Datronix Holdings Limited (0889) AI Stock Analysis

• Market Cap: HK$88.00M
• Dividend Yield: N/A
• Average Volume (3M): 20.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: -17.74%
• EPS Growth: -111.62%
• Country: HK
• Employees: 720
• Sector: Technology
• Sector Strength: 81
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.16
• Shares Outstanding: 320,000,000
• 10 Day Avg. Volume: 2,000
• 30 Day Avg. Volume: 20,533
• PEG Ratio: <0.01
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.40
• 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: 45 Neutral
• Price Target: HK$0.50 ▲(78.57%Upside)

Datronix Holdings Limited's stock score is primarily affected by its weak financial performance, reflected by declining revenues and profitability challenges. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to ongoing losses. The balance sheet's strength cannot fully offset these weaknesses.

Datronix Holdings Limited Business Overview & Revenue Model

Company Description

Datronix Holdings Limited (0889) is a Hong Kong-based company primarily engaged in the design, manufacturing, and sale of magnetics products. The company offers a wide range of products including power supply devices, transformers, inductors, and other electronic components used in various sectors such as telecommunications, information technology, and consumer electronics. Datronix Holdings Limited is known for its innovation in developing efficient and reliable magnetics solutions tailored to the needs of its global clientele.

How the Company Makes Money

Datronix Holdings Limited generates revenue primarily through the sale of its magnetics products to various industries. The company designs and manufactures these products, which are essential components in electronic devices and systems. Revenue streams include direct sales to original equipment manufacturers (OEMs) and through distributors who supply these components to end-users across different sectors. Additionally, the company may engage in partnerships or collaborations with technology firms to develop customized solutions, contributing to its earnings. The demand for electronic components in telecommunications, IT, and consumer electronics plays a significant role in driving the company's revenue.

Datronix Holdings Limited Financial Statement Overview

Summary

Datronix Holdings Limited faces significant financial challenges with declining revenue and persistent losses impacting profitability. The balance sheet remains strong with low leverage, but cash flow generation is under pressure due to operational difficulties.

Income Statement

Datronix Holdings Limited shows a consistent decline in revenue over the past few years, with a significant drop of 17.74% from 2023 to 2024. The gross profit margin decreased from 33.16% in 2023 to 29.15% in 2024, and the company has been operating at a net loss for two consecutive years, with a net profit margin of -28.03% in 2024. Negative EBIT and EBITDA margins further highlight profitability challenges.

Balance Sheet

The company maintains a strong equity position with a high equity ratio of 92.45% in 2024. The debt-to-equity ratio is low at 0.003, indicating minimal reliance on debt. However, the return on equity turned negative at -6.79% in 2024, reflecting profitability issues affecting shareholder returns.

Cash Flow

Operating cash flow decreased by 14.89% from 2023 to 2024, while free cash flow improved due to reduced capital expenditures. The free cash flow to net income ratio is positive, indicating that the company generates cash despite net losses. However, the overall cash flow situation remains challenging due to declining revenues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
182.96M	222.43M	262.42M	243.60M	230.81M
	Gross Profit
53.33M	73.73M	80.67M	85.41M	79.89M
	EBIT
-30.03M	-14.42M	28.10M	6.91M	-4.02M
	EBITDA
-33.57M	-4.92M	41.42M	19.55M	5.03M
	Net Income Common Stockholders
-51.26M	-24.23M	27.88M	3.83M	-6.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
151.32M	145.18M	144.68M	208.22M	256.72M
	Total Assets
816.34M	877.38M	927.08M	989.50M	959.84M
	Total Debt
2.36M	2.46M	1.42M	1.27M	859.00K
	Net Debt
-139.37M	-142.72M	-135.35M	-206.95M	-255.86M
	Total Liabilities
61.70M	64.09M	76.80M	111.31M	94.25M
	Stockholders Equity
754.65M	813.28M	850.28M	878.19M	865.59M
Cash Flow		Free Cash Flow
6.79M	4.49M	-44.75M	-44.62M	-79.52M
	Operating Cash Flow
15.37M	18.06M	-23.89M	-7.71M	8.77M
	Investing Cash Flow
-16.86M	-9.02M	-44.02M	-35.94M	-85.15M
	Financing Cash Flow
-1.62M	-1.20M	-6.14M	-7.12M	-10.02M

Datronix Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0889, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.30, and below the 200-day MA of 0.28, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 34.32 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0889.

Datronix Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9918	63 Neutral	HK$110.00M	1.54	38.89%	―	2.74%	5678.40%
Sector *	62 Neutral	$11.92B	10.03	-7.37%	3.70%	7.32%	-8.25%
8070	61 Neutral	HK$82.00M	4.67	19.19%	―	-12.09%	2.21%
2363	50 Neutral	HK$69.44M	5.06		―	-21.55%	83.95%
0889	45 Neutral	HK$88.00M	―	-6.54%	―	-17.74%	-111.62%
0675	44 Neutral	HK$104.13M	―	-3.26%	20.51%	-5.04%	65.30%
0515	39 Underperform	HK$87.10M	―	-92.80%	―	-84.61%	-14.10%

Datronix Holdings Limited Corporate Events

Datronix Holdings Reports Increased Losses in 2024 Financial Results

Datronix Holdings Limited announced its audited consolidated results for the year ended December 31, 2024, reporting a significant decline in revenue and an increased loss compared to the previous year. The company experienced a decrease in gross profit and faced a fair value loss on investment property, leading to a total comprehensive loss attributable to the owners of the company. These results reflect ongoing challenges in the market, impacting the company’s financial performance and potentially affecting its stakeholders.