Datasea Inc. (DTSS) | Investment Case

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 has been impacted by fluctuations in its share price and trading volume. Despite a 4.9x year-over-year increase in gross profit to $1.2 million, concerns about the company's growth prospects and profitability may have contributed to the negative drivers. The company's acoustic technology advancements in brain-computer interface applications and strategic collaborations in the multi-billion-dollar non-invasive BCI and healthcare applications market are promising developments. However, the recent critical review with Baozun and comparisons with Stem may have raised concerns among investors.

1.c. Company Highlights

Last Price	0.92
Change Percentage	-0.24%
Open	0.91
Previous Close	0.92
Market Cap ( Millions)	8
Volume	14009
Year High	2.8
Year Low	0.64
M A 50	0.98
M A 200	1.72

FCF Yield	58.55%
Dividend Yield	0.00%
ROE	-88.69%
Debt / Equity	114.75%
Net Debt / EBIDTA	-448.06%
Price To Book	2.42
Price Earnings Ratio	-3.09
Price To FCF	1.71
Price To sales	0.14
EV / EBITDA	-14.93

2. Transcript Summary

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3. NewsRoom

Datasea Announces Foundational Research Breakthrough in Ultrasonic-Enhanced Nanoscale Precision Control

Feb -18

Source: prnewswire.com

Datasea Reports Second Fiscal Quarter 2026 Results

Feb -12

Source: prnewswire.com

Datasea Pre-Announces Fiscal Year 2026 Second Quarter Results

Jan -21

Source: prnewswire.com

Datasea Inc. and Its Partner Yizhimei Technology Jointly Launch an 18-Month Channel Execution Plan for Acoustic Haircare Robots

Jan -20

Source: prnewswire.com

Head-To-Head Contrast: Datasea (NASDAQ:DTSS) vs. SoundHound AI (NASDAQ:SOUN)

Jan -19

Source: defenseworld.net

Datasea Announces Major Acoustic Technology Advancements in Brain-Computer Interface Applications

Jan -12

Source: prnewswire.com

Baozun (NASDAQ:BZUN) versus Datasea (NASDAQ:DTSS) Critical Review

Jan -12

Source: defenseworld.net

Datasea Announces Strategic Collaboration with a Leading Brain-Computer Interface Company in China

Jan -05

Source: prnewswire.com

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

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

SYLA Technologies

A-Score: 5.0/10

Value: 7.2

Growth: 5.7

Quality: 5.5

Yield: 0.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

Appian

A-Score: 4.5/10

Value: 4.9

Growth: 6.4

Quality: 5.5

Yield: 0.0

Momentum: 7.0

Volatility: 3.0

1-Year Total Return ->

Datasea

A-Score: 4.2/10

Value: 8.0

Growth: 7.0

Quality: 3.6

Yield: 0.0

Momentum: 2.0

Volatility: 4.3

1-Year Total Return ->

Synchronoss Technologies

A-Score: 3.7/10

Value: 8.9

Growth: 6.2

Quality: 4.8

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

1-Year Total Return ->

Gorilla Technology Group

A-Score: 3.5/10

Value: 5.2

Growth: 1.4

Quality: 5.5

Yield: 0.0

Momentum: 5.0

Volatility: 4.0

1-Year Total Return ->

AuthID

A-Score: 3.0/10

Value: 8.2

Growth: 4.7

Quality: 3.9

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

20.31%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.08%

Datasea Inc. - US2381162062

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on DTSS

1.c. Company Highlights

More Volatile

Lower Quality

Weak Momentum

Fairly Valued

Stable Momentum

Medium Volatility

Cheaper

Lower Growth

Strong Momentum

Average Quality

Average Growth

Average Yield

Higher Growth

2. Transcript Summary

3. NewsRoom

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%

5G Messaging - Cloud Platform Cooperation

Expected Growth: 25.4%

Smart City - Smart Community Broadcasting System

Expected Growth: 22.4%

Acoustic Intelligence - Other

Expected Growth: 25.4%

Acoustic Intelligence - Ultrasonic Sound Air Disinfection Equipment

Expected Growth: 12.4%

Smart City - Smart Community

Expected Growth: 22.5%

5G Messaging - Aggregate Messaging Platform

Expected Growth: 25.4%

Smart City - Smart Agriculture

Expected Growth: 12.4%

7. Detailed Products

Datasea IoT Platform

Datasea Smart City Solution

Datasea Industrial IoT Solution

Datasea AI-powered Analytics

Datasea Cybersecurity Solution

8. Datasea Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.92$

Current Price

0.92$

12.e Scoring ^Insights

12.f DCF ^BETA