Global Strategic Group (8007) AI Stock Analysis

• Market Cap: HK$46.21M
• Dividend Yield: N/A
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 45.33%
• EPS Growth: -119.44%
• Country: HK
• Employees: 59
• Sector: Utilities
• Sector Strength: 86
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -0.17
• Shares Outstanding: 188,597,850
• 10 Day Avg. Volume: 4,041,594
• 30 Day Avg. Volume: 1,609,758
• PEG Ratio: 0.01
• Price to Book (P/B): -0.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.90
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is primarily influenced by financial performance and technical analysis, both of which highlight significant challenges. The company's financial instability, negative equity, and bearish technical indicators are major concerns. Valuation is also weak due to negative earnings and no dividend yield. Improvements in cash flow provide a slight positive note, but the overall outlook remains cautious.

Global Strategic Group Business Overview & Revenue Model

Company Description

Global Strategic Group (8007) is a diversified company operating across multiple sectors, including consulting, technology solutions, and strategic investments. The firm specializes in providing innovative business strategies, cutting-edge technology services, and investment advisory to clients worldwide. With a focus on enhancing operational efficiency and driving growth, Global Strategic Group aims to empower businesses to navigate complex market dynamics and achieve sustainable success.

How the Company Makes Money

Global Strategic Group generates revenue through multiple streams. Primarily, it earns income from consulting services offered to businesses seeking strategic guidance and operational improvements. Additionally, the company profits from technology solutions, including software development and IT infrastructure services, which cater to a broad range of industries. Another significant revenue stream is derived from strategic investments in startups and established firms, where the company leverages its expertise to drive growth and profitability. Key partnerships with technology providers and industry leaders enhance its service offerings and expand its market reach, further contributing to its earnings.

Global Strategic Group Financial Statement Overview

Summary

The company faces significant financial instability with negative net income and stockholders' equity. Despite strong revenue growth, the negative EBIT margin and substantial leverage pose risks. Cash flow shows some improvement but remains challenged by negative free cash flow.

Income Statement

The income statement shows inconsistent performance with a negative net income of -15.64 million in the most recent year, indicating profitability challenges. Gross profit margin stands at 19.5%, which is moderate. Revenue growth between recent periods is strong at 33.2%, but EBIT margin is negative, indicating operational inefficiencies. The negative trend in net income suggests the company struggles with cost control and achieving profitability.

Balance Sheet

The balance sheet reflects financial instability with a negative stockholders' equity of -12.08 million, indicating liabilities exceed assets. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt of 134.34 million suggests significant leverage. The equity ratio is negative, further highlighting financial distress. Overall, the balance sheet suggests a precarious financial position with significant risk.

Cash Flow

Cash flow analysis reveals some positive aspects. Operating cash flow improved to 25.92 million, a substantial recovery from negative figures in prior years. However, free cash flow remains negative at -12.07 million, indicating ongoing issues in covering capital expenditures. The operating cash flow to net income ratio is negative, reflecting cash flow challenges relative to net losses. Overall, the cash flow statement shows improvement but still faces hurdles in achieving positive free cash flow.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	221.21M	166.08M	136.24M	71.49M	42.73M
Gross Profit	43.16M	27.26M	20.29M	20.26M	12.99M
EBITDA	23.95M	39.36M	30.27M	-6.02M	-261.33M
Net Income	-15.64M	-12.23M	10.68M	-22.77M	-266.82M
Balance Sheet
Total Assets	338.49M	299.34M	239.86M	245.24M	225.67M
Cash, Cash Equivalents and Short-Term Investments	20.07M	9.38M	5.00M	23.41M	1.98M
Total Debt	134.34M	93.52M	43.12M	47.08M	80.99M
Total Liabilities	254.87M	207.55M	157.52M	172.61M	191.92M
Stockholders Equity	-12.07M	2.52M	15.78M	27.86M	-10.20M
Cash Flow
Free Cash Flow	-12.06M	-23.31M	-1.24M	-14.79M	-14.62M
Operating Cash Flow	25.92M	-7.31M	8.62M	-9.69M	-8.39M
Investing Cash Flow	-37.89M	-15.98M	-4.53M	14.14M	-9.26M
Financing Cash Flow	22.18M	27.23M	-25.02M	15.81M	13.53M

Global Strategic Group Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8007, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.28, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 38.78 is Neutral, neither overbought nor oversold. The STOCH value of 57.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8007.

Global Strategic Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1621	73 Outperform	HK$110.00M	8.87	5.46%	―	35.45%	13.60%
Sector *	68 Neutral	$17.95B	18.51	6.52%	3.49%	5.46%	8.02%
8631	46 Neutral	HK$55.20M	―	-385.38%	―	-74.71%	-114.27%
8347	46 Neutral	HK$14.30M	―	-0.90%	―	6.10%	60.77%
8270	44 Neutral	HK$111.28M	17.96	-25.40%	―	0.11%	-3203.23%
8007	41 Neutral	HK$46.21M	―		―	45.33%	-119.44%