Guangdong Tannery Limited (1058) AI Stock Analysis

• Market Cap: HK$215.21M
• Dividend Yield: N/A
• Average Volume (3M): 100.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: 8.58%
• EPS Growth: 49.15%
• Country: HK
• Employees: 261
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): N/A
• Shares Outstanding: 538,019,000
• 10 Day Avg. Volume: 90,810
• 30 Day Avg. Volume: 100,070
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$0.50
• Price Target Upside: 25.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: HK$0.50 ▲(25.00% Upside)

The overall score reflects significant financial challenges, characterized by negative profitability, poor cash flow management, and a weak balance sheet. While technical indicators show positive momentum, caution is advised due to overbought conditions and the company's overall financial instability. Valuation concerns further weigh down the score, with negative earnings and no dividend yield.

Guangdong Tannery Limited Business Overview & Revenue Model

Company Description

Guangdong Tannery Limited (1058) is a company engaged in the manufacturing and sale of leather products. It operates primarily in the industrial sector, focusing on the production of semi-finished and finished leather goods. The company serves various markets, providing high-quality leather materials for use in footwear, furniture, automotive, and other leather-related industries.

How the Company Makes Money

Guangdong Tannery Limited generates revenue primarily through the sale of its leather products to different industries. The company processes raw hides into semi-finished and finished leather, which are then sold to manufacturers of shoes, furniture, and automotive interiors, among others. The revenue model is heavily dependent on the demand from these sectors, as well as the company's ability to maintain high production standards and competitive pricing. Additionally, Guangdong Tannery Limited may engage in partnerships or supply agreements with major manufacturers, enhancing its market reach and ensuring a steady stream of orders for its leather products.

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

Guangdong Tannery Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 0.4 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.36, and above the 200-day MA of 0.32, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 62.94 is Neutral, neither overbought nor oversold. The STOCH value of 50.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	5.10	-1.08%	11.76%	-4.68%	-112.44%
Sector *	58 Neutral	HK$18.06B	5.32	-7.29%	3.79%	-4.08%	-48.58%
1028	51 Neutral	HK$427.86M	8.17	3.77%	―	-11.44%	111.76%
1058	49 Neutral	HK$215.21M	―	-110.92%	―	8.58%	49.15%
1170	45 Neutral	$364.30M	―	-3.04%	4.07%	-9.20%	-268.90%
0738	43 Neutral	HK$171.53M	―	-18.39%	―	-27.74%	-321.58%
8187	40 Underperform	HK$26.70M	―	-64.93%	―	-60.86%	-1.56%

Guangdong Tannery Limited Corporate Events

Namyue Holdings Limited Successfully Passes All AGM Resolutions

Namyue Holdings Limited, a company listed on the Hong Kong Stock Exchange, announced that all proposed resolutions at its annual general meeting held on June 18, 2025, were passed by shareholders. These resolutions included the approval of financial statements, re-election of directors, re-appointment of the auditor, and granting a mandate to issue shares. The meeting saw full participation from the board members, except for one due to business commitments, and there were no voting restrictions for shareholders.