Gemilang International Ltd. (6163) AI Stock Analysis

• Market Cap: HK$82.91M
• Dividend Yield: N/A
• Average Volume (3M): 13.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: 35.28%
• EPS Growth: 25.28%
• Country: HK
• Employees: 256
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): <0.01
• Shares Outstanding: 276,364,000
• 10 Day Avg. Volume: 13,200
• 30 Day Avg. Volume: 13,200
• PEG Ratio: 0.15
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -6.20
• 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: 51 Neutral
• Price Target: HK$0.50 ▲(78.57% Upside)

Gemilang International Ltd. faces significant financial challenges, with declining profitability and cash flow issues being the most critical factors. While technical analysis shows a bullish trend, the overbought RSI suggests caution. The negative P/E ratio and lack of dividend yield further weigh on the stock's valuation.

Positive Factors

Revenue Growth

The company has demonstrated strong revenue growth, indicating robust demand for its products and potential for market expansion.

Market Position

As a leading bus manufacturer, Gemilang benefits from a strong market position, which supports its competitive advantage in the transportation sector.

Product Innovation

Gemilang's focus on innovation and quality enhances its product offerings, ensuring long-term competitiveness and customer satisfaction.

Negative Factors

Profitability Challenges

Negative profit margins indicate ongoing profitability issues, which can hinder the company's ability to reinvest and grow sustainably.

Increased Leverage

Rising leverage increases financial risk, potentially impacting the company's ability to manage debt and finance future operations.

Cash Flow Constraints

Negative cash flow highlights liquidity challenges, which may limit the company's operational flexibility and investment capacity.

Gemilang International Ltd. Business Overview & Revenue Model

Company Description

Gemilang International Limited designs, manufactures, and assembles buses and bus bodies in Malaysia and Singapore. Its products include single deck, double deck, and articulated city buses, as well as single deck, double deck, and high deck coaches. The company is also involved in the fabrication of body works for buses; and trading of body kits and spare parts for buses, as well as provides after-sales and maintenance services for buses. It serves public and private bus transportation operators, chassis principals and their purchasing agents, bus assemblers, and manufacturers. The company also exports its products to Australia, Hong Kong, Uzbekistan, the United States, the United Arab Emirates, and internationally. Gemilang International Limited was founded in 1989 and is headquartered in Senai, Malaysia.

How the Company Makes Money

Gemilang International Ltd. generates revenue primarily through the sale of buses and automotive parts. The company's revenue model is built around manufacturing high-quality buses tailored to the needs of its customers, which include government agencies, private transport operators, and international clients. Key revenue streams include direct sales of buses, aftermarket parts, and maintenance services. Additionally, strategic partnerships with global automotive brands and participation in government tenders further enhance its earnings potential, allowing the company to secure large contracts and expand its market reach.

Gemilang International Ltd. Financial Statement Overview

Summary

Gemilang International Ltd. is facing significant financial challenges. The income statement reveals declining revenue and profitability, while the balance sheet shows increased leverage. Cash flow constraints further highlight liquidity concerns. Despite some signs of recovery in 2024, the company must address its cash flow and leverage issues to improve financial health and stability.

Income Statement

Gemilang International Ltd. has shown a significant decline in revenue over the years, with a sharp drop from 2019 to 2023 and a slight recovery in 2024. The gross profit margin decreased from 20.27% in 2019 to 18.31% in 2024. The net profit margin is negative in recent years, indicating profitability challenges. The EBIT and EBITDA margins have also deteriorated, although they improved slightly in 2024 compared to 2023. Despite some recovery, the company continues to face profitability issues.

Balance Sheet

The company's balance sheet shows a stable equity position, with stockholders' equity slightly increasing from 2019 to 2024. The debt-to-equity ratio was relatively stable but rose in 2024, indicating increased leverage. The equity ratio remains moderate, suggesting a balanced asset structure, but the rise in total debt is a concern for financial stability.

Cash Flow

Gemilang International Ltd. has experienced fluctuating cash flows, with negative free cash flow in 2024, after a positive turn in 2023. The operating cash flow to net income ratio has been negative, highlighting cash generation challenges. The free cash flow to net income ratio also reflects these difficulties, indicating potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.84M	22.96M	14.27M	27.47M	33.53M	31.15M
Gross Profit	4.36M	4.21M	2.19M	4.92M	5.42M	5.69M
EBITDA	363.00K	594.00K	-1.53M	144.00K	2.55M	1.97M
Net Income	-1.74M	-1.03M	-2.79M	-1.38M	824.00K	417.00K
Balance Sheet
Total Assets	40.46M	35.04M	34.15M	35.49M	36.48M	44.12M
Cash, Cash Equivalents and Short-Term Investments	622.00K	774.00K	321.00K	2.07M	3.70M	1.93M
Total Debt	6.55M	10.36M	11.46M	15.21M	8.30M	11.97M
Total Liabilities	25.23M	21.09M	20.40M	19.32M	17.28M	24.20M
Stockholders Equity	15.26M	13.99M	13.75M	16.17M	19.20M	19.92M
Cash Flow
Free Cash Flow	-858.00K	-1.83M	1.41M	-6.39M	3.98M	-2.71M
Operating Cash Flow	-401.00K	-1.46M	1.42M	-2.25M	4.72M	-2.64M
Investing Cash Flow	-670.00K	3.84M	801.00K	-4.60M	-645.00K	31.00K
Financing Cash Flow	753.00K	-1.18M	-3.44M	6.25M	-5.05M	-65.00K

Gemilang International Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6163, the sentiment is Positive. The current price of 0.28 is below the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.28, and above the 200-day MA of 0.24, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 87.26 is Negative, neither overbought nor oversold. The STOCH value of 65.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6163.

Gemilang International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1930	58 Neutral	HK$250.80M	13.62	4.80%	1.89%	3.40%	20.78%
1148	54 Neutral	HK$455.19M	12.96	1.91%	3.18%	9.51%	-21.71%
6163	51 Neutral	HK$82.91M	-5.58	-11.68%	―	35.28%	25.28%
6830	44 Neutral	HK$442.30M	8.28	3.56%	1.22%	14.93%	19.84%
6162	44 Neutral	HK$600.00M	-1,475.00	-0.12%	―	23.71%	-112.50%
1991	37 Underperform	HK$149.65M	-2.11	-169.48%	―	-38.26%	35.05%