Global Strategic Group (8007) AI Stock Analysis

• Market Cap: HK$51.86M
• Dividend Yield: N/A
• Average Volume (3M): 796.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: 45.33%
• EPS Growth: -119.44%
• Country: HK
• Employees: 59
• Sector: Utilities
• Sector Strength: 65
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -0.17
• Shares Outstanding: 188,597,850
• 10 Day Avg. Volume: 2,224,861
• 30 Day Avg. Volume: 796,069
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 78.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: HK$0.50 ▲(78.57% Upside)

The overall score reflects significant financial challenges, particularly in profitability and leverage, despite some positive technical indicators. The negative P/E ratio and lack of dividend yield further weigh on the stock's attractiveness.

Global Strategic Group Business Overview & Revenue Model

Company Description

Global Strategic Group Limited, an investment holding company, supplies natural gas in Yichang city located in Hubei province in the People's Republic of China. The company operates in three segments: Natural Gas Operations, Leasing business, and Independent Financial Advisory. It also invests in natural gas projects; sells natural gas cooking appliances and accessories; and provides pipeline installation services. In addition, the company leases steel support axial force servo systems, as well as offers technology support services; and independent financial advisory and insurance brokerage services. The company was formerly known as DIGITALHONGKONG.COM and changed its name to Global Strategic Group Limited in January 2015. Global Strategic Group Limited was founded in 1994 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

Global Strategic Group generates revenue through multiple streams. Primarily, it earns income from consulting services offered to businesses seeking strategic guidance and operational improvements. Additionally, the company profits from technology solutions, including software development and IT infrastructure services, which cater to a broad range of industries. Another significant revenue stream is derived from strategic investments in startups and established firms, where the company leverages its expertise to drive growth and profitability. Key partnerships with technology providers and industry leaders enhance its service offerings and expand its market reach, further contributing to its earnings.

Global Strategic Group Financial Statement Overview

Summary

Global Strategic Group shows strong revenue growth but faces significant challenges in profitability and financial stability. The negative equity and high leverage are major concerns, while cash flow improvements provide some optimism. The company needs to address its profitability and leverage issues to improve its financial health.

Income Statement

The company's revenue has shown significant growth over the years, with a notable increase from 2023 to 2024. However, the company has struggled with profitability, as evidenced by negative EBIT and net income in recent years. The gross profit margin remains moderate, but the net profit margin is negative, indicating ongoing challenges in achieving profitability.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity, indicating potential financial instability. The debt-to-equity ratio is not calculable due to negative equity, but the high total liabilities relative to assets suggest significant leverage. The equity ratio is negative, further highlighting the company's financial distress.

Cash Flow

The company has managed to improve its operating cash flow in 2024, turning positive after a negative period. However, free cash flow remains negative, indicating challenges in covering capital expenditures. The operating cash flow to net income ratio is favorable, suggesting operational cash generation despite accounting losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	221.21M	221.21M	166.08M	136.24M	71.49M	42.73M
Gross Profit	43.16M	43.16M	27.26M	20.29M	20.26M	12.99M
EBITDA	20.58M	23.95M	39.36M	30.27M	-6.02M	-261.33M
Net Income	-15.64M	-15.64M	-12.23M	10.68M	-22.77M	-266.82M
Balance Sheet
Total Assets	338.49M	338.49M	299.34M	239.86M	245.24M	225.67M
Cash, Cash Equivalents and Short-Term Investments	20.07M	20.07M	9.38M	5.00M	23.41M	1.98M
Total Debt	134.34M	134.34M	93.52M	43.12M	47.08M	80.99M
Total Liabilities	254.87M	254.87M	207.55M	157.52M	172.61M	191.92M
Stockholders Equity	-12.07M	-12.07M	2.52M	15.78M	27.86M	-10.20M
Cash Flow
Free Cash Flow	-11.60M	-12.06M	-23.31M	-1.24M	-14.79M	-14.62M
Operating Cash Flow	25.92M	25.92M	-7.31M	8.62M	-9.69M	-8.39M
Investing Cash Flow	-37.89M	-37.89M	-15.98M	-4.53M	14.14M	-9.26M
Financing Cash Flow	22.18M	22.18M	27.23M	-25.02M	15.81M	13.53M

Global Strategic Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8007, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.25, and above the 200-day MA of 0.28, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 68.29 is Neutral, neither overbought nor oversold. The STOCH value of 45.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8007.

Global Strategic Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1621	61 Neutral	HK$94.00M	7.58	5.31%	―	-3.15%	-26.63%
8347	54 Neutral	HK$16.23M	-19.67	-0.91%	―	19.25%	90.46%
8007	49 Neutral	HK$51.86M	―	―	―	45.33%	-119.44%
8270	48 Neutral	HK$109.33M	-2.43	-27.22%	―	-29.86%	-791.02%
8631	46 Neutral	HK$58.20M	-0.50	415.75%	―	-19.61%	-261.70%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%