Grand Talents Group Holdings Ltd. (8516) AI Stock Analysis

• Market Cap: HK$17.76M
• Dividend Yield: N/A
• Average Volume (3M): 357.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: 63.95%
• EPS Growth: 66.74%
• Country: HK
• Employees: 10
• Sector: Industrials
• Sector Strength: 94
• Industry: Engineering & Construction
• EPS (TTM): -0.08
• Shares Outstanding: 164,424,000
• 10 Day Avg. Volume: 802,000
• 30 Day Avg. Volume: 357,500
• PEG Ratio: -0.15
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.99
• 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: 38 Underperform
• Price Target: ―

Grand Talents Group Holdings Ltd. is struggling with significant financial challenges, including declining revenues and negative cash flows. The technical indicators suggest further downside risk, while the valuation metrics reflect the company's lack of profitability and unattractive investment prospects. These factors collectively result in a low overall stock score, highlighting the urgent need for strategic interventions to improve financial stability and performance.

Grand Talents Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Grand Talents Group Holdings Ltd. (8516) is a company involved in the construction and engineering sector. It primarily focuses on providing civil engineering services and construction works for public and private projects in Hong Kong. The company specializes in road and bridge construction, maintenance, and other ancillary services that contribute to infrastructure development.

How the Company Makes Money

Grand Talents Group Holdings Ltd. generates revenue primarily through contracts for civil engineering and construction services. The company secures projects from both government and private sectors, focusing on road and bridge construction and maintenance. Revenue is earned based on the completion of project milestones, which are pre-determined in contractual agreements. Additionally, the company may engage in subcontracting certain components of their projects to enhance efficiency and profitability. Significant factors contributing to earnings include the scale and scope of projects undertaken, successful project delivery, and maintaining strong relationships with key stakeholders in the construction industry.

Grand Talents Group Holdings Ltd. Financial Statement Overview

Summary

Grand Talents Group Holdings Ltd. is facing substantial financial difficulties. Revenue decline, persistent losses, and negative cash flow highlight operational inefficiencies and financial distress. The balance sheet shows increasing leverage and declining equity, which may pose risks to financial sustainability. Immediate strategic interventions are needed to stabilize the company's financial health.

Income Statement

Grand Talents Group Holdings Ltd. shows declining revenue, with a significant drop of 42.3% in the latest year. Both gross and net profit margins are negative, indicating ongoing operational challenges. The company has been operating at a loss for several years, with negative EBIT and EBITDA margins, highlighting persistent profitability issues.

Balance Sheet

The company's financial stability is concerning, as evidenced by a rising Debt-to-Equity ratio, which increased from 0.47 to 0.72. The Return on Equity remains negative due to consistent net losses. However, the equity ratio decreased to 40.7%, reflecting a gradual erosion of shareholder equity. The balance sheet indicates financial leverage and risk, albeit with some remaining equity cushioning.

Cash Flow

The cash flow situation is challenging, with negative operating and free cash flows indicating a cash burn. Free cash flow has worsened significantly, with a growth rate of -203.5% from the previous year. The Operating Cash Flow to Net Income ratio is negative, suggesting the company is struggling to convert accounting profits into cash.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	29.46M	16.97M	29.43M	42.47M	42.16M	84.59M
Gross Profit	8.25M	40.00K	-4.97M	3.76M	-3.97M	3.73M
EBITDA	-6.44M	-13.05M	-24.76M	-15.88M	-22.80M	-15.16M
Net Income	-9.05M	-15.14M	-27.26M	-20.40M	-29.54M	-16.52M
Balance Sheet
Total Assets	34.79M	27.68M	43.68M	73.13M	82.33M	108.11M
Cash, Cash Equivalents and Short-Term Investments	366.00K	851.00K	5.55M	14.24M	13.10M	11.53M
Total Debt	11.14M	8.15M	399.00K	297.00K	23.32M	23.19M
Total Liabilities	19.95M	16.42M	19.56M	21.74M	49.80M	46.01M
Stockholders Equity	14.84M	11.27M	24.12M	51.38M	32.53M	62.09M
Cash Flow
Free Cash Flow	-5.67M	-7.69M	-2.53M	-16.74M	3.99M	-17.37M
Operating Cash Flow	-5.22M	-7.59M	-2.50M	-11.46M	4.20M	-13.39M
Investing Cash Flow	-356.00K	53.00K	-2.73M	-5.13M	96.00K	-3.76M
Financing Cash Flow	3.82M	2.84M	-3.46M	27.63M	-2.40M	9.99M

Grand Talents Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8516, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.10, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 75.13 is Negative, neither overbought nor oversold. The STOCH value of 48.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8516.

Grand Talents Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	HK$14.81B	4.65	-2.78%	5.10%	3.80%	-54.55%
8472	54 Neutral	HK$40.90M	8.74	2.73%	―	-39.56%	-89.35%
8340	49 Neutral	HK$31.66M	―	-4.99%	―	144.14%	13.23%
8128	47 Neutral	HK$187.81M	17.20	4.17%	―	2.61%	8.70%
8516	38 Underperform	HK$17.76M	―	-78.11%	―	63.95%	66.74%
8401	37 Underperform	HK$79.97M	―	-89.56%	―	-36.57%	28.77%