SEHK:8059

Stock Analysis Report

Executive Summary

Glory Flame Holdings Limited, an investment holding company, engages in the provision of construction works and building materials supply businesses in Hong Kong, the People’s Republic of China, and the United States.

Risk Analysis

Earnings have declined by -58.21% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Glory Flame Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8059's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.9%

8059

-0.9%

HK Construction

1.0%

HK Market


1 Year Return

26.4%

8059

-16.4%

HK Construction

6.5%

HK Market

Return vs Industry: 8059 exceeded the Hong Kong Construction industry which returned -16.2% over the past year.

Return vs Market: 8059 exceeded the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

8059IndustryMarket
7 Day1.9%-0.9%1.0%
30 Day-28.6%-0.5%3.7%
90 Day-18.5%1.5%8.0%
1 Year26.4%26.4%-12.3%-16.4%10.4%6.5%
3 Year-71.1%-71.1%-27.7%-35.6%25.9%13.1%
5 Year-92.7%-92.7%-20.1%-32.0%22.2%1.8%

Price Volatility Vs. Market

How volatile is Glory Flame Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Glory Flame Holdings undervalued compared to its fair value and its price relative to the market?

1.24x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8059's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8059's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8059 is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: 8059 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8059's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8059 is overvalued based on its PB Ratio (1.1x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is Glory Flame Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.1%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Glory Flame Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Glory Flame Holdings performed over the past 5 years?

-58.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8059 is currently unprofitable.

Growing Profit Margin: 8059 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8059 is unprofitable, and losses have increased over the past 5 years at a rate of -58.2% per year.

Accelerating Growth: Unable to compare 8059's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8059 is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-12.3%).


Return on Equity

High ROE: 8059 has a negative Return on Equity (-96.67%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Glory Flame Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8059's short term assets (HK$129.7M) exceed its short term liabilities (HK$64.3M).

Long Term Liabilities: 8059's short term assets (HK$129.7M) exceed its long term liabilities (HK$12.5M).


Debt to Equity History and Analysis

Debt Level: 8059's debt to equity ratio (45.7%) is considered high.

Reducing Debt: 8059's debt to equity ratio has increased from 0.8% to 45.7% over the past 5 years.


Balance Sheet

Inventory Level: 8059 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8059's debt is covered by short term assets (assets are 3.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 8059 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 8059 has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 56% each year


Next Steps

Dividend

What is Glory Flame Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.1%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8059's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8059's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8059's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8059's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8059's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Glory Flame Holdings's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

Xiaoliang Lai (44yo)

0.5yrs

Tenure

0

Mr. Xiaoliang Lai serves as e Chief Executive Officer at Glory Flame Holdings Limited since July 19, 2019. Mr.Lai was the head of overseas agricultural technology cooperation project of China Guangdong Int ...


Management Age and Tenure

0.6yrs

Average Tenure

44.5yo

Average Age

Experienced Management: 8059's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Age and Tenure

0.6yrs

Average Tenure

47yo

Average Age

Experienced Board: 8059's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellHK$11,200,28819 Aug 19
Zhou Zhu
EntityIndividual
Shares140,000,000
Max PriceHK$0.08
BuyHK$11,200,28819 Aug 19
Jin Zhou
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares140,000,000
Max PriceHK$0.08

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


Management Team

  • Wai Kee Cheung (45yo)

    Secretary

    • Tenure: 3.5yrs
  • Yingjie Liu (50yo)

    Chairman & Compliance Officer

    • Tenure: 0.6yrs
    • Compensation: HK$34.00k
  • Jin Zhou (29yo)

    Executive Director

    • Tenure: 0.8yrs
  • Xiaoliang Lai (44yo)

    Chief Executive Officer

    • Tenure: 0.5yrs

Board Members

  • Peter Li (55yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Yingjie Liu (50yo)

    Chairman & Compliance Officer

    • Tenure: 0.6yrs
    • Compensation: HK$34.00k
  • Hongmin Cao (47yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
  • Jin Zhou (29yo)

    Executive Director

    • Tenure: 0.8yrs
  • Pan Chan Chi (35yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs

Company Information

Glory Flame Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Glory Flame Holdings Limited
  • Ticker: 8059
  • Exchange: SEHK
  • Founded: 2014
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$103.082m
  • Shares outstanding: 1.01b
  • Website: https://www.gf-holdings.com

Number of Employees


Location

  • Glory Flame Holdings Limited
  • The Gateway
  • Suite 3513, Tower 6
  • Tsim Sha Tsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8059SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2014

Biography

Glory Flame Holdings Limited, an investment holding company, engages in the provision of construction works and building materials supply businesses in Hong Kong, the People’s Republic of China, and the United States. The company operates through four segments: Construction, Agricultural Equipment, Trading Business, and Financial Services. It offers concrete demolition, construction engineering, and construction works; and concrete coring, wall sawing and diamond wire cutting, and bridge and road saw cutting, as well as environmental-friendly demolition through hydraulic crusher and burster, grouting and bar fixing, and various demolition robots. The company also develops and sells agricultural equipment; and trades in clean coal and light-emitting diode products for decoration. In addition, it offers insurance brokerage, consultancy, and commercial factoring services. Further, the company engages in the research and sale of LED cultivation cabinets and hydroponics products; and manufacture and sale of prestressed concrete piles and prefabricated precast construction components. Glory Flame Holdings Limited was incorporated in 2014 and is based in Tsim Sha Tsui, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 12:54
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.