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Grand Ming Group Holdings Ltd. (HK:1271)
:1271
Hong Kong Market
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Grand Ming Group Holdings Ltd. (1271) AI Stock Analysis

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HK:1271

Grand Ming Group Holdings Ltd.

(1271)

Rating:44Neutral
Price Target:
Grand Ming Group Holdings Ltd. faces significant financial challenges, with declining revenues, profitability, and cash flows, alongside increased leverage. Technical indicators reflect a negative trend, with the stock being oversold. While the valuation metrics, such as a reasonable P/E ratio and an attractive dividend yield, provide some positives, they are overshadowed by the overall financial and technical weaknesses.

Grand Ming Group Holdings Ltd. (1271) vs. iShares MSCI Hong Kong ETF (EWH)

Grand Ming Group Holdings Ltd. Business Overview & Revenue Model

Company DescriptionGrand Ming Group Holdings Ltd. (1271) is a Hong Kong-based investment holding company that operates primarily in three segments: construction, property leasing, and data center operations. The company is engaged in the construction of residential, commercial, and industrial properties, the leasing of properties, and the provision of data center services, making it a diversified entity in both real estate and technology infrastructure sectors.
How the Company Makes MoneyGrand Ming Group Holdings Ltd. generates revenue through its construction segment by undertaking construction contracts for residential, commercial, and industrial projects, primarily in Hong Kong. This segment includes main building works, interior fit-out, and building services. The property leasing segment contributes to the company's income by leasing office and retail spaces, providing a steady stream of rental income. The data center operations segment drives revenue by offering data center services, including server space and related infrastructure to businesses, capitalizing on the growing demand for data storage and processing facilities. These diverse operations, along with strategic partnerships and developments in property and technology infrastructure, form the core revenue streams for the company.

Grand Ming Group Holdings Ltd. Financial Statement Overview

Summary
Grand Ming Group Holdings Ltd. faces several financial challenges, including declining revenues and profitability, increased leverage, and deteriorating cash flows. While there are indications of operational efficiency in certain areas, the overall financial health appears strained, with significant risks related to cash flow sustainability and increased debt levels.
Income Statement
40
Negative
The company experienced a significant revenue decline from 2023 to 2024, with a drop from 500.46 million to 532.69 million. Gross profit margin improved slightly over the year, indicating better cost management. However, net income dropped substantially, reflecting challenges in maintaining profitability. EBIT and EBITDA margins show a relative resilience, but the trajectory suggests potential operational challenges.
Balance Sheet
45
Neutral
The debt-to-equity ratio has increased, indicating a higher leverage level that could pose financial risk. The return on equity decreased significantly, reflecting reduced profitability relative to shareholders’ equity. The equity ratio also declined, suggesting a higher reliance on debt financing, which could pressure financial stability.
Cash Flow
35
Negative
The company’s free cash flow turned negative in 2024, a steep decline from previous positive levels, highlighting cash management issues. Operating cash flow also deteriorated, indicating reduced cash generation from core operations. The free cash flow to net income ratio suggests a disconnect between profits and cash generation, posing liquidity risks.
BreakdownMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue532.69M5.00B817.87M1.49B902.60M
Gross Profit168.56M1.99B61.68M331.11M220.29M
EBITDA457.71M1.69B203.00K252.56M134.40M
Net Income298.45M1.28B17.55M149.03M33.83M
Balance Sheet
Total Assets9.39B8.15B10.67B9.84B9.55B
Cash, Cash Equivalents and Short-Term Investments62.56M611.80M696.83M1.12B2.21B
Total Debt5.88B4.63B4.91B4.00B4.27B
Total Liabilities6.43B5.17B8.55B7.36B7.14B
Stockholders Equity2.95B2.98B2.13B2.48B2.41B
Cash Flow
Free Cash Flow-101.51M762.66M-355.74M56.28M1.88B
Operating Cash Flow-100.24M823.72M-351.96M58.94M1.90B
Investing Cash Flow-948.91M-202.25M-581.03M-444.96M-88.26M
Financing Cash Flow548.45M-701.67M504.57M-702.92M185.16M

Grand Ming Group Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.33
Price Trends
50DMA
1.93
Negative
100DMA
1.96
Negative
200DMA
2.38
Negative
Market Momentum
MACD
-0.21
Positive
RSI
26.73
Positive
STOCH
28.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1271, the sentiment is Negative. The current price of 1.33 is below the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.93, and below the 200-day MA of 2.38, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 26.73 is Positive, neither overbought nor oversold. The STOCH value of 28.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1271.

Grand Ming Group Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$211.08B7.619.66%0.18%9.97%-19.80%
58
Neutral
HK$14.94B4.73-2.78%5.01%3.80%-54.55%
44
Neutral
HK$1.89B12.97-10.29%4.02%271.05%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1271
Grand Ming Group Holdings Ltd.
1.31
-1.84
-58.41%
HK:1109
China Resources Land
29.95
7.27
32.07%
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: Apr 21, 2025