Mayer Holdings Ltd. (1116) AI Stock Analysis

Mayer Holdings Ltd.

(HKEX:1116)

Select Model

Rating:40Underperform

Price Target:HKD 0.20▲(2.56% Upside)

Action:reiterated

Date:07/10/26

The overall score is low primarily because the company shows persistent losses, compressing margins, and structurally weak cash generation, despite some recent deleveraging on the balance sheet that modestly reduces financial strain. Technical indicators add further downside pressure: the share price is below all major moving averages, MACD is negative, and both RSI and stochastic sit in deeply oversold territory, pointing to entrenched bearish sentiment rather than a stable base. Valuation offers limited support given the negative P/E and lack of dividend income, so potential upside is largely speculative and contingent on a yet-unproven turnaround in profitability and cash flow.

Positive Factors

Balance-sheet repair / lower leverageThe company materially reduced debt relative to equity by FY2025, repairing a previously highly leveraged balance sheet. Improved leverage increases financial flexibility, reduces refinancing risk and gives more time to stabilise operations without immediate funding pressure.

Negative Factors

Negative operating and free cash flowConsistent negative operating and free cash flow heighten execution and funding risk, forcing reliance on external financing or asset sales. Over months this erodes reserves, limits investment in operations or capex, and raises the probability of operational retrenchment if cash recovery is not achieved.

Mayer Holdings Ltd. (1116) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 420.81M
Dividend Yield: ―
Average Volume (3M): 212.38K
Price to Earnings (P/E): -9.1
Beta (1Y): 0.10
Revenue Growth: 16.18%
EPS Growth: 73.26%
Country: Hong Kong
Employees: 325
Sector: Basic Materials
Sector Strength: 61
Industry: Steel

Mayer Holdings Ltd. Business Overview & Revenue Model

Company Description

Huiyuan Cowins Technology Group Ltd. functions as an investment holding company, with its primary activities centered on the manufacturing, processing, and sale of various steel products, including sheets and pipes, throughout the People's Republic o...

How the Company Makes Money

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Mayer Holdings Ltd. Financial Statement Overview

Summary

Overall financial quality is weak: the company has been loss-making since 2021, with shrinking sales in the latest period and sustained margin compression, pointing to structural profitability challenges in a cyclical steel market. The balance sheet has improved from very high leverage to a more moderate debt-to-equity ratio below 1x in 2025, which reduces immediate financial risk but comes against a backdrop of persistently negative returns on equity and a history of stress. Cash generation is particularly poor, with operating cash flow negative in four of five years and free cash flow negative in all years, indicating the business regularly consumes cash and relies on external funding, which materially elevates the risk profile.

Income Statement

18Very Negative

Balance Sheet

32Negative

Cash Flow

14Very Negative

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2023	Jun 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	789.49M	760.06M	538.16M	714.41M	691.76M	581.11M
Gross Profit	84.15M	82.60M	71.20M	87.39M	94.62M	120.32M
EBITDA	-32.25M	―	-322.11M	-2.35M	23.17M	52.39M
Net Income	-52.69M	-57.68M	-338.85M	-14.73M	-6.25M	15.85M
Balance Sheet
Total Assets	554.73M	536.05M	533.79M	594.58M	830.99M	774.59M
Cash, Cash Equivalents and Short-Term Investments	49.49M	51.65M	46.39M	57.55M	34.95M	37.58M
Total Debt	161.96M	162.49M	232.56M	259.86M	219.27M	169.42M
Total Liabilities	304.71M	284.33M	392.43M	470.69M	338.98M	279.49M
Stockholders Equity	191.05M	193.40M	74.81M	57.28M	430.10M	435.03M
Cash Flow
Free Cash Flow	-48.29M	-72.12M	-60.49M	-13.45M	-39.77M	-63.72M
Operating Cash Flow	-28.51M	-59.02M	-44.97M	14.73M	-25.39M	-44.59M
Investing Cash Flow	-20.31M	-13.51M	-13.39M	-26.07M	-14.03M	-18.63M
Financing Cash Flow	67.10M	58.36M	65.21M	21.18M	39.85M	-42.16M

Mayer Holdings Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:1116 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:1118	72Outperform	HKD 672.02M	4.77	9.86%	5.96%	-4.52%	-8.87%
HK:1553	65Neutral	HKD 616.00M	5.49	7.76%	8.45%	-35.49%	-32.38%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HK:0826	48Neutral	HKD 6.62B	13.55	5.64%	2.33%	7.88%	16.03%
HK:1938	46Neutral	HKD 169.87M	1.24	7.82%	―	-39.70%	-51.97%
HK:8402	42Neutral	HKD 95.04M	-7.31	-28.01%	―	-1.48%	69.10%
HK:1116	40Underperform	HKD 431.60M	-9.14	-20.67%	―	16.18%	73.26%

* Basic Materials Sector Average

Performance Comparison

HK:1116 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:1116	Mayer Holdings Ltd.	0.20	-0.14	-40.91%
HK:0826	Tiangong International Co. Ltd.	2.48	-0.38	-13.20%
HK:1118	Golik Holdings Limited	1.18	0.23	24.87%
HK:1553	Maike Tube Industry Holdings Limited	1.40	-0.03	-2.10%
HK:1938	Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd.	0.17	-0.12	-40.69%
HK:8402	GT Steel Construction Group Limited	0.13	0.04	36.84%

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: Jul 10, 2026

Mayer Holdings Ltd. AI Stock Analysis