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): -0.23
• Revenue Growth: -79.70%
• EPS Growth: 29.55%
• Country: HK
• Employees: 32
• Sector: Financial
• Sector Strength: 81
• 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: -0.17
• Price to Book (P/B): -2.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.10
• 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, together with its subsidiaries, provides various financial services in Hong Kong. It operates through Brokerage and Margin Financing, Corporate Finance, Asset Management, and Proprietary Trading segments. It acts as financial advisor for mergers and acquisitions, reorganizations, general offers, acquisition financing, and private equity transactions; and a compliance and independent financial adviser. The company also offers debt products, including investment-grade, high-yield, convertible, preferred stock, and panda bonds; equity capital market services; and asset management services and advice on securities for corporations, institutions, and high-net-worth individuals. In addition, it is involved in the stock brokerage, securities margin financing and underwriting, subscription of initial public offering, placement of shares, local and overseas bonds brokerage, and exchange traded fund activities, as well as the trading of real estate investment trust, stock warrants, stock options, and CBBCs. Further, the company offers consultation and trading services in the futures market, as well as custodian services; cash management and financing, investment management, wealth planning, and insurance planning services; investment products, such as equity, fixed income, and alternative assets; insurance products; and investment immigration services. Additionally, it distributes unit trusts, mutual funds, investment- linked, and mandatory provident fund products; and provides personal financial consulting and planning, and insurance broking services. The company was formerly known as Tanrich Financial Holdings Limited and changed its name to Southwest Securities International Securities Limited in May 2015. The company was founded in 1990 and is headquartered in Wan Chai, Hong Kong. Southwest Securities International Securities Limited is a subsidiary of Southwest Securities International Investment Limited.

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
EBITDA	-390.00K	16.58M	-168.78M	45.00M	-3.73M
Net Income	-11.22M	-15.94M	-241.14M	-145.07M	-254.57M
Balance Sheet
Total Assets	97.86M	709.72M	808.95M	1.76B	2.01B
Cash, Cash Equivalents and Short-Term Investments	91.79M	603.96M	750.82M	1.51B	1.77B
Total Debt	131.40M	722.42M	798.44M	1.40B	1.58B
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
Sector *	73 Outperform	15.02B	17.53	16.30%	3.96%	8.25%	25.93%
2680	52 Neutral	HK$162.00M	―	-17.76%	―	185.46%	-1997.94%
8098	52 Neutral	HK$105.60M	5.19	-1.47%	―	36.47%	―
0821	37 Underperform	HK$98.94M	―	-28.28%	―	―	56.86%
0812	31 Underperform	HK$109.85M	―		―	-79.70%	29.55%
CFLSF	―	$24.99M	―	-15.30%	―	―	―
8123	33 Underperform	HK$77.49M	―	-152.03%	―	-78.96%	-565.00%

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.