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HK Equities · Finance research note

HKEX 6889 - DYNAM JAPAN HOLDINGS Co., Ltd.

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Evidence and analysis

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2. Company Fundamentals

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.) N/A
Risk / Std Dev (Ann.) N/A

Price Snapshot:

Metric Value
Last Price 3.230 HKD
Day Change +0.020 (+0.62%)

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in HK$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2026 FY2025
Revenue Reported revenue HK$123.53B HK$127.54B
Net income Reported net income HK$2.60B HK$4.01B
Total assets Year-end reported balance HK$382.25B HK$349.39B
Shareholders’ equity Year-end reported balance HK$132.75B HK$131.32B
Net margin Net income ÷ revenue 2.11% 3.14%
Asset turnover Revenue ÷ total assets 0.3232x 0.3651x
Equity multiplier Total assets ÷ shareholders’ equity 2.8794x 2.6605x
ROE Net margin × asset turnover × equity multiplier 1.96% 3.05%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: WACC is outside the permitted 5.00%–30.00% model range. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price HK$3.05
Market capitalisation HK$2.10B
Revenue HK$123.53B
EBIT HK$9.55B
Reported free cash flow HK$17.85B
FCF yield 848.81%
Net debt / EBITDA 2.92x

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:11:15.826580 UTC; latest reported fiscal period: 2026-03-31 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set Asia Pacific ex Japan
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-20 to 2026-06-30
Aligned daily observations 210
Minimum observation requirement 120
Currency conversion for HK listings HKD adjusted close divided by daily USD/HKD close before simple daily return calculation

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -24.99% -25.80%
Adjusted R² -0.01 -0.02
Annualised residual volatility 28.38% 28.34%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 0.12 (0.77) 0.17 (0.97)
Size (SMB) -0.05 (-0.20) 0.07 (0.23)
Value (HML) 0.05 (0.23) 0.00 (0.01)
Profitability (RMW) NM -0.04 (-0.12)
Investment (CMA) NM 0.25 (0.70)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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