Power Financial Group Limited (0397) AI Stock Analysis

• Market Cap: HK$139.93M
• Dividend Yield: N/A
• Average Volume (3M): 13.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: -8.06%
• EPS Growth: -50.26%
• Country: HK
• Employees: 27
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): -0.05
• Shares Outstanding: 2,371,692,600
• 10 Day Avg. Volume: 10,990,107
• 30 Day Avg. Volume: 13,022,230
• 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: 45 Neutral
• Price Target: ―

The overall score of 45 reflects significant financial challenges, including persistent net losses and poor cash flow generation. Technical indicators signal a bearish trend, and the lack of profitability is evident in the negative P/E ratio. The company must improve financial health and operational efficiency to enhance its stock performance.

Power Financial Group Limited Business Overview & Revenue Model

Company Description

Power Financial Group Limited, an investment holding company, primarily engages in the financial services business in Hong Kong. It operates through Financial Services, Money Lending, Trading, and Assets Investment segments. The company offers securities brokerage, placing, and corporate finance advisory services; and invests in debt securities, listed and unlisted equity securities, and investment funds. It also trades in healthcare related products; and provides corporate financing services. Further, it is involved in the money lending business; property holding and personnel management activities; and asset management services. The company was formerly known as Jun Yang Financial Holdings Limited and changed its name to Power Financial Group Limited in March 2018. Power Financial Group Limited is headquartered in Hong Kong, Hong Kong.

How the Company Makes Money

Power Financial Group Limited generates revenue through a combination of investment income, securities trading, and financial services. The company earns profits by managing a diversified portfolio of investments, which may include equities, bonds, and other financial instruments. It also derives income from trading activities in the securities market, where it buys and sells financial assets to capitalize on market fluctuations. Additionally, the company provides financial services such as advisory and asset management, earning fees and commissions from these services. Partnerships with other financial institutions and strategic investments in various sectors further enhance its revenue streams.

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. The company needs to focus on improving operational efficiency and profitability to enhance its financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	67.88M	74.07M	72.98M	95.72M	101.72M
Gross Profit	61.92M	69.67M	67.95M	84.72M	80.03M
EBITDA	0.00	-100.80M	-161.56M	45.63M	37.33M
Net Income	-143.92M	-104.06M	-348.83M	153.76M	44.19M
Balance Sheet
Total Assets	1.17B	1.33B	1.47B	1.63B	1.46B
Cash, Cash Equivalents and Short-Term Investments	143.35M	551.55M	602.73M	621.34M	489.04M
Total Debt	0.00	23.31M	25.93M	2.91M	9.15M
Total Liabilities	40.95M	49.16M	53.85M	46.38M	33.95M
Stockholders Equity	1.13B	1.27B	1.42B	1.58B	1.42B
Cash Flow
Free Cash Flow	-41.89M	48.35M	76.61M	-31.59M	-173.57M
Operating Cash Flow	-25.70M	60.33M	77.21M	-29.18M	-165.53M
Investing Cash Flow	-15.46M	-50.44M	-29.04M	-15.62M	7.63M
Financing Cash Flow	-3.52M	-41.93M	18.86M	-6.68M	-26.82M

Power Financial Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.06
• 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 Neutral. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.64 is Neutral, neither overbought nor oversold. The STOCH value of 59.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$17.48B	11.72	10.44%	3.82%	10.01%	1.29%
1945	56 Neutral	HK$393.54M	30.25	2.12%	―	-20.33%	-21.84%
0888	51 Neutral	HK$111.61M	―	-60.30%	―	24.20%	-31.72%
0397	45 Neutral	HK$139.93M	―	-11.96%	―	-8.06%	-50.26%
3623	45 Neutral	HK$749.24M	―	-12.79%	―	91.55%	-12.94%
8029	41 Neutral	HK$135.37M	―		―	2.72%	-195.01%
0279	35 Underperform	HK$940.55M	―		―	156.41%	21.56%

Power Financial Group Limited Corporate Events

Minerva Group Clarifies AGM Shareholder Registration Dates

Minerva Group Holding Limited, listed on the Stock Exchange of Hong Kong, has announced a clarification regarding the closure of its register of members for its upcoming Annual General Meeting (AGM). The company has specified that the register will be closed from June 10 to June 13, 2025, to determine shareholders eligible to attend and vote at the AGM. The announcement ensures that shareholders are informed of the correct dates for share transfer registration, maintaining transparency and accuracy in shareholder communications.

Minerva Group Announces Annual General Meeting and Share Repurchase Plan

Minerva Group Holding Limited has announced its annual general meeting scheduled for June 13, 2025, in Hong Kong. The meeting will address several key agenda items, including the adoption of the company’s financial statements for 2024, the re-election of executive directors, and the re-appointment of the company’s auditor. Additionally, a resolution will be considered to authorize the directors to repurchase up to 10% of the company’s shares, a move that could impact shareholder value and market perception.

Minerva Group Reports Increased Losses in 2024 Financial Results

Minerva Group Holding Limited, a company incorporated in Bermuda, reported its annual financial results for the year ended December 31, 2024. The company experienced a decrease in revenue to approximately HK$68.9 million from HK$74.1 million in the previous year and reported a loss attributable to owners of HK$143.9 million, an increase from the previous year’s loss of HK$104.1 million. The company held financial assets valued at HK$411.0 million and had a current ratio of 24.79 times, indicating strong liquidity despite the financial losses. The board decided not to recommend a final dividend for the year.

Minerva Group Issues Profit Warning Amid Economic Challenges

Minerva Group Holding Limited has issued a supplemental announcement regarding its profit warning for the fiscal year ending December 31, 2024. The company anticipates a consolidated net loss of no less than HK$144 million, driven by a loss on fair value changes of financial assets and an expected credit loss on loan and interest receivables. The group’s investment performance has been adversely impacted by the downturn in the healthcare sector and broader economic challenges in Hong Kong, including a deceleration in GDP growth and rising credit difficulties. These factors have contributed to increased financial losses and highlight the challenging economic environment the company is navigating.