Emperor Capital Group Limited (0717) AI Stock Analysis

• Market Cap: HK$593.19M
• Dividend Yield: N/A
• Average Volume (3M): 53.91M
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.83
• Revenue Growth: -4.56%
• EPS Growth: N/A
• Country: HK
• Employees: 126
• Sector: Financial
• Sector Strength: 76
• Industry: Financial - Capital Markets
• EPS (TTM): <0.01
• Shares Outstanding: 6,740,845,700
• 10 Day Avg. Volume: 32,424,650
• 30 Day Avg. Volume: 53,914,006
• PEG Ratio: 0.04
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.30
• 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: 69 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall score reflects strong financial performance and attractive valuation, supported by a solid balance sheet and efficient cash management. Technical indicators show positive momentum but highlight potential overbought conditions. The absence of earnings call data and corporate events means these factors did not influence the score.

Emperor Capital Group Limited Business Overview & Revenue Model

Company Description

Emperor Capital Group Limited (0717) is a financial services company based in Hong Kong, specializing in a wide range of financial solutions. The company operates in sectors like brokerage services, wealth management, and investment advisory, catering to both individual and institutional clients. Its core offerings include securities trading, margin financing, corporate finance, and asset management services.

How the Company Makes Money

Emperor Capital Group Limited generates revenue through multiple streams within the financial services sector. The company earns money primarily from brokerage commissions on securities trading, interest income from margin financing, and advisory fees from its wealth management and corporate finance services. Additionally, the asset management division contributes to revenue through management fees and performance-based incentives. The company's earnings are also supported by strategic partnerships with financial institutions and a strong client base in the Hong Kong market, which help to enhance its service offerings and expand market reach.

Emperor Capital Group Limited Financial Statement Overview

Summary

Emperor Capital Group Limited has shown a commendable recovery with improved profitability and cash flow management. Despite a revenue decline, the strong balance sheet with low leverage and improved financial ratios provide a solid foundation.

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
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
333.84M	400.43M	516.09M	684.03M	928.67M
	Gross Profit
239.30M	286.47M	465.62M	621.11M	870.07M
	EBIT
2.99M	-49.45M	54.73M	-180.21M	-235.40M
	EBITDA
77.22M	-119.46M	-249.36M	-447.38M	-550.26M
	Net Income Common Stockholders
66.36M	-160.64M	-299.23M	-576.09M	-689.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.26B	1.00B	1.02B	1.02B	852.03M
	Total Assets
5.27B	5.19B	5.69B	6.80B	10.02B
	Total Debt
12.42M	232.08M	437.79M	884.66M	3.79B
	Net Debt
-1.25B	-770.19M	-583.01M	-139.40M	2.94B
	Total Liabilities
1.82B	1.80B	2.14B	2.95B	5.59B
	Stockholders Equity
3.46B	3.39B	3.55B	3.85B	4.43B
Cash Flow		Free Cash Flow
477.18M	372.26M	444.60M	3.34B	-1.60B
	Operating Cash Flow
481.30M	375.69M	452.29M	3.34B	-1.59B
	Investing Cash Flow
-4.10M	-3.43M	-4.17M	-274.00K	-1.07M
	Financing Cash Flow
-218.69M	-230.80M	-451.39M	-2.91B	699.98M

Emperor Capital Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 0.09 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.07, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.97 is Neutral, neither overbought nor oversold. The STOCH value of 31.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1099	78 Outperform	HK$57.51B	7.53	9.19%	4.01%	-3.94%	-23.48%
0717	69 Neutral	HK$593.19M	7.33	2.36%	―	-4.56%	―
Sector *	65 Neutral	$12.76B	9.91	7.89%	78.91%	12.06%	-7.95%
6886	64 Neutral	$158.09B	8.18	9.25%	4.56%	-25.29%	17.94%
1788	53 Neutral	HK$10.75B	31.04	2.31%	3.54%	37.06%	72.51%

Emperor Capital Group Limited Corporate Events

Emperor Capital Group Proposes Significant Share Option Grant

Emperor Capital Group Limited has announced the proposed grant of 337,042,286 share options to Ms. Fan Man Seung, Vanessa, an executive director, under its share option scheme. This move is intended to reward her past contributions and incentivize her continued involvement in the company’s growth. The options, which are vested immediately upon grant, have a ten-year validity and are not subject to performance targets, reflecting the company’s strategy to offer flexible incentives to its key personnel.

Emperor Capital Group Reports Robust Revenue Growth in Interim Results

Emperor Capital Group Limited announced a significant increase in total revenue by 117% to HK$402.6 million for the six months ending March 31, 2025, driven largely by a 463% surge in its wealth solutions segment. The company’s strategic focus on wealth solutions, bolstered by the new Capital Investment Entrant Scheme, has led to a notable rise in net profit by 35% to HK$56.1 million, reflecting its strengthened market position and growth potential in the financial services industry.

Emperor Capital Group Schedules Board Meeting for Interim Results

Emperor Capital Group Limited has announced that its board of directors will convene on May 22, 2025, to approve the interim results for the six months ending March 31, 2025, and to consider any interim dividend payments. This meeting is significant as it will provide insights into the company’s financial health and strategic direction, potentially impacting investor confidence and market positioning.

Emperor Capital Group Announces Board Composition and Committee Roles

Emperor Capital Group Limited has announced the composition of its board of directors and the roles within its board committees. The board comprises executive directors, including Chairperson Ms. Daisy Yeung and Ms. Fan Man Seung, Vanessa, along with independent non-executive directors Mr. Wong Tak Ming, Gary, Mr. Yu King Tin, and Ms. Chan Sim Ling, Irene. The announcement outlines the membership of five board committees, highlighting the leadership and participation of each director in these committees. This update reflects the company’s governance structure, which may impact its strategic decision-making and operational oversight.