Value Partners Group (0806) AI Stock Analysis

• Market Cap: $4.53B
• Dividend Yield: 0.39%
• Average Volume (3M): 3.26M
• Price to Earnings (P/E): 18.5
• Beta (1Y): 1.84
• Revenue Growth: 28.57%
• EPS Growth: 342.11%
• Country: HK
• Employees: 153
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.14
• Shares Outstanding: 1,826,709,800
• 10 Day Avg. Volume: 3,164,800
• 30 Day Avg. Volume: 3,261,092
• PEG Ratio: 2.51
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 5.99
• P/FCF Ratio: -901.57
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 4.46
• Enterprise Value/Gross Profit: 21.66
• Enterprise Value/Ebitda: -382.72
• 1Y Price Target: $3.03
• Price Target Upside: 17.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: HK$2.50 ▼(-3.10% Downside)

The overall stock score is primarily influenced by the strong balance sheet, which is a significant strength. However, the declining revenue, profitability issues, and cash flow volatility present substantial risks. The technical indicators suggest a lack of strong momentum, and the valuation is not compelling enough to offset the operational challenges.

Value Partners Group Business Overview & Revenue Model

Company Description

Value Partners Group Limited is a publicly owned investment manager. The firm manages separate client focused portfolios. The firm manages separate client-focused equity, fixed income, multi-asset, alternative portfolios, and quantitative investment solutions. The firm invests in the public equity and fixed income markets across the globe. It primarily provides investment management services to investment funds and managed accounts. The firm employs fundamental analysis with bottom-up stock picking approach. The firm conducts in-house research to make its investments. Value Partners Group Limited was founded on 1993 and is based in Hong Kong with additional offices in Beijing, Boston, Shanghai, Shenzhen, Kuala Lumpur, Singapore and London.

How the Company Makes Money

Value Partners Group generates revenue primarily through management fees and performance fees from its investment products. Management fees are charged as a percentage of assets under management (AUM) and are a consistent revenue stream as long as clients maintain their investments. Performance fees are earned when the firm exceeds certain benchmark returns, providing an additional incentive for the company to achieve high investment performance. The firm also benefits from strategic partnerships with financial institutions and distributors, which help in expanding its reach and attracting new clients. Furthermore, any increase in AUM due to market performance or new client acquisitions directly enhances the company's revenue potential.

Value Partners Group Financial Statement Overview

Summary

Value Partners Group has a strong balance sheet with low leverage and high equity, indicating financial stability. However, the income statement and cash flow performance are concerning, with declining revenue, profitability issues, and cash flow volatility. These operational challenges need to be addressed to improve the financial outlook.

Income Statement

The income statement reflects significant volatility over the years. Gross profit margin declined from strong levels in 2019 and 2020 to much lower levels in recent years, indicating pressure on profitability. The net profit margin has also been unstable, with a net loss in 2022, although it rebounded to a positive margin in 2024. Revenue has been on a declining trend since 2020, reflecting challenges in sustaining growth.

Balance Sheet

The balance sheet is strong, with a very low debt-to-equity ratio due to high stockholders' equity and low total debt levels. The equity ratio remains robust, indicating financial stability. The return on equity has been inconsistent, but the company maintains a strong capital structure with low leverage, which is a positive sign of financial health.

Cash Flow

Cash flow performance has been mixed. Free cash flow turned negative in 2024 after being positive in previous years. The operating cash flow to net income ratio indicates operational challenges, with recent years showing negative operating cash flow. This suggests potential liquidity issues despite previous periods of strong free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	473.58M	466.81M	520.30M	649.60M	1.39B	2.72B
Gross Profit	97.58M	25.77M	91.98M	503.69M	824.30M	2.16B
EBITDA	-5.52M	66.64M	45.72M	-495.21M	493.72M	1.62B
Net Income	245.44M	31.23M	23.09M	-544.32M	457.81M	1.38B
Balance Sheet
Total Assets	4.06B	3.78B	4.68B	4.75B	5.67B	6.30B
Cash, Cash Equivalents and Short-Term Investments	1.57B	1.14B	1.74B	1.85B	1.69B	1.99B
Total Debt	95.63M	97.36M	120.03M	105.24M	128.28M	99.73M
Total Liabilities	241.74M	215.44M	1.14B	253.66M	405.59M	880.77M
Stockholders Equity	3.81B	3.55B	3.54B	4.49B	5.26B	5.42B
Cash Flow
Free Cash Flow	64.64M	-3.10M	55.34M	-50.45M	1.13B	213.00M
Operating Cash Flow	67.05M	-2.09M	56.33M	-45.27M	1.14B	221.78M
Investing Cash Flow	560.43M	459.81M	-67.60M	363.93M	-769.64M	-24.34M
Financing Cash Flow	-34.67M	-937.08M	-89.54M	-229.28M	-676.63M	-437.66M

Value Partners Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.58
• 50DMA: Negative
• 100DMA: Positive
• 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:0806, the sentiment is Positive. The current price of 2.58 is above the 20-day moving average (MA) of 2.49, below the 50-day MA of 2.61, and above the 200-day MA of 1.94, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.79 is Neutral, neither overbought nor oversold. The STOCH value of 73.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0806.

Value Partners Group 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%
0806	58 Neutral	$4.53B	18.45	6.68%	0.39%	28.57%	342.11%
0245	56 Neutral	€2.10B	2.09	22.46%	―	56.35%	―
1697	55 Neutral	HK$1.79B	11.96	1.22%	―	-31.92%	-10.06%
1140	54 Neutral	HK$2.44B	38.03	0.65%	―	23.97%	19.61%
1835	45 Neutral	HK$337.35M	-41.51	-2.82%	―	78.92%	75.20%
1973	43 Neutral	HK$505.91M	-24.66	-1.16%	―	―	―

Value Partners Group Corporate Events

Value Partners Group Announces Executive Director Resignation

Value Partners Group Limited announced the resignation of Mr. Li Qian from his position as an executive director, effective October 15, 2025, as he pursues other personal engagements. The company expressed gratitude for Mr. Li’s contributions and confirmed there are no disagreements or issues related to his departure, ensuring a smooth transition for stakeholders.

The most recent analyst rating on (HK:0806) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Value Partners Group stock, see the HK:0806 Stock Forecast page.

Value Partners Group Reports Significant Profit Increase Amid Revenue Decline

Value Partners Group Limited announced its interim results for the period ending 30 June 2025, reporting a significant increase in profit attributable to owners, rising by 572.7% compared to the previous year. Despite a decline in total revenue and management fees, the company achieved a substantial net gain on investments and foreign exchange, contributing to a notable improvement in overall profitability.

The most recent analyst rating on (HK:0806) stock is a Buy with a HK$2.90 price target. To see the full list of analyst forecasts on Value Partners Group stock, see the HK:0806 Stock Forecast page.

Value Partners Group to Review Interim Results and Dividend

Value Partners Group Limited has announced that its board of directors will meet on August 13, 2025, to review and approve the company’s unaudited interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial health and potential returns, impacting its market positioning and investor confidence.

The most recent analyst rating on (HK:0806) stock is a Buy with a HK$2.70 price target. To see the full list of analyst forecasts on Value Partners Group stock, see the HK:0806 Stock Forecast page.