Golden Faith Group Holdings Limited (2863) AI Stock Analysis

• Market Cap: HK$253.38M
• Dividend Yield: 8.33%
• Average Volume (3M): 81.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: 0.94%
• EPS Growth: 82.30%
• Country: HK
• Employees: 1,107
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 666,801,000
• 10 Day Avg. Volume: 33,900
• 30 Day Avg. Volume: 81,500
• PEG Ratio: 0.32
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -3.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: HK$0.50 ▲(38.89% Upside)

The overall stock score is primarily influenced by the company's financial performance, which highlights significant challenges in profitability and cash flow management. Technical analysis shows neutral indicators, while valuation concerns arise from a negative P/E ratio despite a high dividend yield. These factors suggest caution for potential investors.

Golden Faith Group Holdings Limited Business Overview & Revenue Model

Company Description

Golden Faith Group Holdings Limited, an investment holding company, engages in the provision of electrical and mechanical engineering services in Hong Kong. The company provides engineering services, including electrical and extra-low voltage (ELV) system work and ventilation, and air-conditioning system works. It also offers management installation, supervising, and testing of the electrical and ELV installation services. In addition, it is involved in the property investment business. It undertakes projects in public and private sectors, which comprise residential and commercial buildings, institutional buildings, government buildings, hotels, and hospitals. The company was founded in 1987 and is headquartered in Causeway Bay, Hong Kong.

How the Company Makes Money

Golden Faith Group Holdings Limited generates revenue through multiple streams, including the sale of manufactured products across its core sectors. The company capitalizes on its manufacturing capabilities to produce electronics and industrial components, which are sold to businesses in various industries. Additionally, the company may engage in trading activities, where it sources products from third-party manufacturers and sells them to retailers or wholesalers, earning a margin on these transactions. Strategic partnerships with suppliers and distributors enhance its market position and contribute to revenue growth. The company's profitability is further supported by its ability to manage production costs efficiently and optimize supply chain operations.

Golden Faith Group Holdings Limited Financial Statement Overview

Summary

Golden Faith Group Holdings Limited faces significant financial challenges, with declining profitability and cash flow issues. The company's low leverage is a positive aspect, but inefficiencies in operations and cash management are concerning. Strategic improvements are needed to enhance profitability and liquidity.

Income Statement

Golden Faith Group Holdings Limited has experienced fluctuating revenue and profitability. The Gross Profit Margin has decreased over the years, indicating potential cost management issues. The company reported negative EBIT and EBITDA margins in 2023 and 2024, signaling operational challenges and inefficiencies. Revenue grew by 9.7% in 2024 compared to 2023, but the Net Profit Margin remained negative, indicating ongoing profitability challenges.

Balance Sheet

The company maintains a strong equity position with a Debt-to-Equity Ratio of 0.02 in 2024, reflecting low leverage and financial stability. However, the Return on Equity (ROE) has been negative in recent years, pointing to inefficiencies in generating returns on shareholder equity. The Equity Ratio is healthy, suggesting a strong capital base relative to assets.

Cash Flow

The company has struggled with negative operating cash flows in recent years, particularly in 2024, which could indicate liquidity challenges. Free Cash Flow has been negative, impacting the company's ability to invest in growth opportunities. The Operating Cash Flow to Net Income Ratio is negative, reflecting cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	656.84M	736.68M	671.47M	348.61M	254.86M	252.77M
Gross Profit	8.52M	13.38M	23.27M	46.35M	43.83M	53.05M
EBITDA	-20.34M	-11.45M	-12.99M	18.47M	24.66M	30.85M
Net Income	-4.21M	-6.31M	-21.57M	11.59M	16.99M	23.15M
Balance Sheet
Total Assets	334.95M	337.69M	368.19M	369.37M	320.90M	315.35M
Cash, Cash Equivalents and Short-Term Investments	155.19M	146.05M	179.01M	134.83M	114.58M	198.41M
Total Debt	5.32M	5.82M	2.46M	2.50M	3.03M	1.67M
Total Liabilities	55.47M	64.38M	80.27M	64.14M	33.22M	50.12M
Stockholders Equity	284.58M	278.41M	282.57M	302.63M	287.12M	264.93M
Cash Flow
Free Cash Flow	836.00K	-39.11M	-774.00K	22.23M	-92.41M	74.30M
Operating Cash Flow	1.09M	-38.86M	-40.00K	22.90M	-91.03M	75.00M
Investing Cash Flow	13.98M	612.00K	39.84M	-3.10M	-1.57M	-12.92M
Financing Cash Flow	-3.85M	-3.80M	-1.57M	908.00K	2.53M	-5.77M

Golden Faith Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2863, the sentiment is Negative. The current price of 0.36 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.37, and above the 200-day MA of 0.34, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.47 is Neutral, neither overbought nor oversold. The STOCH value of 19.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2863.

Golden Faith Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0385	71 Outperform	HK$226.06M	4.53	2.37%	6.49%	9.48%	-53.42%
0368	66 Neutral	HK$248.00M	14.83	9.06%	5.39%	6.27%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	62 Neutral	HK$190.00M	7.89	6.66%	14.58%	13.59%	-12.52%
1582	61 Neutral	HK$167.50M	3.97	6.32%	9.04%	27.42%	-32.34%
1865	49 Neutral	HK$198.92M	―	-17.97%	―	-0.02%	13.79%
2863	48 Neutral	HK$253.38M	―	-1.47%	8.33%	0.94%	82.30%