Glory Flame Holdings Ltd. (8059) AI Stock Analysis

Glory Flame Holdings Ltd.

(HKEX:8059)

Select Model

Rating:44Neutral

Price Target:HKD 0.42▼(-3.02% Downside)

Action:reiterated

Date:10/10/26

The score is held down primarily by weak financial performance—shrinking revenue, ongoing losses, negative equity, and a return to negative operating/free cash flow in the latest year. Technical indicators show only modest improvement (short-term averages and MACD slightly positive) but the longer-term trend remains weak. Valuation does not compensate for risk due to losses (negative P/E) and no dividend support.

Positive Factors

Positive Gross ProfitPositive gross profit shows that the company’s underlying work can generate value before overhead and other costs. If management can control those costs, this existing gross-profit base could support better operating performance and improve earnings quality over the next several quarters.

Negative Factors

Sustained Revenue ContractionSeveral years of declining revenue point to weakening demand or business volume rather than a temporary fluctuation. Continued contraction reduces operating scale, limits the ability to absorb fixed costs, and makes a durable return to profitability more difficult.

Glory Flame Holdings Ltd. (8059) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 1.09M
Dividend Yield: ―
Average Volume (3M): 29.17K
Price to Earnings (P/E): -0.1
Beta (1Y): -1.04
Revenue Growth: -9.05%
EPS Growth: 42.68%
Country: Hong Kong
Employees: 102
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Glory Flame Holdings Ltd. Business Overview & Revenue Model

Company Description

Glory Flame Holdings Limited functions as an investment holding company, operating through its subsidiaries to deliver construction services and supply building materials across Hong Kong and mainland China. The company's diverse offerings include co...

Glory Flame Holdings Ltd. Financial Statement Overview

Summary

Weak fundamentals dominate: multi-year revenue contraction, persistent operating and net losses, and a highly stressed balance sheet with negative equity since 2022 alongside elevated debt. Cash flow was positive in 2023–2024 but turned negative again in 2025, reducing liquidity cushion and increasing funding risk.

Income Statement

24Negative

Balance Sheet

12Very Negative

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	85.31M	78.75M	102.42M	107.61M	118.53M	98.97M
Gross Profit	26.83M	21.62M	37.34M	33.74M	35.39M	24.65M
EBITDA	3.56M	-2.10M	-329.00K	8.22M	13.70M	-22.56M
Net Income	-10.41M	-15.41M	-12.40M	-9.77M	-10.33M	-36.85M
Balance Sheet
Total Assets	98.72M	102.14M	106.45M	120.28M	137.02M	116.78M
Cash, Cash Equivalents and Short-Term Investments	29.48M	32.82M	43.82M	36.15M	36.25M	37.13M
Total Debt	84.78M	83.84M	80.99M	88.16M	89.84M	76.02M
Total Liabilities	138.75M	136.81M	129.31M	131.05M	137.85M	113.38M
Stockholders Equity	-42.08M	-37.33M	-23.44M	-12.18M	-1.75M	9.19M
Cash Flow
Free Cash Flow	-11.48M	-9.38M	14.80M	6.88M	-5.14M	6.26M
Operating Cash Flow	-8.05M	-7.33M	16.39M	10.06M	-1.56M	7.16M
Investing Cash Flow	-2.77M	-1.39M	-1.20M	-2.77M	-3.47M	-897.00K
Financing Cash Flow	877.00K	-2.70M	-7.23M	-6.67M	4.42M	-6.42M

Glory Flame Holdings Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price0.43

Price Trends

50DMA0.48Negative

100DMA0.44Negative

200DMA0.53Negative

Market Momentum

MACD-0.01Positive

RSI40.32Neutral

STOCH40.76Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8059, the sentiment is Negative. The current price of 0.43 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.48, and below the 200-day MA of 0.53, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.32 is Neutral, neither overbought nor oversold. The STOCH value of 40.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8059.

Glory Flame Holdings Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

HK:8059 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:8411	76Outperform	HKD 159.52M	13.24	26.35%	5.63%	126.12%	―
HK:3822	74Outperform	HKD 91.98M	1.63	10.81%	10.96%	-5.20%	420.03%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HK:8059	44Neutral	HKD 21.73M	-0.07	41.03%	―	-9.05%	42.68%
HK:8356	39Underperform	HKD 20.97M	2.85	-18.35%	―	12.04%	―
HK:6189	38Underperform	HKD 17.35M	-0.27	8.24%	―	―	―
HK:8445	33Underperform	HKD 63.01M	-5.32	-13.85%	―	-36.27%	-4.08%

* Industrials Sector Average

Performance Comparison

HK:8059 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:8059	Glory Flame Holdings Ltd.	0.43	0.13	43.81%
HK:3822	Sam Woo Construction Group Ltd.	1.09	0.34	46.00%
HK:6189	Guangdong Adway Construction (Group) Holdings Co., Ltd. Class H	0.07	0.00	0.00%
HK:8356	CNC Holdings Limited	0.28	-0.07	-20.00%
HK:8411	K W Nelson Interior Design and Contracting Group Limited	0.16	0.09	138.81%
HK:8445	Noble Engineering Group Holdings Limited	0.19	0.02	11.76%

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: Oct 10, 2026

Glory Flame Holdings Ltd. AI Stock Analysis