Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 31 Dec, 24 | GFAI | Speculative Buy | USD 1.56 | USD 1.7 | USD 1.83 | 5 days | 17.3% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Guardforce AI Co., Limited offers cash solutions and cash handling services in Singapore, Hong Kong, Macau, Malaysia, Thailand, and internationally. It operates through Secured Logistics, Robotics Al Solution, and General Security Solutions segments. The company offers cash-in-transit non dedicated vehicle; cash-in transit dedicated vehicle; ATM management; cash processing; cash center operations; consolidate cash center operations; cheque center; coin processing; and cash deposit machine solutions, including cash deposit management and express cash service. It also rents and sells robots-as-a-service comprising artificial intelligence (AI) assistant which provides customer support and sales assistance that interacts with customers through voice interactions that offers 24/7 support, answering inquiries, handling complaints, and recommending products or services; and AI security agent, robots to assist personnel in managing tasks at entrances, lobbies, service desks, and other areas; AI advertising, robots to provide advertising and promotional services. In addition, the company offers commercial smart retail operation management, an intelligent management system that is based on data technology and provision of a series of consultant services on store risk evaluation, surveillance and management, and anti-fraud checks; CCTV and security alarm operation, which consists electronic sensors and security alarms host, as well as operating surveillance control center; and security engineering and maintenance. It serves its products to local commercial banks, chain retailers, coin manufacturing mints, and government authorities. The company was founded in 1982 and is based in Singapore.
Cost Efficiency: Selling, distribution, and administrative expenses decreased by 25.7%, dropping to $5.0 million in H1 2024, reflecting effective cost management.
Gross Profit Growth: The company experienced a 50% increase in gross profit, rising to $3.2 million in H1 2024 from $2.2 million in H1 2023, alongside an improvement in gross profit margin from 12.0% to 18.4%.
Revenue Decline: Total revenue fell by 2.4%, from $18.0 million in H1 2023 to $17.6 million in H1 2024, largely due to unfavorable foreign exchange rates.
Operating Loss: Despite improvement, the company still reported a $2.1 million operating loss, highlighting ongoing challenges in achieving operational profitability.
The company faces risks from foreign exchange volatility, uncertain sustainability of cost reductions, ongoing profitability challenges, and market dependency on specific regions.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 1.56 | 1.36 | 1.7 | 1.83 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Technical Commentary:
The stock price has recently crossed above the 21-day and 50-day moving averages, suggesting a potential shift to bullish momentum. The RSI is currently at 59.85, indicating moderate strength without being overbought. Volume has spiked in recent sessions, which could imply increased investor interest. Overall, the stock shows signs of a potential reversal, but further confirmation is needed.
Considering recent key business, financial updates, current trading levels, key business risks, and technical indicators analysis, a ‘Speculative Buy’ recommendation has been given on the Guardforce AI Co (NASDAQ: GFAI) at the closing price of USD 1.56, as on December 30, 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Security & Protection Services
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| GFAI Guardforce AI Co Ltd |
0.0083 0.84% | 1.00 | - | 22.88 | 1.00 | 1.52 | 0.70 | -4.3884 |
| ASAZF ASSA ABLOY AB (publ) |
- -% | 31.40 | 24.30 | 22.68 | 0.24 | 3.69 | 3.06 | 14.88 |
| ASAZY Assa Abloy AB |
-0.15 1.00% | 14.83 | 24.87 | 23.20 | 0.24 | 3.78 | 3.06 | 14.88 |
| SOMLY Secom Co Ltd ADR |
-0.03 0.35% | 8.46 | 21.35 | - | 0.01 | 1.79 | 0.0097 | 0.05 |
| ALLE Allegion PLC |
-0.06 0.05% | 130.40 | 21.76 | 18.05 | 3.30 | 7.77 | 3.69 | 15.43 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 30, 2024. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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