Asia Financial Holdings (0662) AI Stock Analysis

• Market Cap: HK$4.27B
• Dividend Yield: 4.22%
• Average Volume (3M): 33.40K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.35
• Revenue Growth: 30.47%
• EPS Growth: 87.85%
• Country: HK
• Employees: 364
• Sector: Financial
• Sector Strength: 72
• Industry: Insurance - Life
• EPS (TTM): 0.46
• Shares Outstanding: 924,142,000
• 10 Day Avg. Volume: 14,600
• 30 Day Avg. Volume: 33,400
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$5.00
• Price Target Upside: 8.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: HK$5.00 ▲(8.46% Upside)

Asia Financial Holdings scores highly due to strong financial performance and attractive valuation. The robust revenue growth, high profit margins, and solid balance sheet provide a solid foundation. The technical analysis indicates a neutral market sentiment, which slightly tempers the overall score. The absence of recent earnings call data and corporate events means these factors did not impact the score.

Asia Financial Holdings Business Overview & Revenue Model

Company Description

Asia Financial Holdings Limited underwrites general and life insurance in Hong Kong, Macau, and Mainland China. It operates through in segments, Insurance and Corporate. The company is involved in securities trading, holding, and other businesses; and provision of mortgage loan financing, nominee, and health care services. It also engages in the property investment activities. The company was incorporated in 1991 and is headquartered in Central, Hong Kong. Asia Financial Holdings Limited is a subsidiary of Claremont Capital Holdings Ltd.

How the Company Makes Money

Asia Financial Holdings makes money through its diverse portfolio of insurance products and financial services. The company's primary revenue stream comes from underwriting general and life insurance policies. It earns premiums from policyholders and invests these premiums in a range of financial instruments to generate investment income. Additionally, Asia Financial Holdings benefits from its strategic partnerships and joint ventures, which provide access to new markets and expand its client base. The company's investment activities also contribute significantly to its earnings, as it seeks to optimize returns from its investment portfolio across different asset classes.

Asia Financial Holdings Financial Statement Overview

Summary

Asia Financial Holdings exhibits strong financial health, driven by robust revenue and profit growth, a solid balance sheet with low leverage, and improved cash flow generation. The company benefits from high margins and financial stability, positioning it well within the life insurance sector. Continued focus on enhancing cash flow conversion could further strengthen its financial position.

Income Statement

Asia Financial Holdings has demonstrated strong revenue growth, with a significant increase from 2023 to 2024, reflecting a 23.63% growth rate. Gross and net profit margins are robust at 100% and 24.56% respectively, indicating excellent profitability. The EBIT and EBITDA margins of 28.63% and 29.25% further highlight operational efficiency. Consistent growth and high margins suggest a strong competitive position in the market.

Balance Sheet

The company maintains a very strong balance sheet with a low debt-to-equity ratio of 0.00024, indicating minimal leverage and financial stability. The equity ratio stands at 71.49%, underscoring a solid capital structure. Return on equity is healthy at 5.54%, showcasing effective utilization of shareholder funds. The low debt levels and high equity ratio reflect financial prudence and stability.

Cash Flow

There has been a remarkable turnaround in free cash flow, shifting from negative to positive over the last year, with a growth rate of 119.39%. The operating cash flow to net income ratio is 0.20, indicating a reasonable conversion of net income into operating cash flow. However, the overall cash flow generation relative to net income could be improved. The significant improvement in free cash flow is a positive development.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.63B	2.13B	1.56B	1.76B	1.45B
Gross Profit	2.63B	2.13B	1.56B	1.76B	1.45B
EBITDA	770.62M	493.80M	250.12M	717.40M	305.35M
Net Income	647.07M	346.75M	199.91M	677.62M	337.95M
Balance Sheet
Total Assets	16.33B	15.04B	15.64B	15.39B	15.92B
Cash, Cash Equivalents and Short-Term Investments	8.00B	1.13B	8.15B	8.36B	9.65B
Total Debt	2.77M	3.78M	5.87M	4.34M	3.54M
Total Liabilities	4.66B	4.29B	5.15B	5.01B	4.86B
Stockholders Equity	11.68B	10.75B	10.49B	10.38B	11.00B
Cash Flow
Free Cash Flow	119.68M	-616.95M	-1.12B	-115.97M	-30.65M
Operating Cash Flow	131.98M	-602.02M	-1.11B	-110.51M	-17.32M
Investing Cash Flow	32.26M	173.11M	252.72M	186.41M	-396.05M
Financing Cash Flow	-116.06M	-97.55M	-125.43M	-130.64M	-210.82M

Asia Financial Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0662, the sentiment is Positive. The current price of 4.61 is below the 20-day moving average (MA) of 4.72, above the 50-day MA of 4.43, and above the 200-day MA of 3.98, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.77 is Neutral, neither overbought nor oversold. The STOCH value of 10.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0662.

Asia Financial Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0662	75 Outperform	HK$4.27B	6.62	5.77%	4.22%	30.47%	87.85%
Sector *	68 Neutral	$17.49B	11.70	10.34%	3.85%	9.75%	0.63%
MNA1	―	€1.31B	22.22	4.34%	―	―	―
1669	74 Outperform	HK$296.00M	6.47	4.93%	6.76%	2.95%	-9.06%

Asia Financial Holdings Corporate Events

Asia Financial Holdings Reports Unusual Share Movements

Asia Financial Holdings Limited has observed unusual fluctuations in its share price and trading volume on the Hong Kong Stock Exchange. The company’s board has investigated and found no underlying reasons or undisclosed information that could explain these movements. The company assures that its operations and financial position remain stable, advising shareholders and potential investors to exercise caution.

Asia Financial Holdings Announces Board Composition and Governance Structure

Asia Financial Holdings Limited has announced the composition of its Board of Directors, detailing the roles and functions of each member. The board includes a mix of executive, non-executive, and independent non-executive directors, with eight committees overseeing different aspects of the company’s governance. This structured approach to corporate governance is likely to enhance the company’s operational efficiency and strengthen its position in the financial services industry.

Asia Financial Holdings Announces Board Changes

Asia Financial Holdings Limited announced changes in its board of directors, effective June 2, 2025. Mr. Kawauchi Yuji has resigned as a non-executive director due to a job relocation, and Mr. Morito Tetsuya has been appointed as his replacement. Mr. Morito brings nearly 30 years of experience in corporate development and strategic planning within the insurance and healthcare sectors. His appointment is expected to enhance the company’s strategic capabilities and strengthen its market positioning.

Asia Financial Holdings Announces Unanimous Approval of AGM Resolutions

Asia Financial Holdings Limited announced the results of its 2025 Annual General Meeting, where all proposed resolutions were passed with overwhelming support. Key resolutions included the approval of the audited financial statements, declaration of a final dividend, re-election of directors, and granting of mandates to issue and repurchase shares. The unanimous approval of these resolutions reflects strong shareholder confidence and positions the company for continued strategic growth and operational efficiency.