Davis Commodities Deploys AI-Driven Logistics to Improve Margins, Strengthen Cash Flow and Support Scalable Growth

Rhea-AI Summary

Davis Commodities (NASDAQ: DTCK) is deploying AI across logistics and supply chain operations to improve gross margins, shorten cash conversion cycles and support scalable growth across Asia, Africa and the Middle East.

The initiative targets shipment routing, demand forecasting, inventory planning and real-time visibility to reduce freight and demurrage costs, lower working capital needs and improve operational responsiveness.

News Market Reaction

-13.83%

5 alerts

-13.83% News Effect

-7.6% Trough in 36 min

-$747K Valuation Impact

$5M Market Cap

0.5x Rel. Volume

On the day this news was published, DTCK declined 13.83%, reflecting a significant negative market reaction. Argus tracked a trough of -7.6% from its starting point during tracking. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $747K from the company's valuation, bringing the market cap to $5M at that time.

Data tracked by StockTitan Argus on the day of publication.

Market Reality Check

Price: $0.1682 Vol: Volume 224,183 is 0.71x t...

normal vol

$0.1682 Last Close

Volume Volume 224,183 is 0.71x the 20-day average of 316,764, indicating subdued trading activity before this AI logistics update. normal

Technical Shares at $0.1952 trade below the $0.79 200-day MA and sit 97.17% below the 52-week high, near the 52-week low of $0.19 despite the efficiency-focused AI announcement.

Peers on Argus

DTCK fell 6.65% while peers showed mixed moves: SDOT down 4.32%, but LOCL, EDBL,...

DTCK fell 6.65% while peers showed mixed moves: SDOT down 4.32%, but LOCL, EDBL, and AQB up modestly to strongly, and APPH flat. With no peers in the momentum scanner and no same-day peer news, DTCK’s move appears more company-specific than sector-driven.

Previous AI Reports

4 past events · Latest: Sep 26 (Positive)

Same Type Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Sep 26	AI yield engine	Positive	+2.8%	Evaluation of <b>$300M</b> AI arbitrage engine to enhance token ecosystem yields.
Jul 01	AI refinery strategy	Positive	+2.5%	Comprehensive AI and refinery strategy targeting higher ROE and revenue growth.
Jan 21	AI JV investment	Positive	-2.6%	MOU with Kohai for joint investment in Kinetic AI enterprise solutions.
Jan 06	AI trading MOU	Positive	-1.8%	Partnership with QBE.AI to apply AI models to trading and risk management.

Pattern Detected

Prior AI-related announcements have produced small, mixed price reactions, with an even split between positive alignment and negative divergence.

Recent Company History

Over the past year, Davis Commodities has repeatedly highlighted AI as a strategic pillar. In January 2025, it signed MOUs with QBE.AI and Kinetic AI to enhance trading and operations, followed in July 2025 by a transformative AI refinery strategy targeting higher ROE and margins. In September 2025, it evaluated a $300M AI yield engine. Today’s logistics-focused AI deployment extends this ongoing technology integration theme across the business.

Historical Comparison

AI

+0.2 %

Average Historical Move

Historical Analysis

Across four prior AI-tagged updates, DTCK’s average move was only 0.22%, with split alignment versus divergence, suggesting historically muted, inconsistent reactions to AI news.

Typical Pattern

AI efforts have progressed from MOUs on trading optimization to broader refinery, token-yield engines, and now logistics optimization across the physical supply chain.

Market Pulse Summary

The stock dropped -13.8% in the session following this news. A negative reaction despite operational...

Analysis

The stock dropped -13.8% in the session following this news. A negative reaction despite operationally focused AI news fits a pattern of inconsistent responses to past AI announcements, which averaged just 0.22% moves with both alignment and divergence. With shares already 97.17% below the 52-week high and trading below the $0.79 200-day MA, sentiment may be shaped by broader concerns around execution, recent governance and capital structure changes rather than the logistics initiative alone.

Key Terms

artificial intelligence, cash conversion cycles, fast-moving consumer goods, FMCG

4 terms

artificial intelligence technical

"through the strategic deployment of artificial intelligence (“AI”) across its logistics"

Artificial intelligence is the ability of computers and machines to perform tasks that typically require human thinking, such as understanding language, recognizing patterns, or making decisions. For investors, it matters because AI can enhance efficiency, uncover new insights, and enable smarter strategies, potentially impacting the value and performance of companies that develop or utilize this technology.

cash conversion cycles financial

"designed to improve gross margins, shorten cash conversion cycles and support"

Cash conversion cycle measures how long a company's cash is tied up in its operating cycle: from paying suppliers, to turning inventory into sales, to collecting payment from customers. Investors watch it because a shorter cycle means the business frees up cash faster for debt, investment, or dividends, while a longer cycle can signal inefficiency or greater need for external funding — like how quickly a shop turns stocked goods into money in the till.

fast-moving consumer goods technical

"including value-added sweeteners and fast-moving consumer goods (“FMCG”) initiatives"

Everyday products people buy frequently and at low cost—like food, drinks, toiletries and cleaning supplies—that are sold quickly through supermarkets, convenience stores and online. For investors, these goods matter because they generate steady, predictable sales even in weak economies (think of them as the staples in a grocery basket), so companies that make or distribute them often provide reliable cash flow, pricing power and resilience to market swings.

FMCG technical

"including value-added sweeteners and fast-moving consumer goods (“FMCG”) initiatives"

FMCG, or fast-moving consumer goods, are everyday products that are sold quickly and at relatively low cost, such as food, drinks, toiletries, and household items. They matter to investors because these products are in constant demand, providing stable sales and cash flow for companies, even during economic ups and downs. Their high turnover makes them a key segment in the consumer market, reflecting broad consumer spending habits.

AI-generated analysis. Not financial advice.

SINGAPORE, Feb. 10, 2026 (GLOBE NEWSWIRE) -- Davis Commodities Limited (“Davis Commodities” or the “Company”), a leading global agricultural commodities trading firm listed on Nasdaq under the ticker “DTCK”, is enhancing its profitability and capital efficiency through the strategic deployment of artificial intelligence (“AI”) across its logistics and supply chain operations.

This initiative is designed to improve gross margins, shorten cash conversion cycles and support scalable growth as the Company expands its presence in Asia, Africa and the Middle East.

Enhancing Efficiency and Margins Across a Complex Global Supply Chain

Operating across multiple geographies, product categories and counterparties, logistics efficiency is a key driver of Davis Commodities’ operating margin and service reliability. By integrating AI-driven tools into its logistics framework, the Company aims to optimise shipment routing and scheduling to reduce freight and demurrage costs, improve demand forecasting and inventory planning to lower working capital needs, reduce operational bottlenecks and manual processing errors, and enhance visibility and real-time decision making across the end-to-end supply chain.

These capabilities are expected to reduce operational friction, improve turnaround times and optimise cost structures, while maintaining the reliability and consistency expected by customers and partners. Over time, the Company believes this will translate into improved margin resilience and more predictable cash flows.

Enabling Scalable and Sustainable Growth

AI-driven optimisation is a key enabler of scalability as Davis Commodities expands into new markets and higher value-added product segments, including value-added sweeteners and fast-moving consumer goods (“FMCG”) initiatives.

By leveraging intelligent systems, the Company expects to handle higher trade volumes and more complex routing requirements without a proportional increase in headcount or overhead.

This technology-driven approach strengthens margin resilience, improves capital efficiency and supports more efficient use of logistics and warehousing capacity. It also reinforces Davis Commodities’ ability to support downstream expansion and regional growth initiatives across Asia and beyond.

Strengthening Competitive Advantage and Risk Management

In an industry where reliability, execution and risk management are critical, AI-enhanced logistics provides Davis Commodities with a differentiated operating platform.

Improved forecasting accuracy and operational responsiveness enable the Company to better serve customers, mitigate supply chain and counterparty risks, and maintain high service standards even during periods of market volatility.

The initiative aligns with the Company’s broader strategy of integrating technology into core operations to reinforce its position as a modern, data-informed commodities and consumer-focused enterprise.

Creating Long-Term Value for Shareholders and Stakeholders

The deployment of AI across logistics and supply chain processes is a strategic investment that supports Davis Commodities’ long-term objectives of improving efficiency, enhancing competitiveness and driving disciplined, profitable growth.

By embedding technology into its operational foundation, the Company aims to strengthen its margin profile through cost optimisation, shorten order-to-cash cycles, improve cash flow generation and build a more scalable platform for downstream expansion and regional growth initiatives.

Attracting and Developing Future-Ready Talent

The adoption of AI also reflects Davis Commodities’ commitment to building future-ready teams. As the Company continues to digitalise its operations, it is creating opportunities for professionals in logistics, data analytics, operations and technology to contribute to high-impact, real-world applications.

This transformation supports a culture of innovation, continuous improvement and cross-functional collaboration, positioning Davis Commodities as an attractive platform for talent seeking growth within a global trading and supply chain environment.

Looking Ahead

Davis Commodities’ investment in AI-driven logistics optimisation underscores its focus on operational excellence as a foundation for long-term growth. By combining industry expertise with advanced technology, the Company aims to scale efficiently, capture new opportunities and deliver sustainable value to shareholders, partners and employees.

For further information, please visit https://ir.daviscl.com

About Davis Commodities Limited

Based in Singapore, Davis Commodities Limited is an agricultural commodity trading company that specialises in trading sugar, rice, and oil and fat products in various markets, including Asia, Africa and the Middle East. The Company sources, markets, and distributes commodities under two main brands, Maxwill and Taffy, in Singapore. The Company also provides customers of its commodity offerings with complementary and ancillary services, such as warehouse handling and storage and logistics services.

The Company utilises an established global network of third-party commodity suppliers and logistics service providers to distribute sugar, rice, and oil and fat products to customers in over 20 countries, as of the fiscal year ended December 31, 2024.

For more information, please contact:

Davis Commodities Limited

Investor Relations Department

Email: investors@daviscl.com

Celestia Investor Relations

Dave Leung

Email: investors@celestiair.com

FAQ

What did Davis Commodities (DTCK) announce about AI-driven logistics on February 10, 2026?

Davis Commodities announced an AI deployment to optimise logistics, aiming to improve margins and cash flow. According to Davis Commodities, the initiative targets routing, forecasting and inventory planning to reduce freight costs, demurrage and working capital needs while improving end-to-end supply chain visibility.

How will the AI logistics program affect DTCK's operational costs and margins?

The program aims to lower operational costs and strengthen margin resilience through optimisation. According to Davis Commodities, AI-driven routing and scheduling are expected to reduce freight and demurrage expenses and improve inventory turns to support more consistent gross margins.

Will the AI deployment change Davis Commodities (DTCK) headcount or overhead?

The company expects to scale without a proportional increase in headcount or overhead by automating logistics tasks. According to Davis Commodities, intelligent systems should enable higher trade volumes and complex routing with more efficient use of logistics and warehousing capacity.

What markets will DTCK target using its AI-enhanced logistics capabilities?

The initiative supports expansion across Asia, Africa and the Middle East and downstream product segments. According to Davis Commodities, AI optimisation will assist growth in value-added sweeteners, FMCG initiatives and regional expansion by improving capital efficiency and execution.

How does AI improve risk management for Davis Commodities (DTCK)?

AI enhances forecasting and operational responsiveness to mitigate supply chain and counterparty risks. According to Davis Commodities, improved visibility and prediction reduce operational bottlenecks and help maintain service levels during market volatility and complex logistics scenarios.

What shareholder benefits does Davis Commodities (DTCK) expect from the AI logistics investment?

The company expects improved cash flow generation and a more scalable platform to support profitable growth. According to Davis Commodities, embedding AI into operations aims to shorten order-to-cash cycles, optimise costs and strengthen long-term competitiveness for shareholders.