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): 0.43
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.33 ▼(-12.11% Downside)

The overall stock score is primarily influenced by the company's weak financial performance, characterized by declining revenue, negative profitability, and poor cash flow management. Technical analysis indicates a bearish trend with oversold conditions, while valuation metrics reflect financial distress. These factors collectively result in a low stock score, highlighting significant risks and challenges.

Positive Factors

Market Position

Guangdong Tannery Limited's diverse market presence in footwear, furniture, and automotive sectors provides a stable demand base, enhancing resilience against sector-specific downturns.

Revenue Model

The company's revenue model, focused on processing and selling leather to various industries, ensures a steady demand for its products, supporting long-term revenue stability.

Competitive Pricing

Maintaining competitive pricing and high production standards helps Guangdong Tannery Limited secure contracts and sustain market competitiveness, fostering long-term growth.

Negative Factors

Declining Revenue

Declining revenue indicates potential market share loss or reduced demand, which can undermine the company's ability to invest in growth and innovation.

Negative Profitability

Continuous net losses and declining gross profit margins highlight operational inefficiencies, threatening long-term financial health and sustainability.

Poor Cash Flow Management

Negative operating and free cash flows suggest inefficiencies in cash generation, limiting the company's ability to fund operations and growth initiatives.

Guangdong Tannery Limited Business Overview & Revenue Model

Company Description

Guangdong Tannery Limited (1058) is a leading player in the leather manufacturing industry, primarily operating in the tanning and processing of raw hides and skins. The company specializes in producing a wide range of leather products, including finished leather for footwear, garments, and upholstery applications. With a focus on quality and sustainability, Guangdong Tannery serves both domestic and international markets, positioning itself as a key supplier to various sectors such as fashion, automotive, and furniture.

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: Negative
• Last Price: 0.38
• 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:1058, the sentiment is Negative. The current price of 0.38 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.45, and above the 200-day MA of 0.38, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 33.46 is Neutral, neither overbought nor oversold. The STOCH value of 62.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%	11.76%	-1.38%	-275.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1028	55 Neutral	HK$1.52B	-9.66	-13.15%	―	-11.17%	-621.38%
1170	49 Neutral	$331.18M	-9.90	-2.53%	4.15%	2.32%	-88.07%
8187	48 Neutral	HK$63.71M	-4.91	-88.05%	―	-1.74%	-55.92%
0738	41 Neutral	HK$155.30M	―	-18.87%	―	-30.45%	-97.13%
1058	41 Neutral	HK$204.45M	-6.04	-134.59%	―	-8.05%	33.37%

Guangdong Tannery Limited Corporate Events

Namyue Holdings Reports Improved Operational Efficiency Amid Revenue Decline

Namyue Holdings Limited, a company listed on the Hong Kong Stock Exchange, announced its unaudited financial results for the nine months ending September 30, 2025. The company faced a challenging macroeconomic environment but managed to improve its operational efficiency through strategic measures such as enhancing customer cooperation, increasing subcontracting production, and implementing cost controls. Despite a 15.1% decrease in revenue compared to the previous year, the company reported a significant improvement in its operating results, driven by a 93.1% increase in subcontracting business production and sales volume. The company’s efforts in cost management and operational reforms have led to a notable reduction in consolidated loss attributable to shareholders.

Namyue Holdings to Review Financial Performance on October 16

Namyue Holdings Limited has announced that its board of directors will meet on October 16, 2025, to review and approve the unaudited financial results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder confidence.

Namyue Holdings Limited Announces Leadership Change

Namyue Holdings Limited has announced a significant leadership change effective from October 1, 2025. Mr. Cai Binglong will take over as Executive Director, Chairman, and Managing Director, replacing Mr. Zhou Hao. This change in leadership could signal a strategic shift for the company, as Mr. Cai brings extensive experience in international trade and business management from his previous roles within Nam Yue Group and Guangwu Group. Stakeholders may anticipate potential changes in the company’s strategic direction and operations under Mr. Cai’s leadership.

Namyue Holdings Limited Announces Board Restructuring

Namyue Holdings Limited has announced changes to its board of directors and their roles, effective from October 1, 2025. The company has appointed Mr. Cai Binglong as the Chairman and Managing Director, with Mr. Liao Siyang serving as the Deputy General Manager. The board also includes non-executive and independent non-executive directors. Additionally, the company has restructured its board committees, including the Nomination, Audit, and Remuneration Committees, with specific directors assigned to each role. This restructuring aims to enhance the governance and operational efficiency of the company.