Global Strategic Group (8007) AI Stock Analysis

• Market Cap: HK$56.58M
• Dividend Yield: N/A
• Average Volume (3M): 952.52K
• 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: 65
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): N/A
• Shares Outstanding: 188,597,850
• 10 Day Avg. Volume: 712,788
• 30 Day Avg. Volume: 952,520
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.15
• Price to Sales (P/S): 0.00804
• P/FCF Ratio: -0.15
• 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 ▲(92.31% Upside)

The stock's overall score is primarily impacted by its financial instability, with negative equity and high leverage posing significant risks. Positive technical indicators provide some support, but the negative valuation metrics highlight ongoing challenges in profitability.

Positive Factors

Revenue Growth

Strong revenue growth indicates the company's ability to expand its market presence and attract more clients, enhancing long-term business prospects.

Cash Flow Improvements

Positive operating cash flow suggests improved operational efficiency and the potential for better financial health, supporting future investments.

Strategic Partnerships

Strategic partnerships enhance revenue streams through cross-selling opportunities and broaden the client base, strengthening market position.

Negative Factors

Negative Equity

Negative equity reflects financial distress, limiting the company's ability to raise capital and posing risks to long-term sustainability.

High Leverage

High leverage increases financial risk, potentially impacting the company's ability to meet obligations and invest in growth opportunities.

Profitability Challenges

Ongoing profitability challenges hinder the company's ability to generate sustainable earnings, affecting long-term financial performance.

Global Strategic Group Business Overview & Revenue Model

Company Description

Global Strategic Group (8007) is a diversified investment firm specializing in strategic consulting, mergers and acquisitions, and financial advisory services across various sectors, including technology, healthcare, and energy. The company leverages its extensive industry expertise and global network to assist clients in maximizing their growth potential and navigating complex market dynamics. Through its tailored solutions, Global Strategic Group aims to drive value creation and enhance operational efficiency for its clientele.

How the Company Makes Money

Global Strategic Group generates revenue primarily through consulting fees, advisory charges, and performance-based incentives associated with mergers and acquisitions. The company charges clients for strategic consulting services on an hourly or project basis, while also earning commissions on successful transactions facilitated. Additionally, revenue is boosted through long-term partnerships with corporate clients and institutional investors seeking expert guidance in strategic investments and market entry strategies. Key partnerships with firms in complementary sectors further enhance revenue streams by allowing for cross-selling opportunities and access to a broader client base.

Global Strategic Group Financial Statement Overview

Summary

The company shows strong revenue growth but struggles with profitability and financial stability. Negative equity and high leverage are major concerns, though cash flow improvements offer some optimism.

Income Statement

The company's revenue has shown significant growth over the years, with a notable increase from 2023 to 2024. However, the company has struggled with profitability, as evidenced by negative EBIT and net income in recent years. The gross profit margin remains moderate, but the net profit margin is negative, indicating ongoing challenges in achieving profitability.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity, indicating potential financial instability. The debt-to-equity ratio is not calculable due to negative equity, but the high total liabilities relative to assets suggest significant leverage. The equity ratio is negative, further highlighting the company's financial distress.

Cash Flow

The company has managed to improve its operating cash flow in 2024, turning positive after a negative period. However, free cash flow remains negative, indicating challenges in covering capital expenditures. The operating cash flow to net income ratio is favorable, suggesting operational cash generation despite accounting losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	279.30M	221.21M	166.08M	136.24M	71.49M	42.73M
Gross Profit	51.10M	43.16M	27.26M	20.29M	20.26M	12.99M
EBITDA	33.06M	23.95M	39.36M	30.27M	-6.02M	-261.33M
Net Income	-16.69M	-15.64M	-12.23M	-15.50M	-20.98M	-266.82M
Balance Sheet
Total Assets	336.64M	338.49M	299.34M	239.86M	245.24M	225.67M
Cash, Cash Equivalents and Short-Term Investments	7.97M	20.07M	9.38M	5.00M	23.41M	1.98M
Total Debt	141.00M	134.34M	93.52M	43.12M	47.08M	80.99M
Total Liabilities	258.97M	254.87M	207.55M	157.52M	172.61M	191.92M
Stockholders Equity	-21.96M	-12.07M	2.52M	15.78M	27.86M	-10.20M
Cash Flow
Free Cash Flow	-27.73M	-12.06M	-23.31M	-1.24M	-14.79M	-14.62M
Operating Cash Flow	46.25M	25.92M	-7.31M	8.62M	-9.69M	-8.39M
Investing Cash Flow	-78.53M	-37.89M	-15.98M	-4.53M	14.14M	-9.26M
Financing Cash Flow	31.69M	22.18M	27.23M	-25.02M	15.81M	13.53M

Global Strategic Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8007, the sentiment is Neutral. The current price of 0.26 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.28, and below the 200-day MA of 0.27, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.89 is Neutral, neither overbought nor oversold. The STOCH value of 85.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	69 Neutral	HK$128.00M	9.28	5.81%	―	-14.65%	-2.82%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
8347	62 Neutral	HK$18.84M	25.85	0.78%	―	-12.51%	―
8270	52 Neutral	HK$103.47M	-2.30	-31.34%	―	-29.86%	-791.02%
8007	51 Neutral	HK$56.58M	―	―	―	45.33%	-119.44%
2728	45 Neutral	HK$124.74M	-7.78	-25.25%	―	-0.55%	-340.00%
8631	43 Neutral	HK$58.20M	-0.50	-632.63%	―	280.64%	-122.27%