Golden Faith Group Holdings Limited (2863) AI Stock Analysis

• Market Cap: HK$210.30M
• Dividend Yield: 8.33%
• Average Volume (3M): 81.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: 0.94%
• EPS Growth: 82.30%
• Country: HK
• Employees: 1,107
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.04
• Shares Outstanding: 689,511,000
• 10 Day Avg. Volume: 33,900
• 30 Day Avg. Volume: 81,500
• PEG Ratio: 0.32
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -3.63
• 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: 54 Neutral
• Price Target: HK$0.50 ▲(56.25% Upside)

The overall stock score of 54 reflects significant financial challenges, including declining profitability and cash flow issues. While the technical analysis shows mild positive momentum, the negative P/E ratio highlights ongoing profitability concerns. The high dividend yield is a positive aspect, potentially appealing to income-focused investors.

Positive Factors

Strong Equity Position

The company's low leverage indicates financial stability and a strong capital base, providing a buffer against economic downturns and the ability to invest in growth opportunities.

Revenue Growth

Consistent revenue growth suggests the company is expanding its market reach and product adoption, which is crucial for long-term sustainability and competitiveness.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on a single market, enhancing resilience against sector-specific downturns and providing multiple growth avenues.

Negative Factors

Negative Profit Margins

Sustained negative profit margins indicate ongoing operational inefficiencies and cost management issues, which could hinder long-term profitability and competitiveness.

Cash Flow Challenges

Negative cash flows suggest liquidity issues, limiting the company's ability to invest in growth and potentially impacting its financial flexibility and stability.

Declining Profitability

Decreasing gross margins highlight potential cost management issues, which could erode competitive advantage and affect the company's ability to sustain profitability over time.

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 revenue through multiple streams, including the sale of manufactured products across its core sectors. The company capitalizes on its manufacturing capabilities to produce electronics and industrial components, which are sold to businesses in various industries. Additionally, the company may engage in trading activities, where it sources products from third-party manufacturers and sells them to retailers or wholesalers, earning a margin on these transactions. Strategic partnerships with suppliers and distributors enhance its market position and contribute to revenue growth. The company's profitability is further supported by its ability to manage production costs efficiently and optimize supply chain operations.

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. Despite low leverage, inefficiencies in operations and cash management are concerning. The company's financial health suggests a need for strategic improvements to enhance profitability and liquidity.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	656.84M	736.68M	671.47M	348.61M	254.86M	252.77M
Gross Profit	8.52M	13.38M	23.27M	46.35M	43.83M	53.05M
EBITDA	-20.34M	-11.45M	-12.99M	18.47M	24.66M	30.85M
Net Income	-4.21M	-6.31M	-21.57M	11.59M	16.99M	23.15M
Balance Sheet
Total Assets	334.95M	337.69M	368.19M	369.37M	320.90M	315.35M
Cash, Cash Equivalents and Short-Term Investments	155.19M	146.05M	179.01M	134.83M	114.58M	198.41M
Total Debt	5.32M	5.82M	2.46M	2.50M	3.03M	1.67M
Total Liabilities	55.47M	64.38M	80.27M	64.14M	33.22M	50.12M
Stockholders Equity	284.58M	278.41M	282.57M	302.63M	287.12M	264.93M
Cash Flow
Free Cash Flow	836.00K	-39.11M	-774.00K	22.23M	-92.41M	74.30M
Operating Cash Flow	1.09M	-38.86M	-40.00K	22.90M	-91.03M	75.00M
Investing Cash Flow	13.98M	612.00K	39.84M	-3.10M	-1.57M	-12.92M
Financing Cash Flow	-3.85M	-3.80M	-1.57M	908.00K	2.53M	-5.77M

Golden Faith Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2863, the sentiment is Negative. The current price of 0.32 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.35, and below the 200-day MA of 0.35, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 31.63 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
0385	72 Outperform	HK$288.53M	5.79	2.37%	5.26%	9.48%	-53.42%
1582	65 Neutral	HK$172.50M	4.09	6.32%	9.71%	27.42%	-32.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	62 Neutral	HK$182.00M	7.48	6.66%	15.38%	13.59%	-12.52%
0368	61 Neutral	HK$336.00M	17.80	9.06%	3.63%	6.27%	―
2863	54 Neutral	HK$210.30M	-11.34	-1.47%	8.33%	0.94%	82.30%
1865	49 Neutral	HK$224.33M	-2.91	-16.00%	―	9.19%	84.15%

Golden Faith Group Holdings Limited Corporate Events

Golden Faith Posts Wider Annual Loss on Revenue Slump but Maintains Solid Liquidity

Golden Faith Group Holdings Limited reported a sharp decline in revenue to HK$467.1 million for the year ended 30 September 2025 from HK$736.7 million a year earlier, though gross profit improved slightly to HK$14.6 million. The Group’s loss attributable to owners widened significantly to HK$17.9 million, translating to a basic and diluted loss per share of 2.69 HK cents, as administrative expenses remained high despite lower sales and other income and gains diminished compared with the prior year. The company’s balance sheet remains relatively strong, with cash and cash equivalents of HK$71.0 million and net current assets of HK$228.0 million, although cash levels fell from the previous year and trade receivables decreased markedly while contract assets more than doubled, highlighting ongoing working capital swings tied to project execution. Overall, the results underscore continued pressure on profitability and revenue visibility for stakeholders, even as the Group maintains a solid liquidity position and modest leverage, leaving its near-term focus likely on cost control, project conversion and disciplined capital management.

The most recent analyst rating on (HK:2863) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Golden Faith Group Holdings Limited stock, see the HK:2863 Stock Forecast page.

Golden Faith Group Holdings to Approve Annual Results and Consider Dividend

Golden Faith Group Holdings Limited has announced that its Board of Directors will meet on December 30, 2025, to approve the annual results for the year ended September 30, 2025, and to consider recommending a final dividend. This meeting is significant as it will determine the company’s financial performance and potential returns to shareholders, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:2863) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Golden Faith Group Holdings Limited stock, see the HK:2863 Stock Forecast page.