GT Steel Construction Group Limited (8402) AI Stock Analysis

• Market Cap: HK$50.88M
• Dividend Yield: N/A
• Average Volume (3M): 91.83K
• Price to Earnings (P/E): 26.1
• Beta (1Y): -0.16
• Revenue Growth: 27.11%
• EPS Growth: 24.43%
• Country: HK
• Employees: 128
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Steel
• EPS (TTM): -0.02
• Shares Outstanding: 480,010,000
• 10 Day Avg. Volume: 58,500
• 30 Day Avg. Volume: 91,833
• PEG Ratio: 0.20
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.73
• 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

• Rating: 46 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score of 46 reflects significant financial challenges, including negative profitability and cash flow issues. Technical analysis presents mixed signals, with a bearish long-term trend but some short-term bullish momentum. Valuation concerns are evident due to negative earnings. The lack of earnings call and corporate events data further limits insights into the company's outlook.

GT Steel Construction Group Limited Business Overview & Revenue Model

Company Description

GT Steel Construction Group Limited (8402) is a company engaged in the structural steelworks industry. It primarily operates in the construction sector, offering a wide range of services including the design, engineering, and fabrication of steel structures. The company is dedicated to providing high-quality steel construction solutions for various types of buildings and infrastructure projects, leveraging its expertise and advanced technology to meet client needs.

How the Company Makes Money

GT Steel Construction Group Limited generates revenue through its comprehensive service offerings in the structural steelworks sector. The company earns money by providing design and engineering services, fabricating steel structures, and installing these structures for various construction projects. Revenue is primarily derived from contracts with clients in the construction industry, including developers, contractors, and government entities. The company may also form strategic partnerships or collaborations with other construction firms to enhance its market presence and business opportunities. Additionally, factors such as the scale of projects, project duration, and the complexity of required steelworks can significantly influence the company's earnings.

GT Steel Construction Group Limited Financial Statement Overview

Summary

GT Steel Construction Group Limited faces substantial financial challenges. Despite a 26.8% revenue growth, negative net income, low gross profit margins, negative EBIT and EBITDA margins, and negative cash flow trends present significant risks. The debt-to-equity ratio is relatively low, but decreasing equity ratio and negative ROE highlight profitability issues.

Income Statement

The income statement reveals a challenging period for GT Steel Construction Group Limited. The company has experienced negative net income for several years, indicating persistent losses. Gross profit margin has seen improvement from previous years, moving from negative to positive territory, but remains low. Revenue growth from 2023 to 2024 was robust at 26.8%, a positive sign despite the negative EBIT and EBITDA margins, which indicate operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate position with some strengths and weaknesses. The debt-to-equity ratio is approximately 0.28, reflecting a relatively low level of leverage. However, the equity ratio has decreased over the years, suggesting a reduction in equity financing relative to total assets, which could be a risk if this trend continues. ROE is negative due to net losses, highlighting profitability challenges.

Cash Flow

Cash flow analysis indicates significant struggles, with negative free cash flow in recent years. Despite a strong free cash flow growth in 2023, the overall cash flow trend is concerning due to negative operating cash flow and free cash flow in 2024. The operating cash flow to net income ratio is negative, suggesting cash outflows exceed earnings, further underscoring financial difficulties.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.26M	18.35M	9.39M	12.75M	10.15M
Gross Profit	4.01M	3.06M	-2.98M	-5.51M	178.02K
EBITDA	-702.28K	234.79K	-5.10M	-7.86M	-1.92M
Net Income	-1.08M	-1.44M	-6.76M	-9.55M	-3.39M
Balance Sheet
Total Assets	16.20M	18.63M	18.01M	25.17M	40.98M
Cash, Cash Equivalents and Short-Term Investments	1.59M	3.24M	4.70M	5.56M	7.55M
Total Debt	2.42M	3.83M	3.72M	4.91M	7.76M
Total Liabilities	7.51M	8.89M	6.86M	7.25M	13.53M
Stockholders Equity	8.69M	9.73M	11.15M	17.92M	27.44M
Cash Flow
Free Cash Flow	-1.45M	-766.63K	847.26K	-1.37M	4.10M
Operating Cash Flow	-1.37M	-684.50K	967.84K	-1.06M	4.45M
Investing Cash Flow	996.40K	111.37K	-118.69K	-310.59K	-344.25K
Financing Cash Flow	-1.33M	-892.83K	-1.71M	-649.63K	1.57M

GT Steel Construction Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8402, the sentiment is Positive. The current price of 0.11 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and below the 200-day MA of 0.20, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.50 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8402.

GT Steel Construction Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1203	80 Outperform	HK$880.37M	6.25	5.38%	5.15%	15.34%	113.64%
1118	74 Outperform	HK$568.63M	3.63	11.93%	8.08%	-16.88%	13.77%
6890	72 Outperform	HK$287.97M	2.83	11.21%	―	-0.82%	19.45%
1938	67 Neutral	HK$308.40M	1.64	18.42%	―	8.99%	11.60%
Sector *	59 Neutral	HK$16.42B	4.45	-5.52%	4.84%	-3.57%	-61.41%
1894	51 Neutral	HK$26.71M	―	-15.77%	―	―	―
8402	46 Neutral	HK$50.88M	26.12	-11.92%	―	27.11%	24.43%