Gome Finance Technology Co (0628) AI Stock Analysis

• Market Cap: HK$1.12B
• Dividend Yield: N/A
• Average Volume (3M): 422.58K
• Price to Earnings (P/E): 22.2
• Beta (1Y): -0.02
• Revenue Growth: 252.77%
• EPS Growth: -62.06%
• Country: HK
• Employees: 381
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): <0.01
• Shares Outstanding: 5,201,123,000
• 10 Day Avg. Volume: 244,586
• 30 Day Avg. Volume: 422,576
• PEG Ratio: -1.06
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 4.42
• P/FCF Ratio: -6.34
• 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: 52 Neutral
• Price Target: HK$0.20 ▲(0.50% Upside)

The score is driven mainly by mixed fundamentals: an improved income statement and a low-leverage balance sheet are offset by persistently negative operating/free cash flow and uneven profitability. Technicals further weigh on the score as the stock trades below major moving averages with weak momentum, while valuation appears mid-range based on the provided P/E.

Positive Factors

Revenue Growth

The company has shown strong revenue growth in 2024, indicating an expanding business model and increased market penetration, which can support long-term growth prospects.

Low Leverage

A low leverage position enhances financial stability and flexibility, allowing the company to navigate economic fluctuations and invest in growth opportunities without significant debt burden.

Improved Profitability

The return to profitability in 2024 suggests improved operational efficiency and cost management, which can enhance the company's ability to generate sustainable earnings over time.

Negative Factors

Negative Cash Flow

Negative cash flow indicates challenges in converting profits into cash, raising concerns about liquidity and the company's ability to fund operations and growth without external financing.

Volatile Profitability

Volatile profitability suggests inconsistency in earnings quality, which can undermine investor confidence and impact long-term financial planning and investment strategies.

Low Return on Equity

Low return on equity indicates the company is not effectively generating profits relative to its capital base, which can limit shareholder value creation and hinder long-term growth potential.

Gome Finance Technology Co Business Overview & Revenue Model

Company Description

Gome Finance Technology Co., Ltd., an investment holding company, provides various financial services in in Hong Kong and Mainland China. It operates through Commercial Factoring Business and Other Financing Services segments. The company provides commercial factoring, financial leasing, personal property pawn loans, real estate mortgage loans, and money lending services. It also offers consultancy services. The company was formerly known as Sino Credit Holdings Limited and changed its name to Gome Finance Technology Co., Ltd. in February 2017. The company was incorporated in 2002 and is headquartered in Central, Hong Kong. Gome Finance Technology Co., Ltd. is a subsidiary of Swiree Capital Limited.

How the Company Makes Money

Gome Finance Technology Co generates revenue through interest income from its lending activities, including personal loans and other credit products offered to consumers. The company may also earn fees associated with loan origination and processing. Key factors contributing to its earnings include strategic partnerships with financial institutions and leveraging technology to enhance customer acquisition and service delivery. Additionally, the company might engage in cross-selling financial products to its customer base, further diversifying its revenue streams.

Gome Finance Technology Co Financial Statement Overview

Summary

Gome Finance Technology Co displays robust financial performance, highlighted by strong revenue growth and operational efficiency. The company benefits from a high gross profit margin and solid EBIT margin, indicating efficient operations. The balance sheet shows low leverage and a high equity ratio, contributing to financial stability. However, the company faces challenges with cash flow, which poses potential risks to liquidity and operational flexibility. Improvements in net profit margins and cash flow management are needed to enhance overall financial health.

Income Statement

The company exhibited a strong revenue growth rate of 196.2% from 2023 to 2024. Gross profit margin is exceptionally high at 98.71% for 2024, indicating efficient cost management. However, net profit margin stands at 14.70%, suggesting that expenses beyond cost of goods sold still impact profitability. The EBIT margin is healthy at 25.13%, reflecting strong operational efficiency. EBITDA margin cannot be assessed due to missing data. Overall, the company shows strong growth and operational efficiency, but profitability could be further enhanced.

Balance Sheet

Gome Finance Technology Co maintains a robust financial position with a debt-to-equity ratio of 0.027, indicating low leverage and strong equity backing. The return on equity (ROE) is 1.75%, suggesting modest returns for shareholders. With an equity ratio of 87.08%, the company is heavily financed by equity, which adds to financial stability. The strong equity base and low leverage provide a solid foundation, though improvements in ROE would be beneficial.

Cash Flow

The company has struggled with cash flow, as indicated by negative operating and free cash flows in the past, although data for 2024 is unavailable for assessment. The absence of positive cash flow metrics poses a potential risk to liquidity and operational flexibility. Furthermore, the lack of recent cash flow data makes it difficult to assess any improvements in cash management strategies. Improvement in cash flow generation is needed to support growth and reduce financial risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	409.01M	269.64M	91.02M	95.30M	95.46M	114.03M
Gross Profit	405.31M	266.17M	87.62M	95.28M	62.73M	91.63M
EBITDA	59.63M	105.81M	0.00	76.05M	-122.17M	0.00
Net Income	46.24M	39.64M	37.00M	-5.64M	-127.98M	14.32M
Balance Sheet
Total Assets	2.68B	2.61B	1.70B	2.04B	2.44B	2.57B
Cash, Cash Equivalents and Short-Term Investments	73.26M	131.02M	284.38M	303.10M	247.04M	350.43M
Total Debt	95.24M	60.80M	567.00K	387.07M	879.61M	839.58M
Total Liabilities	231.55M	142.42M	18.01M	403.64M	891.10M	867.09M
Stockholders Equity	2.29B	2.27B	1.68B	1.63B	1.55B	1.70B
Cash Flow
Free Cash Flow	-64.13M	-187.88M	-84.25M	-21.65M	-52.39M	79.06M
Operating Cash Flow	-63.19M	-152.26M	-84.25M	-21.65M	-52.39M	79.06M
Investing Cash Flow	-7.17M	-22.02M	443.16M	585.59M	-60.28M	118.90M
Financing Cash Flow	0.00	-1.65M	-391.74M	-527.64M	151.00K	-155.13M

Gome Finance Technology Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.20
• 50DMA: Positive
• 100DMA: Negative
• 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:0628, the sentiment is Positive. The current price of 0.2 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.21, and below the 200-day MA of 0.26, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.63 is Neutral, neither overbought nor oversold. The STOCH value of 84.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0628.

Gome Finance Technology Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6866	69 Neutral	HK$336.30M	5.57	2.75%	4.88%	-12.94%	-15.93%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1601	64 Neutral	HK$1.39B	3.83	9.89%	7.43%	1.11%	3.98%
1563	59 Neutral	HK$290.84M	21.50	0.49%	―	8.77%	-76.88%
2003	58 Neutral	HK$1.26B	2.04	12.71%	9.77%	16.56%	110.71%
0628	52 Neutral	HK$1.12B	22.19	2.03%	―	252.77%	-62.06%