Global Engine Group
Kwun Tong, Kowloon Kowloon, K3 00000 Hong Kong 🇭🇰
Industry: Information Tech
Region: Asia 🌏
Founded: 2018
Expected Valuation: $1.76 billion
IPO Date: 2023 (expected)
Global Engine Group Holding Limited
Key Company Facts
| Founded | 2018 |
| Headquarters | Hong Kong, HK |
| Sector | ICT Support Services |
| Industry | Systems and Information Management |
| Founders | Andrew Lee |
| Number of employees | 3 |
| IPO Date | 2023 (expected) |
| Number of investors | N/A |
| Total funding | $17.6 million USD |
| Valuation estimate | $87.75 million USD |
Company Overview & History
Global Engine Group Holding Limited is a holding company incorporated in the British Virgin Islands, but conducts most of its operations through its wholly-owned subsidiary, Global Engine Limited, based in Hong Kong.
The company was founded in 2018 and is led by CEO Andrew Lee Yat Lung.
As an integrated solutions provider, Global Engine Group Holding delivers actionable outcomes for organizations by using information communication technologies (ICT) solutions to drive business outcomes and innovation.
To provide custom-tailored solutions, the company leverages a broad array of technologies such as cloud, security, networking, data center, collaboration, orchestration and automation, data management, data visualization, analytics, network modernization, edge computing, and other innovative and emerging technologies.
Their target customer groups include Telecom Operators, Data Center and Cloud Computing Services Providers and Internet-of-things (“IoT”) Solutions Providers, Resellers, and Users.
Financial Performance
Global Engine Group Holding has shown significant growth in its revenue over the past few years.
In the fiscal year of 2021, the company reported revenue of 25.61 million HKD, a substantial increase from the 10 million HKD reported in 2020.
This represents a year-over-year revenue growth of 156.11%. In terms of profit, the company’s net income also increased from 3.09 million HKD in 2020 to 6.97 million HKD in 2021, reflecting a growth of 125.88%.
Revenue
| Year | Revenue (USD) |
|---|---|
| 2021 | $25.6 million |
| 2020 | $10 million |
Business Model
Global Engine Group Holding operates as a provider of ICT support services and is committed to providing a holistic and comprehensive approach to ICT strategy.
The company offers ICT consultancy, telecom and networking solutions, intelligent retail systems, and cloud solutions. These services and solutions are custom-tailored for their customers’ specific requirements.
By leveraging a broad range of technologies and their extensive engineering and operational experience, the company is able to deliver integrated solutions that drive business outcomes and innovation for their customers.
Additionally, their expertise in the ICT industry and a robust portfolio of consulting, professional, and managed services allow them to serve as a trusted advisor for their clients.
Estimated Valuation
| Year | Valuation (USD) |
|---|---|
| 2021 | $87.75 million |
| 2020 | $81 million |
Risk Factors
Global Engine Group Holding Limited operates in the fragmented and highly competitive markets of information communication technologies (ICT) solutions.
Being a relatively small firm, it faces stiff competition in the Hong Kong market, particularly in the ICT consulting and services sector.
The company’s financials indicate a trend of increasing top-line revenue and growing gross profit.
However, the gross margin has seen a reduction, and there has been an increase in operating profit but a decrease in cash flow from operations. Such dynamics indicate potential volatility and financial risk.
Another factor to consider is the rise in General & Administrative expenses as a percentage of total revenue. This ratio has trended higher as revenues have increased, potentially indicating inefficiencies or growing costs of scaling the business.
The company currently plans not to pay dividends, despite having done so in the past. This could suggest a strategy of retaining more capital for growth, but it also carries the risk of disappointing investors seeking dividend returns.
Market Opportunity
Global Engine Group Holding operates in the field of Information and Communications Technology (ICT) support services, providing a comprehensive approach to ICT strategy.
Their offerings include ICT consultancy, telecom and networking solutions, intelligent retail systems, and cloud solutions, all custom-tailored for their customers1.
The market opportunity for such a company lies in the growing demand for robust network connectivity and the rapid adoption of advanced technologies by businesses.
According to a report, the global telecom consulting market is projected to grow at a Compound Annual Growth Rate (CAGR) of 11.8% during 2021–2030.
This growth is due to the need for strong network connectivity and the adoption of new technologies like AI, IoT, and machine learning.
The market is anticipated to generate revenue of $14,519.6 Million by 2030, up from $5,307.2 Million in 2021.
This indicates a substantial market opportunity for Global Engine Group Holding and similar companies.
Competitors
- Apple Inc.
- Samsung Electronics
- Foxconn
- Microsoft Corporation
- Huawei
- Dell Technologies
- Sony Corporation
- Hitachi Ltd.
- Intel Corporation
- IBM
- Tencent
- Panasonic Corporation
- Lenovo Group Limited
- HP Inc.
- LG Electronics