Golden Power Group Holdings Ltd. (3919) AI Stock Analysis

• Market Cap: HK$43.74M
• Dividend Yield: N/A
• Average Volume (3M): 16.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 5.07%
• EPS Growth: -87.31%
• Country: HK
• Employees: 409
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.11
• Shares Outstanding: 32,400,000
• 10 Day Avg. Volume: 15,705
• 30 Day Avg. Volume: 16,338
• PEG Ratio: 1.35
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 19.86
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$1.00 ▼(-25.93% Downside)

The overall stock score is primarily influenced by financial performance challenges, including consistent net losses and cash flow issues. Technical analysis suggests potential for a rebound from oversold conditions, but valuation concerns due to a negative P/E ratio weigh heavily.

Positive Factors

Revenue Growth

The moderate revenue growth indicates a positive trend in business expansion and market demand, which can enhance long-term financial stability.

Market Position

Strategic partnerships strengthen market position and broaden service capabilities, supporting sustained competitive advantage and growth.

Industry Trends

The increasing focus on renewable energy and efficiency aligns with industry trends, providing a durable growth opportunity for the company.

Negative Factors

Profitability Challenges

Ongoing net losses hinder financial health and limit reinvestment capabilities, posing a risk to long-term sustainability.

Cash Flow Issues

Negative cash flow impacts liquidity and operational flexibility, challenging the company's ability to fund growth and manage obligations.

Negative Return on Equity

A negative return on equity indicates inefficiency in generating returns from shareholders' investments, affecting investor confidence and capital raising.

Golden Power Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Golden Power Group Holdings Ltd. (3919) is a Hong Kong-based investment holding company that operates primarily in the energy and power sectors. The company focuses on the development, operation, and management of energy-related projects, including renewable energy solutions and traditional power generation. Its core products and services encompass energy management systems, power generation equipment, and energy efficiency consulting, aiming to enhance sustainability and reduce operational costs for clients across various industries.

How the Company Makes Money

Golden Power Group Holdings Ltd. generates revenue through multiple streams, primarily from the sale of energy management systems and power generation equipment to businesses and government entities. The company also earns income from consulting services that help organizations optimize their energy usage and improve operational efficiency. Additionally, significant partnerships with energy providers and technology firms enhance its service offerings and market reach, contributing to its revenue. The growing demand for renewable energy solutions and energy efficiency initiatives further supports its earnings potential.

Golden Power Group Holdings Ltd. Financial Statement Overview

Summary

Golden Power Group Holdings Ltd. shows mixed financial performance. While revenue growth is promising, consistent net losses and cash flow challenges pose significant risks. The balance sheet's stable equity and moderate leverage provide some reassurance, yet profitability issues need addressing to enhance financial health and investor confidence.

Income Statement

The company has shown a moderate revenue growth of 17.56% in the most recent year, reversing the previous year's decline. However, profitability remains a concern with consistent net losses over the past three years, resulting in negative net profit margins. The EBIT margin improved but remains low at 0.48% for 2024. EBITDA margin shows some strength at 4.15%, indicating potential operational efficiency improvements.

Balance Sheet

The balance sheet reflects a stable equity base with a debt-to-equity ratio of 0.74, indicating manageable leverage levels. However, the return on equity is negative due to net losses, which is a concern. The equity ratio of 43.68% suggests a solid capital structure, providing some financial stability.

Cash Flow

The absence of positive operating and free cash flow in the most recent year is concerning. The company's free cash flow growth has been inconsistent, and the lack of operating cash flow in 2024 raises questions about cash generation capabilities. The cash flow from operations was positive in prior years, suggesting potential for recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	319.41M	317.76M	270.28M	330.25M	347.22M	315.42M
Gross Profit	71.80M	79.45M	70.75M	71.54M	73.49M	80.82M
EBITDA	6.61M	13.20M	15.53M	-5.09M	27.90M	45.33M
Net Income	-6.66M	-6.37M	-10.92M	-22.79M	4.71M	12.34M
Balance Sheet
Total Assets	675.10M	656.07M	632.55M	627.64M	667.65M	571.75M
Cash, Cash Equivalents and Short-Term Investments	13.35M	31.49M	28.67M	21.51M	36.63M	14.45M
Total Debt	205.82M	211.41M	211.80M	219.99M	234.79M	190.84M
Total Liabilities	384.91M	369.22M	337.71M	340.27M	352.56M	299.66M
Stockholders Equity	290.00M	286.55M	294.84M	287.37M	315.08M	272.09M
Cash Flow
Free Cash Flow	2.50M	20.76M	14.72M	7.18M	-37.37M	6.43M
Operating Cash Flow	27.76M	55.54M	39.84M	17.86M	-1.10M	47.46M
Investing Cash Flow	-36.08M	-34.23M	-25.11M	-10.48M	-36.23M	-40.51M
Financing Cash Flow	-3.28M	-17.66M	-12.06M	-21.90M	59.49M	-11.07M

Golden Power Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.35
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3919, the sentiment is Positive. The current price of 1.35 is above the 20-day moving average (MA) of 1.31, below the 50-day MA of 1.38, and above the 200-day MA of 1.13, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.84 is Neutral, neither overbought nor oversold. The STOCH value of 62.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3919.

Golden Power Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1710	63 Neutral	HK$236.00M	12.23	5.04%	7.47%	4.01%	―
8136	62 Neutral	HK$40.00M	6.67	5.64%	―	-24.77%	-34.07%
1750	60 Neutral	HK$129.60M	24.67	3.18%	―	5.80%	57.89%
1539	52 Neutral	HK$1.05B	24.19	14.19%	―	11.61%	287.50%
3919	44 Neutral	HK$43.74M	-5.54	-2.29%	―	5.07%	-87.31%

Golden Power Group Holdings Ltd. Corporate Events

Golden Power Group Holdings Ltd. Terminates Subscription Agreement

Golden Power Group Holdings Ltd. announced the termination of a Subscription Agreement for new shares under a General Mandate. The termination, agreed upon mutually with the Subscriber, will not adversely affect the company’s existing business, operational, or financial conditions. Stakeholders are advised to exercise caution when dealing with the company’s securities.

Golden Power Group Forms Strategic Joint Venture in Battery Sector

Golden Power Group Holdings Ltd. has announced the formation of a joint venture company with Wanxing Machine and Huang Binggang, with a registered capital of RMB20 million. The joint venture will focus on the battery and power supply sector in China, with Goldtium and Wanxing Machine each holding a 49% stake, and Huang Binggang holding 2%. This strategic move positions the company to enhance its market presence and operational capabilities in the growing battery industry, leveraging shared control and resources with its partners.

Golden Power Group Expands into EV Fast Charging with New Share Subscription

Golden Power Group Holdings Ltd. has entered into a Subscription Agreement to issue 6,480,000 new shares at HK$1.00 each, representing a 13% discount to the current market price. The proceeds, approximately HK$6.40 million, will be used to expand into the electric vehicle fast charging market, repay outstanding bank facilities, and for general working capital, potentially enhancing the company’s market positioning and operational capabilities.