Power Financial Group Limited (0397) AI Stock Analysis

• Market Cap: HK$109.53M
• Dividend Yield: N/A
• Average Volume (3M): 16.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: -2.07%
• EPS Growth: -114.10%
• Country: HK
• Employees: 27
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): N/A
• Shares Outstanding: 2,281,892,800
• 10 Day Avg. Volume: 20,185,486
• 30 Day Avg. Volume: 16,231,472
• PEG Ratio: -0.03
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 3.21
• P/FCF Ratio: -5.20
• 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: 44 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by financial instability and poor valuation metrics. The company's strong equity base and low leverage provide some stability, but the inability to generate consistent positive cash flows and the bearish technical indicators weigh heavily on the score.

Power Financial Group Limited Business Overview & Revenue Model

Company Description

Power Financial Group Limited (0397) is a diversified financial services company based in Hong Kong, primarily engaged in asset management, wealth management, and financial advisory services. The company operates through various subsidiaries, providing tailored investment solutions and financial products to individual and institutional clients. With a focus on sustainable growth, Power Financial Group aims to deliver comprehensive financial strategies that enhance client portfolios and optimize asset performance.

How the Company Makes Money

Power Financial Group generates revenue through multiple streams, including management fees from its asset management services, which involve overseeing investment portfolios for clients. The company also earns commissions and fees from financial advisory services, where it offers tailored financial planning and investment advice to both individuals and businesses. Additionally, Power Financial Group may receive performance-based fees tied to the success of its investment funds. Strategic partnerships with financial institutions and investment firms further enhance its service offerings and client reach, contributing to its overall earnings.

Power Financial Group Limited Financial Statement Overview

Summary

Power Financial Group Limited shows financial instability with consistent net losses impacting profitability. While the company maintains a strong equity base and low leverage, its inability to generate consistent positive cash flows and revenue decline are significant challenges.

Income Statement

The company's revenue has seen a declining trend over the years, with a significant drop from 2023 to 2024. Gross profit margins have remained high, indicating strong cost management. However, the net profit margin is negative due to substantial net losses, primarily driven by negative net income figures in recent years. The EBIT margin was positive in 2024 but fluctuated significantly in previous years, reflecting operational instability.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating low leverage and financial stability. Stockholders' equity forms a substantial portion of total assets, suggesting a solid equity ratio. However, the company's return on equity is negative due to consistent net losses, which is a concern for profitability.

Cash Flow

The company's cash flow from operations has been inconsistent, with negative figures in several years. Free cash flow has also shown volatility, with no growth in the latest year. The inability to generate consistent positive cash flow from operations is a major concern, although the company has a significant cash position, providing some buffer.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.41M	67.88M	76.24M	72.98M	95.72M	103.65M
Gross Profit	61.41M	61.92M	73.14M	67.95M	84.72M	80.03M
EBITDA	-152.00M	-131.27M	-100.80M	-161.56M	182.89M	58.70M
Net Income	-166.74M	-143.92M	-104.06M	-171.28M	153.76M	44.19M
Balance Sheet
Total Assets	1.12B	1.17B	1.33B	1.47B	1.63B	1.46B
Cash, Cash Equivalents and Short-Term Investments	458.53M	143.35M	551.55M	602.73M	621.34M	504.83M
Total Debt	23.31M	24.59M	23.31M	25.93M	2.91M	9.15M
Total Liabilities	35.83M	40.95M	49.16M	53.85M	46.38M	33.95M
Stockholders Equity	1.08B	1.13B	1.27B	1.42B	1.58B	1.42B
Cash Flow
Free Cash Flow	3.75M	-41.89M	53.60M	76.61M	-31.59M	-173.57M
Operating Cash Flow	19.93M	-25.70M	60.33M	77.21M	-29.18M	-165.53M
Investing Cash Flow	-17.23M	-15.46M	-50.44M	-29.04M	-15.62M	7.63M
Financing Cash Flow	-13.61M	-3.52M	-41.93M	18.86M	-6.68M	-26.82M

Power Financial Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0397, the sentiment is Negative. The current price of 0.05 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.22 is Neutral, neither overbought nor oversold. The STOCH value of 71.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0397.

Power Financial Group 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%
1945	61 Neutral	HK$429.58M	92.26	0.78%	―	-21.71%	-75.78%
8029	47 Neutral	HK$327.70M	-7.07	―	―	2.72%	-195.01%
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%

Power Financial Group Limited Corporate Events

Minerva Group Reports Increased Losses in Interim Results

Minerva Group Holding Limited reported its interim financial results for the six months ending June 30, 2025, showing a decline in revenue to approximately HK$31.7 million from HK$36.5 million in the same period last year. The company also reported a significant increase in losses attributable to owners, amounting to approximately HK$36.9 million compared to HK$14 million in 2024. The board has decided not to distribute an interim dividend. Despite the financial challenges, the Group maintains a strong current ratio of 27.30 times, indicating robust liquidity. The decrease in net assets and financial assets at fair value reflects the company’s ongoing financial adjustments.

Minerva Group Issues Profit Warning for First Half of 2025

Minerva Group Holding Limited has issued a supplemental announcement regarding its profit warning for the six months ended June 30, 2025. The company anticipates a consolidated net loss of not less than HK$37 million due to a loss on fair value changes of financial assets and expected credit loss on loan and interest receivables. The financial information is still under review and subject to change, with final results expected in late August 2025. Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.

Minerva Group to Review Interim Results and Dividend Plans

Minerva Group Holding Limited has announced that its board of directors will convene on August 28, 2025, to approve the company’s interim results for the first half of 2025 and discuss the potential payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and strategic decisions, potentially impacting investor confidence and market positioning.

Minerva Group Issues Profit Warning Amidst Market Challenges

Minerva Group Holding Limited has issued a profit warning, indicating a projected consolidated net loss of no less than HK$25.1 million for the first half of 2025, compared to a HK$14.1 million loss in the same period of 2024. This increased loss is primarily due to fair value changes in financial assets and the disposal of loans and interest receivables. The Group’s investment performance has been adversely affected by the healthcare sector, and it is facing challenges in the loan market due to economic uncertainties. Despite these setbacks, Minerva is committed to evaluating its risk management strategies and maintaining a balance between risk and return.