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

• Market Cap: HK$346.03M
• Dividend Yield: 12.5%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.17
• 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: 4,680,000
• 30 Day Avg. Volume: 1,760,333
• PEG Ratio: -0.22
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 1.44
• 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: 74 Outperform
• Price Target: HK$0.39 ▲(60.83% Upside)

The score is driven primarily by strong profitability and a solid, low-leverage balance sheet, supported by attractive valuation (low P/E and high dividend yield). Offsetting these positives are weaker cash-flow stability (including zero operating cash flow) and technically overbought conditions that increase near-term downside risk.

Positive Factors

Profitability & Margins

Sustained strong gross and net margins and robust EBIT/EBITDA indicate durable pricing power and operational efficiency. Over the next 2–6 months this supports consistent cash earnings, resilience to input-cost swings, and capacity to fund operations and strategic investments.

Low Financial Leverage

A low debt-to-equity ratio and solid equity base reduce refinancing and solvency risk, giving the company flexibility to fund working capital or capex without stressing liquidity. This balance-sheet strength enhances resilience to cyclical swings over a multi-month horizon.

Capital Efficiency / ROE

Positive ROE and a strong equity ratio indicate management effectively deploys capital to generate returns. That structural efficiency supports sustainable shareholder distributions and reinvestment capacity, improving long-term profitability prospects.

Negative Factors

Operating Cash Flow Weakness

Zero operating cash flow signals weak near-term cash conversion despite accounting profits. This constrains the firm's ability to self-fund capex, pay dividends, or absorb shocks, increasing reliance on external financing and raising liquidity risk over the coming months.

Free Cash Flow Variability

Intermittent negative free cash flow indicates inconsistent cash generation versus reported earnings. This variability complicates planning for recurring payouts and reinvestment, heightens refinancing risk in downturns, and weakens the durability of returns to shareholders.

Revenue & Earnings Volatility

Documented revenue fluctuations and a recent top-line decline, alongside negative EPS growth, point to demand or execution volatility. Such instability can pressure margins and cash flow, making earnings and dividend sustainability less certain over a 2–6 month horizon.

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

Profitability and operating margins are strong (healthy gross/net margins; robust EBIT/EBITDA), and the balance sheet is solid with low leverage and a strong equity base. However, cash flow quality is a notable weakness, with variable/occasionally negative free cash flow and operating cash flow currently at zero, creating sustainability and liquidity risk.

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: Positive
• RSI: Neutral
• STOCH: Neutral

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 below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.28, and above the 200-day MA of 0.23, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 62.87 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, 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	74 Outperform	HK$346.03M	6.65	16.25%	12.50%	5.55%	-18.91%
1447	62 Neutral	HK$188.00M	7.73	6.66%	15.38%	13.59%	-12.52%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
2863	54 Neutral	HK$234.43M	-12.64	-1.47%	8.33%	0.94%	82.30%
1707	47 Neutral	HK$70.56M	-4.57	-9.58%	―	3.97%	14.02%
0896	46 Neutral	HK$235.00M	-0.62	-11.13%	―	-8.54%	-25.17%
1559	45 Neutral	HK$168.22M	-2.07	-46.27%	―	-63.83%	36.12%

G & M Holdings Ltd. Corporate Events

G & M Holdings Declares Special Dividend and Sets Register Closure Dates

G & M Holdings Limited has declared a special dividend of HK$0.035 per ordinary share, approved by its board on 30 December 2025, to be paid on or before 30 January 2026 to shareholders on the register at the close of business on 16 January 2026. The board expects the payout to have no material adverse impact on the group’s business, operations, cash flow or financial position, and has confirmed that the company will remain able to meet its debt obligations, while setting a brief closure of the share register on 15–16 January 2026 to determine dividend entitlements, signalling confidence in its financial strength and providing a near-term cash return to investors.

The most recent analyst rating on (HK:6038) stock is a Buy with a HK$0.48 price target. To see the full list of analyst forecasts on G & M Holdings Ltd. stock, see the HK:6038 Stock Forecast page.

G & M Holdings Declares Special Cash Dividend of HKD 0.035 Per Share

G & M Holdings Limited has declared a special cash dividend of HKD 0.035 per share for the financial year ending 31 December 2025, to be paid in Hong Kong dollars. The shares will trade ex-dividend on 13 January 2026, with the record date set for 16 January 2026 and payment scheduled for 30 January 2026, providing shareholders with an additional return of capital outside the regular dividend cycle.

The most recent analyst rating on (HK:6038) stock is a Buy with a HK$0.48 price target. To see the full list of analyst forecasts on G & M Holdings Ltd. stock, see the HK:6038 Stock Forecast page.

G & M Holdings Considers Special Dividend Declaration

G & M Holdings Limited has announced that its board of directors is considering the declaration and payment of a special dividend to its shareholders. The decision on the special dividend will be made by the board on December 30, 2025, and further announcements will be made if approved. Shareholders and potential investors are advised to exercise caution as the dividend may or may not be approved.

The most recent analyst rating on (HK:6038) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on G & M Holdings Ltd. stock, see the HK:6038 Stock Forecast page.

G & M Holdings Limited Relocates Principal Place of Business in Hong Kong

G & M Holdings Limited has announced a change in its principal place of business in Hong Kong, effective from December 1, 2025. The new address is Units 1101, 1102, 1103, 1107, and 1108, 11/F., Magnet Place Tower 1, 77 – 81 Container Port Road, Kwai Chung, Hong Kong. This change is part of the company’s operational adjustments, although all telephone and facsimile numbers remain unchanged.

The most recent analyst rating on (HK:6038) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on G & M Holdings Ltd. stock, see the HK:6038 Stock Forecast page.