G & M Holdings Ltd. (6038) AI Stock Analysis

• Market Cap: HK$238.71M
• Dividend Yield: 16.67%
• Average Volume (3M): 350.67K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.19
• Revenue Growth: 5.55%
• EPS Growth: -18.91%
• Country: HK
• Employees: 106
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 0.04
• Shares Outstanding: 1,003,000,000
• 10 Day Avg. Volume: 284,000
• 30 Day Avg. Volume: 350,666
• PEG Ratio: -0.22
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 0.00
• 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: 108.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: HK$0.50 ▲(108.33% Upside)

G & M Holdings Ltd. scores well due to its strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest the stock is undervalued. Financial performance is solid, with strong profitability and a robust balance sheet, though cash flow issues need attention. Technical indicators show moderate bullish momentum, supporting a positive outlook.

G & M Holdings Ltd. Business Overview & Revenue Model

Company Description

G & M Holdings Limited, an investment holding company, provides design and build, and repair and maintenance services in relation to podium facade and curtain wall works in Hong Kong and the People's Republic of China. It also designs aluminum and glass curtain wall, as well as aluminum claddings. G & M Holdings Limited was founded in 1993 and is headquartered in Kwai Chung, Hong Kong. G & M Holdings Limited is a subsidiary of Luxury Booming Limited.

How the Company Makes Money

G & M Holdings Ltd. generates revenue primarily through its property development and investment activities. The company earns money by selling developed properties and leasing commercial and residential spaces, which provide a steady stream of rental income. Additionally, the company may generate profits through asset management services, where it manages third-party properties for a fee. Key revenue streams include sales of completed projects, ongoing rental income from its property portfolio, and management fees from assets under management. Strategic partnerships with other real estate developers and financial institutions can also enhance its earnings potential by providing access to new projects and investment opportunities.

G & M Holdings Ltd. Financial Statement Overview

Summary

G & M Holdings Ltd. demonstrates strong profitability and a solid balance sheet, with low leverage and effective equity use. However, cash flow stability is a concern, highlighting the need for improved cash flow management to sustain operations.

Income Statement

The company has a healthy Gross Profit Margin and Net Profit Margin, suggesting strong profitability. The revenue has shown fluctuations with a recent decline in 2024. EBIT and EBITDA margins are robust, indicating efficient operations despite the revenue drop.

Balance Sheet

The company has a strong equity position with a low Debt-to-Equity Ratio, indicating low financial leverage and risk. The Return on Equity is positive, reflecting effective use of equity capital. The Equity Ratio is also solid, indicating a strong capital structure.

Cash Flow

Cash flow metrics show variability with occasional negative free cash flow, suggesting potential liquidity challenges. Operating Cash Flow is currently zero, which could indicate cash management issues. The Free Cash Flow to Net Income Ratio is not available for the latest year, limiting analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	472.58M	429.31M	496.63M	382.79M	403.21M	243.40M
Gross Profit	125.61M	114.46M	102.52M	91.20M	86.13M	59.26M
EBITDA	57.83M	46.45M	72.91M	54.66M	51.74M	31.98M
Net Income	52.06M	43.19M	57.00M	43.40M	36.80M	23.30M
Balance Sheet
Total Assets	488.20M	489.18M	484.84M	403.68M	408.49M	348.94M
Cash, Cash Equivalents and Short-Term Investments	380.48M	348.25M	249.73M	184.84M	94.69M	176.50M
Total Debt	1.41M	3.26M	5.78M	8.32M	26.98M	15.14M
Total Liabilities	171.72M	212.19M	171.27M	114.07M	151.18M	112.07M
Stockholders Equity	316.48M	276.99M	313.57M	289.61M	257.31M	236.87M
Cash Flow
Free Cash Flow	103.31M	159.65M	102.18M	-19.47M	-55.90M	37.27M
Operating Cash Flow	104.86M	161.20M	133.33M	120.86M	-50.80M	40.25M
Investing Cash Flow	133.08M	89.39M	-79.48M	-140.34M	-5.10M	-2.97M
Financing Cash Flow	-82.08M	-83.74M	-36.68M	-29.88M	-4.96M	-16.58M

G & M Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6038, the sentiment is Positive. The current price of 0.24 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.24, and above the 200-day MA of 0.24, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.70 is Neutral, neither overbought nor oversold. The STOCH value of 80.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6038.

G & M Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6038	73 Outperform	HK$238.71M	4.59	16.25%	16.67%	5.55%	-18.91%
1447	62 Neutral	HK$192.00M	7.89	6.66%	14.58%	13.59%	-12.52%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
2863	54 Neutral	HK$240.05M	―	-1.47%	8.33%	0.94%	82.30%
0896	46 Neutral	HK$279.00M	―	-8.17%	24.00%	23.10%	-37.74%
1559	41 Neutral	HK$168.22M	―	-54.25%	―	-51.67%	36.70%
1707	41 Neutral	HK$92.40M	―	-9.58%	―	3.97%	14.02%

G & M Holdings Ltd. Corporate Events

G & M Holdings Limited Announces Annual General Meeting and Key Resolutions

G & M Holdings Limited has announced its upcoming annual general meeting scheduled for June 18, 2025, in Hong Kong. The meeting will address several resolutions, including the consideration of the company’s audited financial statements for the year ending December 31, 2024, re-election of directors, and reappointment of the auditor. Additionally, the board seeks approval to allot and issue shares, with specific conditions outlined for the aggregate number of shares.

G & M Holdings Reports Decline in Revenue and Profit for 2024

G & M Holdings Limited reported its annual financial results for the year ended December 31, 2024. The company experienced a decline in revenue from HK$496,631,000 in 2023 to HK$429,312,000 in 2024. Despite the decrease in revenue, the gross profit increased from HK$106,908,000 to HK$114,456,000. However, the profit before income tax and profit for the year both saw declines, with the latter dropping from HK$56,958,000 to HK$43,190,000. The board has decided not to recommend the payment of a final dividend for the year 2024.

G & M Holdings Schedules Board Meeting to Approve 2024 Financial Results

G & M Holdings Limited has announced that its board of directors will convene on March 25, 2025, to review and approve the company’s final results for the fiscal year ending December 31, 2024. The meeting will also consider the declaration of a dividend, which could have implications for shareholders and the company’s financial strategy.