Gala Technology Holding Limited (2458) AI Stock Analysis

• Market Cap: HK$899.07M
• Dividend Yield: 3.28%
• Average Volume (3M): 136.64K
• Price to Earnings (P/E): 7.0
• Beta (1Y): -0.14
• 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: 17,640
• 30 Day Avg. Volume: 136,640
• 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: 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: 79 Outperform
• Price Target: HK$8.00 ▲(23.84% Upside)

Gala Technology Holding Limited's strong financial performance, characterized by robust revenue growth and efficient cash flow management, is the primary driver of its high score. The stock's undervaluation and attractive dividend yield further enhance its appeal. However, technical indicators suggest caution due to potential overbought conditions.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Gala Technology's offerings and effective market penetration, supporting long-term expansion.

Cash Generation

Robust cash generation enhances financial flexibility, enabling Gala Technology to reinvest in growth opportunities and weather economic fluctuations.

Profitability Margins

Strong profitability margins reflect effective cost management and pricing power, contributing to sustainable earnings and competitive positioning.

Negative Factors

Market Saturation Risk

As the market for digital transformation matures, Gala Technology may face challenges in sustaining growth rates due to increased competition.

Industry Volatility

The Electronic Gaming & Multimedia industry is subject to rapid technological changes and consumer preferences, which can impact long-term stability.

Dependence on Key Partnerships

Reliance on partnerships for market reach could pose risks if these relationships change, potentially affecting Gala Technology's growth trajectory.

Gala Technology Holding Limited Business Overview & Revenue Model

Company Description

Gala Technology Holding Limited (2458) is a technology company primarily engaged in the development and provision of innovative software solutions and services across various sectors, including finance, logistics, and retail. The company focuses on enhancing operational efficiency through advanced technologies such as artificial intelligence and big data analytics, catering to the growing demand for digital transformation in businesses.

How the Company Makes Money

Gala Technology generates revenue through multiple streams, including software licensing fees, subscription services for its cloud-based platforms, and consulting services aimed at optimizing business processes for its clients. The company partners with key players in the technology and finance sectors to integrate its solutions into existing infrastructures, which not only enhances its product offerings but also broadens its market reach. Additionally, Gala Technology may earn revenue from maintenance and support services offered to existing clients, ensuring a steady income from ongoing relationships.

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: Neutral
• Last Price: 6.46
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2458, the sentiment is Neutral. The current price of 6.46 is below the 20-day moving average (MA) of 6.73, below the 50-day MA of 6.52, and above the 200-day MA of 5.10, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 19.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$899.07M	6.96	30.54%	3.28%	56.06%	88.91%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2022	45 Neutral	HK$103.97M	―	-7.87%	―	-5.90%	60.75%
8267	45 Neutral	HK$177.36M	-30.57	-2.00%	―	20.90%	70.71%
0484	44 Neutral	€134.68M	-1.38	-15.08%	―	65.41%	-313.74%
0302	39 Underperform	HK$1.15B	-0.41	-57.29%	―	-36.80%	-666.80%
6933	29 Underperform	HK$141.24M	-4.86	-28.25%	―	-3.02%	72.76%

Gala Technology Holding Limited Corporate Events

Gala Technology Confirms No Conflicts of Interest in 2024

Gala Technology Holding Limited has issued a supplemental announcement to its 2024 Annual Report, addressing potential conflicts of interest between the Group and its Largest Shareholder or Directors. The company’s independent non-executive Directors have confirmed that no such conflicts existed during the reported period, ensuring transparency and adherence to corporate governance standards.

Gala Technology Introduces 2025 Share Award Scheme

Gala Technology Holding Limited has announced the adoption of the 2025 Share Award Scheme, which aims to recognize contributions by selected participants, encourage retention, provide incentives for performance, and align the interests of participants with shareholders through share ownership. The scheme will be funded solely by existing shares and managed by a trustee, with no new shares being issued, thus not requiring shareholder approval.