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GDH Guangnan (Holdings) Limited (HK:1203)
:1203

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

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HK

GDH Guangnan (Holdings) Limited

(Frankfurt:1203)

Rating:80Outperform
Price Target:
HK$1.00
▲(4.17%Upside)
The stock's strong valuation with a low P/E ratio and high dividend yield is the most significant factor driving its score. Technical analysis indicates bullish momentum but also overbought signals, suggesting caution. Financial performance is robust with consistent revenue growth, though cash flow volatility requires attention. Overall, the stock presents a solid investment opportunity with some short-term risks.

GDH Guangnan (Holdings) Limited (1203) vs. iShares MSCI Hong Kong ETF (EWH)

GDH Guangnan (Holdings) Limited Business Overview & Revenue Model

Company DescriptionGDH 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 MoneyGDH Guangnan (Holdings) Limited generates revenue primarily through the sale of tinplate products. The company's revenue model is centered around its manufacturing operations, where it produces tinplate used in various industries, including food and beverage packaging, electronics, and industrial applications. The company benefits from its established production facilities and supply chain, which allow it to efficiently produce and distribute its products. Additionally, strategic partnerships and a strong customer base contribute to its earnings, enabling the company to maintain a competitive position in the market.

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
75
Positive
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
70
Positive
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
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.98B10.39B8.31B4.86B2.54B
Gross Profit509.01M568.99M558.38M463.45M259.42M
EBITDA280.85M282.74M362.36M221.34M87.45M
Net Income140.75M65.92M135.67M54.06M69.90M
Balance Sheet
Total Assets4.94B4.79B4.88B4.25B3.32B
Cash, Cash Equivalents and Short-Term Investments954.81M1.04B1.21B969.21M895.11M
Total Debt1.01B939.65M1.02B372.97M62.14M
Total Liabilities2.08B1.99B2.10B1.34B531.03M
Stockholders Equity2.59B2.57B2.57B2.68B2.58B
Cash Flow
Free Cash Flow-9.17M-1.07M-98.15M-61.28M-131.25M
Operating Cash Flow67.35M259.92M92.69M404.49M-80.21M
Investing Cash Flow-63.90M-267.97M-258.32M-607.48M26.37M
Financing Cash Flow-67.43M-154.62M456.54M262.44M14.70M

GDH Guangnan (Holdings) Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.96
Price Trends
50DMA
0.76
Positive
100DMA
0.69
Positive
200DMA
0.64
Positive
Market Momentum
MACD
0.05
Negative
RSI
85.87
Negative
STOCH
95.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1203, the sentiment is Positive. The current price of 0.96 is above the 20-day moving average (MA) of 0.84, above the 50-day MA of 0.76, and above the 200-day MA of 0.64, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 85.87 is Negative, neither overbought nor oversold. The STOCH value of 95.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1203.

GDH Guangnan (Holdings) Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (43)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
€853.14M6.195.38%5.32%15.34%113.64%
43
Neutral
AU$1.39B-6.14-40.74%4.06%-3.45%-41.77%
DEDM7
€92.71M-15.03%
DE8NW
€104.32M90.00-0.96%
DECW7
€169.30M29.171.79%1.72%
74
Outperform
HK$562.89M3.6011.93%8.16%-16.88%13.77%
73
Outperform
HK$563.94M3.6513.06%9.23%15.29%-9.10%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1203
GDH Guangnan (Holdings) Limited
0.96
0.44
86.41%
DE:DM7
Da Ming International Holdings Limited
0.05
-0.04
-44.44%
DE:8NW
Newton Resources Ltd.
0.02
>-0.01
-33.33%
DE:CW7
Shougang Concord Century Holding Ltd.
0.05
0.03
150.00%
HK:1118
Golik Holdings Limited
0.99
0.25
33.78%
HK:1553
Maike Tube Industry Holdings Limited
1.33
0.16
13.68%

GDH Guangnan (Holdings) Limited Corporate Events

GDH Guangnan Appoints New Nomination Committee Member
Jun 24, 2025

GDH Guangnan (Holdings) Limited, a company incorporated in Hong Kong, has announced the appointment of Ms. Yu Huijuan as a member of its Nomination Committee. This strategic appointment, effective from June 24, 2025, is part of the company’s ongoing efforts to strengthen its governance structure, potentially impacting its decision-making processes and stakeholder relations.

GDH Guangnan (Holdings) Limited Announces Board Restructuring
Jun 24, 2025

GDH Guangnan (Holdings) Limited, a company incorporated in Hong Kong, has announced changes to its Board of Directors, effective from June 24, 2025. The board now comprises seven directors, including executive, non-executive, and independent non-executive directors. This restructuring may impact the company’s governance and strategic direction, potentially influencing its market positioning and stakeholder relations.

GDH Guangnan Secures Shareholder Approval for Electricity Agreements
Jun 16, 2025

GDH Guangnan (Holdings) Limited announced that all resolutions proposed at their Extraordinary General Meeting (EGM) held on 16 June 2025 were approved by independent shareholders. The resolutions pertained to agreements for electricity provision across various sectors, with unanimous support from voting shareholders. This approval allows the company to proceed with its planned transactions, potentially strengthening its operational capabilities and market position.

GDH Guangnan Secures HK$400 Million Loan Facility
Jun 9, 2025

GDH Guangnan (Holdings) Limited has secured a HK$400 million revolving term loan facility for general corporate funding needs, effective from June 9, 2025, and terminating 360 days later. The facility is contingent upon the company maintaining its majority ownership by GDH Limited and Guangdong Holdings Limited, with potential immediate repayment if obligations are not met.

GDH Guangnan Announces EGM to Approve 2025 Electricity Agreements
May 26, 2025

GDH Guangnan (Holdings) Limited has announced an Extraordinary General Meeting (EGM) to be held on June 16, 2025, in Hong Kong. The meeting will address several resolutions related to the approval and confirmation of various 2025 electricity agreements for its subsidiaries, including GDH Zhongyue, GDH Food Foshan, Runhehe Food, and Guanglong Food. The resolutions aim to authorize company directors to execute necessary actions to implement these agreements, which may impact the company’s operational efficiency and strategic positioning in the market.

GDH Guangnan Extends Electricity Procurement Agreements for 2025
Apr 29, 2025

GDH Guangnan (Holdings) Limited has announced the extension of its electricity procurement agreements with GDH Energy Service for the latter half of 2025. These agreements, known as the Further 2025 Electricity Agreements, involve the company’s subsidiaries and are subject to approval from independent shareholders. The transactions are considered continuing connected transactions under Hong Kong’s Listing Rules, requiring annual review and shareholder approval due to the significant percentage ratio involved.

GDH Guangnan Reports Strong Q1 2025 Financial Performance
Apr 29, 2025

GDH Guangnan (Holdings) Limited reported a 20% increase in revenue and a 260% rise in profit attributable to equity shareholders for the first quarter of 2025. The fresh and live foodstuffs segment saw a 21% revenue increase, despite a 7% decrease in segment profit due to lower demand, while the tinplating business recorded a 15% revenue increase and a significant 314% rise in segment profit, driven by improved marketing and cost reduction measures.

GDH Guangnan Announces Change in Company Secretary
Apr 29, 2025

GDH Guangnan (Holdings) Limited has announced a change in its company secretary position. Mr. Liu Wai Kin has resigned, and Mr. Chau Wang Kei, who is also an Executive Director and Chief Financial Officer, will assume the role effective April 29, 2025. Mr. Chau’s extensive experience in financial management and accounting is expected to support the company’s operations and strategic goals.

GDH Guangnan Announces Annual General Meeting Agenda
Apr 25, 2025

GDH Guangnan (Holdings) Limited has announced its upcoming annual general meeting scheduled for June 16, 2025, in Hong Kong. The meeting will cover several key agenda items, including the review of the company’s financial statements for the year ending December 31, 2024, the declaration of a final dividend, the re-election of retiring directors, and the re-appointment of KPMG as the independent auditor. Additionally, the meeting will consider resolutions to authorize the directors to allot and issue ordinary shares, with limitations set on the number of shares that can be issued.

GDH Guangnan Reports Significant Profit Growth in Q1 2025
Apr 17, 2025

GDH Guangnan (Holdings) Limited has announced a significant increase in its unaudited consolidated profit for the first quarter of 2025. The company expects a profit of not less than HK$33 million, marking a 242% increase compared to the same period in 2024. This growth is attributed to improved performance in its fresh and live foodstuffs business, driven by higher swine prices, and enhanced profitability in its tinplating business due to better marketing and cost reduction strategies. Stakeholders are advised to exercise caution as the results are preliminary and subject to change.

GDH Guangnan Schedules Board Meeting for Quarterly Results
Apr 14, 2025

GDH Guangnan (Holdings) Limited has announced a board meeting scheduled for April 29, 2025, to review and approve the unaudited quarterly results for the period ending March 31, 2025. This meeting is a routine part of the company’s financial reporting process and could provide insights into the company’s performance and strategic direction, impacting stakeholders’ perspectives on its market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 11, 2025