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Grand Talents Group Holdings Ltd. (HK:8516)
:8516
Hong Kong Market

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

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HK

Grand Talents Group Holdings Ltd.

(8516)

Rating:38Underperform
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. (8516) vs. iShares MSCI Hong Kong ETF (EWH)

Grand Talents Group Holdings Ltd. Business Overview & Revenue Model

Company DescriptionGrand 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 MoneyGrand 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
30
Negative
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
45
Neutral
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
35
Negative
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue29.46M16.97M29.43M42.47M42.16M84.59M
Gross Profit8.25M40.00K-4.97M3.76M-3.97M3.73M
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 Assets34.79M27.68M43.68M73.13M82.33M108.11M
Cash, Cash Equivalents and Short-Term Investments366.00K851.00K5.55M14.24M13.10M11.53M
Total Debt11.14M8.15M399.00K297.00K23.32M23.19M
Total Liabilities19.95M16.42M19.56M21.74M49.80M46.01M
Stockholders Equity14.84M11.27M24.12M51.38M32.53M62.09M
Cash Flow
Free Cash Flow-5.67M-7.69M-2.53M-16.74M3.99M-17.37M
Operating Cash Flow-5.22M-7.59M-2.50M-11.46M4.20M-13.39M
Investing Cash Flow-356.00K53.00K-2.73M-5.13M96.00K-3.76M
Financing Cash Flow3.82M2.84M-3.46M27.63M-2.40M9.99M

Grand Talents Group Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.09
Price Trends
50DMA
0.10
Negative
100DMA
0.10
Negative
200DMA
0.12
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
32.44
Neutral
STOCH
44.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8516, the sentiment is Negative. The current price of 0.09 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.10, and below the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 32.44 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8516.

Grand Talents 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
58
Neutral
$1.33B4.26-2.93%7.57%3.58%-52.48%
54
Neutral
HK$192.18M17.604.17%2.61%8.70%
50
Neutral
HK$20.00M-4.99%144.14%13.23%
49
Neutral
HK$37.44M8.002.73%-39.56%-89.35%
38
Underperform
HK$14.14M-78.11%63.95%66.74%
37
Underperform
HK$58.28M-89.56%-36.57%28.77%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8516
Grand Talents Group Holdings Ltd.
0.09
-0.03
-25.00%
HK:8472
Lapco Holdings Limited
0.32
-0.45
-58.44%
HK:8401
Stream Ideas Group Ltd.
0.09
-0.07
-43.75%
HK:8128
Chyy Development Group Limited
0.04
0.00
0.00%
HK:8340
Vinco Financial Group Limited
0.30
-1.07
-78.10%
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: Apr 21, 2025