Golden Resources Development International Limited (0677) AI Stock Analysis

• Market Cap: HK$560.14M
• Dividend Yield: 13.33%
• Average Volume (3M): 485.57K
• Price to Earnings (P/E): 28.2
• Beta (1Y): 0.28
• Revenue Growth: 1.30%
• EPS Growth: -85.43%
• Country: HK
• Employees: 4,460
• Sector: Real Estate
• Sector Strength: 72
• Industry: Food Distribution
• EPS (TTM): >-0.01
• Shares Outstanding: 1,697,406,500
• 10 Day Avg. Volume: 798,000
• 30 Day Avg. Volume: 485,566
• PEG Ratio: 0.03
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.44
• 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

• Rating: 66 Neutral
• Price Target: ―

Golden Resources Development International Limited exhibits strong financial performance with solid cash flow generation and stable margins, which is a significant strength. However, technical analysis presents mixed signals, largely due to the stock trading below long-term averages. The valuation appears stretched, with a high P/E ratio, although the substantial dividend yield offers some compensation. The primary focus for investors should be on the company's ability to manage debt and improve profit margins to sustain long-term growth.

Golden Resources Development International Limited Business Overview & Revenue Model

Company Description

Golden Resources Development International Limited (0677) is a Hong Kong-based investment holding company primarily engaged in the operation of supermarkets. The company operates through two main segments: the Supermarket Operation segment and the Property and Financial segment. The Supermarket Operation segment focuses on the retailing of daily consumable products, while the Property and Financial segment involves property investment and financial services.

How the Company Makes Money

Golden Resources Development International Limited primarily generates its revenue through its Supermarket Operation segment, which involves the retail sale of a wide range of daily consumable goods. The company's supermarkets serve as the primary channel for distributing products to consumers, thereby earning income through direct sales. Additionally, the Property and Financial segment contributes to the company's earnings through rental income from its property investments and returns from its financial services. Strategic partnerships with suppliers and efficient supply chain management are significant factors that enhance the profitability of the company's supermarket operations.

Golden Resources Development International Limited Financial Statement Overview

Summary

Golden Resources Development International Limited shows strong financial health, with stable revenue growth and solid margins. The balance sheet is robust with a prudent leverage policy, although growing debt warrants attention. Cash flow generation is a notable strength, highlighting the company's ability to convert profits into cash effectively. Continued focus on improving profit margins and managing debt levels will be key for sustained growth.

Income Statement

Golden Resources Development International Limited has shown a strong revenue growth with a 0.61% increase annually. The company maintains a decent gross profit margin of 38.82% and a net profit margin of 5.16% for the recent year. The EBIT margin stands at 7.18% and EBITDA margin at 16.84%, indicating good operational efficiency. While revenue growth is steady, a slight decline in EBIT and net income from the previous year highlights areas for improvement.

Balance Sheet

The company exhibits a strong equity position with a debt-to-equity ratio of 0.32, suggesting a balanced approach to leverage. The return on equity (ROE) is at 8.10%, showing a reasonable return for shareholders. An equity ratio of 63.41% reflects financial stability. However, a gradual increase in debt over the years could pose a risk if not managed carefully.

Cash Flow

The company's free cash flow grew significantly by 130.17% from the previous year, indicating strong cash generation. The operating cash flow to net income ratio of 1.98 suggests efficient cash operations compared to net income. The free cash flow to net income ratio of 1.33 further demonstrates effective cash management, making the cash flow segment a particular strength for the company.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.08B	2.07B	2.06B	1.77B	1.61B	1.74B
	Gross Profit
799.04M	804.53M	787.90M	637.89M	599.75M	597.61M
	EBIT
39.09M	148.90M	156.31M	12.03M	37.38M	63.10M
	EBITDA
159.81M	348.90M	315.74M	230.72M	236.05M	154.61M
	Net Income Common Stockholders
19.87M	106.85M	128.68M	18.70M	40.21M	-22.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
451.64M	369.12M	549.61M	632.59M	640.17M	480.21M
	Total Assets
2.11B	2.08B	1.89B	1.81B	1.68B	1.68B
	Total Debt
449.05M	425.87M	377.28M	371.82M	293.26M	300.96M
	Net Debt
23.68M	74.65M	-39.55M	-83.37M	-169.61M	35.92M
	Total Liabilities
764.38M	721.55M	627.95M	629.62M	504.56M	496.06M
	Stockholders Equity
1.31B	1.32B	1.23B	1.14B	1.17B	1.16B
Cash Flow		Free Cash Flow
193.37M	142.63M	61.97M	99.47M	229.96M	106.67M
	Operating Cash Flow
262.04M	211.30M	268.99M	162.11M	273.05M	195.95M
	Investing Cash Flow
-17.13M	1.42M	-300.36M	-11.89M	30.44M	-79.31M
	Financing Cash Flow
-195.89M	-193.54M	-169.45M	-161.45M	-147.36M	-143.56M

Golden Resources Development International Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0677, the sentiment is Negative. The current price of 0.33 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.34, and below the 200-day MA of 0.37, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.81 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0677.

Golden Resources Development International Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0083	70 Outperform	$74.85B	19.69	2.17%	1.84%	-30.38%	-43.73%
0677	66 Neutral	HK$560.14M	28.21	1.54%	13.33%	1.30%	-85.43%
Sector *	61 Neutral	$2.83B	10.91	0.42%	11.76%	5.94%	-21.26%
0029	59 Neutral	HK$3.16B	0.55	-0.74%	0.15%	-23.73%	-101.00%
0173	44 Neutral	HK$5.86B	17.50	0.81%	2.15%	17.77%	-58.36%
0147	42 Neutral	HK$1.02B	―		―	―	―
0129	41 Neutral	HK$433.29M	―	-33.85%	―	27.90%	-3337.41%