China Financial Services Holdings Limited (0605) AI Stock Analysis

• Market Cap: HK$186.14M
• Dividend Yield: N/A
• Average Volume (3M): 416.26K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 13.28
• Revenue Growth: -25.74%
• EPS Growth: N/A
• Country: HK
• Employees: 112
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -0.14
• Shares Outstanding: 209,286,070
• 10 Day Avg. Volume: 291,900
• 30 Day Avg. Volume: 416,263
• PEG Ratio: -0.06
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 2.97
• P/FCF Ratio: 4.41
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: HK$0.96 ▲(13.41% Upside)

The score is held back primarily by weakening financial performance (shrinking revenues, negative EBIT/EBITDA, and missing operating cash flow in 2024) and a bearish longer-term technical setup (below 50/100/200-day averages with negative MACD). A low P/E provides some support, but it does not offset the operational and cash-flow risks.

Positive Factors

Diversified revenue streams

The company operates multiple fee-based lines—brokerage, asset management and corporate finance—which reduces reliance on a single revenue source. This diversification supports more stable income across cycles, enables cross-selling, and lowers single-market exposure over the medium term.

Improved leverage and equity stability

Lower debt-to-equity and reduced liabilities improve financial flexibility and reduce interest burden, aiding resilience to shocks. A return to positive ROE in 2024 suggests management is beginning to realign capital efficiency, supporting capacity for reinvestment or deleveraging over months.

Return to positive net income

Net income turned positive in 2024, providing a foundation to rebuild retained earnings and capital buffers. Sustained profitability would enhance internal funding for growth, lower dependence on external financing, and signal operational recovery if margins and cash conversion improve.

Negative Factors

Sustained revenue contraction

A multi-year top-line decline erodes scale, reduces recurring fee income and weakens operating leverage. Continued revenue contraction constrains reinvestment, raises per-unit costs, and makes sustained margin recovery and competitive positioning harder without strategic product or market changes.

Negative operating margins

Persistent negative EBIT and EBITDA margins indicate structural operating inefficiencies in core activities. Without meaningful margin improvement, profitability depends on non-operating items, undermining durable free cash generation and limiting the firm's ability to compete or invest over the medium term.

No operating cash flow in 2024

A total absence of operating cash flow in 2024 signals weakened cash generation despite prior free cash history. This undermines liquidity, forces reliance on external funding or asset sales, and constrains capex and working-capital financing, posing a structural risk to operations.

China Financial Services Holdings Limited Business Overview & Revenue Model

Company Description

China Financial Services Holdings Limited, together with its subsidiaries, provides various financial services in the People's Republic of China. The company primarily offers short-term financial services; provides direct loans, including real estate mortgage loans; mortgage loans of civil products, equity, movable properties, etc.; and loans for farmers. It also offers e-commerce and automobile supply chain finance; consumer finance, such as individual and installment credit loans; financial guarantees; financial leasing; and fund management services. China Financial Services Holdings Limited is based in Wanchai, Hong Kong.

How the Company Makes Money

The company generates revenue through multiple streams, primarily from its brokerage services, which include commissions from trading activities for both retail and institutional clients. Additionally, it earns income from asset management fees charged for managing client portfolios and investments. Corporate finance advisory services also contribute to the revenue, with fees collected for advisory services related to mergers and acquisitions, capital raising, and other financial consulting. Strategic partnerships with other financial institutions and technology providers enhance its service offerings and operational efficiency, further supporting its revenue generation efforts.

China Financial Services Holdings Limited Financial Statement Overview

Summary

Mixed fundamentals: revenue has declined materially over 2019–2024 with negative EBIT/EBITDA margins, signaling ongoing operational weakness. Positives include a return to positive net income and improved leverage (lower debt-to-equity), but the absence of operating cash flow in 2024 raises liquidity and sustainability concerns.

Income Statement

The income statement reveals a significant decline in revenue from 2019 to 2024, with a notable drop in gross profit margins. The net profit margin improved in 2024 due to a return to positive net income, but the EBIT and EBITDA margins remain negative, indicating operational inefficiencies. Revenue growth has been inconsistent, reflecting volatility in the company's core operations.

Balance Sheet

The balance sheet shows a stable equity position with a reduction in liabilities over time. The debt-to-equity ratio has decreased from previous years, indicating improved leverage management. ROE turned positive in 2024, reflecting better profitability. However, the equity ratio has been declining, suggesting a potential risk in asset financing stability.

Cash Flow

Cash flow analysis highlights strong free cash flow generation in earlier periods, but a complete lack of operational cash flows in 2024 raises concerns. Free cash flow to net income ratios were previously strong but are now non-existent, reflecting possible cash management issues. The absence of current operating cash flow data suggests operational challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	96.30M	106.95M	141.59M	212.78M	324.52M	745.03M
Gross Profit	96.30M	97.71M	126.31M	71.87M	101.87M	394.00M
EBITDA	-47.15M	-53.19M	-57.05M	7.08M	-173.90M	-785.93M
Net Income	29.96M	41.23M	-159.97M	-52.55M	-250.06M	-1.22B
Balance Sheet
Total Assets	1.67B	1.74B	2.21B	2.64B	3.37B	4.05B
Cash, Cash Equivalents and Short-Term Investments	285.75M	273.02M	481.51M	411.60M	571.67M	595.50M
Total Debt	630.49M	679.24M	1.14B	1.38B	1.80B	2.18B
Total Liabilities	955.22M	1.00B	1.51B	1.77B	2.36B	2.82B
Stockholders Equity	641.45M	657.24M	620.71M	789.73M	923.82M	1.14B
Cash Flow
Free Cash Flow	157.45M	72.17M	285.44M	246.19M	589.24M	1.16B
Operating Cash Flow	158.65M	73.37M	286.82M	247.17M	590.73M	1.16B
Investing Cash Flow	76.78M	64.62M	-18.97M	21.02M	6.59M	2.97M
Financing Cash Flow	-275.11M	-312.18M	-221.00M	-406.41M	-633.84M	-1.31B

China Financial Services Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.85
• 50DMA: Positive
• 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:0605, the sentiment is Positive. The current price of 0.85 is below the 20-day moving average (MA) of 0.91, below the 50-day MA of 0.92, and below the 200-day MA of 1.17, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0605.

China Financial Services Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1669	71 Outperform	HK$360.00M	7.35	5.24%	5.43%	-1.47%	2.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6866	64 Neutral	HK$430.70M	7.13	2.75%	4.88%	-12.94%	-15.93%
1563	59 Neutral	HK$279.00M	20.63	0.49%	―	8.77%	-76.88%
0605	53 Neutral	HK$186.14M	6.19	4.83%	―	-25.74%	―
8452	47 Neutral	HK$107.80M	-12.05	-1.99%	―	135.97%	-271.72%

China Financial Services Holdings Limited Corporate Events

China Financial Services Extends RMB18 Million Secured Loan at 14.4% Interest

China Financial Services Holdings Limited has, through its subsidiary UDSL, entered into a new loan agreement on 25 December 2025 to provide a three-month secured loan of RMB18 million to two borrowers at an annual interest rate of 14.4%, backed by a first legal charge over a residential property in Beijing’s Haidian District valued at about RMB26.76 million. The previous three‑month secured loan to the same borrowers has been fully repaid, and this new facility, which meets the thresholds for a discloseable transaction under Hong Kong listing rules, underscores the company’s ongoing deployment of capital into high-yield, collateralised lending, with implications for its revenue from interest income and its risk management through substantial real estate security.

The most recent analyst rating on (HK:0605) stock is a Hold with a HK$0.98 price target. To see the full list of analyst forecasts on China Financial Services Holdings Limited stock, see the HK:0605 Stock Forecast page.

China Financial Services Unit Grants RMB29.98 Million High-Yield Loan in Discloseable Deal

China Financial Services Holdings Limited has disclosed that its subsidiary SZCG has entered into a loan agreement with a corporate client, Customer FM, providing RMB29.98 million in financing for a six-month term at an annual interest rate of 11%, backed by a personal guarantee from a guarantor and with interest payable monthly and principal due at maturity. The size of the loan triggers a discloseable transaction classification under Hong Kong listing rules, underscoring the materiality of this credit exposure for the group and signalling its continued active participation in higher-yield lending activities, which may have implications for its risk profile and earnings from interest income.

The most recent analyst rating on (HK:0605) stock is a Hold with a HK$0.98 price target. To see the full list of analyst forecasts on China Financial Services Holdings Limited stock, see the HK:0605 Stock Forecast page.

China Financial Services Holdings Limited Announces New Loan Agreement

China Financial Services Holdings Limited announced the execution of Loan Agreement B, providing a financial assistance package of HK$20,880,000 to Customer EX and Customer FL. This loan, secured against eight commercial properties, will be used to settle an outstanding principal from a previous loan and provide working capital for Customer FL. The transaction is classified as discloseable under Hong Kong’s Listing Rules, indicating its significance to stakeholders.

The most recent analyst rating on (HK:0605) stock is a Hold with a HK$0.98 price target. To see the full list of analyst forecasts on China Financial Services Holdings Limited stock, see the HK:0605 Stock Forecast page.

China Financial Services Announces RMB17 Million Loan Agreement

China Financial Services Holdings Limited has announced a discloseable transaction involving a loan agreement with UDSL as the lender and two customers as the borrowers. The loan, amounting to RMB17,000,000 with a 14.4% annual interest rate, is secured by a mortgage on a residential property and parking spaces in Beijing. This transaction, subject to certain listing rules, highlights the company’s active role in financial assistance and its strategic positioning in the market.

The most recent analyst rating on (HK:0605) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China Financial Services Holdings Limited stock, see the HK:0605 Stock Forecast page.

China Financial Services Holdings Announces Discloseable Loan Transaction

China Financial Services Holdings Limited announced a discloseable transaction involving the provision of financial assistance through two secured loans totaling RMB12,100,000 to Customers FF and FG. The loans, granted within a 12-month period, require aggregation under Hong Kong’s Listing Rules, as they exceed certain percentage ratios, necessitating notification and announcement. The latest loan agreement, Loan B, involves a principal amount of RMB4,000,000 with a 12% interest rate, secured by a mortgage on a property in Beijing and a corporate guarantee.

The most recent analyst rating on (HK:0605) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China Financial Services Holdings Limited stock, see the HK:0605 Stock Forecast page.