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

• Market Cap: HK$231.69M
• Dividend Yield: 17.32%
• Average Volume (3M): 269.00K
• Price to Earnings (P/E): 4.5
• 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: 422,000
• 30 Day Avg. Volume: 269,000
• 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: 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.

Positive Factors

Strong Balance Sheet

A low Debt-to-Equity Ratio indicates low financial leverage, reducing risk and enhancing financial stability, which supports long-term growth.

Profitability

Strong profit margins reflect efficient operations and pricing power, which are critical for sustaining profitability and competitive positioning.

Revenue Growth

Positive revenue growth indicates expanding market presence and demand for the company's offerings, supporting future earnings potential.

Negative Factors

Cash Flow Stability

Zero operating cash flow suggests potential liquidity challenges, which could impact the company's ability to fund operations and growth initiatives.

Earnings Decline

A decline in EPS growth indicates potential challenges in maintaining profitability, which could affect investor confidence and long-term valuation.

Revenue Fluctuations

Fluctuating revenue can signal market volatility or operational issues, potentially impacting the company's ability to sustain consistent growth.

G & M Holdings Ltd. Business Overview & Revenue Model

Company Description

G & M Holdings Ltd. (6038) is a diversified investment holding company primarily engaged in the sectors of property development and investment, as well as asset management. The company focuses on identifying and leveraging opportunities in real estate, offering a range of services that include property management, leasing, and the development of residential and commercial properties. With a commitment to sustainable growth and innovation, G & M Holdings aims to enhance its portfolio through strategic investments and partnerships.

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: Neutral
• Last Price: 0.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 0.24 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.23, and above the 200-day MA of 0.24, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.53 is Neutral, neither overbought nor oversold. The STOCH value of 43.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$231.69M	4.45	16.25%	17.32%	5.55%	-18.91%
1447	62 Neutral	HK$182.00M	7.48	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$246.72M	-57.94	-1.47%	8.11%	0.94%	82.30%
0896	46 Neutral	HK$279.00M	-0.74	-11.13%	―	-8.54%	-25.17%
1707	41 Neutral	HK$57.12M	-3.70	-9.58%	―	3.97%	14.02%
1559	39 Underperform	HK$149.53M	-1.84	-46.27%	―	-63.83%	36.12%

G & M Holdings Ltd. Corporate Events

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.