Arta TechFin Corporation Limited (0279) AI Stock Analysis

• Market Cap: HK$865.32M
• Dividend Yield: N/A
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.04
• Revenue Growth: 156.41%
• EPS Growth: 21.56%
• Country: HK
• Employees: 30
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): -0.03
• Shares Outstanding: 1,272,527,300
• 10 Day Avg. Volume: 566,923
• 30 Day Avg. Volume: 2,132,280
• PEG Ratio: 12.27
• Price to Book (P/B): -273.38
• Price to Sales (P/S): 194.92
• P/FCF Ratio: -466.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.50 ▼(-25.37% Downside)

The overall stock score is primarily driven by poor financial performance, characterized by high leverage and negative profitability. Technical analysis indicates bearish momentum, further weighing on the score. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield, contributing to the low attractiveness of the stock.

Arta TechFin Corporation Limited Business Overview & Revenue Model

Company Description

Arta TechFin Corporation Limited, an investment holding company, provides a range of financial services in Hong Kong and the People's Republic of China. The company offers securities and futures brokerage, placing and underwriting, corporate finance advisory, and margin financing services; asset management services; insurance brokerage and financial planning services; and factoring, financial guarantee, and finance leasing services. It also trades in securities and futures. The company was formerly known as Freeman FinTech Corporation Limited and changed its name to Arta TechFin Corporation Limited in October 2021. Arta TechFin Corporation Limited is based in Quarry Bay, Hong Kong.

How the Company Makes Money

Arta TechFin Corporation generates revenue through multiple streams primarily focused on the deployment of its fintech solutions. Key revenue sources include transaction fees from its digital payment platforms, subscription fees for its financial analytics software, and licensing fees for its proprietary blockchain technology. Additionally, the company may engage in strategic partnerships with banks and financial institutions to integrate its services, thereby earning revenue through collaborative ventures and shared service agreements. The growth in digital finance and increasing demand for efficient payment solutions also contribute significantly to its earnings, positioning Arta TechFin to capitalize on the expanding fintech market.

Arta TechFin Corporation Limited Financial Statement Overview

Summary

Arta TechFin Corporation Limited shows significant revenue growth, but this is overshadowed by poor profitability and high leverage. The negative equity and high debt levels pose substantial financial risks. While there is some improvement in free cash flow, the overall financial health remains concerning.

Income Statement

The company has shown significant revenue growth of 119.92% in the most recent year, which is a positive sign. However, profitability metrics are concerning, with a negative net profit margin of -74.87% and negative EBIT and EBITDA margins, indicating operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of -2.54, indicating high leverage and potential financial instability. The negative stockholders' equity suggests financial distress, and the return on equity is positive but misleading due to negative equity.

Cash Flow

Cash flow analysis shows improvement with a free cash flow growth rate of 34.49%. However, the operating cash flow is negative, and the operating cash flow to net income ratio is also negative, indicating challenges in generating cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.22M	69.22M	23.33M	13.32M	48.93M	33.27M
Gross Profit	58.77M	58.77M	-6.13M	7.93M	36.74M	20.32M
EBITDA	-29.79M	-30.11M	-51.08M	-80.24M	-44.05M	-36.08M
Net Income	-47.28M	-51.83M	-62.92M	-89.92M	2.77B	-701.69M
Balance Sheet
Total Assets	101.70M	101.70M	130.88M	117.48M	133.28M	1.42B
Cash, Cash Equivalents and Short-Term Investments	54.52M	54.52M	90.74M	65.37M	69.81M	399.04M
Total Debt	125.38M	125.38M	37.86M	66.68M	47.23M	3.05B
Total Liabilities	151.16M	151.16M	54.05M	83.83M	68.60M	4.39B
Stockholders Equity	-49.36M	-49.36M	76.83M	33.65M	64.69M	-2.97B
Cash Flow
Free Cash Flow	-28.12M	-28.94M	-53.74M	-71.33M	109.32M	-175.74M
Operating Cash Flow	-24.45M	-24.45M	-52.87M	-63.30M	109.82M	-173.44M
Investing Cash Flow	-7.16M	-8.39M	9.75M	-26.57M	-433.91M	-360.00K
Financing Cash Flow	-2.15M	-2.15M	77.38M	76.65M	-7.39M	422.88M

Arta TechFin Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0279, the sentiment is Negative. The current price of 0.67 is below the 20-day moving average (MA) of 0.75, below the 50-day MA of 0.82, and below the 200-day MA of 0.76, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 32.59 is Neutral, neither overbought nor oversold. The STOCH value of 21.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0279.

Arta TechFin Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6058	64 Neutral	HK$1.84B	24.21	2.32%	2.11%	20.05%	16.56%
3623	45 Neutral	HK$794.64M	―	-9.25%	―	-66.98%	-115.16%
0397	44 Neutral	HK$109.53M	-0.72	-14.21%	―	-2.07%	-114.10%
0279	41 Neutral	HK$865.32M	-12.98	―	―	156.41%	21.56%
0888	40 Underperform	HK$118.50M	-2.67	-174.97%	―	-7.34%	-302.50%
3329	31 Underperform	€1.33B	-1.14	-99.49%	―	22.37%	20.18%

Arta TechFin Corporation Limited Corporate Events

Arta TechFin Revises Management Fee Structure with Concord

Arta TechFin Corporation Limited has released a supplemental announcement regarding a revised management fee structure under its agreement with Concord. The Board has confirmed that the new fee structure aligns with market standards and does not favor Concord over independent clients. The revision does not affect the previously disclosed annual transaction caps.

The most recent analyst rating on (HK:0279) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Arta TechFin Corporation Limited stock, see the HK:0279 Stock Forecast page.

Arta TechFin Updates on Annual Report and Novation Agreement

Arta TechFin Corporation Limited has issued a supplemental announcement regarding its annual report for the year ended 31 March 2024 and a past connected transaction. The company has provided additional information on related party transactions, confirming compliance with the Hong Kong Stock Exchange’s listing rules. Additionally, the company announced a novation agreement, which involves the substitution of the company as the tenant in a tenancy agreement originally held by Concord, effective from 1 November 2021.

The most recent analyst rating on (HK:0279) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Arta TechFin Corporation Limited stock, see the HK:0279 Stock Forecast page.

Arta TechFin Revises Investment Management Agreement with Concord

Arta TechFin Corporation Limited announced a supplemental agreement with Concord to amend the terms of their Investment Management Agreement (IMA). The revised terms include a management fee set at 1%, accrued monthly, and payable within 15 days after the end of each calendar month. This adjustment aims to ensure sustainable and fair investment management services amid current market conditions, aligning with the company’s strategic objectives to maintain stability in its asset management business. The directors believe these terms are fair, reasonable, and in the best interests of the company and its shareholders.

The most recent analyst rating on (HK:0279) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Arta TechFin Corporation Limited stock, see the HK:0279 Stock Forecast page.

Arta TechFin Corporation Limited Successfully Passes All Resolutions at AGM

Arta TechFin Corporation Limited announced that all proposed resolutions at its Annual General Meeting held on 29 September 2025 were passed with overwhelming support. Key resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting of mandates for share issuance and repurchase. This successful AGM indicates strong shareholder confidence and positions the company to continue its strategic initiatives.

Arta TechFin Completes Successful Share Placement

Arta TechFin Corporation Limited, listed on the Hong Kong Stock Exchange, has successfully completed the placement of 191,430,000 new shares under a general mandate. The placement, executed at HK$0.690 per share, raised approximately HK$132.1 million in gross proceeds, with net proceeds of HK$130.7 million. These funds are earmarked for repaying shareholder loans, business expansion, strategic acquisitions, and general corporate purposes. The placement resulted in a change in the company’s shareholding structure, with the new shares representing 15.04% of the enlarged share capital.

Arta TechFin Corporation Schedules AGM to Discuss Key Business Resolutions

Arta TechFin Corporation Limited has announced its upcoming annual general meeting (AGM) scheduled for September 29, 2025, in Hong Kong. The AGM will address several key business matters, including the adoption of audited financial statements, re-election of directors, and re-appointment of auditors. Additionally, the meeting will consider resolutions to authorize the board to issue additional shares, which could impact the company’s capital structure and shareholder value. This announcement underscores the company’s ongoing efforts to maintain robust governance and strategic growth initiatives.

Arta TechFin Announces Share Placement to Raise HK$132.1 Million

Arta TechFin Corporation Limited has announced a share placement agreement with Waton Securities International Limited, aiming to place up to 191,431,798 new shares at a price of HK$0.690 per share. This placement, representing approximately 17.71% of the company’s current issued share capital, is expected to raise gross proceeds of around HK$132.1 million. The move is part of the company’s strategy to enhance its capital base, although the completion of the placement is contingent upon certain conditions being met.