Pinestone Capital Ltd (0804) AI Stock Analysis

• Market Cap: HK$213.79M
• Dividend Yield: N/A
• Average Volume (3M): 41.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: 50.60%
• EPS Growth: -12.96%
• Country: HK
• Employees: 27
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.09
• Shares Outstanding: 60,910,010
• 10 Day Avg. Volume: 80,290
• 30 Day Avg. Volume: 41,201
• PEG Ratio: -5.01
• Price to Book (P/B): 7.78
• Price to Sales (P/S): 42.21
• P/FCF Ratio: -1.57K
• 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: 49 Neutral
• Price Target: HK$3.50 ▼(-1.13% Downside)

Pinestone Capital Ltd's overall stock score is primarily impacted by its financial performance, which shows significant challenges due to declining revenues and persistent losses. Technical analysis provides mixed signals, with some positive momentum but potential weakness indicated by low RSI and stochastic values. Valuation is poor, with a negative P/E ratio and no dividend yield, further weighing down the score.

Positive Factors

Strong equity base / low leverage

A strong equity base and minimal debt materially reduce financial risk and provide a durable cushion against market shocks. This capital structure gives management flexibility to fund operations or strategic initiatives without heavy interest burdens, improving long-term survivability.

Historical free cash flow generation

Prior episodes of positive free cash flow demonstrate the business can generate operating liquidity under favorable conditions. This historical capability suggests the model can self-fund growth or deleveraging when operational headwinds abate, a durable advantage versus perpetual cash consumers.

Reported revenue growth metric

A material reported revenue growth rate indicates capacity to expand top-line traction and market reach. Sustained revenue expansion, if maintained, supports scalability, better fixed-cost absorption and the potential to convert growth into future margin improvements and stronger cash generation.

Negative Factors

Persistent net losses

Ongoing net losses erode retained earnings and hinder the company’s ability to build equity through operations. Persistent unprofitability constrains internal reinvestment, increases reliance on external funding, and weakens long-term ROE and shareholder value creation prospects.

Weak operating and free cash flow

Negative operating and free cash flow indicate the business currently cannot self-sustain investment or working capital needs. Structurally weak cash generation forces dependence on capital raises or asset sales, limiting strategic optionality and increasing financial vulnerability over the medium term.

Negative operating margins

Sustained negative EBIT/EBITDA margins point to structural cost or business model issues that impede profitability even before financing. Without durable margin recovery, the company will struggle to convert revenue into sustainable earnings and cash flow, limiting growth and competitiveness.

Pinestone Capital Ltd Business Overview & Revenue Model

Company Description

Pinestone Capital Limited, an investment holding company, provides bespoke financial services to individual and corporate clients in Hong Kong. It offers securities brokerage services; securities-backed lending services, including margin financing and money lending services; and placing and underwriting services. The company was incorporated in 2015 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Pinestone Capital Ltd generates revenue primarily through its investment activities. The company earns money by acquiring stakes in promising companies and projects, seeking capital appreciation and dividend income. Key revenue streams include realized gains from the sale of investments, management fees from its asset management services, and performance fees linked to the success of its investment funds. Additionally, strategic partnerships with other financial institutions and investment firms enhance its deal flow and provide access to lucrative investment opportunities, further contributing to its earnings.

Pinestone Capital Ltd Financial Statement Overview

Summary

Pinestone Capital Ltd faces significant financial challenges with declining revenues and persistent losses impacting profitability and cash flow. The company's strong equity position provides some stability, but operational inefficiencies and inconsistent cash flow generation pose ongoing risks.

Income Statement

Pinestone Capital Ltd has seen volatile revenue trends with significant declines in profitability. The gross profit margin is relatively stable, but the net profit margin is negative due to substantial losses. Revenue growth is inconsistent, with a significant drop recently, impacting margins negatively. The EBIT and EBITDA margins are also negative, indicating operational challenges.

Balance Sheet

The balance sheet shows a strong equity base with no significant debt, reflected in a favorable debt-to-equity ratio. However, the return on equity is negative due to continued net losses. The equity ratio is strong, indicating a high level of asset financing through equity rather than debt, which reduces financial risk.

Cash Flow

Cash flow analysis reveals challenges in generating positive operating cash flow and free cash flow, reflecting operational inefficiencies. Although there have been past periods of positive free cash flow, recent figures are negative, indicating potential liquidity issues. The ratios of operating and free cash flow to net income remain poor due to ongoing losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.09M	19.57M	19.56M	24.97M	25.72M
Gross Profit	25.08M	19.52M	19.47M	24.91M	25.61M
EBITDA	-30.67M	-22.52M	-47.31M	-3.15M	-17.27M
Net Income	-31.67M	-24.39M	-41.47M	-4.93M	-18.83M
Balance Sheet
Total Assets	154.87M	176.01M	169.94M	199.30M	228.30M
Cash, Cash Equivalents and Short-Term Investments	16.37M	23.80M	30.14M	45.58M	67.44M
Total Debt	0.00	622.00K	1.59M	2.51M	1.75M
Total Liabilities	16.50M	5.98M	5.47M	7.58M	31.65M
Stockholders Equity	138.37M	170.04M	164.48M	191.72M	196.66M
Cash Flow
Free Cash Flow	-686.00K	-35.69M	-28.87M	-19.45M	67.60M
Operating Cash Flow	-686.00K	-35.69M	-28.87M	-18.89M	67.65M
Investing Cash Flow	-6.15M	10.00K	221.00K	-399.00K	-51.00K
Financing Cash Flow	-631.00K	28.94M	13.21M	-2.00M	-29.94M

Pinestone Capital Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.54
• 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:0804, the sentiment is Positive. The current price of 3.54 is below the 20-day moving average (MA) of 3.67, above the 50-day MA of 3.45, and above the 200-day MA of 2.78, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 45.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0804.

Pinestone Capital Ltd 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%
8168	56 Neutral	HK$185.52M	-28.00	-34.27%	―	-30.21%	-305.00%
8439	51 Neutral	HK$48.41M	-25.38	-3.06%	6.45%	-10.35%	86.76%
0804	49 Neutral	HK$213.79M	-3.51	-21.71%	―	50.60%	-12.96%
8226	46 Neutral	HK$53.02M	50.80	0.28%	―	―	―
8193	41 Neutral	HK$33.02M	1.68	47.82%	―	34.66%	―
2324	38 Underperform	HK$137.74M	0.60	-14.26%	―	2126.94%	36.49%

Pinestone Capital Ltd Corporate Events

Pinestone Capital Proposes Name Change to Reflect Strategic Shift

Pinestone Capital Limited has proposed to change its name to DODO Asset Holdings Limited, reflecting its strategic shift towards entering the distressed asset settlement market and diversifying its business segments. This name change is intended to align with the company’s future development goals, enhance its corporate image, and support its strategy to broaden revenue sources and attract strategic partnerships. The change will not affect shareholders’ rights or the company’s daily operations.

The most recent analyst rating on (HK:0804) stock is a Hold with a HK$5.00 price target. To see the full list of analyst forecasts on Pinestone Capital Ltd stock, see the HK:0804 Stock Forecast page.

Pinestone Capital Limited Announces Board Composition and Committee Roles

Pinestone Capital Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The board has established three committees: Audit, Remuneration, and Nomination, with specific directors assigned as members or chairpersons. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:0804) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Pinestone Capital Ltd stock, see the HK:0804 Stock Forecast page.

Pinestone Capital Announces Key Board Appointments

Pinestone Capital Limited, a company incorporated in the Cayman Islands, has announced significant changes in its board leadership with the redesignation of Mr. Lee Chun Tung from Chairman to Co-Chairman and the appointment of Mr. Lu Weixing as Co-Chairman and non-executive Director. Additionally, Mr. Lu Lin and Ms. Jiang Tiancui have been appointed as non-executive Director and independent non-executive Director, respectively. These appointments, effective from October 23, 2025, are expected to bring diverse expertise to the company, particularly with Mr. Lu Weixing’s extensive experience in asset trading and online auctions, potentially strengthening Pinestone Capital’s strategic positioning in the financial services sector.

The most recent analyst rating on (HK:0804) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Pinestone Capital Ltd stock, see the HK:0804 Stock Forecast page.