GME Group Holdings Ltd (8188) AI Stock Analysis

• Market Cap: HK$493.80M
• Dividend Yield: 4.81%
• Average Volume (3M): 418.13K
• Price to Earnings (P/E): 6.1
• Beta (1Y): -0.20
• Revenue Growth: -6.68%
• EPS Growth: -25.58%
• Country: HK
• Employees: 588
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.11
• Shares Outstanding: 480,340,000
• 10 Day Avg. Volume: 242,800
• 30 Day Avg. Volume: 418,133
• PEG Ratio: 0.05
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 1.62
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: HK$1.00 ▼(-3.85% Downside)

The stock score is primarily driven by strong financial performance and attractive valuation. Despite cash flow challenges, the company's solid revenue growth and profitability, combined with a low P/E ratio and high dividend yield, make it appealing. Technical indicators suggest a neutral trend with potential for upward movement.

GME Group Holdings Ltd Business Overview & Revenue Model

Company Description

GME Group Holdings Ltd (8188) operates primarily in the construction and engineering sector, focusing on providing civil engineering services. The company is involved in various infrastructure projects, offering services that include tunnel construction, site formation, and other related engineering tasks. GME Group Holdings Ltd leverages its expertise to contribute to large-scale infrastructure developments mainly within its region.

How the Company Makes Money

GME Group Holdings Ltd generates revenue through the provision of specialized civil engineering services. Its primary revenue streams include contracts for tunnel construction, site formation, and other infrastructure-related engineering services. The company is engaged in securing government and private sector contracts to sustain its financial performance. Key factors contributing to its earnings include the successful bidding on significant infrastructure projects and maintaining strong relationships with clients in both public and private sectors.

GME Group Holdings Ltd Financial Statement Overview

Summary

GME Group Holdings Ltd has shown strong revenue and profit growth, with improving margins and efficient operations. The balance sheet is stable with low leverage and strong equity returns. However, cash flow challenges pose a risk to liquidity, which must be addressed for sustained success.

Income Statement

The company has demonstrated a strong revenue growth with a significant increase in total revenue from 2023 to 2024, amounting to 48.4%. Gross profit margin improved to 19.4%, and net profit margin also increased to 10.6%, indicating enhanced profitability. The EBIT margin stands at a healthy 13.3%, and the EBITDA margin is 14.3%, reflecting efficient operational management. However, past performance shows volatility in margins, requiring careful monitoring.

Balance Sheet

The balance sheet shows a solid equity position with an equity ratio of 53.7%, suggesting financial stability. The debt-to-equity ratio is 0.36, indicating a conservative debt strategy. Return on equity improved to 50.2%, showcasing effective use of equity. Despite the positive trends, maintaining low debt levels amid growth is crucial to sustain financial health.

Cash Flow

The cash flow statement reveals challenges, with operating cash flow at zero in 2024, and historical data showing negative free cash flow and operating cash flow. This highlights potential struggles in cash generation and liquidity management. The company needs to enhance cash flow operations to support its growth trajectory.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	757.52M	815.18M	549.55M	440.53M	443.55M	134.57M
Gross Profit	144.82M	158.15M	110.02M	13.93M	32.37M	19.56M
EBITDA	111.67M	119.36M	83.98M	15.05M	19.13M	8.09M
Net Income	83.30M	86.17M	61.48M	5.80M	10.45M	1.01M
Balance Sheet
Total Assets	358.26M	319.56M	273.10M	156.95M	148.35M	74.08M
Cash, Cash Equivalents and Short-Term Investments	36.32M	26.41M	4.47M	11.43M	5.43M	6.94M
Total Debt	84.37M	62.46M	72.12M	41.30M	20.32M	5.31M
Total Liabilities	154.89M	148.05M	142.03M	87.35M	84.56M	20.74M
Stockholders Equity	203.37M	171.51M	130.69M	69.21M	63.40M	52.95M
Cash Flow
Free Cash Flow	7.38M	105.67M	-23.61M	-21.13M	-12.97M	-7.66M
Operating Cash Flow	14.07M	117.01M	-15.26M	-14.86M	-3.86M	-971.00K
Investing Cash Flow	-5.56M	-11.94M	-8.20M	-6.25M	-8.96M	-6.63M
Financing Cash Flow	1.40M	-80.33M	16.49M	27.10M	11.31M	-2.83M

GME Group Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8188, the sentiment is Neutral. The current price of 1.04 is below the 20-day moving average (MA) of 1.06, below the 50-day MA of 1.05, and above the 200-day MA of 0.75, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.59 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8188.

GME Group Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1556	―	HK$517.50M	3.86	17.51%	5.80%	17.51%	1.48%
8188	―	HK$493.80M	6.08	45.61%	4.81%	-6.68%	-25.58%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	―	HK$192.00M	7.89	6.66%	14.58%	13.59%	-12.52%
6063	―	HK$430.00M	134.38	2.51%	―	7.08%	-5.88%
1746	―	HK$320.00M	-49.23	-4.80%	―	-30.56%	-160.00%