Gala Technology Holding Limited (2458) AI Stock Analysis

• Market Cap: HK$903.36M
• Dividend Yield: 3.24%
• Average Volume (3M): 45.84K
• Price to Earnings (P/E): 7.0
• Beta (1Y): -0.26
• Revenue Growth: 56.06%
• EPS Growth: 88.91%
• Country: HK
• Employees: 491
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.42
• Shares Outstanding: 142,742,940
• 10 Day Avg. Volume: 26,300
• 30 Day Avg. Volume: 45,840
• PEG Ratio: 0.30
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 2.45
• 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: HK$6.50
• Price Target Upside: 1.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: HK$6.50 ▲(1.72% Upside)

Gala Technology Holding Limited's strong financial performance, characterized by robust revenue growth and efficient cash flow management, is the most significant factor driving the stock score. The technical analysis supports a positive trend, while the valuation indicates the stock is undervalued with a healthy dividend yield. The absence of earnings call data and corporate events did not impact the score.

Gala Technology Holding Limited Business Overview & Revenue Model

Company Description

Gala Technology Holding Limited (2458) is a company engaged in the technology sector, focusing on the development and distribution of innovative technology solutions. The company provides a range of products and services designed to meet the needs of businesses and consumers in a rapidly evolving digital landscape. These solutions include software development, IT consulting, and digital transformation services.

How the Company Makes Money

Gala Technology Holding Limited generates revenue through multiple streams, primarily from the sale of its technology products and services. The company earns income by offering software solutions and IT consulting services to businesses looking to enhance their operational efficiency and digital presence. Additionally, Gala Technology may engage in partnerships and collaborations with other tech firms to expand its market reach and leverage new technologies, contributing to its revenue growth. The company focuses on maintaining a diverse client portfolio to ensure a steady flow of income from different sectors.

Gala Technology Holding Limited Financial Statement Overview

Summary

Gala Technology Holding Limited exhibits strong financial health with robust revenue growth, high profitability margins, and efficient cash flow management. The low debt levels and strong equity position further enhance financial stability, positioning the company well for future growth.

Income Statement

Gala Technology Holding Limited has demonstrated strong revenue growth with a 22.5% increase from 2023 to 2024. The gross profit margin is robust at 53.6%, indicating effective cost management. The net profit margin improved to 10.8%, reflecting enhanced profitability. EBIT and EBITDA margins are healthy at 9.6% and 15.6%, respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0.04, indicating low leverage. The return on equity is impressive at 22.3%, reflecting efficient use of shareholder funds. The equity ratio stands at 59.8%, suggesting a solid capital structure with a significant portion of assets funded by equity.

Cash Flow

Gala Technology's free cash flow grew significantly by 173.7% from 2023 to 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 2.1, and the free cash flow to net income ratio is 2.0, both suggesting effective conversion of income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	930.22M	775.92M	633.63M	637.89M	459.85M	404.75M
Gross Profit	482.04M	415.88M	344.66M	333.06M	221.53M	180.39M
EBITDA	162.13M	120.72M	125.30M	51.65M	67.83M	69.03M
Net Income	112.33M	84.16M	74.20M	13.53M	39.99M	41.50M
Balance Sheet
Total Assets	714.76M	631.61M	527.42M	370.26M	292.36M	252.74M
Cash, Cash Equivalents and Short-Term Investments	473.85M	392.09M	342.25M	232.57M	188.49M	164.81M
Total Debt	14.84M	15.15M	4.66M	11.13M	12.39M	3.57M
Total Liabilities	289.44M	254.48M	195.83M	247.65M	185.05M	104.67M
Stockholders Equity	426.18M	377.99M	332.43M	123.49M	109.19M	149.47M
Cash Flow
Free Cash Flow	235.90M	170.69M	62.35M	49.60M	43.71M	52.03M
Operating Cash Flow	240.93M	176.32M	98.26M	74.18M	67.83M	77.72M
Investing Cash Flow	-92.76M	-40.76M	-95.06M	-24.34M	-18.48M	-30.18M
Financing Cash Flow	-38.52M	-58.67M	61.97M	-9.37M	-23.33M	-23.17M

Gala Technology Holding Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2458, the sentiment is Positive. The current price of 6.39 is above the 20-day moving average (MA) of 6.21, above the 50-day MA of 5.73, and above the 200-day MA of 4.54, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 67.04 is Neutral, neither overbought nor oversold. The STOCH value of 81.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2458.

Gala Technology Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2458	79 Outperform	HK$903.36M	7.00	30.54%	3.24%	56.06%	88.91%
2022	48 Neutral	HK$118.82M	-7.74	-12.81%	―	-5.90%	60.75%
0484	48 Neutral	HK$151.52M	-1.56	-12.26%	―	65.41%	-313.74%
8267	45 Neutral	HK$236.48M	-42.04	―	―	20.90%	70.71%
0302	44 Neutral	HK$1.50B	-0.52	-53.94%	―	-36.80%	-666.80%
6933	29 Underperform	HK$149.80M	-5.45	―	―	-3.02%	72.76%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Gala Technology Holding Limited Corporate Events

Gala Technology Approves Key Resolutions at 2025 AGM

Gala Technology Holding Limited announced that all proposed ordinary resolutions were approved at their Annual General Meeting held on June 20, 2025. Key resolutions included the re-election of directors, appointment of a new independent auditor, and authorization for the board to manage share allotments and buybacks. These decisions are expected to streamline the company’s governance and financial operations, potentially enhancing its market positioning.

Gala Technology Announces Annual General Meeting and Key Resolutions

Gala Technology Holding Limited has announced its upcoming annual general meeting scheduled for June 20, 2025, in Shenzhen, PRC. The agenda includes adopting the audited financial statements for 2024, re-electing and electing directors, appointing a new independent auditor, and authorizing the board to manage share allotments. These resolutions aim to ensure effective governance and strategic financial management, potentially impacting the company’s operational efficiency and market positioning.

Gala Technology Announces Board Changes with New Director Appointment

Gala Technology Holding Limited has announced a proposed change in its board of directors, with the retirement of Mr. Leung Ming Shu and the proposed appointment of Ms. Jiang Xueying as an independent non-executive director. Ms. Jiang, who brings extensive experience in financial management and strategic planning, is expected to enhance the board’s diversity and contribute to the company’s compliance and sustainable development goals.

Gala Technology Announces Auditor Change to Enhance Cost Efficiency

Gala Technology Holding Limited has announced a proposed change of auditor, with Deloitte Touche Tohmatsu set to retire at the conclusion of the upcoming annual general meeting in June 2025. The company plans to appoint Grant Thornton Hong Kong Limited as its new auditor, a decision driven by considerations such as audit fee, industry experience, and resource capability. This change is expected to support effective cost control and reduce operating expenses, with no material impact anticipated on the company’s operations.