Gome Finance Technology Co (0628) AI Stock Analysis

• Market Cap: HK$988.21M
• Dividend Yield: N/A
• Average Volume (3M): 422.58K
• Price to Earnings (P/E): 19.8
• Beta (1Y): -0.05
• 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$0.21 ▲(6.00% 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

Very low leverage

A very low debt-to-equity ratio and conservative balance sheet materially reduce financial distress and interest burden risk. Over 2–6 months this supports flexibility to withstand credit cycles, finance growth or absorb loan losses without relying on costly external financing.

Return to profitability & revenue rebound

A meaningful revenue rebound and return to positive net income indicate improved core business traction and pricing/collection execution. Sustained revenue growth improves odds of scalable margins and supports strategic reinvestment if management maintains disciplined cost and credit controls.

Large equity base

A sizable equity cushion relative to assets strengthens solvency and regulatory capital for a credit-services firm. This durable capital base enables longer-term lending activity, supports countercyclical provisioning and reduces risk of forced capital raises during stress periods.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flow despite accounting profits signals weak cash conversion and working-capital strain in the credit model. Over months this raises refinancing, liquidity and execution risks, and can force dependence on external funding or slower growth.

Volatile profitability

Significant swings between losses and profits show uneven earnings quality and make forecasting difficult. For a lender, this implies sensitivity to credit cycles and underwriting execution; persistent volatility can hinder strategic planning and investor confidence over the medium term.

Low shareholder returns (low ROE)

Low-single-digit ROE indicates the company is not generating strong returns on capital, limiting its ability to self-fund growth or reward investors. Over 2–6 months this constrains capital allocation flexibility and could pressure management to alter strategy or seek dilutive funding.

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

Income statement improved with a return to profitability and strong 2024 revenue growth, and the balance sheet is conservatively positioned with very low leverage. However, operating and free cash flow are negative in 2023–2024 despite positive net income, and profitability has been volatile across years, which materially weakens earnings quality.

Income Statement

Profitability improved meaningfully in 2024, with revenue up ~44% year over year and net income positive (vs. losses in 2021–2022). Reported gross profitability and operating profitability are very strong in 2024, supporting earnings quality on the income statement. Offsetting this, results have been volatile across the period (large loss in 2021, loss again in 2022), and net margin compressed sharply from 2023 to 2024 despite the revenue rebound—suggesting profitability is not yet consistently durable.

Balance Sheet

The balance sheet looks conservatively positioned in 2024 with very low leverage (debt-to-equity ~0.03) and a large equity base relative to assets. This is a major improvement versus 2019–2021 when leverage was materially higher. The key weakness is modest shareholder returns (return on equity in the low-single-digits in 2023–2024), indicating the company is not generating strong profits relative to its capital base despite the healthier leverage profile.

Cash Flow

Cash generation is the main pressure point: operating cash flow and free cash flow are negative in 2023 and 2024, even while net income is positive in those years. The step-down is notable versus 2020 when operating cash flow and free cash flow were positive. While free cash flow losses narrowed year over year in 2024 (per the provided growth figure), the business is not currently converting accounting profits into cash, which raises execution and working-capital/collection risk for a credit-services model.

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: Negative
• Last Price: 0.20
• 50DMA: Negative
• 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:0628, the sentiment is Negative. 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 0.25, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 34.93 is Neutral, neither overbought nor oversold. The STOCH value of 27.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1601	64 Neutral	HK$1.36B	3.74	9.89%	7.43%	1.11%	3.98%
6866	64 Neutral	HK$430.70M	7.13	2.75%	4.88%	-12.94%	-15.93%
1563	59 Neutral	HK$282.38M	20.88	0.49%	―	8.77%	-76.88%
2003	58 Neutral	HK$1.07B	1.73	12.71%	9.77%	16.56%	110.71%
0628	52 Neutral	HK$988.21M	19.79	2.03%	―	252.77%	-62.06%