Golden Faith Group Holdings Limited (2863) AI Stock Analysis

• Market Cap: HK$260.05M
• Dividend Yield: 7.69%
• Average Volume (3M): 85.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: 0.94%
• EPS Growth: 82.30%
• Country: HK
• Employees: 1,107
• Sector: Industrials
• Sector Strength: 91
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 666,801,000
• 10 Day Avg. Volume: 35,400
• 30 Day Avg. Volume: 85,400
• 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: HK$0.50
• Price Target Upside: 28.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: HK$0.50 ▲(28.21%Upside)

The overall stock score for Golden Faith Group Holdings Limited is primarily impacted by its financial performance, which suggests significant challenges in profitability and cash flow management. Technical analysis provides some positive signals with moderate bullish momentum. Valuation is constrained by a negative P/E ratio, though a high dividend yield offers some appeal to income investors.

Golden Faith Group Holdings Limited Business Overview & Revenue Model

Company Description

Golden Faith Group Holdings Limited (2863) is a Hong Kong-based company primarily engaged in the provision of electrical and mechanical engineering services. The company operates within the construction sector, offering a range of services that include installation, maintenance, and repair of electrical and mechanical systems. These services are utilized in various types of buildings and infrastructure projects, ensuring efficient and reliable operation of essential systems.

How the Company Makes Money

Golden Faith Group Holdings Limited generates revenue primarily through its engineering services. The company's key revenue streams include contracts for installation and maintenance of electrical and mechanical systems in new construction projects as well as existing buildings. It also earns income from repair services, ensuring systems are kept operational and up to code. The company's strategic partnerships and contracts with construction companies, real estate developers, and government projects contribute significantly to its earnings. By focusing on high-quality service delivery and maintaining strong relationships with clients, Golden Faith Group Holdings Limited secures repeat business and long-term contracts, which are crucial for its financial performance.

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
EBITDA	-11.45M	-12.99M	21.18M	20.72M	30.85M
Net Income	-6.31M	-21.57M	11.59M	16.99M	23.15M
Balance Sheet
Total Assets	337.69M	368.19M	369.37M	320.90M	315.35M
Cash, Cash Equivalents and Short-Term Investments	146.05M	179.01M	134.83M	114.58M	198.41M
Total Debt	5.82M	2.46M	2.50M	3.03M	1.67M
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: 0.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.39 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.34, and above the 200-day MA of 0.29, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 70.93 is Negative, neither overbought nor oversold. The STOCH value of 83.90 is Negative, 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
1447	72 Outperform	HK$224.00M	8.07	7.49%	14.29%	19.67%	9.64%
1582	70 Neutral	HK$210.00M	3.91	8.43%	8.57%	11.39%	-25.31%
0385	70 Neutral	HK$234.99M	4.63	2.42%	6.33%	28.60%	97.00%
0368	65 Neutral	HK$191.20M	10.13	8.97%	―	-10.49%	-14.80%
Sector *	58 Neutral	HK$14.16B	4.43	-3.01%	7.12%	3.67%	-54.16%
1865	52 Neutral	HK$206.29M	―	-17.85%	―	-20.23%	-1808.04%
2863	50 Neutral	HK$260.05M	―	-1.47%	7.69%	0.94%	82.30%

Golden Faith Group Holdings Limited Corporate Events

Golden Faith Group Enhances Board Structure with New Appointments

Golden Faith Group Holdings Limited, a company incorporated in the Cayman Islands, has announced changes in its board structure. The company has appointed Ms. Ko Yung Lai Jackie as a member of its Nomination Committee and Mr. Chan Wing Fai as the Lead Independent Non-Executive Director, effective June 30, 2025. These appointments are expected to enhance communication between the board and shareholders and improve the overall governance of the company.

Golden Faith Group Holdings Limited Announces Board Composition and Roles

Golden Faith Group Holdings Limited has announced the composition of its board of directors and their roles within the company. The board includes a mix of executive and independent non-executive directors, with specific members assigned to lead or participate in key committees. This structure is aimed at strengthening governance and oversight, potentially impacting the company’s strategic direction and stakeholder confidence.

Golden Faith Group Holdings Limited Forms Nomination Committee to Strengthen Governance

Golden Faith Group Holdings Limited has established a Nomination Committee to oversee the appointment and evaluation of board members and senior management. This move aims to enhance corporate governance by ensuring a diverse and skilled board, aligning with the company’s strategic goals and compliance with the Corporate Governance Code.

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.