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1. Company Snapshot

1.a. Company Description

Datasea Inc., through its subsidiaries, provides smart security solutions in the People's Republic of China.It develops big data security and smart 3D security platforms, safe campus security systems, scenic area security systems, and public community security systems, as well as epidemic system.The company offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities.


It also provides 5G messaging and smart payment solutions.The company was formerly known as Rose Rock, Inc.and changed its name to Datasea Inc.


in October 2015.Datasea Inc.was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

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1.b. Last Insights on DTSS

Datasea Inc.'s recent performance was negatively impacted by fluctuations in its share price and trading volume, prompting the company to issue a statement regarding recent market activity. Despite a 4.9x year-over-year increase in gross profit to $1.2 million and a gross margin of 8.5%, concerns may arise from the company's high-tech product profitability strategy. Additionally, a head-to-head comparison with Stem highlights Datasea's relatively low institutional and insider ownership of 82.1%. The company's unaudited Q1 financial results, announced on November 13, may not have fully alleviated investor concerns.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Datasea Inc. Issues Statement Regarding Recent Market Activity

Nov -18

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Datasea (NASDAQ:DTSS) and Stem (NYSE:STEM) Head to Head Contrast

Nov -17

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Datasea Reports First Quarter Gross Profit of $1.2 Million, a 4.9x Increase Year-Over-Year in its Strategy to Achieve High-Tech Product Profitability

Nov -13

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Datasea Reports Record Fiscal Year 2025 Revenue of $71.62 Million, Up 199% Year-over-Year

Sep -26

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Datasea Secures Landmark Agreement for First Acoustic Wearable Technology Contract, Marking Entry into the $1 Trillion Market

Sep -11

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Datasea Achieves Breakthrough in Acoustic Technology, Accelerating Billion-Dollar Commercialization in Healthcare

Aug -18

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Datasea Secures $100 Million in 5G+AI Contracts from Major Clients, Reinforcing Strategic Expansion and Long-Term Growth

May -19

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Datasea Reports Third Fiscal Quarter 2025 Revenue of $10.4 Million Up 653.6% Year-over-Year

May -15

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (25.83%)

6. Segments

5G Messaging

Expected Growth: 25.9%

The growth of 5G messaging is driven by increasing demand for rich, interactive, and personalized customer experiences. The integration of SMS, MMS, and RCS capabilities enables businesses to enhance customer engagement, leading to increased adoption and revenue growth.

5G Messaging - Cloud Platform Cooperation

Expected Growth: 25.4%

Growing demand for rich media messaging services, increasing adoption of 5G networks, and rising need for carriers to enhance customer engagement and revenue streams drive the growth of Datasea's 5G Messaging - Cloud Platform Cooperation.

Smart City - Smart Community Broadcasting System

Expected Growth: 22.4%

Increasing adoption of IoT-based smart city initiatives, growing demand for efficient communication systems, and rising need for citizen engagement drive the growth of Datasea's Smart City-Smart Community Broadcasting System.

Acoustic Intelligence - Other

Expected Growth: 25.4%

Growing demand for AI-powered acoustic intelligence, increasing adoption in smart home devices, and rising need for efficient sound recognition in industrial automation are driving the market growth.

Acoustic Intelligence - Ultrasonic Sound Air Disinfection Equipment

Expected Growth: 12.4%

Growing concerns over airborne diseases, increasing adoption of air purification technologies, and rising demand for innovative disinfection solutions drive the growth of the acoustic intelligence market.

Smart City - Smart Community

Expected Growth: 22.5%

Increasing adoption of IoT-based solutions, growing need for efficient urban management, and rising demand for data-driven insights drive the growth of Datasea's Smart City-Smart Community solution, enhancing public services, safety, and sustainability.

5G Messaging - Aggregate Messaging Platform

Expected Growth: 25.4%

The growth of Datasea's 5G Messaging platform is driven by increasing demand for personalized customer engagement, the adoption of 5G networks, and the need for businesses to leverage interactive messaging to enhance customer experience.

Smart City - Smart Agriculture

Expected Growth: 12.4%

Increasing adoption of IoT, AI, and 5G technologies in agriculture, growing demand for sustainable farming practices, and rising need to optimize crop yields and reduce waste drive the growth of Datasea's Smart City - Smart Agriculture solution.

7. Detailed Products

Datasea IoT Platform

A comprehensive IoT platform that enables businesses to collect, process, and analyze data from various IoT devices.

Datasea Smart City Solution

A suite of solutions that leverage IoT, AI, and data analytics to create smart cities with improved public safety, transportation, and energy management.

Datasea Industrial IoT Solution

A customized IoT solution for industrial settings, enabling real-time monitoring, predictive maintenance, and optimized production processes.

Datasea AI-powered Analytics

A data analytics platform that leverages AI and machine learning to provide actionable insights from IoT data.

Datasea Cybersecurity Solution

A comprehensive cybersecurity solution that protects IoT devices and networks from cyber threats.

8. Datasea Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Datasea Inc. faces moderate threat from substitutes due to the availability of alternative data analytics solutions.

Bargaining Power Of Customers

Datasea Inc. has a large customer base, but customers have significant bargaining power due to the availability of alternative data analytics solutions.

Bargaining Power Of Suppliers

Datasea Inc. has a diverse supplier base, reducing the bargaining power of individual suppliers.

Threat Of New Entrants

Datasea Inc. operates in a moderately competitive industry, with new entrants facing significant barriers to entry.

Intensity Of Rivalry

Datasea Inc. operates in a highly competitive industry, with intense rivalry among existing players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight -156.55%
Debt Cost 3.95%
Equity Weight 256.55%
Equity Cost 5.17%
WACC 7.08%
Leverage -61.02%

11. Quality Control: Datasea Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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SYLA Technologies

A-Score: 5.3/10

Value: 7.5

Growth: 5.7

Quality: 5.4

Yield: 0.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

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Datasea

A-Score: 4.7/10

Value: 8.1

Growth: 7.2

Quality: 3.8

Yield: 0.0

Momentum: 4.0

Volatility: 5.0

1-Year Total Return ->

Stock-Card
Appian

A-Score: 4.2/10

Value: 4.9

Growth: 6.4

Quality: 5.4

Yield: 0.0

Momentum: 4.0

Volatility: 4.3

1-Year Total Return ->

Stock-Card
Synchronoss Technologies

A-Score: 3.3/10

Value: 8.4

Growth: 6.2

Quality: 3.2

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

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Gorilla Technology Group

A-Score: 3.0/10

Value: 4.7

Growth: 1.6

Quality: 3.9

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

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AuthID

A-Score: 2.8/10

Value: 6.6

Growth: 4.7

Quality: 4.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.26$

Current Price

1.26$

Potential

-0.00%

Expected Cash-Flows