GT Steel Construction Group Limited (8402) AI Stock Analysis

• Market Cap: HK$60.96M
• Dividend Yield: N/A
• Average Volume (3M): 101.33K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.07
• Revenue Growth: -30.42%
• EPS Growth: -1118.37%
• Country: HK
• Employees: 128
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): N/A
• Shares Outstanding: 480,010,000
• 10 Day Avg. Volume: 102,500
• 30 Day Avg. Volume: 101,333
• PEG Ratio: 0.98
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 1.07
• P/FCF Ratio: -17.12
• 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: 50 Neutral
• Price Target: HK$0.15 ▲(6.43% Upside)

The overall stock score of 50 reflects significant financial challenges faced by GT Steel Construction Group Limited, including persistent losses and negative cash flow. While there are positive technical indicators suggesting bullish momentum, the negative P/E ratio and lack of dividend yield weigh heavily on the valuation.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates expanding market reach and effective business operations, which can drive long-term success.

Low Leverage

Low leverage provides financial flexibility and reduces risk, allowing the company to invest in growth opportunities without significant debt burden.

Gross Profit Margin Improvement

Improving gross profit margins suggest better cost management and pricing strategies, which can enhance profitability over time.

Negative Factors

Persistent Negative Profitability

Ongoing losses indicate operational challenges that could hinder long-term financial health and limit investment in growth initiatives.

Negative Cash Flow

Sustained negative cash flow suggests difficulties in generating sufficient cash from operations, potentially impacting liquidity and financial stability.

Declining Equity Ratio

A declining equity ratio may indicate increased reliance on debt or reduced asset base, posing risks to financial resilience and capital structure.

GT Steel Construction Group Limited Business Overview & Revenue Model

Company Description

GT Steel Construction Group Limited, an investment holding company, designs, supplies, fabricates, and erects structural steel works in Singapore. The company offers steel structures for the construction of buildings, including technological plants, industrial buildings, commercial buildings, government institutions, residential buildings, data centers, and aerospace, as well as energy, NEWater, water treatment, metal recovery, and cement plants. It also provides prefabricated steel structures or on-site installation services, as well as auxiliary services for structural steel works. The company was founded in 2003 and is headquartered in Singapore. GT Steel Construction Group Limited operates as a subsidiary of Broadbville Limited.

How the Company Makes Money

GT Steel Construction Group Limited generates revenue through multiple streams, primarily by offering fabrication and erection services for steel structures used in building projects. The company secures contracts from general contractors, developers, and industrial clients, which constitute the bulk of its income. Additional revenue is derived from the sale of steel products, including beams, columns, and other pre-fabricated components. Strategic partnerships with suppliers and subcontractors help optimize costs and enhance service offerings, thereby improving profitability. Furthermore, the company may engage in long-term contracts that provide steady cash flow, alongside project-based engagements that allow for scalability depending on market demand.

GT Steel Construction Group Limited Financial Statement Overview

Summary

GT Steel Construction Group Limited is facing substantial financial challenges. Despite revenue growth and low leverage, persistent negative profitability, declining equity ratio, and negative cash flow highlight significant risks. The company needs to address operational inefficiencies and stabilize cash flows to improve its financial health.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.98M	23.26M	18.35M	9.39M	12.75M	10.15M
Gross Profit	708.68K	4.01M	3.06M	-2.98M	-5.51M	178.02K
EBITDA	-4.10M	-702.28K	234.79K	-5.10M	-7.86M	-1.92M
Net Income	-4.07M	-1.08M	-1.44M	-6.76M	-9.55M	-3.39M
Balance Sheet
Total Assets	13.06M	16.20M	18.63M	18.01M	25.17M	40.98M
Cash, Cash Equivalents and Short-Term Investments	1.06M	1.59M	3.24M	4.70M	5.64M	7.55M
Total Debt	2.67M	2.42M	3.83M	3.72M	4.91M	7.76M
Total Liabilities	7.00M	7.51M	8.89M	6.86M	7.25M	13.53M
Stockholders Equity	6.06M	8.69M	9.73M	11.15M	17.92M	27.44M
Cash Flow
Free Cash Flow	-191.56K	-1.45M	-766.63K	847.26K	-1.37M	4.10M
Operating Cash Flow	301.87K	-1.37M	-684.50K	967.84K	-1.06M	4.45M
Investing Cash Flow	587.54K	996.40K	111.37K	-118.69K	-310.59K	-344.25K
Financing Cash Flow	-942.46K	-1.33M	-892.83K	-1.71M	-649.63K	1.57M

GT Steel Construction Group Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8402, the sentiment is Negative. The current price of 0.14 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.13, and above the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.14 is Neutral, neither overbought nor oversold. The STOCH value of -0.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1118	73 Outperform	HK$735.20M	4.40	12.17%	6.28%	-9.66%	21.61%
1203	71 Outperform	HK$735.15M	4.62	6.32%	5.81%	16.92%	146.69%
6890	68 Neutral	HK$221.28M	5.01	4.73%	―	-20.52%	-68.47%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1938	61 Neutral	HK$267.95M	0.98	19.13%	―	-13.26%	63.38%
8402	50 Neutral	HK$60.96M	-2.51	-50.60%	―	-30.42%	-1118.37%
1894	46 Neutral	HK$23.95M	-1.26	-12.82%	―	31.75%	21.89%