Golik Holdings Limited (1118) AI Stock Analysis

• Market Cap: HK$740.95M
• Dividend Yield: 6.28%
• Average Volume (3M): 40.67K
• Price to Earnings (P/E): 4.4
• Beta (1Y): 0.29
• Revenue Growth: -9.66%
• EPS Growth: 21.61%
• Country: HK
• Employees: 1,483
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.12
• Shares Outstanding: 574,378,100
• 10 Day Avg. Volume: 5,000
• 30 Day Avg. Volume: 40,666
• PEG Ratio: 0.18
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 0.29
• 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: 73 Outperform
• Price Target: HK$1.50 ▲(17.19% Upside)

The overall stock score is driven by a strong valuation, with a low P/E ratio and high dividend yield making it attractive. Technical analysis supports a positive short-term trend, although caution is advised due to the RSI nearing overbought levels. Financial performance is mixed, with strengths in profitability and operational efficiency, but concerns over declining revenues and cash flow challenges.

Positive Factors

High gross and operating margins

Sustained superior gross and operating margins indicate durable operational efficiency versus peers. Margin strength cushions earnings during volume or price softening, supports internal investment and dividend capacity, and underpins long‑term profitability resilience.

Moderate leverage and solid equity base

Balanced use of debt and a solid equity ratio reduce refinancing and solvency risk over cycles. Moderate leverage preserves financial flexibility for capex or working capital needs, enabling the company to endure downturns without immediate capital raises.

Improving ROE (efficient capital use)

An improving ROE shows the company is generating higher returns on invested capital, implying stronger profitability per unit of equity. Over 2–6 months this supports reinvestment, dividend sustainability, and signals management effectiveness in allocating capital.

Negative Factors

Declining revenue trend

Near‑term revenue decline erodes scale and makes fixed costs harder to cover, pressuring margins and cash generation. If the trend persists, it constrains reinvestment and increases reliance on margin improvements or external financing to sustain shareholder returns.

Volatile and weakened free cash flow

A recent significant drop in free cash flow signals weaker liquidity and less buffer for capex, debt servicing, or dividends. Persistent cash volatility hampers strategic investment and raises the probability of tighter working capital or external funding needs during downturns.

Exposure to steel industry cyclicality

Operating in the cyclical steel sector increases sensitivity to commodity prices, macro demand swings and project timing. This structural exposure can amplify revenue and margin volatility, requiring continued margin advantage and balance sheet strength to manage cycle troughs.

Golik Holdings Limited Business Overview & Revenue Model

Company Description

Golik Holdings Limited, an investment holding company, manufactures and sells metal products and building construction materials in Hong Kong and Mainland China. The company offers steel coil products, including cold rolled, electrolytic galvanized, hop-dip galvanized and aluminum, electrolytic tinplate, and non-oriented electrical steel products; and elevator, crane, and oilfield ropes. It also provides steel wire products, such as carbon steel spring, piano, and bedding and seating spring wires; fibre optic cable strength members; aluminum conductor steel reinforced and galvanized low carbon steel wire for cable armouring products; galvanized steel wire strands; steel wire strand for fibre optic cables; and zinc-coated steel strand support for telecommunication cables. In addition, the company distributes reinforcing steel bars, sheet piles, and H-beams; and offers reinforcing steel products, services, and accessories, including tailored and standard fabric reinforcements, cut and bent reinforcements, prefabricated large diameter bored pile cages, lattice girders, rebar couplers, Hy-Rib formworks, and concreting accessories, as well as construction metal products, such as expanded metal meshes, beads and laths, lintels, and corrugated sheets. Further, it produces and supplies ready mixed concrete for the construction industry; and operates a decoiling center and concrete batching plants. Additionally, the company provides concrete and metal products, and reinforcing mesh; and warehousing and handling services, as well as engages in the property holding and money lending activities. Golik Holdings Limited was founded in 1977 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Golik Holdings Limited generates revenue through several key streams. The primary revenue comes from the manufacturing and sale of metal products, such as steel and aluminum, which cater to the construction and industrial sectors. Additionally, the company earns income from its trading activities involving construction materials, leveraging its established supply chains and market presence. The logistics services segment also contributes to revenue, as the company provides transportation and warehousing solutions to facilitate the distribution of its products. Strategic partnerships with suppliers and contractors enhance its market reach, while demand from infrastructure projects in the region plays a crucial role in driving sales.

Golik Holdings Limited Financial Statement Overview

Summary

Golik Holdings Limited shows a mixed financial performance with strengths in profitability and operational efficiency. The balance sheet is stable with moderate leverage and good equity utilization. However, declining revenues and recent cash flow challenges highlight areas of concern that may affect future financial stability if not addressed.

Income Statement

The company exhibits a strong gross profit margin, consistently maintaining above industry averages. Net profit margin has shown improvement over the years. However, recent annual revenue has declined, indicating potential challenges in maintaining revenue growth. The EBIT and EBITDA margins are healthy, showcasing operational efficiency, but the recent drop in total revenue is a concern that needs addressing.

Balance Sheet

The debt-to-equity ratio is moderate, suggesting a balanced use of debt and equity financing. Return on equity indicates efficient use of shareholders' funds with an improving trend. The equity ratio shows a solid proportion of equity financing relative to total assets, contributing to financial stability.

Cash Flow

The company has experienced fluctuations in free cash flow, with a significant decline in the most recent year. Operating cash flow has been strong historically, but recent figures are absent, making it difficult to gauge current cash generation efficiency. The lack of recent positive free cash flow figures suggests potential challenges in liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.54B	3.45B	4.15B	4.27B	4.05B	2.99B
Gross Profit	683.96M	649.07M	624.10M	452.89M	515.00M	495.87M
EBITDA	290.31M	323.57M	305.68M	228.11M	370.83M	268.07M
Net Income	167.10M	158.10M	138.92M	75.67M	197.58M	93.55M
Balance Sheet
Total Assets	2.53B	2.71B	2.92B	3.04B	3.15B	2.45B
Cash, Cash Equivalents and Short-Term Investments	477.24M	599.49M	652.13M	541.57M	672.72M	405.47M
Total Debt	532.91M	706.25M	1.07B	1.48B	1.53B	952.87M
Total Liabilities	958.93M	1.20B	1.53B	1.76B	1.84B	1.34B
Stockholders Equity	1.44B	1.38B	1.27B	1.17B	1.19B	1.02B
Cash Flow
Free Cash Flow	1.50B	1.65B	2.22B	2.42B	1.92B	268.16M
Operating Cash Flow	1.54B	1.77B	2.24B	2.47B	1.96B	318.29M
Investing Cash Flow	-62.59M	-114.16M	-11.11M	-48.55M	2.75M	-11.65M
Financing Cash Flow	-1.48B	-1.70B	-2.12B	-2.55B	-1.72B	-211.48M

Golik Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.28
• 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:1118, the sentiment is Positive. The current price of 1.28 is above the 20-day moving average (MA) of 1.24, above the 50-day MA of 1.13, and above the 200-day MA of 1.00, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 68.78 is Neutral, neither overbought nor oversold. The STOCH value of 63.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1118.

Golik Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1118	73 Outperform	HK$740.95M	4.43	12.17%	6.28%	-9.66%	21.61%
1553	73 Outperform	HK$637.69M	4.02	13.01%	7.84%	17.69%	-9.99%
6890	72 Outperform	HK$236.44M	5.35	4.73%	―	-20.52%	-68.47%
1203	71 Outperform	HK$771.45M	4.85	6.32%	5.81%	16.92%	146.69%
1938	70 Outperform	HK$358.96M	1.31	19.13%	―	-13.26%	63.38%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1090	46 Neutral	HK$1.03B	-2.31	-15.58%	―	-8.38%	-86.16%

Golik Holdings Limited Corporate Events

Golik Holdings Sets Out Board Composition and Committee Roles

Golik Holdings Limited has announced the current composition of its board of directors, confirming Pang Tak Chung as Chairman, Ho Wai Yu, Sammy as Vice Chairman, and Pang Wan Ping as Chief Executive Officer, alongside fellow executive director Pang Chi To and three independent non-executive directors, including a lead independent director. The company also set out the membership of its key governance committees—Audit, Remuneration and Nomination—highlighting that all independent non-executive directors serve on each of these committees and that the chairmen of the Audit and Remuneration Committees will be elected from among the independent non-executive directors at each meeting, underscoring an emphasis on independent oversight and formalized governance structure for stakeholders.

The most recent analyst rating on (HK:1118) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Golik Holdings Limited stock, see the HK:1118 Stock Forecast page.

Golik Holdings Tightens Governance with Updated Nomination Committee Mandate

Golik Holdings Limited has formalized and published updated terms of reference for its Nomination Committee, setting out its composition, authority and duties with an emphasis on independence and gender diversity. The committee, which must comprise a majority of independent non-executive directors and include at least one member of a different gender, is empowered to review board structure and skills, identify and recommend director candidates, assess independence and performance of directors, oversee succession planning, and periodically review the company’s director nomination and board diversity policies, reinforcing the group’s governance standards and alignment with regulatory expectations.

The most recent analyst rating on (HK:1118) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Golik Holdings Limited stock, see the HK:1118 Stock Forecast page.

Golik Holdings Appoints Lead Independent Director to Strengthen Governance

Golik Holdings Limited has designated existing independent non-executive director Ambrose Linn Hon Chung as its lead independent non-executive director, effective 8 January 2026, without altering his liability relative to other independent directors. The new role, created in response to recent changes to Hong Kong’s Corporate Governance Code, is intended to enhance communication among independent directors, between independents and the broader board, and with shareholders—particularly minority investors—thereby strengthening board effectiveness, diversity, and the company’s overall corporate governance framework.

The most recent analyst rating on (HK:1118) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Golik Holdings Limited stock, see the HK:1118 Stock Forecast page.

Golik Holdings Limited Announces Board Composition and Roles

Golik Holdings Limited has announced the composition of its board of directors and the roles they will undertake. The board includes both executive and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees. This announcement underscores the company’s commitment to strong corporate governance and strategic leadership, which is crucial for its continued growth and stability in the competitive industrial sector.

The most recent analyst rating on (HK:1118) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Golik Holdings Limited stock, see the HK:1118 Stock Forecast page.