GME Group (HK:8188) primarily provides underground construction services, catering mainly to private contractors involved in public infrastructure projects. The Group focuses on two core areas:
- Tunnel Construction – including
excavation, shotcrete application, formwork design and fabrication, tunnel
lining, and preliminary engineering services.
- Utility and Other Construction
Services – including the planning, design, and renovation of gas
pipelines, as well as structural engineering work.
What caught my
attention is that GME Group has been consistently repurchasing its shares on
the open market. This prompted me to explore the company as a potential
investment opportunity.
As of the
market close on 14 July 2025, with a share price of HK$0.92, the company’s key
financial metrics are as follows:
· Dividend Yield: 8.70%
· P/E (TTM): 5.14
· ROE: 57.03%
· Net Profit Margin: 10.52%
Additionally,
GME Group has demonstrated steady earnings growth over the past two years.
I estimate a
12-month target price of HK$1.79 --- reflecting a more reasonable valuation at
10x earnings. This represents a potential upside of 94.6% from the current
price.
Superphang
http://superphang.blogspot.sg
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