Arta TechFin Corporation Limited (0279) AI Stock Analysis

• Market Cap: HK$886.50M
• Dividend Yield: N/A
• Average Volume (3M): 352.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.17
• Revenue Growth: 156.41%
• EPS Growth: 21.56%
• Country: HK
• Employees: 30
• Sector: Financial
• Sector Strength: 71
• Industry: Financial - Conglomerates
• EPS (TTM): -0.03
• Shares Outstanding: 1,081,097,300
• 10 Day Avg. Volume: 83,470
• 30 Day Avg. Volume: 352,602
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 35 Underperform
• Price Target: ―

Arta TechFin Corporation Limited's stock score is low due to significant financial challenges, including negative earnings and cash flow issues, alongside high leverage and negative equity. Technical analysis indicates bearish momentum without signs of a near-term reversal. The overall valuation is weak, with a negative P/E ratio and no dividends. Immediate financial restructuring and cost management are critical to improving the company's financial health.

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 Limited makes money through a variety of revenue streams, primarily revolving around its fintech solutions and financial services. The company earns income from fees and commissions on financial transactions, management fees for wealth and asset management services, and advisory fees for financial consultancy and investment services. Additionally, Arta TechFin may generate revenue through partnerships and collaborations with other financial institutions, leveraging its technology platform to offer co-branded services or solutions. The company's earnings are further supported by strategic investments and the development of proprietary fintech products that address specific market needs.

Arta TechFin Corporation Limited Financial Statement Overview

Summary

Arta TechFin Corporation Limited faces significant financial challenges. Income statement shows potential revenue growth but struggles with profitability and high leverage. Balance sheet indicates financial instability with high debt and negative equity. Cash flow highlights liquidity issues, with positive financing cash flow driven by unsustainable debt increases.

Income Statement

The income statement shows significant challenges with persistent net losses and negative EBIT and EBITDA margins. The gross profit margin is also negative, indicating cost issues. However, there is a notable increase in revenue in the most recent year, suggesting potential for future growth if cost structures can be managed.

Balance Sheet

The balance sheet reveals financial instability with negative stockholders' equity and high debt levels, reflected in a negative equity ratio and a concerning debt-to-equity ratio. This indicates potential solvency issues and a need for financial restructuring.

Cash Flow

The cash flow statement highlights negative free cash flow and operating cash flow, emphasizing liquidity challenges. While financing cash flow appears positive, it is primarily due to increased debt, which may not be sustainable long-term.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	31.48M	23.33M	7.93M	48.93M	33.27M	71.24M
Gross Profit	29.18M	-6.13M	6.60M	36.74M	20.32M	10.79M
EBITDA	-23.61M	-51.08M	-80.24M	-44.05M	-36.08M	-709.91M
Net Income	-37.65M	-62.92M	-89.92M	2.77B	-701.69M	-3.84B
Balance Sheet
Total Assets	119.05M	130.88M	117.48M	133.28M	1.42B	1.12B
Cash, Cash Equivalents and Short-Term Investments	69.00M	90.74M	65.37M	69.81M	399.04M	149.60M
Total Debt	0.00	37.86M	66.68M	47.23M	3.05B	2.77B
Total Liabilities	61.52M	54.05M	83.83M	68.60M	4.39B	3.45B
Stockholders Equity	57.34M	76.83M	33.65M	64.69M	-2.97B	-2.33B
Cash Flow
Free Cash Flow	-21.52M	-53.74M	-71.33M	109.32M	-175.74M	-73.91M
Operating Cash Flow	-20.98M	-52.87M	-63.30M	109.82M	-174.87M	-73.91M
Investing Cash Flow	-5.13M	9.75M	-26.57M	-433.91M	-360.00K	-25.40M
Financing Cash Flow	38.11M	77.38M	76.65M	-7.39M	422.88M	29.57M

Arta TechFin Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 0.82 is below the 20-day moving average (MA) of 0.87, above the 50-day MA of 0.80, and above the 200-day MA of 0.76, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.26 is Neutral, neither overbought nor oversold. The STOCH value of 40.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6058	73 Outperform	HK$3.04B	32.90	2.90%	1.32%	37.85%	69.85%
Sector *	65 Neutral	£5.47B	8.77	9.49%	5.10%	10.05%	-13.15%
0888	51 Neutral	HK$117.13M	―	-60.30%	―	24.20%	-31.72%
3623	45 Neutral	HK$749.24M	―	-12.79%	―	91.55%	-12.94%
0279	35 Underperform	HK$886.50M	―		―	156.41%	21.56%
597	―	€167.50M	―	-91.79%	―	―	―
0397	45 Neutral	HK$135.19M	―	-11.96%	―	-8.06%	-50.26%