DN HOLDINGS CO. LTD. (7377) AI Stock Analysis

• Market Cap: ¥17.22B
• Dividend Yield: 3.91%
• Average Volume (3M): 5.93K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.08
• Revenue Growth: 8.33%
• EPS Growth: 23.11%
• Country: JP
• Employees: 1,453
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 48.43
• Shares Outstanding: 8,420,000
• 10 Day Avg. Volume: 10,750
• 30 Day Avg. Volume: 5,933
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,322.00
• Price Target Upside: 13.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥2,322.00 ▲(13.55% Upside)

The overall score is driven by a strong valuation, with a low P/E ratio and attractive dividend yield. However, financial performance is hampered by negative cash flow trends, and technical indicators suggest a lack of momentum. Addressing cash management issues is crucial for improving financial health.

DN HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

DN HOLDINGS CO. LTD. (7377) is a diversified investment holding company based in Hong Kong, primarily engaged in various sectors including manufacturing, property investment, and trading. The company focuses on leveraging its strategic assets to maximize shareholder value, with core products and services encompassing a range of industrial goods, real estate ventures, and trading activities across different markets.

How the Company Makes Money

DN HOLDINGS generates revenue through multiple key streams: Firstly, it earns income from its manufacturing operations, producing a variety of industrial goods that are sold to both domestic and international markets. Secondly, the company benefits from rental income and capital appreciation through its real estate investments, which involve both commercial and residential properties. Additionally, DN HOLDINGS engages in trading activities, where it sources and sells products, earning profit margins on these transactions. The company's revenue model also includes potential partnerships with other firms in related sectors, enhancing its market reach and operational efficiency, while strategic investments in high-growth opportunities contribute to its overall earnings.

DN HOLDINGS CO. LTD. Financial Statement Overview

Summary

DN HOLDINGS CO. LTD. demonstrates strong revenue growth and a solid balance sheet, with low leverage and increasing equity. However, the decline in cash flow metrics, particularly the negative free cash flow, raises concerns about cash management and operational efficiency.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase from 2023 to 2024. Gross profit margins have remained stable, indicating efficient cost management. However, there is a slight decline in EBIT and EBITDA margins, which could suggest rising operational costs. The net profit margin has decreased slightly, reflecting the need to control expenses better.

Balance Sheet

The balance sheet is strong, with a healthy equity ratio and a low debt-to-equity ratio, indicating financial stability and low leverage. The company's stockholders' equity has grown significantly, which is a positive sign of financial health. However, there is a decrease in cash and cash equivalents, which might impact liquidity.

Cash Flow

The cash flow statement shows a concerning trend with negative operating and free cash flows in 2024, a reversal from positive figures in previous years. This could indicate cash management issues or increased capital expenditure. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2020
Income Statement
Total Revenue	37.70B	34.13B	32.58B	32.11B	16.50B
Gross Profit	12.90B	10.70B	10.02B	9.63B	5.75B
EBITDA	4.17B	2.73B	2.96B	2.74B	1.83B
Net Income	2.55B	1.56B	1.76B	1.51B	1.12B
Balance Sheet
Total Assets	34.33B	24.05B	21.03B	19.59B	13.52B
Cash, Cash Equivalents and Short-Term Investments	3.63B	2.12B	4.27B	4.60B	5.22B
Total Debt	11.70B	1.98B	1.10B	1.30B	0.00
Total Liabilities	19.78B	10.56B	9.17B	9.64B	7.03B
Stockholders Equity	14.54B	13.49B	11.86B	9.95B	6.49B
Cash Flow
Free Cash Flow	0.00	-2.19B	293.95M	209.86M	-1.03B
Operating Cash Flow	0.00	-1.92B	793.99M	608.10M	-736.79M
Investing Cash Flow	0.00	-127.56M	-347.38M	-978.20M	-456.33M
Financing Cash Flow	0.00	-111.00M	-788.84M	-606.21M	-129.05M

DN HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2045.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7377, the sentiment is Negative. The current price of 2045 is below the 20-day moving average (MA) of 2076.75, below the 50-day MA of 2105.46, and above the 200-day MA of 1916.32, indicating a neutral trend. The MACD of -18.13 indicates Positive momentum. The RSI at 38.23 is Neutral, neither overbought nor oversold. The STOCH value of 16.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7377.

DN HOLDINGS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6086	76 Outperform	24.84B	20.49	29.09%	1.36%	15.87%	25.64%
6083	74 Outperform	22.81B	17.46	20.40%	2.06%	9.67%	6.16%
4809	72 Outperform	20.57B	10.12	9.37%	3.15%	9.52%	17.18%
7377	69 Neutral	¥17.22B	8.66	―	3.91%	8.33%	23.11%
7320	56 Neutral	28.28B	-41.44	-15.06%	0.60%	25.13%	-158.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%