Guoco Group (0053) AI Stock Analysis

• Market Cap: HK$22.47B
• Dividend Yield: 5%
• Average Volume (3M): 8.73K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.29
• Revenue Growth: 7.45%
• EPS Growth: 11.56%
• Country: HK
• Employees: 10,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 6.78
• Shares Outstanding: 329,051,360
• 10 Day Avg. Volume: 5,600
• 30 Day Avg. Volume: 8,734
• PEG Ratio: 0.47
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: HK$85.00 ▲(23.01% Upside)

Guoco Group's strong financial performance and attractive valuation are the primary drivers of its high stock score. The company's robust revenue growth, profitability, and efficient cash management underpin its financial stability, while its low P/E ratio and high dividend yield make it appealing to value investors. Technical indicators suggest strong momentum, though caution is advised due to potential overbought conditions.

Guoco Group Business Overview & Revenue Model

Company Description

Guoco Group Limited, an investment holding company, engages in the principal investment, property investment and development, hospitality and leisure, and financial service businesses. The company's Principal Investment segment offers debt, equity, and direct investments, as well as treasury operations with trading and strategic investments in global capital markets. Its Property Development and Investment segment develops residential and commercial properties, as well as holds properties for rental income in Singapore, China, Malaysia, Vietnam, and Hong Kong. The company's Hospitality and Leisure Business segment owns, leases, and manages hotels; and operates gaming and leisure businesses in the United Kingdom, Spain, and Belgium. This segment owns and operates hotels under Amba, Guoman, Thistle, and Thistle Express brands, as well as operates Hard Rock Hotel London under a third party brand. It offers Mecca, a bingo operator in Great Britain with 82 venues and a digital channel, www.meccabingo.com that provides a selection of games from bingo to slot machines; Grosvenor Casinos, a casino operator with 52 casinos in Great Britain and one unbranded casino in Belgium, as well as its digital channel, www.grosvenorcasinos.com; and Enracha, which offers a range of popular games and sports betting through its 9 venues in Spain and its digital channels www.enracha.es, www.yobingo.es, and www.yocasino.es. Its Financial Services segment provides commercial and consumer, Islamic, and investment banking services; and life and general insurance, Takaful insurance, fund management and unit trust, corporate advisory, and stock broking services. The company also offers royalty entitlement of Bass Strait's oil and gas production, as well as manufactures, markets, and distributes health products. The company is based in Central, Hong Kong. Guoco Group Limited is a subsidiary of GuoLine Overseas Limited.

How the Company Makes Money

Guoco Group makes money through its diversified business operations. Its property development and investment segment generates revenue from the sale and leasing of high-quality residential, commercial, and industrial properties. The hospitality and leisure sector contributes to earnings through its chain of hotels and resorts, offering accommodations and services to travelers. In financial services, Guoco's earnings come from its banking, insurance, and investment management businesses, which provide a range of financial products and services. Additionally, the company's oil and gas segment generates income from its exploration, production, and sale of energy resources. Guoco Group's revenue is further enhanced by strategic partnerships and joint ventures that expand its market reach and operational capabilities, as well as by its investment holdings in listed and unlisted securities that provide capital gains and dividends.

Guoco Group Financial Statement Overview

Summary

Guoco Group displays robust financial health with strong revenue growth and profitability. The income statement reveals a healthy gross profit margin of 37.05% and a net profit margin of 15.90%. The balance sheet shows a solid equity position with manageable leverage, and cash flow statements highlight efficient cash generation and growth in free cash flow.

Income Statement

Guoco Group shows a strong upward trend in revenue with a significant growth rate of approximately 15.86% from 2023 to 2024. The gross profit margin is healthy at 37.05%, and the net profit margin is robust at 15.90%. EBIT margin stands at 13.05%, while EBITDA margin is impressive at 33.58%, indicating efficient cost management and profitability. These metrics highlight the company's strong profitability and effective revenue growth strategy.

Balance Sheet

The company maintains a solid equity position with an equity ratio of 45.29%, suggesting a well-capitalized structure. The debt-to-equity ratio is moderate at 0.74, implying manageable leverage. Return on equity (ROE) is strong at 5.84%, showcasing effective utilization of shareholders' equity to generate profit. Overall, the balance sheet reflects financial stability with a balanced approach to debt and equity.

Cash Flow

Guoco Group exhibits a strong operating cash flow to net income ratio of 2.22, indicating efficient cash generation relative to its net income. Free cash flow has grown by 11.06% from 2023 to 2024, demonstrating the company's ability to generate additional cash after capital expenditures. The free cash flow to net income ratio of 2.01 further highlights the company's strong cash flow management and profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.11B	3.11B	2.88B	2.49B	1.90B	1.32B
Gross Profit	1.11B	1.11B	1.07B	909.36M	750.01M	351.64M
EBITDA	613.13M	836.71M	968.73M	376.82M	516.19M	234.98M
Net Income	513.47M	513.46M	458.58M	438.97M	249.86M	322.10M
Balance Sheet
Total Assets	18.67B	18.67B	17.35B	132.62B	130.28B	131.75B
Cash, Cash Equivalents and Short-Term Investments	3.26B	3.26B	3.14B	22.48B	20.59B	21.55B
Total Debt	6.15B	6.15B	5.82B	5.75B	5.82B	5.92B
Total Liabilities	7.62B	7.62B	7.23B	55.29B	54.93B	54.76B
Stockholders Equity	8.75B	8.75B	7.86B	59.34B	57.73B	59.78B
Cash Flow
Free Cash Flow	614.85M	0.00	921.75M	829.90M	409.37M	437.45M
Operating Cash Flow	614.85M	0.00	1.02B	892.38M	451.67M	458.36M
Investing Cash Flow	78.97M	0.00	-264.70M	-384.86M	-293.91M	-211.10M
Financing Cash Flow	-623.99M	0.00	-451.27M	-613.06M	-98.61M	-567.86M

Guoco Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 69.10
• 50DMA: Negative
• 100DMA: Negative
• 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:0053, the sentiment is Negative. The current price of 69.1 is below the 20-day moving average (MA) of 70.26, below the 50-day MA of 73.09, and above the 200-day MA of 69.05, indicating a neutral trend. The MACD of -1.19 indicates Negative momentum. The RSI at 34.15 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0053.

Guoco Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0053	80 Outperform	HK$22.47B	5.62	6.18%	5.00%	7.45%	11.56%
0363	71 Outperform	HK$16.01B	6.05	5.58%	6.37%	-7.44%	-18.48%
0148	69 Neutral	HK$32.14B	11.88	4.43%	5.88%	6.95%	24.07%
0392	66 Neutral	HK$40.53B	6.99	6.26%	4.94%	―	―
0001	64 Neutral	HK$218.89B	28.30	1.42%	4.02%	1.93%	-65.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0656	42 Neutral	HK$35.27B	-7.42	-3.65%	0.44%	-8.93%	-698.78%

Guoco Group Corporate Events

Guoco Group’s Rank Faces Financial Impact from UK Budget Changes

Guoco Group’s subsidiary, The Rank Group Plc, has announced that the UK Autumn Budget 2025 will significantly impact its operations due to an increase in Remote Gaming Duty from 21% to 40%, resulting in an additional cost of approximately £40 million annually. While the abolition of Bingo Duty offers a minor offset, the substantial rise in digital profitability costs will challenge Rank’s financial performance. Despite these challenges, Rank maintains a strong balance sheet and plans to explore mitigating actions to address the increased tax burden.

The most recent analyst rating on (HK:0053) stock is a Buy with a HK$85.00 price target. To see the full list of analyst forecasts on Guoco Group stock, see the HK:0053 Stock Forecast page.

Rank Group Faces £40 Million Impact from UK Autumn Budget Changes

The Rank Group Plc, a subsidiary of Guoco Group Limited, announced the impact of the UK Autumn Budget 2025, which includes an increase in Remote Gaming Duty and the abolition of Bingo Duty, effective from April 2026. These changes are expected to reduce the Group’s operating profit by approximately £40 million annually. The company is exploring mitigating actions to address the increased costs, particularly in its UK Digital business, and remains confident in its strong balance sheet and ability to meet financial covenants.

The most recent analyst rating on (HK:0053) stock is a Buy with a HK$85.00 price target. To see the full list of analyst forecasts on Guoco Group stock, see the HK:0053 Stock Forecast page.

Guoco Group Sets Annual Caps for Increased Project Service Fees

Guoco Group’s subsidiary, GPML, has entered into project management and services agreements with SPB and FWR, joint venture companies involved in residential projects. These agreements involve providing project management, financial coordination, and marketing services, among others. Due to recent market conditions, there has been a surge in sales and subsequent payments, leading to an increase in service fees beyond initial estimates. Consequently, Guoco Group has set annual caps for these transactions to comply with Hong Kong’s Listing Rules, ensuring transparency and adherence to regulatory requirements.

The most recent analyst rating on (HK:0053) stock is a Buy with a HK$85.00 price target. To see the full list of analyst forecasts on Guoco Group stock, see the HK:0053 Stock Forecast page.

Guoco Group’s AGM Resolutions Passed, Indicating Strong Shareholder Support

Guoco Group Limited held its Annual General Meeting on November 14, 2025, where all proposed resolutions were approved by shareholders through a poll. Key resolutions included the declaration of a final dividend, approval of directors’ fees, re-election of directors, re-appointment of KPMG as auditor, and granting a mandate to issue additional shares. The successful passing of these resolutions reflects strong shareholder support and positions the company for continued stability and growth.

The most recent analyst rating on (HK:0053) stock is a Buy with a HK$85.00 price target. To see the full list of analyst forecasts on Guoco Group stock, see the HK:0053 Stock Forecast page.

Guoco Group Announces AGM and Share Issuance Plans

Guoco Group Limited, a company incorporated in Bermuda, has announced its Annual General Meeting (AGM) to be held on November 14, 2025, in Hong Kong. The meeting will address ordinary business matters such as reviewing the audited financial statements, declaring a final dividend, fixing directors’ fees, re-electing directors, and re-appointing KPMG as auditors. Additionally, a special resolution will be considered to authorize the directors to issue and allot additional shares, with certain limitations, reflecting the company’s strategic focus on capital management and shareholder value.

The most recent analyst rating on (HK:0053) stock is a Buy with a HK$85.00 price target. To see the full list of analyst forecasts on Guoco Group stock, see the HK:0053 Stock Forecast page.