Glory Flame Holdings Ltd. (8059) AI Stock Analysis

• Market Cap: HK$13.14M
• Dividend Yield: N/A
• Average Volume (3M): 376.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -3.93%
• EPS Growth: -97.80%
• Country: HK
• Employees: 90
• Sector: Industrials
• Sector Strength: 71
• Industry: Engineering & Construction
• EPS (TTM): -0.01
• Shares Outstanding: 1,010,605,000
• 10 Day Avg. Volume: 564,000
• 30 Day Avg. Volume: 376,166
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 38 Underperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily driven by significant financial challenges, including persistent losses and a weak balance sheet. Technical analysis indicates bearish momentum, and valuation metrics are poor due to negative earnings. These factors collectively suggest high risk and limited upside potential.

Positive Factors

Cash Generation Ability

Despite financial challenges, the ability to generate positive operating cash flow indicates some resilience in maintaining liquidity and supporting operations.

Strategic Partnerships

Strategic partnerships enhance service offerings, potentially driving revenue growth by leveraging advanced technologies and expanding market reach.

Diverse Clientele

A diverse clientele base reduces dependency on a single market, providing stability and opportunities for growth across various industries.

Negative Factors

Negative Equity

Negative equity indicates liabilities exceed assets, posing significant financial risk and limiting the company's ability to invest in growth opportunities.

Revenue Decline

Continued revenue decline suggests challenges in market competitiveness and demand, impacting long-term profitability and growth prospects.

Operational Inefficiencies

Negative EBIT and EBITDA margins indicate inefficiencies in operations, which can hinder profitability and require strategic adjustments to improve performance.

Glory Flame Holdings Ltd. Business Overview & Revenue Model

Company Description

Glory Flame Holdings Ltd. (8059) is a company listed on the Hong Kong Stock Exchange, primarily engaged in the provision of information technology services. The company operates through various segments, focusing on software development, IT consulting, and system integration services. It caters to a diverse clientele, offering tailored solutions to meet the technological needs of businesses across different industries.

How the Company Makes Money

Glory Flame Holdings Ltd. generates revenue through a combination of service fees for its IT consulting and system integration projects, as well as from software licensing agreements. The company collaborates with both private and public sector clients, providing them with customized software solutions and ongoing support services. Additionally, by maintaining strategic partnerships with leading technology providers, Glory Flame Holdings Ltd. enhances its service offerings, further driving its revenue growth.

Glory Flame Holdings Ltd. Financial Statement Overview

Summary

Glory Flame Holdings Ltd. 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.42M	107.61M	118.53M	98.97M	80.88M
Gross Profit	37.34M	33.74M	35.39M	24.65M	23.34M
EBITDA	-329.00K	8.22M	13.70M	-22.56M	1.56M
Net Income	-12.40M	-9.77M	-2.66M	-37.18M	-16.19M
Balance Sheet
Total Assets	106.45M	120.28M	137.02M	116.78M	144.04M
Cash, Cash Equivalents and Short-Term Investments	43.82M	36.15M	36.25M	37.13M	37.25M
Total Debt	80.99M	88.16M	89.84M	76.02M	76.32M
Total Liabilities	129.31M	131.05M	137.85M	113.38M	104.19M
Stockholders Equity	-23.44M	-12.18M	-1.75M	9.19M	45.23M
Cash Flow
Free Cash Flow	14.80M	6.88M	-5.14M	6.26M	6.34M
Operating Cash Flow	16.39M	10.06M	-1.56M	7.16M	13.74M
Investing Cash Flow	-1.20M	-2.77M	-3.47M	-897.00K	-7.38M
Financing Cash Flow	-7.23M	-6.67M	4.42M	-6.42M	261.00K

Glory Flame Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8059, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.01, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 13.86 is Positive, neither overbought nor oversold. The STOCH value of -116.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$12.48M	6.50	4.86%	―	63.66%	―
Sector *	63 Neutral	$10.74B	15.33	7.44%	2.00%	2.86%	-14.57%
8532	61 Neutral	HK$20.37M	8.89	2.88%	―	22.70%	-15.63%
8460	51 Neutral	HK$13.94M	―	-1.55%	―	-46.96%	98.17%
8516	46 Neutral	HK$28.61M	―	-78.11%	―	107.20%	60.18%
8431	44 Neutral	HK$12.06M	―	-231.03%	―	11.98%	-45.82%
8059	38 Underperform	HK$13.14M	―		―	-3.93%	-97.80%