Glory Flame Holdings Ltd. (8059) AI Stock Analysis

• Market Cap: HK$32.34M
• Dividend Yield: N/A
• Average Volume (3M): 5.30M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: -3.93%
• EPS Growth: -97.80%
• Country: HK
• Employees: 90
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.01
• Shares Outstanding: 1,010,605,000
• 10 Day Avg. Volume: 7,763,500
• 30 Day Avg. Volume: 5,303,500
• PEG Ratio: -0.04
• Price to Book (P/B): -0.60
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 0.96
• 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$0.04 ▲(75.00% Upside)

The overall stock score is primarily impacted by significant financial challenges, including persistent losses and a weak balance sheet. Despite these issues, the stock shows positive technical momentum, which provides some support to the score. However, poor valuation metrics due to negative earnings further weigh down the overall assessment.

Positive Factors

Cash Generation Ability

Positive operating cash flow indicates that the company can generate cash from its core operations, providing some financial stability despite overall losses.

Product Innovation

A focus on product innovation helps maintain competitive advantage and can drive long-term growth by meeting evolving consumer demands.

Multi-channel Distribution

A diversified distribution strategy enhances market reach and resilience, supporting revenue stability and growth across various channels.

Negative Factors

Weak Balance Sheet

A weak balance sheet with negative equity poses significant financial risk, limiting the company's ability to invest in growth and manage debt.

Declining Revenue

Declining revenue trends suggest challenges in market demand or competitive positioning, impacting long-term growth prospects and profitability.

High Leverage

High leverage increases financial risk and can strain cash flow, limiting the company's ability to invest in strategic opportunities or weather economic downturns.

Glory Flame Holdings Ltd. Business Overview & Revenue Model

Company Description

Glory Flame Holdings Limited, an investment holding company, together with its subsidiaries, provides construction services and building materials supply activities in Hong Kong and the People's Republic of China. It offers concrete demolition and construction engineering services; undertakes construction works; and manufactures and trades in prefabricated construction components and prestressed high strength concrete piles. The company is also involved in the research and sale of LED cultivation cabinet. Glory Flame Holdings Limited was incorporated in 2014 and is based in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

Glory Flame Holdings generates revenue primarily through the sale of its household and personal care products, which include candles and air fresheners. The company employs a multi-channel distribution strategy, selling its products through retail partners, online platforms, and directly to consumers. Key revenue streams include wholesale orders from large retailers and e-commerce sales, which have grown significantly in recent years. Additionally, the company may engage in partnerships with retail chains and online marketplaces to expand its reach, enhance brand visibility, and drive sales. Factors contributing to its earnings include effective supply chain management, product innovation, and a strong marketing strategy aimed at increasing brand loyalty and consumer demand.

Glory Flame Holdings Ltd. Financial Statement Overview

Summary

The company faces significant financial challenges, with persistent losses impacting profitability and a weak balance sheet characterized by negative equity. While cash flow generation shows some resilience, the overall financial health is concerning, with high leverage and operational inefficiencies posing risks to stability and growth.

Income Statement

The company has experienced declining revenue over the past few years, with a negative revenue growth rate in the most recent year. Gross profit margin has been relatively stable, but the net profit margin remains negative, indicating ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational challenges and inefficiencies.

Balance Sheet

The balance sheet shows a negative stockholders' equity, indicating that liabilities exceed assets, which is a significant financial risk. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt level suggests leverage concerns. Return on equity is negative due to net losses, and the equity ratio is negative, highlighting financial instability.

Cash Flow

The company has managed to generate positive operating cash flow, which is a positive sign. However, free cash flow growth is inconsistent, and the free cash flow to net income ratio is skewed by negative net income. The operating cash flow to net income ratio is positive, indicating some ability to generate cash despite losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	93.79M	102.42M	107.61M	118.53M	98.97M	80.88M
Gross Profit	31.53M	37.34M	33.74M	35.39M	24.65M	23.34M
EBITDA	-7.37M	-329.00K	8.22M	13.70M	-22.56M	1.56M
Net Income	-18.16M	-12.40M	-9.77M	-10.33M	-36.85M	-15.25M
Balance Sheet
Total Assets	100.78M	106.45M	120.28M	137.02M	116.78M	144.04M
Cash, Cash Equivalents and Short-Term Investments	40.94M	43.82M	36.15M	36.25M	37.13M	37.25M
Total Debt	100.57M	80.99M	88.16M	89.84M	76.02M	76.32M
Total Liabilities	132.89M	129.31M	131.05M	137.85M	113.38M	104.19M
Stockholders Equity	-33.18M	-23.44M	-12.18M	-1.75M	9.19M	45.23M
Cash Flow
Free Cash Flow	14.89M	14.80M	6.88M	-5.14M	6.26M	6.34M
Operating Cash Flow	17.90M	16.39M	10.06M	-1.56M	7.16M	13.74M
Investing Cash Flow	-2.55M	-1.20M	-2.77M	-3.47M	-897.00K	-7.38M
Financing Cash Flow	-6.34M	-7.23M	-6.67M	4.42M	-6.42M	261.00K

Glory Flame Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8059, the sentiment is Positive. The current price of 0.02 is below the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 68.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8059.

Glory Flame Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8422	68 Neutral	HK$12.12M	―	-16.34%	―	11.29%	-262.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8532	61 Neutral	HK$17.82M	-0.13	-3118.37%	―	-75.80%	-6540.74%
8460	51 Neutral	HK$115.10M	―	-1.55%	―	-46.96%	98.17%
8059	51 Neutral	HK$32.34M	―	―	―	-3.93%	-97.80%
8516	47 Neutral	HK$50.64M	-0.99	-126.14%	―	-15.62%	-11.50%
8431	45 Neutral	HK$12.51M	-0.51	-114.36%	―	156.20%	-101.84%