Grand Brilliance Group Holdings Limited (8372) AI Stock Analysis

• Market Cap: HK$104.00M
• Dividend Yield: 1.92%
• Average Volume (3M): 70.67K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.01
• Revenue Growth: 27.91%
• EPS Growth: 18.87%
• Country: HK
• Employees: 50
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): <0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 4,000
• 30 Day Avg. Volume: 70,666
• PEG Ratio: 0.45
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 73.72
• 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: 68 Neutral
• Price Target: HK$0.15 ▲(8.57% Upside)

The stock is supported by strong financial performance and a solid valuation, with a reasonable P/E ratio and dividend yield. However, technical indicators suggest caution due to overbought conditions. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates the company's ability to expand its market presence and enhance its product offerings, which is crucial for long-term sustainability and competitiveness.

Balance Sheet Health

A low debt-to-equity ratio reflects financial stability and prudent management, providing the company with flexibility to invest in growth opportunities without the burden of excessive debt.

Profitability

Improved net profit margin indicates effective cost management and the ability to convert revenue into profit, which supports long-term business viability and shareholder value.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth suggests potential difficulties in generating cash, which could impact the company's ability to fund operations and invest in future growth.

Operating Cash Flow

A low operating cash flow to net income ratio indicates challenges in converting income into cash, which may affect liquidity and the ability to meet short-term obligations.

Gross Profit Margin Pressure

Decreasing gross profit margins suggest potential cost pressures, which could erode profitability if not managed effectively, impacting long-term financial health.

Grand Brilliance Group Holdings Limited Business Overview & Revenue Model

Company Description

Grand Brilliance Group Holdings Limited (8372) is a Hong Kong-based investment holding company primarily engaged in the manufacturing and distribution of high-quality lighting products and related accessories. The company operates within the broader consumer electronics sector, focusing on innovative lighting solutions for both residential and commercial applications. In addition to its core lighting products, Grand Brilliance also explores opportunities in other value-added services and products that complement its primary offerings.

How the Company Makes Money

Grand Brilliance Group Holdings Limited generates revenue primarily through the sale of its lighting products, which include LED lights, fixtures, and other related accessories. The company has established a diversified revenue model that encompasses both direct sales to consumers and partnerships with distributors and retailers. Key revenue streams include domestic sales in Hong Kong, as well as international exports to various markets. The company may also engage in strategic partnerships with other firms to expand its product offerings or enhance distribution capabilities, thereby increasing its market reach and sales volume. Additionally, Grand Brilliance may benefit from economies of scale in manufacturing and supply chain efficiencies, contributing to its overall profitability.

Grand Brilliance Group Holdings Limited Financial Statement Overview

Summary

Grand Brilliance Group Holdings Limited demonstrates strong revenue growth and profitability, supported by a robust balance sheet with low leverage. However, the significant decline in free cash flow growth and low operating cash flow coverage ratio highlight potential cash flow management challenges.

Income Statement

Grand Brilliance Group Holdings Limited has shown a consistent revenue growth rate, with a 14.78% increase in the latest year. The gross profit margin has slightly decreased over the years, but the net profit margin has improved to 10.02%. The EBIT and EBITDA margins have remained stable, indicating efficient cost management. However, the decline in gross profit margin from previous years suggests potential pressure on cost control.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.035, indicating low leverage and financial stability. The return on equity has improved to 8.54%, reflecting effective use of equity to generate profits. The equity ratio is healthy, suggesting a strong capital structure. Overall, the balance sheet reflects financial stability and prudent management of liabilities.

Cash Flow

The cash flow statement shows a significant decline in free cash flow growth, down by 87.37% in the latest year, which is a concern. The operating cash flow to net income ratio is low at 0.072, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio remains strong at 0.87, suggesting that the company can still generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	105.25M	94.45M	81.90M	76.70M	71.98M	70.24M
Gross Profit	45.52M	45.72M	41.94M	39.51M	36.35M	33.62M
EBITDA	10.41M	13.95M	13.20M	14.09M	9.87M	12.91M
Net Income	10.07M	9.46M	7.86M	7.56M	4.05M	7.86M
Balance Sheet
Total Assets	137.53M	132.19M	114.50M	115.25M	110.32M	112.01M
Cash, Cash Equivalents and Short-Term Investments	53.86M	60.96M	60.47M	61.86M	55.74M	70.26M
Total Debt	3.06M	3.91M	1.43M	4.45M	4.48M	4.87M
Total Liabilities	24.20M	20.75M	11.22M	16.58M	16.82M	18.96M
Stockholders Equity	112.83M	110.79M	103.33M	98.67M	93.51M	93.05M
Cash Flow
Free Cash Flow	-3.77M	1.17M	4.91M	12.60M	-4.12M	5.62M
Operating Cash Flow	-3.58M	1.35M	6.72M	12.66M	-3.33M	6.01M
Investing Cash Flow	3.67M	3.77M	-395.00K	-510.00K	-3.96M	-82.00K
Financing Cash Flow	-4.93M	-4.87M	-7.42M	-6.40M	-7.58M	-6.36M

Grand Brilliance Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8372, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.11, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.90 is Neutral, neither overbought nor oversold. The STOCH value of 36.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8372.

Grand Brilliance Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8372	68 Neutral	HK$104.00M	10.32	9.25%	1.92%	27.91%	18.87%
0673	52 Neutral	HK$1.02B	-7.36	-465.55%	―	-17.39%	-45.76%
0401	52 Neutral	HK$58.82M	-6.86	-11.91%	―	-4.50%	75.98%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
0718	37 Underperform	HK$168.00M	-0.24	―	―	-20.78%	6.78%