tiprankstipranks
Trending News
More News >
GME Group Holdings Ltd (HK:8188)
:8188
Hong Kong Market
Advertisement

GME Group Holdings Ltd (8188) AI Stock Analysis

Compare
0 Followers

Top Page

HK:8188

GME Group Holdings Ltd

(8188)

Rating:77Outperform
Price Target:
HK$1.00
▲(5.26%Upside)
The stock of GME Group Holdings Ltd scores highly due to its strong valuation, characterized by a low P/E ratio and high dividend yield. While financial performance is solid, cash flow issues present a risk. The technical analysis suggests a strong upward trend, though caution is advised due to potential overbought signals.

GME Group Holdings Ltd (8188) vs. iShares MSCI Hong Kong ETF (EWH)

GME Group Holdings Ltd Business Overview & Revenue Model

Company DescriptionGME Group Holdings Ltd (8188) operates primarily in the construction and engineering sector, focusing on providing civil engineering services. The company is involved in various infrastructure projects, offering services that include tunnel construction, site formation, and other related engineering tasks. GME Group Holdings Ltd leverages its expertise to contribute to large-scale infrastructure developments mainly within its region.
How the Company Makes MoneyGME Group Holdings Ltd generates revenue through the provision of specialized civil engineering services. Its primary revenue streams include contracts for tunnel construction, site formation, and other infrastructure-related engineering services. The company is engaged in securing government and private sector contracts to sustain its financial performance. Key factors contributing to its earnings include the successful bidding on significant infrastructure projects and maintaining strong relationships with clients in both public and private sectors.

GME Group Holdings Ltd Financial Statement Overview

Summary
GME Group Holdings Ltd shows strong revenue and profit growth with healthy margins and stable balance sheet. However, significant cash flow challenges pose a risk to liquidity and future growth.
Income Statement
85
Very Positive
The company has demonstrated a strong revenue growth with a significant increase in total revenue from 2023 to 2024, amounting to 48.4%. Gross profit margin improved to 19.4%, and net profit margin also increased to 10.6%, indicating enhanced profitability. The EBIT margin stands at a healthy 13.3%, and the EBITDA margin is 14.3%, reflecting efficient operational management. However, past performance shows volatility in margins, requiring careful monitoring.
Balance Sheet
78
Positive
The balance sheet shows a solid equity position with an equity ratio of 53.7%, suggesting financial stability. The debt-to-equity ratio is 0.36, indicating a conservative debt strategy. Return on equity improved to 50.2%, showcasing effective use of equity. Despite the positive trends, maintaining low debt levels amid growth is crucial to sustain financial health.
Cash Flow
45
Neutral
The cash flow statement reveals challenges, with operating cash flow at zero in 2024, and historical data showing negative free cash flow and operating cash flow. This highlights potential struggles in cash generation and liquidity management. The company needs to enhance cash flow operations to support its growth trajectory.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue815.18M549.55M440.53M443.55M134.57M
Gross Profit158.15M110.02M13.93M32.37M19.56M
EBITDA116.58M83.98M15.05M19.13M8.03M
Net Income86.17M61.48M5.80M10.45M1.01M
Balance Sheet
Total Assets319.56M273.10M156.95M148.35M74.08M
Cash, Cash Equivalents and Short-Term Investments26.41M4.47M11.43M5.43M6.94M
Total Debt62.46M72.12M41.30M20.32M5.31M
Total Liabilities148.05M142.03M87.35M84.56M20.74M
Stockholders Equity171.51M130.69M69.21M63.40M52.95M
Cash Flow
Free Cash Flow105.67M-23.61M-21.13M-12.97M-7.66M
Operating Cash Flow114.22M-15.26M-14.86M-3.86M-971.00K
Investing Cash Flow-11.94M-8.20M-6.25M-8.96M-6.63M
Financing Cash Flow-80.33M16.49M27.10M11.31M-2.83M

GME Group Holdings Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.95
Price Trends
50DMA
0.87
Positive
100DMA
0.70
Positive
200DMA
0.55
Positive
Market Momentum
MACD
0.03
Negative
RSI
63.75
Neutral
STOCH
55.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8188, the sentiment is Positive. The current price of 0.95 is above the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.87, and above the 200-day MA of 0.55, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 63.75 is Neutral, neither overbought nor oversold. The STOCH value of 55.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8188.

GME Group Holdings Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
HK$532.50M4.1916.58%5.63%17.12%5.48%
77
Outperform
HK$457.69M5.4757.03%8.42%48.34%40.71%
72
Outperform
HK$336.00M105.002.51%36.77%
72
Outperform
HK$220.00M7.937.49%12.50%19.67%9.64%
58
Neutral
HK$14.20B4.67-2.78%5.88%3.78%-54.63%
44
Neutral
HK$370.00M-5.03%-14.18%-1085.71%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8188
GME Group Holdings Ltd
0.95
0.63
196.87%
HK:6063
Lotus Horizon Holdings Limited
0.17
-0.05
-22.73%
HK:1746
Man Shun Group (Holdings) Ltd.
0.36
0.18
100.00%
HK:1556
Chinney Kin Wing Holdings Limited
0.36
0.14
63.64%
HK:1447
SFK Construction Holdings Ltd.
0.56
0.02
3.70%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2025