Guangdong Tannery Limited (1058) AI Stock Analysis

• Market Cap: HK$204.45M
• Dividend Yield: N/A
• Average Volume (3M): 25.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -8.05%
• EPS Growth: 33.37%
• Country: HK
• Employees: 261
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): N/A
• Shares Outstanding: 538,019,000
• 10 Day Avg. Volume: 8,800
• 30 Day Avg. Volume: 25,284
• PEG Ratio: 0.11
• Price to Book (P/B): 9.03
• Price to Sales (P/S): 1.93
• P/FCF Ratio: 71.10
• 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: 42 Neutral
• Price Target: HK$0.36 ▲(0.00% Upside)

The score is primarily weighed down by weak financial performance, including declining revenue, persistent losses, and negative operating/free cash flow, alongside balance-sheet concerns from shrinking equity. Technical indicators are mixed but lean weak given the stock remains below key longer-term moving averages and has a negative MACD. Valuation offers limited support because the negative P/E reflects ongoing losses and no dividend yield is available.

Positive Factors

Market position & customer base

A diversified B2B footprint across footwear, apparel, automotive and furniture supports steadier order flows and reduces single-market exposure. Long-standing supply relationships and customization services bolster recurring demand and pricing leverage over the medium term.

Lower market volatility (Beta)

A low beta suggests the company's earnings and equity are less sensitive to broad market swings, which can aid planning, financing access and contract stability. Structural lower volatility supports steadier capital costs and less disruptive financing risk over several months.

Moderate financial leverage

Moderate leverage preserves borrowing capacity and reduces near-term default risk versus highly leveraged peers. That structural balance-sheet restraint provides flexibility to refinance, fund operational fixes or modest capex without immediate solvency pressure.

Negative Factors

Declining revenue

Sustained revenue decline erodes scale and weakens bargaining power with suppliers and customers. Over months this reduces margin recovery headroom, limits reinvestment capacity and raises the risk that fixed-cost absorption worsens unless top-line trends reverse.

Persistent negative margins and losses

Chronic unprofitability signals structural cost or pricing issues. Continued negative margins deplete reserves, restrict reinvestment in product quality or sustainability initiatives, and impair ability to compete with more efficient producers over the coming quarters.

Weak operating cash flow

Negative operating cash flow forces reliance on external financing or asset sales to fund operations. Over time this increases financing costs, amplifies dilution or leverage risk, and limits capacity to fund working capital, capex or strategic improvements.

Guangdong Tannery Limited Business Overview & Revenue Model

Company Description

Namyue Holdings Limited, an investment holding company, engages in the processing and sale of semi-finished and finished leather in Mainland China. The company is also involved in leasing plant and machinery; processing cowhides; and trading leather. It serves leather product manufacturers primarily branded shoes manufacturers. The company was founded in 1995 and is based in Central, Hong Kong. The company was formerly known as Guangdong Tannery Limited and changed its name to Namyue Holdings Limited in July 2022. Namyue Holdings Limited is a subsidiary of Nam Yue (Group) Company Limited.

How the Company Makes Money

Guangdong Tannery Limited generates revenue primarily through the sale of tanned leather products to manufacturers in different industries, including footwear, apparel, and automotive sectors. The company operates on a B2B model, establishing long-term contracts with clients to ensure a steady flow of orders. Key revenue streams include the sale of various grades of leather, customization services, and value-added processes such as dyeing and finishing. Additionally, the company may benefit from partnerships with fashion brands and manufacturers, as well as potential government contracts that promote sustainable and eco-friendly practices in the leather industry. Fluctuations in raw material prices and demand in key markets also significantly influence its earnings.

Guangdong Tannery Limited Financial Statement Overview

Summary

Guangdong Tannery Limited is facing significant financial challenges with declining revenue, negative profitability, and poor cash flow management. The balance sheet shows moderate leverage, but shrinking equity poses a risk. Overall, the financial position is weak, with critical areas needing improvement to achieve sustainable growth and stability.

Income Statement

The company has been experiencing declining revenue over the years, with a significant drop in gross profit and continuous net losses. Gross Profit Margin is very low, and Net Profit Margin remains negative, indicating poor profitability. The EBIT and EBITDA margins are also negative, further highlighting the company's struggles with operational efficiency and cost management.

Balance Sheet

The company's financial leverage is moderate with a Debt-to-Equity ratio that is not excessively high; however, the decreasing Stockholders' Equity is concerning. The Equity Ratio is low, indicating a reliance on liabilities for asset financing. There is a reduction in total assets over time, reflecting potential challenges in asset management or investment.

Cash Flow

Operating cash flow has been negative, and free cash flow is struggling, indicating challenges in generating cash from core operations. The Free Cash Flow to Net Income Ratio is not favorable, reflecting inefficiencies in converting profits to cash. The company has not shown substantial improvement in cash flow management over the years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	81.59M	89.10M	82.06M	86.05M	196.23M	191.40M
Gross Profit	-4.51M	385.00K	-28.90M	-7.81M	18.20M	13.73M
EBITDA	-28.85M	-28.21M	-62.38M	-40.55M	-15.21M	5.76M
Net Income	-33.83M	-33.77M	-66.45M	-43.93M	-19.94M	-2.75M
Balance Sheet
Total Assets	93.74M	97.15M	135.54M	174.01M	228.28M	251.53M
Cash, Cash Equivalents and Short-Term Investments	3.04M	3.42M	7.14M	9.46M	18.94M	60.94M
Total Debt	8.77M	8.72M	14.97M	81.00K	31.00K	138.03M
Total Liabilities	79.67M	78.09M	82.63M	53.99M	53.75M	223.58M
Stockholders Equity	14.06M	19.06M	47.37M	120.01M	174.54M	27.94M
Cash Flow
Free Cash Flow	-6.82M	2.42M	-16.55M	-8.42M	-45.16M	8.84M
Operating Cash Flow	-698.00K	6.72M	-15.69M	-6.36M	-39.41M	14.61M
Investing Cash Flow	-4.38M	-4.79M	-891.00K	-1.94M	-3.24M	-5.25M
Financing Cash Flow	8.71M	-5.56M	14.36M	-106.00K	-415.00K	-642.00K

Guangdong Tannery Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1058, the sentiment is Neutral. The current price of 0.36 is above the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.38, and below the 200-day MA of 0.38, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.16 is Neutral, neither overbought nor oversold. The STOCH value of 93.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1058.

Guangdong Tannery Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1023	62 Neutral	HK$500.61M	-2.81	-10.55%	11.54%	-1.38%	-275.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1028	55 Neutral	HK$1.82B	-9.66	-13.15%	―	-11.17%	-621.38%
1170	49 Neutral	HK$337.81M	-12.44	-2.53%	4.15%	2.32%	-88.07%
0738	48 Neutral	HK$166.59M	-1.64	-18.87%	―	-30.45%	-97.13%
8187	48 Neutral	HK$81.91M	-6.31	-88.05%	―	-1.74%	-55.92%
1058	42 Neutral	HK$204.45M	-6.04	-134.59%	―	-8.05%	33.37%

Guangdong Tannery Limited Corporate Events

Namyue Holdings Announces Board Changes

Namyue Holdings Limited, listed on the Hong Kong Stock Exchange, has announced changes in its board composition. Ms. Li Qi has been appointed as a Non-Executive Director and a member of the Audit Committee, succeeding Mr. Huang Junfeng, who resigned due to other work commitments. These changes, effective from December 16, 2025, are part of the company’s ongoing governance adjustments.

The most recent analyst rating on (HK:1058) stock is a Hold with a HK$0.33 price target. To see the full list of analyst forecasts on Guangdong Tannery Limited stock, see the HK:1058 Stock Forecast page.

Namyue Holdings Limited Announces Board Restructuring

Namyue Holdings Limited has announced changes to its board of directors and their roles, effective from December 16, 2025. The board now includes a mix of executive, non-executive, and independent non-executive directors, with Mr. Cai Binglong serving as Chairman and Managing Director. The restructuring of the board and its committees, including the Nomination, Audit, and Remuneration Committees, is likely aimed at strengthening governance and strategic oversight, potentially impacting the company’s operational efficiency and stakeholder confidence.

The most recent analyst rating on (HK:1058) stock is a Hold with a HK$0.33 price target. To see the full list of analyst forecasts on Guangdong Tannery Limited stock, see the HK:1058 Stock Forecast page.

Namyue Holdings Announces Board Changes

Namyue Holdings Limited has announced changes to its board of directors, effective December 16, 2025. Ms. Li Qi will be appointed as a Non-Executive Director and a member of the Audit Committee, while Mr. Huang Junfeng will step down from his role as a Non-Executive Director. The company expressed gratitude for Mr. Huang’s contributions and welcomed Ms. Li, who brings extensive financial management experience, to the board. This change is expected to enhance the company’s governance and strategic oversight.

The most recent analyst rating on (HK:1058) stock is a Hold with a HK$0.33 price target. To see the full list of analyst forecasts on Guangdong Tannery Limited stock, see the HK:1058 Stock Forecast page.