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Dragon King Group Holdings Ltd. (HK:8493)
:8493
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Dragon King Group Holdings Ltd.
(8493)
Select Model
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Rating:26Underperform
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. (8493) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$10.16M
Dividend YieldN/A
Average Volume (3M)885.48K
Price to Earnings (P/E)―
Beta (1Y)0.02
Revenue Growth-77.80%
EPS Growth-586.04%
CountryHK
Employees41
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-0.05
Shares Outstanding58,060,800
10 Day Avg. Volume633,720
30 Day Avg. Volume885,480
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-0.11
Price to Sales (P/S)0.23
P/FCF Ratio-1.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Dragon King Group Holdings Ltd. Business Overview & Revenue Model
Company DescriptionDragon King Group Holdings Limited, an investment holding company, operates and manages Cantonese full-service restaurants in Hong Kong, Macau, Shanghai, and the People's Republic of China. As of December 31, 2020, it operated 10 Cantonese full-service restaurants under the Dragon King, Dragon Seal, Imperial Seal, Dragon Gown, and Dragon Feast brands. The company also trades in food products; and holds properties. Dragon King Group Holdings Limited was founded in 2004 and is headquartered in Sheung Wan, Hong Kong.
How the Company Makes MoneyDragon 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.20
Very Negative
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.10
Very Negative
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.15
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.71M | 54.44M | 104.45M | 79.47M | 224.19M | 196.04M |
| Gross Profit | 14.73M | 38.88M | 74.71M | 54.07M | 152.03M | 134.98M |
| EBITDA | -31.94M | -21.59M | 5.63M | 1.82M | -17.20M | -21.27M |
| Net Income | -36.99M | -27.04M | 1.33M | -5.29M | -50.77M | -74.76M |
Balance Sheet | ||||||
| Total Assets | 47.27M | 51.12M | 44.78M | 55.38M | 65.09M | 139.52M |
| Cash, Cash Equivalents and Short-Term Investments | 688.00K | 6.89M | 1.01M | 4.88M | 8.39M | 16.62M |
| Total Debt | 96.36M | 93.91M | 65.65M | 72.84M | 87.27M | 132.51M |
| Total Liabilities | 174.71M | 172.01M | 147.16M | 162.53M | 167.24M | 196.53M |
| Stockholders Equity | -127.44M | -120.90M | -102.38M | -107.15M | -102.15M | -57.00M |
Cash Flow | ||||||
| Free Cash Flow | -22.80M | -7.64M | 5.82M | -4.30M | 28.09M | -2.85M |
| Operating Cash Flow | -22.80M | -7.64M | 5.82M | -4.28M | 29.06M | -524.00K |
| Investing Cash Flow | 180.00K | 120.00K | 0.00 | 2.32M | 1.97M | -976.00K |
| Financing Cash Flow | 16.35M | 13.40M | -9.69M | 516.00K | -36.37M | -251.00K |
Dragon King Group Holdings Ltd. Technical Analysis
Negative
0.04
Price Trends
0.04
Negative
0.05
Negative
0.05
Negative
Market Momentum
>-0.01
Negative
44.60
Neutral
58.33
Neutral
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 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | HK$30.03M | ― | -31.67% | ― | -19.25% | 65.38% | |
47 Neutral | HK$19.91M | ― | ― | ― | 144.78% | 10.07% | |
41 Neutral | HK$17.32M | ― | -80.18% | ― | 6.44% | -294.12% | |
38 Underperform | HK$4.70M | ― | ― | ― | ― | ― | |
26 Underperform | HK$10.16M | ― | ― | ― | -77.80% | -586.04% |
* Consumer Cyclical Sector Average
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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.