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Guangdong Tannery Limited (1058) AI Stock Analysis

HK:1058

Guangdong Tannery Limited

(HKEX:1058)

Select Model
Rating:43Neutral
Price Target:HKD 0.32â–¼(-10.28% Downside)
Action:reiterated
Date:09/30/26

The score is held down primarily by weak financial performance: ongoing losses, very thin margins, sharply higher leverage, and a return to negative operating and free cash flow. Technicals are also bearish with the price below key moving averages and negative MACD, while valuation provides little support due to a negative P/E and no stated dividend yield.

Positive Factors
Improving LossesThe sharp year-over-year improvement in losses indicates that earnings performance moved in a better direction despite continued red ink. If sustained, this progress could support eventual stabilization, but its durability remains dependent on reversing still-negative operating profitability.
Negative Factors
Persistent Losses and Thin MarginsPersistently negative operating and net margins show that the core business is not currently converting revenue into sustainable profits. The very thin gross margin leaves little buffer for costs or execution setbacks, limiting the company’s ability to self-fund growth.

Guangdong Tannery Limited (1058) vs. iShares MSCI Hong Kong ETF (EWH)

-40%-30%-20%-10%0%10%20%HK:1058-20.00%EWH+8.05%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 193.69M
Dividend Yield
―
Average Volume (3M)
23.00K
Price to Earnings (P/E)
-22.0
Beta (1Y)
0.37
Revenue Growth
-15.97%
EPS Growth
73.93%
Country
Hong Kong
Employees
193
Sector
Consumer Cyclical
Sector Strength
61
Industry
Apparel - Footwear & Accessories

Guangdong Tannery Limited Business Overview & Revenue Model

Company Description

Namyue Holdings Limited functions as an investment holding firm primarily engaged in the leather sector across Mainland China. Its core operations encompass the processing and distribution of semi-finished and finished leather. Additionally, the comp...

Guangdong Tannery Limited Financial Statement Overview

Summary

Financials reflect elevated risk: the company remains loss-making with very thin gross margin (~4.6%) and deeply negative net margin (~-20%) despite a sharp year-over-year improvement in losses. Balance-sheet quality has weakened materially as leverage increased to ~3.1x equity, and cash generation turned negative again in 2025 (both operating cash flow and free cash flow), increasing funding and execution risk.

Income Statement

18Very Negative

Balance Sheet

30Negative

Cash Flow

22Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue68.56M71.26M89.10M82.06M86.05M196.23M
Gross Profit4.68M3.27M385.00K-28.90M-7.81M18.20M
EBITDA-9.83M-10.75M-27.91M-62.38M-40.55M-15.21M
Net Income-8.83M-14.23M-33.77M-66.45M-43.93M-19.94M
Balance Sheet
Total Assets73.07M81.77M97.15M135.54M174.01M228.28M
Cash, Cash Equivalents and Short-Term Investments1.09M9.40M3.42M7.14M9.46M18.94M
Total Debt19.23M19.26M8.72M14.97M81.00K31.00K
Total Liabilities63.87M75.47M78.09M82.63M53.99M53.75M
Stockholders Equity9.20M6.30M19.06M47.37M120.01M174.54M
Cash Flow
Free Cash Flow-16.73M-6.55M2.42M-16.55M-8.42M-45.16M
Operating Cash Flow-11.43M-1.69M6.72M-15.69M-6.36M-39.41M
Investing Cash Flow-4.59M-3.99M-4.79M-891.00K-1.94M-3.24M
Financing Cash Flow10.23M10.19M-5.56M14.36M-106.00K-415.00K

Guangdong Tannery Limited Technical Analysis

Technical Analysis SentimentNegative
Last Price0.36

Price Trends

50DMA0.37Negative
100DMA0.38Negative
200DMA0.37Negative

Market Momentum

MACD-0.00Negative
RSI51.64Neutral
STOCH94.96Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1058, the sentiment is Negative. The current price of 0.36 is above the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.37, and below the 200-day MA of 0.37, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 51.64 is Neutral, neither overbought nor oversold. The STOCH value of 94.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1058.

Guangdong Tannery Limited Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

HK:1058 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:2683HK:268379OutperformHKD 441.32M5.0626.54%7.41%17.32%34.39%
HK:1836HK:183673OutperformHKD 11.01B11.2111.35%10.32%2.33%-22.20%
HK:0551HK:055172OutperformHKD 21.96B7.276.60%9.49%-3.17%-24.14%
HK:0210HK:021067NeutralHKD 573.68M5.0311.96%6.90%1.49%-9.08%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
HK:1058HK:105843NeutralHKD 193.69M-21.95-177.38%―-15.97%73.93%
HK:1170HK:117042NeutralHKD 269.68M-3.84-6.97%12.30%-2.99%-111.29%

* Consumer Cyclical Sector Average

Performance Comparison

-20%0%20%40%HK:1058HK:0210HK:1170HK:1836HK:0551HK:2683Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1058 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1058Guangdong Tannery Limited0.36-0.10-21.74%
HK:0210Daphne International Holdings 0.29-0.10-25.26%
HK:1170Kingmaker Footwear Holdings 0.41-0.05-10.28%
HK:1836Stella International Holdings 13.08-1.87-12.49%
HK:0551Yue Yuen Industrial (Holdings) 13.700.544.08%
HK:2683Wah Sun Handbags International Holdings Ltd.1.080.3037.76%

Guangdong Tannery Limited Corporate Events

Namyue Holdings Narrows Interim Loss Despite Revenue Decline

Aug 27, 2026

Namyue Holdings Limited reported unaudited interim results for the six months ended 30 June 2026, showing revenue of HK$31.9 million, down 7.8% from the prior-year period. Despite the top-line decline, the loss attributable to shareholders narrowed s...

Namyue Holdings sets board meeting to review interim results and potential dividend

Aug 17, 2026

Namyue Holdings Limited has scheduled a board meeting for 27 August 2026 to review and approve the unaudited interim results for the six months ended 30 June 2026. At the same meeting, directors will also consider whether to declare an interim divide...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 30, 2026