Grand Ming Group Holdings Ltd. (1271) AI Stock Analysis

• Market Cap: HK$2.74B
• Dividend Yield: 4.55%
• Average Volume (3M): 31.24K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.04
• Revenue Growth: 271.05%
• EPS Growth: N/A
• Country: HK
• Employees: 156
• Sector: Industrials
• Sector Strength: 91
• Industry: Engineering & Construction
• EPS (TTM): 0.17
• Shares Outstanding: 1,420,222,300
• 10 Day Avg. Volume: 34,097
• 30 Day Avg. Volume: 31,237
• PEG Ratio: -0.59
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.24
• 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

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. Business Overview & Revenue Model

Company Description

Grand 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 Money

Grand 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

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

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

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.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.02B	532.69M	5.00B	817.87M	1.49B	902.60M
	Gross Profit
377.10M	168.56M	1.99B	61.68M	331.11M	220.29M
	EBIT
382.19M	435.80M	1.65B	-28.18M	224.64M	111.65M
	EBITDA
373.41M	457.71M	1.69B	203.00K	252.56M	134.40M
	Net Income Common Stockholders
239.93M	298.45M	1.28B	17.55M	149.03M	33.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
188.15M	62.56M	611.80M	696.83M	1.12B	2.21B
	Total Assets
9.39B	9.39B	8.15B	10.67B	9.84B	9.55B
	Total Debt
5.88B	5.88B	4.63B	4.91B	4.00B	4.27B
	Net Debt
5.82B	5.82B	4.02B	4.21B	2.88B	2.06B
	Total Liabilities
6.43B	6.43B	5.17B	8.55B	7.36B	7.14B
	Stockholders Equity
2.95B	2.95B	2.98B	2.13B	2.48B	2.41B
Cash Flow		Free Cash Flow
831.95M	-101.51M	762.66M	-355.74M	56.28M	1.88B
	Operating Cash Flow
368.54M	-100.24M	823.72M	-351.96M	58.94M	1.90B
	Investing Cash Flow
-374.86M	-948.91M	-202.25M	-581.03M	-444.96M	-88.26M
	Financing Cash Flow
441.26M	548.45M	-701.67M	504.57M	-702.92M	185.16M

Grand Ming Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1271, the sentiment is Neutral. The current price of 1.98 is above the 20-day moving average (MA) of 1.92, below the 50-day MA of 1.98, and below the 200-day MA of 2.65, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.59 is Neutral, neither overbought nor oversold. The STOCH value of 80.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1271.

Grand Ming Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1109	65 Neutral	$177.92B	6.51	9.66%	6.59%	9.97%	-19.80%
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%
1271	44 Neutral	HK$2.74B	11.72	8.13%	4.55%	271.05%	―