GBA Holdings Limited (0261) AI Stock Analysis

• Market Cap: HK$89.71M
• Dividend Yield: N/A
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -32.43%
• EPS Growth: 55.29%
• Country: HK
• Employees: 64
• Sector: Industrials
• Sector Strength: 72
• Industry: Real Estate - Diversified
• EPS (TTM): -0.15
• Shares Outstanding: 284,801,670
• 10 Day Avg. Volume: 1,584,433
• 30 Day Avg. Volume: 1,196,660
• PEG Ratio: -0.02
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 1.84
• P/FCF Ratio: -4.60
• 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: 46 Neutral
• Price Target: HK$0.29 ▲(27.83% Upside)

The score is held down primarily by poor financial performance (persistent losses, declining revenue, and negative operating/free cash flow). Technicals are moderately positive and provide partial support, but valuation is weakened by a negative P/E and the absence of dividend yield data.

Positive Factors

Strong equity base

A high equity ratio and strong equity base provide durable financial stability, allowing the company to absorb operating losses and shock events without immediate insolvency. This structural strength supports flexibility for asset dispositions or selective financing over months ahead.

Controlled leverage trend

A modest improvement in net debt indicates management has kept leverage under control, reducing near-term refinancing pressure. Over a 2–6 month horizon this enhances access to credit and strategic optionality for restructuring or opportunistic investments if operating trends improve.

Lean operating footprint

A small employee base implies lower fixed operating overhead and structural flexibility to scale activity or wind down operations. For an investment-holding model, this durable cost discipline helps limit cash burn while management pursues asset-level monetization or portfolio repositioning.

Negative Factors

Persistent unprofitability

Sustained negative gross and net margins signal structural profitability problems that erode equity and limit reinvestment capacity. Over several months this undermines the firm’s ability to achieve operating breakeven without material business model changes or favorable asset dispositions.

Negative operating and free cash flow

Consistent negative operating and free cash flow creates a structural liquidity gap, forcing reliance on external financing or asset sales. This reduces runway and restricts capital allocation flexibility, making sustainable operations and strategic initiatives dependent on outside funding.

Shrinking asset base and rising leverage

A declining asset base combined with rising leverage weakens collateral and balance sheet resilience. Over a multi-month horizon this increases refinancing and covenant risks, potentially necessitating distressed asset sales or dilutive financing to meet obligations.

GBA Holdings Limited Business Overview & Revenue Model

Company Description

GBA Holdings Limited, an investment holding company, designs, develops, sells, and supplies telecom, electronic, and infant and baby products in Mainland China, Hong Kong, and internationally. It offers cordless products, such as DECT cordless, digital cordless, corded/cordless combo phone systems, and designer phones; and design phones, corded phones, and Qi charging pads, as well as family radio systems and Bluetooth products. The company's infant and child products include baby monitoring products, feeding and grooming products, nursing kits and safety products, and home appliances. It is also involved in the development and sale of properties; trading of telecom, electronic, and child products; and finance business. The company was formerly known as Greater Bay Area Investments Group Holdings Limited and changed its name to GBA Holdings Limited in August 2020. GBA Holdings Limited is headquartered in Shatin, Hong Kong.

How the Company Makes Money

GBA Holdings Limited generates revenue through multiple streams. Its core revenue model is centered around property development and investment, where the company acquires, develops, and manages real estate assets to generate rental income and capital appreciation. Additionally, the company provides financial advisory services, earning fees from clients seeking guidance on investments and business strategies. In the technology sector, GBA Holdings may generate revenue through the sale of technology solutions and partnerships with tech firms. Significant partnerships with local and international companies enhance its market reach and operational capabilities, contributing to its earnings growth.

GBA Holdings Limited Financial Statement Overview

Summary

Weak profitability and cash generation drive the score: gross and net margins are consistently negative, revenue has fallen sharply since 2021, and operating/free cash flow have been negative. The balance sheet is comparatively steadier with a strong equity base and low total debt, but rising liabilities and shrinking assets add pressure.

Income Statement

The company's income statement reveals a challenging financial environment with negative profit margins. The gross profit margin is consistently negative, indicating that cost of goods sold surpasses the revenue generated. Net profit margins have also been negative, reflecting substantial losses. Revenue has decreased sharply since 2021, with significant revenue growth volatility, posing a risk to financial stability.

Balance Sheet

The balance sheet shows a strong equity base with a high equity ratio, indicating stability. However, the company has been experiencing decreasing total assets and increasing liabilities, leading to a rising debt-to-equity ratio. Despite this, the company maintains a low level of total debt, and recent years have shown a slight improvement in net debt, suggesting controlled leverage.

Cash Flow

The cash flow statement highlights negative operating and free cash flows over recent years, indicating potential liquidity challenges. The company has struggled with generating positive cash flow from operations, and free cash flow has been consistently negative, which could affect its ability to fund future growth or meet obligations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.91M	57.05M	78.38M	56.00M	469.00M	394.00M
Gross Profit	-36.12M	-3.28M	-4.60M	-63.00M	49.00M	-25.00M
EBITDA	-56.10M	-58.19M	-90.05M	-175.00M	-58.00M	-134.00M
Net Income	-75.25M	-55.78M	-98.41M	-176.07M	-60.00M	-123.00M
Balance Sheet
Total Assets	683.60M	659.94M	730.19M	754.00M	978.00M	1.48B
Cash, Cash Equivalents and Short-Term Investments	56.39M	29.59M	53.33M	44.36M	97.00M	209.00M
Total Debt	44.42M	16.51M	23.07M	5.24M	2.00M	0.00
Total Liabilities	160.61M	129.91M	121.60M	75.00M	99.00M	555.00M
Stockholders Equity	538.06M	547.35M	615.33M	679.00M	879.00M	926.00M
Cash Flow
Free Cash Flow	-39.15M	-22.77M	-28.84M	-36.00M	-101.00M	57.00M
Operating Cash Flow	-37.91M	-22.00M	-28.52M	-32.00M	-101.00M	57.00M
Investing Cash Flow	-26.61M	-4.40M	-4.73M	17.98M	33.00M	47.00M
Financing Cash Flow	31.07M	2.84M	46.44M	21.43M	-1.00M	-97.00M

GBA Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.23
• 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:0261, the sentiment is Positive. The current price of 0.23 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.26, and below the 200-day MA of 0.30, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.70 is Neutral, neither overbought nor oversold. The STOCH value of 48.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0261.

GBA Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0760	56 Neutral	HK$86.98M	-0.61	-8.38%	―	-48.96%	-185.64%
1195	52 Neutral	HK$72.35M	-13.68	-4.93%	―	-0.99%	48.65%
0261	46 Neutral	HK$89.71M	-0.96	-13.47%	―	-32.43%	55.29%
2330	46 Neutral	HK$122.27M	―	―	―	―	―
0899	42 Neutral	HK$75.68M	-0.07	-37.49%	―	46.92%	-3901.26%
1965	37 Underperform	HK$61.20M	-0.17	-307.36%	―	-6.40%	-143.33%