited's income statement reveals significant challenges. The gross profit margin has decreased over the years, with a current figure of 2.53% for 2024. The net profit margin is negative, indicating consistent net losses, worsened to -124.21% in 2024. Revenue has sharply declined from 2021, reflecting a substantial negative growth trajectory. EBIT and EBITDA margins are also negative, pointing to operational inefficiencies.

Balance Sheet

The balance sheet shows a concerning debt-to-equity ratio of 1.22 in 2024, indicating high leverage. Return on Equity (ROE) is negative due to net losses, reflecting poor profitability. However, the equity ratio remains stable, with stockholders' equity accounting for 25% of total assets. This suggests some level of financial stability despite the high debt levels.

Cash Flow

The cash flow statement highlights significant issues, with no reported operating, investing, or free cash flows in 2024. Historical data shows erratic free cash flows and negative growth trends. The company is not generating sufficient cash flow to support net income, indicating liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	188.87M	373.99M	867.16M	1.57B	2.09B	1.09B
Gross Profit	-23.50M	9.46M	49.87M	261.93M	524.15M	345.20M
EBITDA	-209.32M	-273.76M	-144.46M	62.59M	389.59M	346.25M
Net Income	-564.90M	-464.54M	-315.73M	-148.15M	132.38M	158.83M
Balance Sheet
Total Assets	5.26B	5.49B	6.33B	6.69B	7.56B	5.21B
Cash, Cash Equivalents and Short-Term Investments	15.55M	22.06M	9.29M	25.12M	661.30M	663.50M
Total Debt	1.70B	1.68B	1.73B	1.77B	2.30B	1.43B
Total Liabilities	3.50B	3.47B	3.78B	3.77B	4.20B	2.39B
Stockholders Equity	1.13B	1.37B	1.88B	2.23B	2.67B	2.15B
Cash Flow
Free Cash Flow	-18.30M	33.49M	-40.79M	-147.12M	-807.55M	-595.09M
Operating Cash Flow	-19.72M	33.90M	10.92M	120.80M	114.54M	59.76M
Investing Cash Flow	34.01M	29.19M	-28.98M	-250.63M	-941.10M	-662.23M
Financing Cash Flow	-19.92M	-65.73M	2.64M	-289.96M	816.07M	893.29M

DIT Group Limited 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:0726, 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 0.06, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 34.20 is Neutral, neither overbought nor oversold. The STOCH value of 7.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0726.

DIT Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
6158	41 Neutral	€165.97M	―	―	―	-70.13%	-16.86%
1996	39 Underperform	€145.86M	―	-1347.47%	―	-59.30%	19.71%
2329	39 Underperform	HK$697.77M	―	-13.99%	―	-0.38%	-296.42%
0726	38 Underperform	HK$133.35M	―	-40.02%	―	-67.66%	-46.23%

DIT Group Limited Corporate Events

DIT Group Limited Announces Annual General Meeting with Key Resolutions

DIT Group Limited, a company incorporated in Bermuda with limited liability, has announced its upcoming Annual General Meeting scheduled for May 20, 2025, in Hong Kong. The meeting will address several key resolutions, including the re-election of directors, the re-appointment of the company’s auditor, and the authorization for the board to manage director remuneration and share allotment. These resolutions are crucial for the company’s governance and operational continuity, potentially impacting its strategic direction and stakeholder interests.

DIT Group Limited Reports Significant Financial Decline for 2024

DIT Group Limited reported a significant decline in its financial performance for the year ended December 31, 2024, with revenue dropping by 56.9% and gross profit decreasing by 81% compared to the previous year. The company also experienced a substantial increase in losses, with a 49.6% rise in loss attributable to owners and a 104.3% increase in loss attributable to non-controlling interests. The Board has decided not to recommend any dividend payment for the year.

DIT Group Limited Announces Potential Disposal of Subsidiary

DIT Group Limited has announced an Agreement of Intent to potentially sell 100% of its equity interests in Foshan Drawin Intelligent Manufacture Technology Limited to Haiyuan Logistics Co., Ltd. This move is part of a strategic decision to potentially divest from its construction industrialization subsidiary, with the agreement outlining an earnest money deposit and a 35-day exclusivity period for negotiations.

DIT Group Limited Appoints Ms. Wang Yuping as Executive Director

DIT Group Limited, a company incorporated in Bermuda, has announced the appointment of Ms. Wang Yuping as an executive director effective from March 10, 2025. Ms. Wang, who has been with the company since 2005, has extensive experience in financial management and has served as the general manager of the financial operation department since 2019. Her appointment is expected to strengthen the company’s leadership team, although she will not receive additional remuneration for this role due to her concurrent position as vice president.

DIT Group Limited Announces Board Composition and Committee Assignments

DIT Group Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The board has also established three committees: Audit, Remuneration, and Nomination, with specific directors assigned as members or chairpersons, indicating a structured governance approach.