GDH Guangnan (Holdings) Limited (1203) AI Stock Analysis

• Market Cap: HK$717.00M
• Dividend Yield: 5.81%
• Average Volume (3M): 292.97K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.34
• Revenue Growth: 16.92%
• EPS Growth: 146.69%
• Country: HK
• Employees: 1,503
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Steel
• EPS (TTM): N/A
• Shares Outstanding: 907,593,260
• 10 Day Avg. Volume: 221,960
• 30 Day Avg. Volume: 292,969
• PEG Ratio: 0.03
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -60.35
• 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: 71 Outperform
• Price Target: HK$0.87 ▲(6.46% Upside)

The stock's overall score is driven primarily by its strong valuation, with a low P/E ratio and high dividend yield making it attractive for value and income investors. Financial performance is solid, with strong revenue growth and operational improvements, though cash flow efficiency could be enhanced. Technical indicators suggest a neutral trend, with no immediate signals of significant price movement.

Positive Factors

Revenue Growth Trends

Sustained high revenue growth (≈17%) indicates the company is expanding sales and market traction across its lines. Over a multi-year horizon this supports reinvestment, scale advantages, and resilience versus peers, providing a durable foundation for operating leverage.

Diversified Business Model

Operating across electronics, food & beverage and consumer goods reduces dependence on any single cycle and smooths cash flows. Diversification supports cross-selling, spreads operational risk, and strengthens resilience to sector-specific shocks over a 2–6 month to multi-year horizon.

Balance Sheet Strength & Improved ROE

A strong equity ratio and improving ROE signal solid capitalization and more effective use of shareholder capital. With leverage still within acceptable norms, the balance sheet provides a durable buffer for growth investments and downturns while supporting long-term financial flexibility.

Negative Factors

Inconsistent Operating Cash Flow

Volatile operating cash flow limits the company’s ability to reliably fund capex, dividends, or debt repayment from internal resources. Over months this weakens financial flexibility and increases reliance on external financing, which can raise costs and constrain strategic initiatives.

Rising Leverage

An uptick in leverage, even if modest, reduces the company’s financial cushion and elevates interest and refinancing risk. Persisting higher leverage can limit strategic optionality, raise funding costs, and magnify downturn impacts across the coming quarters.

Net Profit Margin Volatility

Fluctuating net margins indicate inconsistent conversion of revenue into earnings, reflecting potential cost, pricing, or mix pressures. Margin instability undermines earnings predictability and complicates long-term planning for investments, dividends, and debt servicing.

GDH Guangnan (Holdings) Limited Business Overview & Revenue Model

Company Description

GDH Guangnan (Holdings) Limited, an investment holding company, manufactures and sells tinplates and related products primarily in Hong Kong and Mainland China. It operates through three divisions: Tinplating, Fresh and Live Foodstuffs, and Property Leasing. The company provides tinplates and tin-free steel; and processed products, such as coated/printed tinplate/tin-free steel, as well as cold-rolled steel plates. Its tinplate and tin-free steel products are used in food, light, and chemical industries. The company is also involved in the research and development, production, and sale of tinplated steel sheets, chrome-plated steel sheets, and other processed products. In addition, it engages in the distribution of livestock and poultry, such as cattle and chicken; sale of live pigs; wholesale of poultry; and trading of foodstuffs, including chilled poultry and pork, frozen poultry, and rice and starch. Futher, the company leases office and industrial premises. The company was formerly known as Guangnan (Holdings) Limited and changed its name to GDH Guangnan (Holdings) Limited in June 2020. GDH Guangnan (Holdings) Limited was incorporated in 1982 and is based in Wan Chai, Hong Kong. GDH Guangnan (Holdings) Limited is a subsidiary of GDH Limited.

How the Company Makes Money

GDH Guangnan (Holdings) Limited generates revenue through multiple key streams including the manufacturing and sale of electronic components, food products, and consumer goods. The company capitalizes on its established distribution networks and partnerships with suppliers and retailers to enhance its market reach. Additionally, GDH Guangnan may engage in strategic investments in related sectors, which can provide additional revenue through dividends or capital appreciation. The company's focus on product quality and innovation helps in maintaining competitive pricing and customer loyalty, further contributing to its earnings.

GDH Guangnan (Holdings) Limited Financial Statement Overview

Summary

GDH Guangnan (Holdings) Limited has demonstrated robust revenue growth and operational improvements, though some volatility in net margins and cash flow performance is evident. The balance sheet remains strong with good equity levels, and while leverage has increased, it is still manageable. Overall, the financial health is solid, with opportunities for enhancing cash flow efficiency.

Income Statement

The company has shown significant revenue growth over the years, with a notable increase from 2020 to 2024. Gross profit margin has been relatively stable, indicating strong cost management, although the net profit margin has been somewhat volatile. Recent improvements in EBIT and EBITDA margins suggest enhanced operational efficiency.

Balance Sheet

The company maintains a healthy equity ratio, indicative of strong financial stability. The debt-to-equity ratio has increased slightly, suggesting more leverage, but remains within acceptable industry standards. Return on Equity (ROE) has improved, reflecting better utilization of shareholder funds.

Cash Flow

Operating cash flow has been inconsistent, with a notable dip in recent years, affecting free cash flow generation. The company has managed capital expenditures well, but the operating cash flow to net income ratio suggests room for improvement in converting accounting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.64B	11.98B	10.39B	8.31B	4.86B	2.54B
Gross Profit	553.13M	509.01M	568.99M	558.38M	463.45M	259.42M
EBITDA	315.71M	280.85M	282.74M	362.36M	221.34M	87.45M
Net Income	159.23M	140.75M	65.92M	135.67M	54.06M	69.90M
Balance Sheet
Total Assets	5.24B	4.94B	4.79B	4.88B	4.25B	3.32B
Cash, Cash Equivalents and Short-Term Investments	859.94M	954.81M	1.04B	1.21B	969.21M	895.11M
Total Debt	1.15B	1.01B	939.65M	1.02B	372.97M	62.14M
Total Liabilities	2.29B	2.08B	1.99B	2.10B	1.34B	531.03M
Stockholders Equity	2.68B	2.59B	2.57B	2.57B	2.68B	2.58B
Cash Flow
Free Cash Flow	24.27M	-9.17M	-1.07M	-98.15M	-61.28M	-131.25M
Operating Cash Flow	116.63M	67.35M	259.92M	92.69M	404.49M	-80.21M
Investing Cash Flow	-118.46M	-63.90M	-267.97M	-258.32M	-607.48M	26.37M
Financing Cash Flow	106.21M	-67.43M	-154.62M	456.54M	262.44M	14.70M

GDH Guangnan (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1203, the sentiment is Negative. The current price of 0.82 is below the 20-day moving average (MA) of 0.84, below the 50-day MA of 0.86, and above the 200-day MA of 0.82, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.94 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1203.

GDH Guangnan (Holdings) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1118	73 Outperform	HK$735.20M	4.40	12.17%	6.28%	-9.66%	21.61%
1553	73 Outperform	HK$650.70M	4.10	13.01%	7.84%	17.69%	-9.99%
1203	71 Outperform	HK$717.00M	4.62	6.32%	5.81%	16.92%	146.69%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0103	51 Neutral	HK$1.66B	79.70	1.06%	2.77%	-8.90%	-79.06%
1090	49 Neutral	HK$1.08B	-2.25	-15.58%	―	-8.38%	-86.16%
1231	46 Neutral	HK$1.26B	-78.75	-7.12%	―	-49.95%	-310.53%

GDH Guangnan (Holdings) Limited Corporate Events

GDH Guangnan Renews Energy Agreements for 2026

GDH Guangnan (Holdings) Limited announced its continuation of electricity procurement through new agreements with GDH Energy Service from January to June 2026. These transactions, classified as connected transactions under regulatory guidelines, enable the company to secure a reliable energy supply while complying with reporting and governance requirements, reflecting its commitment to operational consistency.

The most recent analyst rating on (HK:1203) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on GDH Guangnan (Holdings) Limited stock, see the HK:1203 Stock Forecast page.

GDH Guangnan Announces Material Variation in Partnership Terms

GDH Guangnan (Holdings) Limited has announced a material variation in the terms of its connected transaction related to a limited partnership. The company, through its subsidiary GDH Guangnan Investment, has entered into a new partnership agreement with GDH Investment Fund and GDH Capital Group, which involves changes to the original partnership agreement. This transaction is considered a connected transaction under the Hong Kong Stock Exchange Listing Rules, requiring an announcement due to the material variation in terms.

The most recent analyst rating on (HK:1203) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on GDH Guangnan (Holdings) Limited stock, see the HK:1203 Stock Forecast page.

GDH Guangnan Announces Board Restructuring

GDH Guangnan (Holdings) Limited has announced changes to its Board of Directors, effective from October 30, 2025. The board now comprises seven directors, with roles distributed across executive, non-executive, and independent non-executive positions. This restructuring may impact the company’s governance and strategic direction, potentially influencing its market positioning and stakeholder relations.

The most recent analyst rating on (HK:1203) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on GDH Guangnan (Holdings) Limited stock, see the HK:1203 Stock Forecast page.

GDH Guangnan Forms Nomination Committee to Enhance Board Governance

GDH Guangnan (Holdings) Limited has established a Nomination Committee to assist its Board of Directors in evaluating and recommending candidates for directorship. The committee will ensure transparent procedures for board appointments and maintain a diverse and skilled board composition. This move is aimed at enhancing the company’s governance structure by focusing on board diversity, skills, and experience, which could strengthen its strategic positioning and operational effectiveness.

The most recent analyst rating on (HK:1203) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on GDH Guangnan (Holdings) Limited stock, see the HK:1203 Stock Forecast page.

GDH Guangnan Announces Executive Leadership Changes

GDH Guangnan (Holdings) Limited has announced significant changes in its executive leadership effective from October 30, 2025. Mr. Yang Zhe has been redesignated from General Manager to Vice Chairman of the Board, while Ms. Long Wenfang has been appointed as the new Executive Director and General Manager. Mr. Chau Wang Kei has resigned as an Executive Director but will continue his roles as Chief Financial Officer, Company Secretary, and Authorized Representative. These changes reflect a strategic realignment within the company’s leadership structure, potentially impacting its operational focus and governance.

The most recent analyst rating on (HK:1203) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on GDH Guangnan (Holdings) Limited stock, see the HK:1203 Stock Forecast page.

GDH Guangnan Postpones Board Meeting for Quarterly Results

GDH Guangnan (Holdings) Limited, a company incorporated in Hong Kong, has announced the postponement of its board meeting initially scheduled for October 28, 2025, to October 30, 2025. This meeting was intended to consider and approve the unaudited quarterly results for the nine months ending September 30, 2025. The delay is attributed to scheduling conflicts among the directors.

The most recent analyst rating on (HK:1203) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on GDH Guangnan (Holdings) Limited stock, see the HK:1203 Stock Forecast page.

GDH Guangnan Announces Upcoming Board Meeting for Quarterly Results

GDH Guangnan (Holdings) Limited has announced that its Board of Directors will hold a meeting on October 28, 2025, to consider and approve the unaudited quarterly results for the nine months ending September 30, 2025. This announcement indicates the company’s ongoing commitment to transparency and timely financial reporting, which may impact investor confidence and stakeholder engagement.

The most recent analyst rating on (HK:1203) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on GDH Guangnan (Holdings) Limited stock, see the HK:1203 Stock Forecast page.