Delton Technology (Guangzhou) Inc. Fundamental Analysis (HKSE: 1989.HK)
Delton Technology (Guangzhou) Inc. Fundamental Analysis (HKSE: 1989.HK)
Delton Technology (Guangzhou) Inc. (HKSE: 1989.HK) shows moderate financial fundamentals with a PE ratio of 122.64, profit margin of 21.78%, and ROE of 13.35%. The company generates $0.5B in annual revenue with weak year-over-year growth of 0.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 1989.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1989.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate1989.HK shows balanced valuation metrics.
Growth Score
Weak1989.HK faces weak or negative growth trends.
Financial Health Score
Excellent1989.HK maintains a strong and stable balance sheet.
Profitability Score
Weak1989.HK struggles to sustain strong margins.
Key Financial Metrics
Is 1989.HK Expensive or Cheap?
P/E Ratio
1989.HK trades at 122.64 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 1989.HK's PEG of 1.23 indicates fair valuation.
Price to Book
The market values Delton Technology (Guangzhou) Inc. at 5.99 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.64 times EBITDA. This is generally considered low.
How Well Does 1989.HK Make Money?
Net Profit Margin
For every $100 in sales, Delton Technology (Guangzhou) Inc. keeps $21.78 as profit after all expenses.
Operating Margin
Core operations generate 24.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.35 in profit for every $100 of shareholder equity.
ROA
Delton Technology (Guangzhou) Inc. generates $7.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Delton Technology (Guangzhou) Inc. produces operating cash flow of $117.35M, showing steady but balanced cash generation.
Free Cash Flow
Delton Technology (Guangzhou) Inc. generates weak or negative free cash flow of $-105.96M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.30 in free cash annually.
FCF Yield
1989.HK converts -16.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
122.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How 1989.HK Stacks Against Its Sector Peers
| Metric | 1989.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 122.64 | 35.21 | Worse (Expensive) |
| ROE | 13.35% | 747.00% | Weak |
| Net Margin | 21.78% | -3061.00% (disorted) | Strong |
| Debt/Equity | 0.08 | 0.66 | Strong (Low Leverage) |
| Current Ratio | 1.65 | 6.21 | Neutral |
| ROA | 7.36% | 174.00% | Weak |
1989.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Delton Technology (Guangzhou) Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
0.00%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
0.00%
Industry Style: Growth, Innovation, High Beta
Declining