Gome Finance Technology Co (0628) AI Stock Analysis

• Market Cap: HK$1.46B
• Dividend Yield: N/A
• Average Volume (3M): 132.39K
• Price to Earnings (P/E): 21.4
• Beta (1Y): -0.37
• Revenue Growth: 209.87%
• EPS Growth: -14.29%
• Country: HK
• Employees: 381
• Sector: Financial
• Sector Strength: 75
• Industry: Financial - Credit Services
• EPS (TTM): <0.01
• Shares Outstanding: 5,201,123,000
• 10 Day Avg. Volume: 209,480
• 30 Day Avg. Volume: 132,392
• PEG Ratio: -0.99
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.68
• 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: 68 Neutral
• Price Target: ―

Gome Finance Technology Co's overall stock score reflects strong revenue growth and operational efficiency, supported by a robust balance sheet with low leverage. However, challenges with cash flow and modest net profit margins highlight areas for improvement. The technical indicators suggest moderate market momentum, while the valuation remains reasonable but lacks dividend appeal. Continued focus on cash flow management and profitability will be crucial for enhancing financial health and supporting stock performance.

Gome Finance Technology Co Business Overview & Revenue Model

Company Description

Gome Finance Technology Co (0628) is a company operating in the financial technology sector, primarily involved in providing financial services and solutions. The company focuses on consumer finance, offering products and services that cater to the financial needs of individual consumers, including loans and other credit-related services.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	269.64M	91.02M	75.10M	62.73M	75.40M
Gross Profit	266.17M	87.62M	75.10M	62.73M	75.40M
EBITDA	105.81M	0.00	0.00	0.00	0.00
Net Income	39.64M	37.00M	-5.64M	-127.98M	14.32M
Balance Sheet
Total Assets	2.61B	1.70B	2.04B	2.44B	2.57B
Cash, Cash Equivalents and Short-Term Investments	131.02M	284.38M	303.30M	247.22M	350.43M
Total Debt	60.80M	567.00K	387.07M	879.61M	839.58M
Total Liabilities	142.42M	18.01M	403.64M	891.10M	867.09M
Stockholders Equity	2.27B	1.68B	1.63B	1.55B	1.70B
Cash Flow
Free Cash Flow	-187.88M	-84.25M	-21.65M	-52.39M	79.06M
Operating Cash Flow	-152.26M	-84.25M	-21.65M	-52.39M	79.06M
Investing Cash Flow	-22.02M	443.16M	585.59M	-60.28M	118.90M
Financing Cash Flow	-1.65M	-391.74M	-527.64M	151.00K	-155.13M

Gome Finance Technology Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.28 is above the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.29, and below the 200-day MA of 0.30, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.21 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, 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
1288	82 Outperform	$2.37T	6.15	10.80%	5.00%	-0.43%	11.31%
1398	78 Outperform	HK$2.84T	5.59	9.72%	5.80%	-3.41%	-0.73%
0011	76 Outperform	$231.71B	13.08	11.23%	4.22%	-2.77%	4.04%
0628	68 Neutral	HK$1.46B	21.43	2.01%	―	209.87%	-14.29%
0023	63 Neutral	$32.59B	8.10	4.04%	6.15%	1.77%	15.22%
Sector *	58 Neutral	HK$91.09B	5.21	-3.21%	5.20%	7.36%	-55.21%
3319	46 Neutral	€4.17B	―	-29.17%	2.22%	-11.94%	-756.32%

Gome Finance Technology Co Corporate Events

Tong Tong AI Social Group Reports Significant Revenue Growth in 2024

Tong Tong AI Social Group Limited announced a substantial increase in revenue and operating profit for the year ended December 31, 2024. The company’s revenue rose by 222.1% to RMB264.1 million, while operating profit increased by 47.1% to RMB67.8 million. Despite these gains, the Board did not recommend a final dividend for the year. The results indicate a strong financial performance, reflecting the company’s successful strategic initiatives and market positioning.

Tong Tong AI Expands Control with OPCO Acquisitions

Tong Tong AI Social Group Limited has announced acquisitions of OPCO A and OPCO B through contractual arrangements, allowing effective control over their finances and operations. These acquisitions, which involve connected transactions under Hong Kong’s Listing Rules, will consolidate the financial results of both OPCOs into the company’s group results, enhancing its operational scope and economic interests.

Tong Tong AI Social Group Appoints New Chairman

Tong Tong AI Social Group Limited has announced the appointment of Mr. Zhou Yafei as the Chairman of the Board, effective March 18, 2025. Mr. Zhou, who has been an executive director since March 2021, will continue to oversee the company’s management and strategic direction, ensuring effective communication with independent directors. This leadership change is expected to reinforce the company’s strategic initiatives and operational management.

Tong Tong AI Social Group Announces Board and Committee Roles

Tong Tong AI Social Group Limited, a company incorporated in Bermuda, has announced the composition of its board of directors and the roles within its four key committees. The announcement outlines the leadership structure, which includes executive, non-executive, and independent non-executive directors, and highlights the strategic roles assigned to each committee, potentially impacting the company’s governance and strategic direction.

Tong Tong AI Social Group Schedules Board Meeting for Annual Results

Tong Tong AI Social Group Limited, a company listed on the Hong Kong Stock Exchange, has announced that its board of directors will meet on March 28, 2025, to approve the audited annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend and address other business matters.