Golden Faith Group Holdings Limited (2863) AI Stock Analysis

• Market Cap: HK$223.38M
• Dividend Yield: 70.3%
• Average Volume (3M): 135.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: 0.94%
• EPS Growth: 82.30%
• Country: HK
• Employees: 1,107
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 666,801,000
• 10 Day Avg. Volume: 12,300
• 30 Day Avg. Volume: 135,300
• PEG Ratio: -0.66
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.31
• 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

• Rating: 46 Neutral
• Price Target: HK$0.50 ▲(47.06%Upside)

The overall stock score is primarily impacted by the company's financial performance, which highlights significant profitability and cash flow challenges despite low leverage. Technical analysis provides mixed signals, with some positive momentum yet bearish indicators. The valuation is concerning due to the negative P/E ratio, although the high dividend yield is a positive aspect for income investors.

Golden Faith Group Holdings Limited Business Overview & Revenue Model

Company Description

Golden Faith Group Holdings Limited, an investment holding company, engages in the provision of electrical and mechanical engineering services in Hong Kong. The company provides engineering services, including electrical and extra-low voltage (ELV) system work and ventilation, and air-conditioning system works. It also offers management installation, supervising, and testing of the electrical and ELV installation services. In addition, it is involved in the property investment business. It undertakes projects in public and private sectors, which comprise residential and commercial buildings, institutional buildings, government buildings, hotels, and hospitals. The company was founded in 1987 and is headquartered in Causeway Bay, Hong Kong.

How the Company Makes Money

Golden Faith Group Holdings Limited generates its revenue through a combination of project-based contracts and maintenance agreements. The company's primary revenue streams include the provision of electrical and mechanical engineering services to large-scale infrastructure projects, commercial buildings, and residential developments. These projects typically involve comprehensive design and installation services, followed by ongoing maintenance contracts to ensure system efficiency and compliance with safety standards. Additionally, strategic partnerships with construction firms and property developers contribute to its revenue by securing long-term projects and expanding its service offerings.

Golden Faith Group Holdings Limited Financial Statement Overview

Summary

Golden Faith Group Holdings Limited faces significant financial challenges, with declining profitability and cash flow issues. While the company's low leverage is a positive aspect, inefficiencies in operations and cash management are areas of concern.

Income Statement

Golden Faith Group Holdings Limited has experienced fluctuating revenue and profitability. The Gross Profit Margin has decreased over the years, indicating potential cost management issues. The company reported negative EBIT and EBITDA margins in 2023 and 2024, signaling operational challenges and inefficiencies. Revenue grew by 9.7% in 2024 compared to 2023, but the Net Profit Margin remained negative, indicating ongoing profitability challenges.

Balance Sheet

The company maintains a strong equity position with a Debt-to-Equity Ratio of 0.02 in 2024, reflecting low leverage and financial stability. However, the Return on Equity (ROE) has been negative in recent years, pointing to inefficiencies in generating returns on shareholder equity. The Equity Ratio is healthy, suggesting a strong capital base relative to assets.

Cash Flow

The company has struggled with negative operating cash flows in recent years, particularly in 2024, which could indicate liquidity challenges. Free Cash Flow has been negative, impacting the company's ability to invest in growth opportunities. The Operating Cash Flow to Net Income Ratio is negative, reflecting cash flow management issues.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
736.68M	671.47M	348.61M	254.86M	252.77M
	Gross Profit
13.38M	23.27M	46.35M	43.83M	53.05M
	EBIT
-26.38M	-16.71M	18.67M	18.32M	29.27M
	EBITDA
-11.45M	-12.99M	21.18M	20.72M	30.85M
	Net Income Common Stockholders
-6.31M	-21.57M	11.59M	16.99M	23.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
146.05M	179.01M	134.83M	114.58M	198.41M
	Total Assets
337.69M	368.19M	369.37M	320.90M	315.35M
	Total Debt
5.82M	2.46M	2.50M	3.03M	1.67M
	Net Debt
-118.08M	-163.49M	-125.23M	-103.98M	-195.42M
	Total Liabilities
64.38M	80.27M	64.14M	33.22M	50.12M
	Stockholders Equity
278.41M	282.57M	302.63M	287.12M	264.93M
Cash Flow		Free Cash Flow
-39.11M	-774.00K	22.23M	-92.41M	74.30M
	Operating Cash Flow
-38.86M	-40.00K	22.90M	-91.03M	75.00M
	Investing Cash Flow
612.00K	39.84M	-3.10M	-1.57M	-12.92M
	Financing Cash Flow
-3.80M	-1.57M	908.00K	2.53M	-5.77M

Golden Faith Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2863, the sentiment is Positive. The current price of 0.34 is below the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.32, and above the 200-day MA of 0.28, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.76 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2863.

Golden Faith Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBA	82 Outperform	£151.56B	10.19	10.86%	3.40%	-3.40%	-7.51%
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%
2863	46 Neutral	HK$223.38M	―	-1.47%	70.30%	0.94%	82.30%
PIAIF		$126.40B	6.15		7.53%	―	―
CICHF		$241.39B	5.35	10.81%	11.86%	―	―
HKXCF		$63.29B	34.54	27.96%	2.54%	―	―
IDCBF		$345.15B	5.54	9.72%	5.12%	―	―

Golden Faith Group Holdings Limited Corporate Events

Golden Faith Group Reports Decline in Interim Revenue and Profit

Golden Faith Group Holdings Limited reported its interim results for the six months ending March 31, 2025, revealing a decrease in revenue from HK$346.3 million in 2024 to HK$266.5 million in 2025. The company’s profit before taxation also fell from HK$14.5 million to HK$7.9 million, with a corresponding drop in profit attributable to owners from HK$4.1 million to HK$6.2 million. Despite the decline in financial performance, the company declared an interim dividend of HK$20.004 million, which was not present in the previous year.

Golden Faith Group Announces Interim Dividend for 2025

Golden Faith Group Holdings Limited announced an interim ordinary dividend of HKD 0.03 per share for the six months ending March 31, 2025. The dividend will be paid on May 30, 2025, with an ex-dividend date of May 21, 2025. This announcement may impact the company’s financial standing and provide returns to shareholders, reflecting its ongoing commitment to shareholder value.

Golden Faith Group Holdings Announces Upcoming Board Meeting for Interim Results

Golden Faith Group Holdings Limited has announced that its board of directors will convene on May 7, 2025, to review and approve the unaudited interim results for the six months ending March 31, 2025. The meeting will also consider the recommendation of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Golden Faith Group Holdings Unanimously Passes AGM Resolutions

Golden Faith Group Holdings Limited successfully conducted its Annual General Meeting on March 28, 2025, where all proposed resolutions were unanimously passed by shareholders. These resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting of mandates to issue and repurchase shares, reflecting strong shareholder support and strategic alignment.