EXCLUSIVE: Guardforce H1'24 Earnings: 50% Jump in Gross Profit, Turns Net Income Positive, Expands AI Solutions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 24 2024
0mins
Should l Buy GFAI?
Source: Benzinga
Financial Performance Overview: Guardforce AI reported a 2.4% decrease in net revenue to $17.6 million for H1 2024, attributed to foreign currency exchange rates; however, gross profit increased by 50% year-on-year to $3.2 million, and adjusted net income turned positive at $0.1 million.
Business Developments: The company secured significant long-term contracts, including a 5-year deal to operate a Consolidate Cash Center in Thailand and expanded its security solutions to over 12,000 stores in Mainland China, while focusing on developing AI-driven services in the retail and travel sectors.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GFAI?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GFAI
About GFAI
Guardforce AI Co., Limited is a security solutions provider. The Company’s business segments include Secured Logistics, Robotics AI Solutions, General Security Solutions, and Corporate and Others. Secured Logistics includes services such as cash-in-transit, dedicated vehicles to banks, automated teller machine management, cash center operations, cash processing, coin processing, cheque center, and cash deposit machine solutions (cash deposit management and express cash service). Robotics AI Solutions operates as a robots-as-a-service business model and purchases the robots from equipment manufacturers, integrating various value-added applications. It has built its artificial intelligence (AI) and robotics service model with three sectors: smart devices (robot), platform services, and scenario solutions. General Security Solutions include the provision of smart retail operation management, closed-circuit television and security alarm operation, security engineering, and maintenance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Guardforce AI Enters LOI to Acquire MGAI Limited
- Acquisition Intent Announcement: Guardforce AI (GFAI) announced on Monday that it has signed a non-binding Letter of Intent (LOI) to acquire 100% of the issued and outstanding share capital of MGAI Limited, indicating a proactive approach to business expansion.
- Market Reaction: Following this announcement, GFAI's premarket trading price increased by 0.14% to $0.43 per share, reflecting an initial positive market response to the acquisition plan, which may enhance investor confidence.
- Strategic Implications: This acquisition intent suggests that GFAI is looking to expand its market share and business scope through mergers and acquisitions, potentially bringing new growth opportunities and resource integration capabilities to the company.
- Future Outlook: Although currently a non-binding LOI, GFAI's move may lay the groundwork for a formal acquisition in the future, which, if successful, would further strengthen its competitive position in the industry.
See More
Guardforce AI to Acquire MGAI for AI-Driven Solutions
- Letter of Intent Signed: Guardforce AI has entered into a non-binding Letter of Intent to acquire 100% of MGAI's shares, a company with one of China's largest databases for children's language development assessment, which is expected to enhance Guardforce AI's market position in healthcare AI applications.
- Service Network Reach: MGAI's ecosystem has served over 110,000 patients and has more than 20,000 registered rehabilitation professionals, allowing Guardforce AI to rapidly expand its market presence in Hong Kong, Singapore, and Taiwan by leveraging MGAI's established distribution channels.
- Integration Potential: Guardforce AI plans to integrate MGAI's professional rehabilitation expertise into its AI Agent framework, which is expected to digitize and scale professional knowledge, creating new high-margin digital service opportunities that will drive future growth for the company.
- Transaction Conditions: The acquisition is subject to due diligence, execution of a definitive purchase agreement, and satisfaction of customary closing conditions, indicating Guardforce AI's strategic positioning in the AI-driven technology sector.
See More
Guardforce AI Receives Nasdaq Warning, Must Regain Compliance in 180 Days
- Compliance Warning: Guardforce AI received a notification from Nasdaq indicating non-compliance with the minimum bid price requirement of $1.00 per share, facing delisting risks if the deficiency persists for 30 consecutive trading days.
- Regaining Period: The company has been granted a 180-day grace period until June 10, 2026, to achieve a closing bid price of at least $1.00 for a minimum of 10 consecutive trading days to avoid delisting.
- Market Impact: Despite the warning, the company's ordinary shares continue to trade on Nasdaq, reflecting market confidence in its short-term performance; however, ongoing compliance issues may undermine investor trust in the long run.
- Mitigation Strategies: The company intends to continuously monitor its stock price and is considering various measures to improve its financial position, aiming to counteract short-term adverse effects on its trading price and restore compliance in due time.
See More
Guardforce AI Receives Nasdaq Warning, Must Regain Compliance in 180 Days
- Compliance Warning: Guardforce AI received a notification from Nasdaq indicating non-compliance with the minimum bid price requirement of $1.00 per share, facing delisting risks if the deficiency persists for 30 consecutive trading days.
- Regaining Period: The company has been granted a 180-day grace period until June 10, 2026, to achieve compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive trading days to avoid potential delisting.
- Market Impact: Despite the warning, the company's ordinary shares will continue to trade on Nasdaq, indicating that there will be no immediate impact on market performance, but proactive measures are needed to improve financial conditions to mitigate risks.
- Response Strategy: The company intends to continuously monitor its closing bid price and is considering various measures to enhance its financial performance, aiming to counteract short-term adverse effects on its trading price and restore compliance in due time.
See More
Guardforce AI Implements Smart Solutions and AI Applications in Thailand
Company Launch and Innovations: Guardforce AI successfully launched its smart solutions and AI applications at a rebranding event in Bangkok, introducing the Smart Cash Solution and Smart Retail Solution aimed at enhancing operational efficiency in cash management and retail environments.
Future Vision and AI Integration: The company emphasized its commitment to advancing AI-driven services, showcasing its first AI Agent application, DeepVoyage Go (DVGO), which enhances travel planning services and aims to expand recurring revenue through tech-enabled solutions.
See More
EXCLUSIVE: Guardforce AI Renews 3-Year Deal With Thailand's Government Savings Bank
Guardforce AI's Renewal with GSB: Guardforce AI's subsidiary, GFCS, has secured a three-year renewal contract with Thailand's Government Savings Bank, extending their partnership for cash-in-transit and ATM maintenance services until May 2028.
Financial Stability and Innovation: This renewal ensures stable revenue for Guardforce AI, allowing the company to invest in innovation and expand its AI-driven solutions.
See More
Guardforce AI Enters LOI to Acquire MGAI Limited
- Acquisition Intent Announcement: Guardforce AI (GFAI) announced on Monday that it has signed a non-binding Letter of Intent (LOI) to acquire 100% of the issued and outstanding share capital of MGAI Limited, indicating a proactive approach to business expansion.
- Market Reaction: Following this announcement, GFAI's premarket trading price increased by 0.14% to $0.43 per share, reflecting an initial positive market response to the acquisition plan, which may enhance investor confidence.
- Strategic Implications: This acquisition intent suggests that GFAI is looking to expand its market share and business scope through mergers and acquisitions, potentially bringing new growth opportunities and resource integration capabilities to the company.
- Future Outlook: Although currently a non-binding LOI, GFAI's move may lay the groundwork for a formal acquisition in the future, which, if successful, would further strengthen its competitive position in the industry.
See More
Guardforce AI to Acquire MGAI for AI-Driven Solutions
- Letter of Intent Signed: Guardforce AI has entered into a non-binding Letter of Intent to acquire 100% of MGAI's shares, a company with one of China's largest databases for children's language development assessment, which is expected to enhance Guardforce AI's market position in healthcare AI applications.
- Service Network Reach: MGAI's ecosystem has served over 110,000 patients and has more than 20,000 registered rehabilitation professionals, allowing Guardforce AI to rapidly expand its market presence in Hong Kong, Singapore, and Taiwan by leveraging MGAI's established distribution channels.
- Integration Potential: Guardforce AI plans to integrate MGAI's professional rehabilitation expertise into its AI Agent framework, which is expected to digitize and scale professional knowledge, creating new high-margin digital service opportunities that will drive future growth for the company.
- Transaction Conditions: The acquisition is subject to due diligence, execution of a definitive purchase agreement, and satisfaction of customary closing conditions, indicating Guardforce AI's strategic positioning in the AI-driven technology sector.
See More
Guardforce AI Receives Nasdaq Warning, Must Regain Compliance in 180 Days
- Compliance Warning: Guardforce AI received a notification from Nasdaq indicating non-compliance with the minimum bid price requirement of $1.00 per share, facing delisting risks if the deficiency persists for 30 consecutive trading days.
- Regaining Period: The company has been granted a 180-day grace period until June 10, 2026, to achieve a closing bid price of at least $1.00 for a minimum of 10 consecutive trading days to avoid delisting.
- Market Impact: Despite the warning, the company's ordinary shares continue to trade on Nasdaq, reflecting market confidence in its short-term performance; however, ongoing compliance issues may undermine investor trust in the long run.
- Mitigation Strategies: The company intends to continuously monitor its stock price and is considering various measures to improve its financial position, aiming to counteract short-term adverse effects on its trading price and restore compliance in due time.
See More
Guardforce AI Receives Nasdaq Warning, Must Regain Compliance in 180 Days
- Compliance Warning: Guardforce AI received a notification from Nasdaq indicating non-compliance with the minimum bid price requirement of $1.00 per share, facing delisting risks if the deficiency persists for 30 consecutive trading days.
- Regaining Period: The company has been granted a 180-day grace period until June 10, 2026, to achieve compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive trading days to avoid potential delisting.
- Market Impact: Despite the warning, the company's ordinary shares will continue to trade on Nasdaq, indicating that there will be no immediate impact on market performance, but proactive measures are needed to improve financial conditions to mitigate risks.
- Response Strategy: The company intends to continuously monitor its closing bid price and is considering various measures to enhance its financial performance, aiming to counteract short-term adverse effects on its trading price and restore compliance in due time.
See More
Guardforce AI Implements Smart Solutions and AI Applications in Thailand
Company Launch and Innovations: Guardforce AI successfully launched its smart solutions and AI applications at a rebranding event in Bangkok, introducing the Smart Cash Solution and Smart Retail Solution aimed at enhancing operational efficiency in cash management and retail environments.
Future Vision and AI Integration: The company emphasized its commitment to advancing AI-driven services, showcasing its first AI Agent application, DeepVoyage Go (DVGO), which enhances travel planning services and aims to expand recurring revenue through tech-enabled solutions.
See More
EXCLUSIVE: Guardforce AI Renews 3-Year Deal With Thailand's Government Savings Bank
Guardforce AI's Renewal with GSB: Guardforce AI's subsidiary, GFCS, has secured a three-year renewal contract with Thailand's Government Savings Bank, extending their partnership for cash-in-transit and ATM maintenance services until May 2028.
Financial Stability and Innovation: This renewal ensures stable revenue for Guardforce AI, allowing the company to invest in innovation and expand its AI-driven solutions.
See More
