Golik Holdings Limited (1118) AI Stock Analysis

• Market Cap: HK$580.12M
• Dividend Yield: 6.47%
• Average Volume (3M): 40.67K
• Price to Earnings (P/E): 3.5
• 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$1.00 ▼(-0.99% Downside)

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

Profitability and Operational Efficiency

The company's strong profitability and operational efficiency indicate effective management and cost control, contributing to long-term financial health and competitive positioning.

Balance Sheet Stability

A stable balance sheet with moderate leverage and effective equity utilization provides a solid foundation for future growth and resilience against economic fluctuations.

Strong Gross Profit Margin

Maintaining a strong gross profit margin above industry averages suggests robust pricing power and cost management, supporting long-term profitability.

Negative Factors

Declining Revenue

Declining revenue poses a risk to the company's growth prospects and market share, potentially impacting its ability to invest in future opportunities and maintain competitive advantage.

Cash Flow Challenges

Recent declines in free cash flow suggest liquidity management challenges, which could constrain the company's ability to fund operations and strategic initiatives.

Revenue Growth Trend

Negative revenue growth indicates potential market share loss and challenges in product demand, which could hinder long-term strategic goals and financial performance.

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: Negative
• Last Price: 1.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1118, the sentiment is Negative. The current price of 1.01 is below the 20-day moving average (MA) of 1.06, below the 50-day MA of 1.03, and above the 200-day MA of 0.94, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 27.74 is Positive, neither overbought nor oversold. The STOCH value of 16.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$580.12M	3.47	12.17%	6.47%	-9.66%	21.61%
1553	73 Outperform	HK$668.05M	4.21	13.01%	7.79%	17.69%	-9.99%
1203	71 Outperform	€780.53M	4.90	6.32%	5.81%	16.92%	146.69%
6890	68 Neutral	HK$236.44M	5.35	4.73%	―	-20.52%	-68.47%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1938	61 Neutral	HK$278.06M	1.01	19.13%	―	-13.26%	63.38%
1090	49 Neutral	HK$1.07B	-2.39	-15.58%	―	-8.38%	-86.16%

Golik Holdings Limited Corporate Events

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.

Golik Holdings Limited Announces Board and Committee Structure

Golik Holdings Limited has announced the composition of its board of directors and the roles each member holds, including executive and independent non-executive directors. The announcement also outlines the membership of the company’s three key committees: Audit, Remuneration, and Nomination, highlighting the involvement of each board member in these committees. This update is crucial for stakeholders to understand the governance structure and decision-making framework of the company.

Golik Holdings Appoints New Executive Director to Lead Metal and Steel Division

Golik Holdings Limited has appointed Mr. John Graham Churchfield as an executive director, effective October 1, 2025. Mr. Churchfield, with extensive experience in the metal and steel industry, will lead the company’s division focused on metal and steel products, aiming to enhance its global market presence. His appointment is expected to strengthen the company’s operations and industry positioning, leveraging his substantial expertise and leadership experience.