GOME Retail Holdings (0493) AI Stock Analysis

• Market Cap: HK$605.91M
• Dividend Yield: N/A
• Average Volume (3M): 71.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.92
• Revenue Growth: 49.53%
• EPS Growth: 22.07%
• Country: HK
• Employees: 606
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.03
• Shares Outstanding: 47,891,080,000
• 10 Day Avg. Volume: 93,434,121
• 30 Day Avg. Volume: 71,239,335
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.05
• Price to Sales (P/S): 1.87
• P/FCF Ratio: -61.04
• 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: 39 Underperform
• Price Target: HK$0.01 ▼(-30.00% Downside)

The score is driven primarily by very weak financial performance (losses, negative equity, and deteriorating cash flow). Technicals are also fragile with a weak longer-term trend and negative MACD, while valuation support is limited because the company is loss-making and has no dividend yield provided.

Positive Factors

Strategic Partnerships

Strategic partnerships allow GOME to offer exclusive products and promotions, enhancing customer loyalty and potentially boosting sales.

Online Presence

A strong online presence enables GOME to reach a broader customer base, crucial for adapting to the growing e-commerce trend and sustaining long-term growth.

Logistics and Distribution

A robust logistics network helps reduce costs and improve efficiency, supporting profitability and competitive positioning in the retail sector.

Negative Factors

Revenue Decline

A multi-year revenue decline indicates challenges in maintaining market share and competitiveness, potentially impacting long-term viability.

Negative Cash Flow

Negative cash flow reflects severe liquidity challenges, limiting the company's ability to invest in growth and manage financial obligations.

Insolvency Risk

Negative equity suggests financial instability, raising concerns about the company's ability to meet its long-term liabilities and sustain operations.

GOME Retail Holdings Business Overview & Revenue Model

Company Description

GOME Retail Holdings Limited (stock code: 0493) is a leading Chinese electronics and home appliance retail chain headquartered in Beijing. The company operates a vast network of retail stores across China, specializing in the sale of consumer electronics, home appliances, and related products. GOME provides a wide range of items, including smartphones, televisions, refrigerators, and other household appliances, catering to both individual consumers and businesses. In addition to its brick-and-mortar stores, GOME has established a strong online presence, allowing it to serve a broader customer base in the rapidly evolving e-commerce landscape.

How the Company Makes Money

GOME Retail Holdings generates revenue primarily through the sale of consumer electronics and home appliances in its retail stores and online platform. The company operates on a retail margin model, purchasing products from manufacturers and wholesalers at wholesale prices and selling them to consumers at marked-up prices. Key revenue streams include in-store sales, online sales, and after-sales services such as installation and maintenance. Additionally, GOME has formed strategic partnerships with various manufacturers and brands, enabling it to offer exclusive products and promotions, which can drive sales and enhance customer loyalty. The company's extensive logistics and distribution network also plays a crucial role in optimizing operational efficiency and reducing costs, further contributing to its profitability.

GOME Retail Holdings Financial Statement Overview

Summary

GOME Retail Holdings is experiencing significant financial distress, with declining revenues, persistent losses, and a deteriorating balance sheet. The negative equity and severe liquidity challenges pose substantial risks to its financial health and ability to sustain operations.

Income Statement

GOME Retail Holdings has faced significant challenges in recent years, with a consistent decline in revenue from 2019 to 2024. The company reported negative EBIT, EBITDA, and net income margins across the board, indicating ongoing profitability issues. Particularly concerning is the drastic drop in revenue and increased losses in 2024 compared to previous years.

Balance Sheet

The balance sheet reveals a precarious financial position, with negative stockholders' equity in recent years, indicating insolvency risks. The debt-to-equity ratio is not meaningful due to negative equity, but the high total debt level is concerning. Overall, the company's financial stability appears weak, with liabilities significantly exceeding assets.

Cash Flow

Cash flow analysis shows a worrying trend, with operating, investing, and free cash flows turning negative or zero in 2024. The inability to generate positive operating cash flow and free cash flow in recent periods highlights severe liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	601.28M	473.82M	646.90M	17.44B	46.48B	44.12B
Gross Profit	76.18M	73.68M	174.24M	1.82B	5.51B	4.55B
EBITDA	891.15M	-906.32M	-5.44B	-4.59B	-3.78B	-1.91B
Net Income	-8.54B	-11.63B	-10.06B	-19.96B	-4.40B	-6.99B
Balance Sheet
Total Assets	20.17B	21.13B	29.98B	42.58B	80.92B	70.49B
Cash, Cash Equivalents and Short-Term Investments	353.19M	293.11M	369.42M	598.06M	5.32B	10.01B
Total Debt	23.38B	23.22B	24.80B	28.24B	36.42B	41.75B
Total Liabilities	42.20B	41.75B	39.24B	42.09B	63.34B	69.23B
Stockholders Equity	-17.64B	-16.24B	-4.96B	4.76B	21.60B	4.92B
Cash Flow
Free Cash Flow	-53.20M	-14.54M	1.07B	211.15M	272.02M	447.64M
Operating Cash Flow	-56.16M	-11.61M	1.11B	820.73M	648.70M	1.85B
Investing Cash Flow	157.28M	252.69M	373.09M	-167.91M	-1.98B	-977.91M
Financing Cash Flow	-80.13M	-257.87M	-1.59B	-4.73B	-3.87B	592.83M

GOME Retail Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0493, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.01, above the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.96 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0493.

GOME Retail Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9896	64 Neutral	HK$47.67B	20.41	20.87%	3.18%	13.14%	-19.58%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2209	61 Neutral	HK$1.65B	9.39	41.54%	1.89%	55.02%	25.22%
0178	56 Neutral	HK$1.83B	19.34	8.44%	4.75%	-3.18%	-36.46%
9991	44 Neutral	HK$1.38B	-6.04	-5.29%	―	5.91%	9.24%
0493	39 Underperform	HK$605.91M	-0.07	―	―	49.53%	22.07%

GOME Retail Holdings Corporate Events

GOME Retail Announces Key Management Changes

GOME Retail Holdings Limited has announced changes in its leadership, with Mr. Albert Szeto stepping down as Company Secretary, Authorised Representative, and Process Agent, effective January 1, 2026. He will be succeeded by Mr. Philip Cheung, who brings over 20 years of auditing, accounting, and corporate governance experience, enhancing the company’s compliance mechanisms and operational expertise.

The most recent analyst rating on (HK:0493) stock is a Hold with a HK$0.02 price target. To see the full list of analyst forecasts on GOME Retail Holdings stock, see the HK:0493 Stock Forecast page.

GOME Retail Holdings Updates on Financial Restructuring Efforts

GOME Retail Holdings Limited has provided an update on its action plan to address the auditor’s disclaimer of opinion regarding its financial statements for FY2024. The company is actively negotiating debt-to-equity swaps with suppliers and financial institutions, reaching preliminary agreements involving RMB1,290 million. Additionally, it is working on restructuring convertible bonds with JD.com and Pinduoduo, and negotiating loan covenant revisions with lenders. The company aims to restore its supply chain and improve cash flow through these measures, although consensus with major suppliers is yet to be achieved.