Power Financial Group Limited (0397) AI Stock Analysis

• Market Cap: HK$114.09M
• Dividend Yield: N/A
• Average Volume (3M): 16.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• 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: 42 Neutral
• Price Target: HK$0.04 ▼(-14.00% Downside)

The overall stock score is primarily impacted by the company's financial instability, with consistent net losses and declining revenue. Technical analysis indicates a bearish trend, and valuation metrics are poor due to negative earnings. The absence of earnings call data and corporate events does not affect the score.

Positive Factors

Strong Equity Position

A strong equity base with low leverage provides financial stability, allowing the company to withstand economic downturns and invest in growth opportunities.

Gross Profit Margins

High gross profit margins reflect effective cost control and pricing strategies, which can sustain profitability even amid revenue challenges.

Cash Position

A strong cash position offers a financial cushion, enabling the company to manage operational needs and invest strategically despite cash flow volatility.

Negative Factors

Consistent Net Losses

Ongoing net losses undermine profitability and can erode shareholder value, posing a risk to long-term financial health and investor confidence.

Revenue Decline

A persistent decline in revenue indicates challenges in market competitiveness and demand, potentially impacting future growth prospects and market position.

Negative Cash Flow

Negative cash flow from operations limits the company's ability to fund growth initiatives and meet financial obligations, affecting long-term sustainability.

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 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: Positive
• Last Price: 0.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0397, the sentiment is Positive. The current price of 0.05 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.05, and below the 200-day MA of 0.06, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.85 is Neutral, neither overbought nor oversold. The STOCH value of 111.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$444.60M	95.48	0.78%	―	-21.71%	-75.78%
8029	52 Neutral	HK$352.90M	-8.64	―	―	-20.98%	-7.44%
0279	46 Neutral	HK$725.34M	-13.83	-499.08%	―	191.15%	-1.98%
0888	45 Neutral	HK$115.75M	-2.61	-174.97%	―	-7.34%	-302.50%
3623	44 Neutral	HK$643.28M	-17.11	-9.25%	―	-66.98%	-115.16%
0397	42 Neutral	HK$114.09M	-0.75	-14.21%	―	-2.07%	-114.10%