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

• Market Cap: €825.91M
• Dividend Yield: 3.89%
• Average Volume (3M): 439.74K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.32
• Revenue Growth: 16.92%
• EPS Growth: 146.69%
• Country: HK
• Employees: 1,503
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Steel
• EPS (TTM): 0.08
• Shares Outstanding: 907,593,260
• 10 Day Avg. Volume: 413,600
• 30 Day Avg. Volume: 439,744
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €1.00
• Price Target Upside: 8.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: HK$1.00 ▲(8.70% Upside)

The overall stock score of 71 reflects a strong valuation with an attractive P/E ratio and dividend yield, which are significant positives. Financial performance is solid, with robust revenue growth and operational improvements, though cash flow volatility is a concern. Technical analysis suggests a neutral to slightly bearish short-term trend, which tempers the overall score.

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 its revenue through multiple streams. The primary source of income is from its tinplating operations, which include the manufacture and sale of tinplate products. This segment benefits from long-term partnerships with packaging companies and manufacturers who use tinplate for their products. Additionally, the company earns revenue from its fresh and live foodstuffs segment, which involves the import and distribution of food products. Lastly, the property leasing segment provides a steady income stream through the rental of commercial properties. The company's diversified portfolio allows it to mitigate risks and capitalize on growth opportunities in different sectors.

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

GDH Guangnan (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.92
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.92 is above the 20-day moving average (MA) of 0.90, below the 50-day MA of 0.93, and above the 200-day MA of 0.72, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.61 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1203	71 Outperform	€825.91M	5.19	6.32%	3.89%	16.92%	146.69%
Sector *	61 Neutral	$10.29B	7.21	-0.06%	2.89%	2.87%	-36.73%
DM7	―	€126.85M	―	-15.58%	―	―	―
8NW	―	€87.33M	90.00	-7.12%	―	―	―
CW7	―	€205.45M	75.56	1.06%	―	―	―
1118	74 Outperform	HK$591.61M	3.54	12.17%	6.31%	-9.66%	21.61%
1553	73 Outperform	HK$642.02M	4.04	13.01%	8.51%	17.69%	-9.99%

GDH Guangnan (Holdings) Limited Corporate Events

GDH Guangnan Announces Upcoming Board Meeting for Interim Results

GDH Guangnan (Holdings) Limited has announced that its Board of Directors will meet on August 27, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the payment of an interim dividend, which could have implications for the company’s financial strategy and shareholder returns.

GDH Guangnan Acquires Land for Industrial Use in Foshan City

GDH Guangnan (Holdings) Limited, through its subsidiary GDH Lishui Food, has successfully acquired land use rights in Lishui Town, Foshan City, Guangdong Province, China. The acquisition, valued at RMB56,160,000, is intended for industrial use, specifically for livestock slaughtering, meat products production, and by-product processing for the initial 15 years. This strategic acquisition is a discloseable transaction under Hong Kong’s Listing Rules and is expected to enhance the company’s operational capabilities in the food industry.

GDH Guangnan Appoints New Nomination Committee Member

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

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

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

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

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.