Grandshores Technology Group Limited (1647) AI Stock Analysis

• Market Cap: HK$84.85M
• Dividend Yield: N/A
• Average Volume (3M): 3.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 2.84%
• EPS Growth: -38.10%
• Country: HK
• Employees: 494
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 1,195,040,000
• 10 Day Avg. Volume: 4,774,420
• 30 Day Avg. Volume: 3,740,766
• PEG Ratio: 0.10
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -2.91
• 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: 45 Neutral
• Price Target: HK$0.07 ▼(-17.50% Downside)
• Action: Reiterated Date: 01/15/26
• Date: Action: Reiterated 01/15/26

The score is primarily pressured by weak financial performance—negative profitability and poor operating cash flow—despite modest revenue growth and low leverage. Technicals are mixed with neutral near-term momentum but a weaker longer-term trend, while valuation is less attractive with a P/E of 31.153 and no dividend yield provided.

Positive Factors

Low leverage

A very low debt-to-equity ratio (0.01) indicates the company carries minimal financial leverage, reducing interest and refinancing risk. This durable strength gives management flexibility to fund projects or weather downturns without significant fixed financing costs, supporting stability.

Modest revenue growth

Consistent top-line growth of 5.63% demonstrates ongoing demand for the company's services and provides a base for operational improvement. Over a multi-month horizon this revenue momentum supports potential margin recovery and scale benefits if cost structures are addressed.

Adequate workforce capacity

A headcount of 494 signals an operational capacity to execute engineering and construction projects and maintain backlog continuity. Sustained personnel scale is a durable asset for project delivery, knowledge retention, and supporting revenue generation across contract cycles.

Negative Factors

Negative profitability

Persistent negative net and EBIT margins, alongside a falling gross margin, point to structural cost pressures or pricing weakness. Over the medium term this undermines retained earnings and limits the company’s ability to reinvest or absorb shocks without tackling core operational efficiency.

Weak cash generation

Negative operating cash flow and a steep -59% drop in free cash flow growth indicate the business struggles to convert earnings into cash. This durable weakness strains liquidity, constrains capital expenditure and working capital funding, and increases reliance on external financing.

Negative return on equity

A negative ROE (-1.76%) signals shareholders’ capital is not generating positive returns, reflecting inefficient use of equity and persistent losses. Over months this erodes investor confidence and can restrict access to new equity funding or favorable credit without operational turnaround.

Grandshores Technology Group Limited Business Overview & Revenue Model

Company Description

Grandshores Technology Group Limited, an investment holding company, provides integrated building services in Singapore, Hong Kong, and the People's Republic of China. The company engages in the maintenance and/or installation of mechanical and electrical systems, including repairs and renovation works. It also undertakes building and construction works; invests in properties; and provides financial technology services. In addition, the company engages in the operation, maintenance, and management of data centers and other data processing facilities and equipment in relation to blockchain technologies; operation of digital assets trading platform; provision of blockchain strategic advisory services; and research, cultivation, and extraction of hemp seed, cannabidiol, and industrial hemp. The company was formerly known as SHIS Limited and changed its name to Grandshores Technology Group Limited in August 2018. Grandshores Technology Group Limited was incorporated in 2016 and is based in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

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Grandshores Technology Group Limited Financial Statement Overview

Summary

Revenue grew 5.63%, but profitability is weak with negative net margin (-0.93%) and EBIT margin (-1.13%) and a declining gross margin (20.90% to 15.89%). Balance sheet leverage is very low (debt-to-equity 0.01), but negative ROE (-1.76%) and weak cash generation (negative operating cash flow; free cash flow growth -59.37%) weigh heavily.

Income Statement

The company has experienced modest revenue growth of 5.63% in the latest year, but profitability metrics such as the net profit margin (-0.93%) and EBIT margin (-1.13%) are negative, indicating operational challenges. The gross profit margin has decreased from 20.90% to 15.89%, suggesting increased cost pressures. Overall, the income statement reflects a struggling profitability position despite revenue growth.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.01, indicating low leverage and financial stability. However, the return on equity is negative at -1.76%, reflecting poor profitability. The equity ratio is relatively healthy, suggesting a solid capital structure, but the negative ROE highlights inefficiencies in generating returns from equity.

Cash Flow

The cash flow statement reveals significant challenges, with negative operating cash flow and a substantial decline in free cash flow growth (-59.37%). The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. Despite a positive free cash flow to net income ratio, the overall cash flow position is weak, reflecting liquidity concerns.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	105.58M	109.77M	84.53M	57.77M	44.70M	49.15M
Gross Profit	18.95M	17.44M	17.66M	9.09M	12.04M	21.77M
EBITDA	1.01M	324.79K	2.43M	-3.29M	441.13K	9.82M
Net Income	575.10K	-1.02M	2.21M	-6.43M	-982.49K	5.28M
Balance Sheet
Total Assets	68.25M	72.87M	73.90M	68.53M	72.99M	75.77M
Cash, Cash Equivalents and Short-Term Investments	16.46M	14.06M	19.70M	41.31M	39.13M	22.99M
Total Debt	376.12K	620.68K	431.57K	512.30K	239.37K	396.70K
Total Liabilities	11.26M	14.98M	14.55M	10.55M	9.50M	11.31M
Stockholders Equity	57.52M	58.09M	59.11M	57.55M	61.93M	62.33M
Cash Flow
Free Cash Flow	-924.34K	-5.10M	-19.86M	4.16M	18.31M	-2.76M
Operating Cash Flow	-14.27M	-4.60M	-9.75M	4.50M	18.33M	-2.39M
Investing Cash Flow	12.77M	1.42M	10.91M	-23.82M	-6.90M	7.68M
Financing Cash Flow	-2.46M	-725.30K	-538.25K	2.36M	-674.38K	-260.69K

Grandshores Technology Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1647, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 32.73 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1647.

Grandshores Technology Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3878	63 Neutral	HK$116.54M	4.63	1.45%	―	-19.27%	-47.47%
1751	56 Neutral	HK$607.70M	-9.37	-64.75%	―	-45.46%	-329.88%
2193	52 Neutral	HK$107.00M	2.34	-6.89%	―	-1.91%	18.30%
1429	46 Neutral	HK$416.00M	-28.18	-27.98%	―	-8.31%	-56.88%
1647	45 Neutral	HK$84.85M	-3.76	-1.78%	―	2.84%	-38.10%
8262	40 Underperform	HK$45.24M	-6.61	-15.62%	―	8.74%	48.76%