Emperor Capital Group Limited (0717) AI Stock Analysis

• Market Cap: HK$653.86M
• Dividend Yield: N/A
• Average Volume (3M): 32.58M
• Price to Earnings (P/E): 4.4
• Beta (1Y): 2.09
• Revenue Growth: 84.88%
• EPS Growth: 122.45%
• Country: HK
• Employees: 126
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.01
• Shares Outstanding: 6,740,845,700
• 10 Day Avg. Volume: 37,458,897
• 30 Day Avg. Volume: 32,584,838
• PEG Ratio: -0.06
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 1.72
• P/FCF Ratio: 1.20
• 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: 58 Neutral
• Price Target: HK$0.11 ▲(18.89% Upside)

The overall stock score reflects a strong financial performance with improved profitability and cash flow management. However, the bearish technical indicators and lack of dividend yield weigh down the score. The stock's reasonable valuation provides some support, but the absence of earnings call insights and corporate events leaves some uncertainty.

Positive Factors

Cash Flow Management

The company's robust cash generation capability and efficient cash earnings indicate strong financial health and operational efficiency, supporting long-term sustainability.

Balance Sheet Strength

Minimal leverage and a robust equity ratio reflect financial stability, providing a solid foundation for future growth and resilience against economic fluctuations.

Profitability Improvement

Improved profitability and strong cost management enhance the company's competitive position and ability to reinvest in growth opportunities.

Negative Factors

Revenue Decline

A significant revenue decline poses challenges to growth and market competitiveness, potentially impacting long-term financial performance if not addressed.

Market Position

Ongoing revenue challenges may hinder the company's ability to expand its market share and capitalize on new opportunities in the financial services sector.

Industry Challenges

The absence of recent strategic initiatives or partnerships may indicate a lack of proactive measures to address industry challenges and drive future growth.

Emperor Capital Group Limited Business Overview & Revenue Model

Company Description

Emperor Capital Group Limited, an investment holding company, provides various financial services in Hong Kong, the United States, and internationally. The company operates through Financing, Brokerage Services, Placing and Underwriting, and Corporate Finance segments. It offers commercial and personal lending services comprising short-term unsecured loans, such as tax loans, bridging loans, term loans, and personal loans, as well as long-term secured loans, including property mortgage loans; margin and initial public offering (IPO) financing services; and liquidity solutions to corporate and retail clients. The company also provides brokerage services for securities, futures, and options traded on the exchanges in Hong Kong, Mainland China, and overseas countries; investment services, such as securities, mutual funds, insurance-linked products, and real estate investments; asset management services; and discretionary investment services. In addition, it offers placing and underwriting services, as well as acts as a placing agents and underwriters for various Hong Kong-listed companies; and corporate finance advisory services on takeovers code related transactions and undertakes sponsor work for IPOs, as well as advisory services for corporate transactions, including placing, rights issue, corporate restructuring, and merger and acquisition services. Further, the company provides a web-based and mobile trading platforms, which enable real-time transaction and investment portfolio monitoring. It also offers promotion and marketing and business development services. Emperor Capital Group Limited was founded in 1993 and is headquartered in Wanchai, Hong Kong.

How the Company Makes Money

Emperor Capital Group Limited generates revenue through multiple streams including fees from corporate finance advisory services, commissions from securities brokerage transactions, and management fees from asset management services. The company also earns performance-related fees based on the success of investment funds it manages. Additionally, strategic partnerships with other financial institutions and access to capital markets enhance its service offerings and contribute to revenue growth. Market demand for advisory services and investment products, along with the company's ability to leverage its expertise in financial markets, play crucial roles in its overall earnings.

Emperor Capital Group Limited Financial Statement Overview

Summary

Emperor Capital Group Limited has shown a commendable recovery with improved profitability and cash flow management. The company maintains a strong balance sheet with low leverage and a robust equity position. However, the revenue contraction poses a risk.

Income Statement

Emperor Capital Group Limited has demonstrated a significant improvement in profitability over the last year. The gross profit margin for the latest period is approximately 71.7%, showing strong cost management. The net profit margin has turned positive to about 19.9%, indicating a successful turnaround from previous losses. However, the revenue has decreased by 16.6% from the prior year, which is a concern. EBIT was neutral, and EBITDA margins were around 21.6%, showing improved operational efficiency despite a challenging revenue environment.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of approximately 0.004, indicating minimal leverage. The equity ratio is robust at 65.5%, reflecting financial stability and a strong asset base. Return on equity has improved to 1.9%, suggesting better profitability for shareholders, although there's room for further enhancement.

Cash Flow

Cash flow analysis shows strong free cash flow growth of 28.2% over the previous year, demonstrating improved cash generation capability. The operating cash flow to net income ratio is exceptionally high at 7.25, indicating efficient cash earnings. Additionally, the free cash flow to net income ratio is also strong at 7.19, underscoring robust cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	604.12M	333.84M	450.30M	167.91M	684.03M	928.67M
Gross Profit	604.12M	239.30M	286.47M	465.62M	621.11M	870.07M
EBITDA	87.89M	77.22M	-119.46M	-249.36M	-447.38M	-554.53M
Net Income	80.85M	66.36M	-160.64M	-299.23M	-576.09M	-689.75M
Balance Sheet
Total Assets	5.57B	5.27B	5.19B	5.69B	6.80B	10.02B
Cash, Cash Equivalents and Short-Term Investments	1.81B	1.26B	1.00B	1.02B	1.02B	852.03M
Total Debt	7.98M	12.42M	232.08M	437.79M	884.66M	3.79B
Total Liabilities	2.06B	1.82B	1.80B	2.14B	2.95B	5.59B
Stockholders Equity	3.51B	3.46B	3.39B	3.55B	3.85B	4.43B
Cash Flow
Free Cash Flow	823.55M	477.18M	372.26M	444.60M	3.34B	-1.60B
Operating Cash Flow	827.67M	481.30M	375.69M	452.29M	3.34B	-1.59B
Investing Cash Flow	1.40M	-4.10M	-3.43M	-4.17M	-274.00K	-1.07M
Financing Cash Flow	-8.01M	-218.69M	-230.80M	-451.39M	-2.91B	699.98M

Emperor Capital Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0717, the sentiment is Neutral. The current price of 0.09 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.05 is Neutral, neither overbought nor oversold. The STOCH value of 59.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0717.

Emperor Capital Group Limited 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%
0717	58 Neutral	HK$653.86M	4.36	4.26%	―	84.88%	122.45%
1461	56 Neutral	HK$701.33M	17.60	1.41%	2.39%	-18.72%	-45.10%
8540	54 Neutral	HK$962.85M	20.56	23.05%	0.66%	214.77%	―
1788	53 Neutral	HK$26.54B	36.36	4.78%	2.75%	32.03%	154.14%
0227	52 Neutral	HK$602.44M	37.68	0.63%	―	3.07%	-72.40%
0952	45 Neutral	HK$878.86M	-10.45	-4.03%	―	173.24%	-515.63%

Emperor Capital Group Limited Corporate Events

Emperor Capital Profit More Than Doubles on Surging Global Markets Business

Emperor Capital Group Limited reported a strong improvement in its 2024/2025 annual results, with total revenue rising 37.3% year-on-year to HK$729.9 million, driven primarily by a 94.5% surge in its global financial markets business, while financing and corporate finance revenues declined. Net profit more than doubled to HK$146.9 million, helped by a sharp reduction in impairment allowances on margin loans and other advances, underscoring the group’s focus on expanding its global markets franchise amid a recovering Hong Kong capital market supported by robust IPO activity, revived trading sentiment and policy tailwinds such as the New Capital Investment Entrant Scheme and the Federal Reserve’s rate cut.

The most recent analyst rating on (HK:0717) stock is a Hold with a HK$0.11 price target. To see the full list of analyst forecasts on Emperor Capital Group Limited stock, see the HK:0717 Stock Forecast page.

Emperor Capital Group Announces Appointment of New Executive Director

Emperor Capital Group Limited has announced the appointment of Mr. Chu Raymond as an Executive Director and a member of the Executive Committee, effective from January 1, 2026. Bringing over 30 years of extensive experience in the financial industry, Mr. Chu is expected to bolster the company’s strategic planning and operational leadership, reflecting the Group’s commitment to strengthening its management team and enhancing its market position.

The most recent analyst rating on (HK:0717) stock is a Hold with a HK$0.11 price target. To see the full list of analyst forecasts on Emperor Capital Group Limited stock, see the HK:0717 Stock Forecast page.

Emperor Capital Group Schedules Board Meeting for Annual Results and Dividend Decision

Emperor Capital Group Limited announced that its board of directors will meet on 18 December 2025 to approve the annual results for the year ended 30 September 2025 and consider a final dividend payment. This meeting is significant as it will determine the company’s financial performance and potential returns for shareholders, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0717) stock is a Hold with a HK$0.11 price target. To see the full list of analyst forecasts on Emperor Capital Group Limited stock, see the HK:0717 Stock Forecast page.

Emperor Capital Group Projects Significant Profit Increase

Emperor Capital Group Limited has announced a positive profit alert, expecting to record a net profit of not less than HK$120.0 million for the year ended 30 September 2025, a significant increase from HK$66.4 million in 2024. This growth is attributed to a decrease in net impairment allowance for loans and an increase in revenue, with the final audited results to be published in December 2025.