Southwest Securities International Securities Limited (0812) AI Stock Analysis

• Market Cap: HK$109.85M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: -79.70%
• EPS Growth: 29.55%
• Country: HK
• Employees: 32
• Sector: Financial
• Sector Strength: 76
• Industry: Financial - Capital Markets
• EPS (TTM): >-0.01
• Shares Outstanding: 3,661,830,600
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): -5.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.14
• 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: 31 Underperform
• Price Target: ―

Southwest Securities International Securities Limited faces significant financial and operational challenges, with declining revenues, substantial losses, and high leverage. The technical analysis shows stagnant price trends and overbought conditions, providing little support for a positive outlook. The valuation metrics, including a negative P/E ratio, further underscore the company's struggles, leading to a low overall stock score.

Southwest Securities International Securities Limited Business Overview & Revenue Model

Company Description

Southwest Securities International Securities Limited (0812) is a financial services company operating within the securities and investment sector. The company provides a broad range of financial services including securities brokerage, wealth management, and investment banking. It aims to serve individual investors, institutional clients, and corporate entities with comprehensive financial solutions and advisory services.

How the Company Makes Money

Southwest Securities International Securities Limited generates revenue primarily through its securities brokerage services, which involves facilitating the buying and selling of securities for clients and earning commission fees on these transactions. Additionally, the company earns income from its wealth management services by charging fees based on the assets under management. Investment banking activities, such as underwriting and advisory services for mergers and acquisitions, also contribute to its earnings. The company may have partnerships with financial institutions that enhance its service offerings, although specific partners are not detailed. Market conditions, regulatory environment, and client demand are significant factors influencing its revenue generation.

Southwest Securities International Securities Limited Financial Statement Overview

Summary

The financial statements of Southwest Securities International Securities Limited present a concerning picture. The company faces declining revenues, substantial losses, high leverage, and cash flow volatility. These factors suggest significant operational and financial risks, with limited signs of immediate improvement.

Income Statement

The income statement shows a significant decline in revenue over the years, with the company experiencing negative revenue growth. Gross profit margins have deteriorated, and net profit margins are deeply negative, reflecting substantial losses. EBIT and EBITDA margins are also negative, indicating operational inefficiencies and a challenging market environment.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity and high levels of debt. The debt-to-equity ratio is undefined due to negative equity, indicating potential solvency issues. Return on equity is also negative, further underscoring the company's struggles to generate returns for shareholders. The equity position has worsened over the years, highlighting financial instability.

Cash Flow

The cash flow statement indicates volatile cash flows, with operating cash flow turning negative recently. The free cash flow has declined significantly, and the company has relied heavily on financing activities, which may not be sustainable. The ratios of operating and free cash flow to net income are negative, reflecting cash flow challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.37M	31.19M	-102.04M	129.63M	251.17M
	Gross Profit
10.73M	5.93M	-147.30M	67.77M	139.30M
	EBIT
-881.00K	-9.04M	-183.66M	27.11M	-22.41M
	EBITDA
-390.00K	16.58M	-168.78M	45.00M	-3.73M
	Net Income Common Stockholders
-11.22M	-15.94M	-241.14M	-145.07M	-254.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
91.79M	603.96M	750.82M	1.51B	1.77B
	Total Assets
97.86M	709.72M	808.95M	1.76B	2.01B
	Total Debt
131.40M	722.42M	798.44M	1.40B	1.58B
	Net Debt
39.61M	118.46M	420.34M	1.12B	1.20B
	Total Liabilities
146.15M	746.79M	830.08M	1.54B	1.73B
	Stockholders Equity
-48.29M	-37.08M	-21.13M	219.77M	283.48M
Cash Flow		Free Cash Flow
-22.85M	335.82M	780.62M	172.97M	-312.97M
	Operating Cash Flow
-22.64M	335.82M	781.77M	173.54M	-312.54M
	Investing Cash Flow
102.06M	0.00	-1.14M	-496.00K	-407.00K
	Financing Cash Flow
-591.67M	-110.83M	-682.18M	-274.92M	-121.14M

Southwest Securities International Securities Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Neutral
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0812, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Neutral momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0812.

Southwest Securities International Securities Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0146	75 Outperform	HK$305.55M	7.36	9.39%	8.33%	0.05%	-26.73%
0393	67 Neutral	HK$1.92B	31.53	2.39%	71.14%	10.83%	41.96%
Sector *	64 Neutral	$12.73B	9.92	7.90%	78.88%	12.06%	-7.95%
0808	59 Neutral	$2.08B	―	-1.09%	8.42%	-5.60%	-1261.11%
0028	47 Neutral	$6.36B	9.14	-0.77%	2.30%	8.27%	-117.00%
0812	31 Underperform	HK$109.85M	―		―	-79.70%	29.55%

Southwest Securities International Securities Limited Corporate Events

Southwest Securities Announces Annual General Meeting and Key Resolutions

Southwest Securities International Securities Limited has announced its upcoming annual general meeting scheduled for June 20, 2025. Key agenda items include the re-election of directors, the authorization of director remuneration, and the re-appointment of SHINEWING (HK) CPA Limited as auditors. Additionally, the company seeks approval to allot and issue new shares, not exceeding 20% of the current issued shares, to enhance its capital structure. This meeting and the resolutions proposed are significant for the company’s governance and strategic financial planning.

Southwest Securities Reports Decreased Revenue and Loss for 2024

Southwest Securities International Securities Limited reported its audited consolidated final results for the year ended December 31, 2024, showing a significant decrease in revenue from HK$31,192,000 in 2023 to HK$1,132,000 in 2024. Despite a reversal of expected credit losses, the company incurred a loss before tax of HK$11,216,000, reflecting ongoing challenges in its operations and market environment.

Southwest Securities Extends Loan Repayment Dates Amid Trading Suspension

Southwest Securities International Securities Limited has announced a further extension of the final repayment dates for its SSII Term Loan and SSII Revolving Facility to March 2026. This extension is part of the second supplemental agreement between the company and its lender, with no material changes to the principal terms of the agreements. As the controlling shareholder, SSII’s extension of these loans constitutes connected transactions under the Listing Rules but is exempt from reporting and disclosure requirements. Meanwhile, trading in the company’s shares remains suspended until further notice as the company works to meet the resumption guidance from the Stock Exchange.

Southwest Securities Announces Upcoming Board Meeting for Year-End Results

Southwest Securities International Securities Limited has announced that its board of directors will meet on March 28, 2025, to review and approve the company’s final results for the year ending December 31, 2024. The meeting will also consider the payment of a final dividend, which could impact investor returns and market perception.

Southwest Securities Provides Quarterly Business Update

Southwest Securities International Securities Limited has announced a quarterly update on its business operations, highlighting that its principal businesses remain stable and are operating normally. The company has ceased direct operations in futures and options, and has remodeled its brokerage business by securing client referral agreements. In corporate finance, the company is focusing on financial advisory services due to a challenging business environment. Asset management efforts are directed towards procuring new business engagements, while proprietary trading continues with a focus on risk management and fixed income investments.