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Dmall Inc.
(2586)
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Rating:64Neutral
Price Target:
HK$9.00
▲(115.31% Upside)
Action:Reiterated
Date:09/26/26
The score is driven primarily by improving financial performance, highlighted by a profitability turnaround and strong free cash flow. This is tempered by balance sheet risk (rising leverage and a history of negative equity), while technicals indicate strong momentum but with overbought readings that raise near-term pullback risk. Valuation is a headwind given the high P/E and lack of dividend support.
Positive Factors
Revenue Growth and Scale
Revenue has expanded to a substantial 2.30B TTM base, with the pack also reporting 19.34% growth. Continued expansion increases the platform’s operating scale, supports investment in retail digital solutions, and provides a stronger foundation for improving profitability over the next several quarters.
Negative Factors
Rising Leverage and Prior Balance Sheet Strain
Leverage has risen while equity declined, and the company previously reported negative equity across 2021–2023. This history indicates that balance sheet stability remains dependent on sustained profitability, with weaker earnings potentially reducing financial flexibility and increasing funding pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Scale
Revenue has expanded to a substantial 2.30B TTM base, with the pack also reporting 19.34% growth. Continued expansion increases the platform’s operating scale, supports investment in retail digital solutions, and provides a stronger foundation for improving profitability over the next several quarters.
Read all positive factors
Dmall Inc. (2586) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$7.70B
Dividend YieldN/A
Average Volume (3M)7.65M
Price to Earnings (P/E)36.6
Beta (1Y)0.55
Revenue Growth19.34%
EPS GrowthN/A
CountryHK
Employees1,208
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.19
Shares Outstanding938,348,500
10 Day Avg. Volume4,304,351
30 Day Avg. Volume7,646,778
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)6.53
Price to Sales (P/S)2.64
P/FCF Ratio81.36
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$10.00Price Target Upside139.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.26
Revenue Forecast (FY)HK$2.42B
Dmall Inc. Business Overview & Revenue Model
Company Description
Dmall Inc. operates as a holding company, focusing primarily on equipping local retailers with comprehensive digitalization solutions. The company's activities are organized into three principal divisions. Firstly, the "Retail Core Service Cloud" ...
How the Company Makes Money
Dmall Inc. makes money primarily by selling and operating digital platforms and related services for retailers (especially grocery/supermarket chains). Key revenue streams generally include: (1) fees paid by retailers for the use of Dmall’s softwa...
Dmall Inc. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.30B | 2.23B | 1.86B | 1.59B | 1.33B | 848.19M |
| Gross Profit | 865.51M | 849.78M | 746.38M | 554.70M | 505.20M | 172.74M |
| EBITDA | 220.26M | 166.16M | -2.38B | -683.13M | -833.00M | -1.74B |
| Net Income | 174.81M | 133.72M | -2.20B | -592.36M | -807.41M | -1.75B |
Balance Sheet | ||||||
| Total Assets | 1.56B | 1.73B | 1.66B | 1.38B | 1.31B | 1.28B |
| Cash, Cash Equivalents and Short-Term Investments | 759.52M | 942.58M | 888.14M | 568.11M | 598.17M | 439.44M |
| Total Debt | 470.28M | 368.49M | 557.09M | 7.53B | 6.72B | 5.32B |
| Total Liabilities | 832.92M | 778.99M | 1.02B | 8.14B | 7.38B | 6.02B |
| Stockholders Equity | 665.56M | 899.67M | 565.67M | -6.86B | -6.16B | -4.82B |
Cash Flow | ||||||
| Free Cash Flow | 248.14M | 72.21M | -82.99M | -185.79M | -222.50M | -1.29B |
| Operating Cash Flow | 252.90M | 116.87M | -74.20M | -179.25M | -205.50M | -1.27B |
| Investing Cash Flow | -62.21M | -51.55M | -31.91M | -31.03M | 68.85M | -321.40M |
| Financing Cash Flow | 75.38M | -50.99M | 373.00M | 207.06M | 282.43M | 833.72M |
Dmall Inc. Technical Analysis
Neutral
4.18
Price Trends
6.55
Positive
6.17
Positive
6.86
Positive
Market Momentum
0.40
Positive
58.29
Neutral
38.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2586, the sentiment is Neutral. The current price of 4.18 is below the 20-day moving average (MA) of 8.52, below the 50-day MA of 6.55, and below the 200-day MA of 6.86, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 38.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2586.
Dmall Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | HK$895.57M | 10.55 | 22.37% | 9.03% | 7.71% | 2.01% | |
71 Outperform | HK$1.31B | 2.95 | 12.42% | ― | 8.65% | ― | |
64 Neutral | HK$7.70B | 36.63 | 22.34% | ― | 19.34% | ― | |
60 Neutral | HK$29.85B | 104.05 | 3.02% | 0.10% | 16.98% | ― | |
57 Neutral | HK$3.79B | 10.05 | 3.91% | ― | 3.29% | 15.14% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
42 Neutral | HK$2.70B | -6.31 | -13.18% | ― | 40.17% | 76.39% |
* General Sector Average
HK:2586
Dmall Inc.
8.21
-0.50
-5.74%
HK:8083
China Youzan
0.91
-2.97
-76.68%
HK:0268
Kingdee International Software Group Co
8.51
-6.60
-43.68%
HK:2013
Weimob
0.66
-1.64
-71.30%
HK:0536
Tradelink Electronic Commerce Limited
1.13
0.18
19.43%
HK:9878
Huitongda Network Co., Ltd. Class H
6.75
-6.60
-49.44%
Dmall Inc. Corporate Events
Dmall Controlling Shareholder Boosts Stake, Citing Undervaluation and AI-Led Growth
Sep 11, 2026
Dmall Inc. has disclosed that its controlling shareholder, Dr. Zhang Wenzhong, has acquired 1,361,400 ordinary shares on the open market using personal funds. The move comes as Zhang believes the recent trading price undervalues the company, citin...
Dmall Inc. Delivers Strong Interim Profit Growth Despite Rising Costs
Aug 12, 2026
Dmall Inc. reported unaudited interim results for the six months ended June 30, 2026, showing revenue of RMB 1,154.5 million, up 7.1% year-on-year, and gross profit of RMB 429.7 million, a 3.8% increase. Profit for the period surged 66.2% to RMB 1...
Dmall Sets August Board Meeting to Approve Interim Results and Consider Dividend
Jul 31, 2026
Dmall Inc. has scheduled a board meeting for August 12, 2026 to review and approve the Group’s interim results for the six months ended June 30, 2026, and to authorize their publication. The board will also consider whether to recommend an i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.