Value Convergence Holdings Limited (0821) AI Stock Analysis

• Market Cap: HK$103.89M
• Dividend Yield: N/A
• Average Volume (3M): 3.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: N/A
• EPS Growth: 56.86%
• Country: HK
• Employees: 56
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Capital Markets
• EPS (TTM): -0.03
• Shares Outstanding: 2,473,523,000
• 10 Day Avg. Volume: 5,482,000
• 30 Day Avg. Volume: 3,500,133
• PEG Ratio: -0.02
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.51
• 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: 37 Underperform
• Price Target: ―

Value Convergence Holdings Limited receives a low overall stock score of 37 due to significant financial challenges, including negative profitability and cash flow issues. The technical analysis points to a bearish trend, adding further pressure. Valuation metrics do not provide support, with a negative P/E ratio and no dividend yield. The company's stock faces considerable risks, primarily driven by its financial instability and lack of positive catalysts.

Value Convergence Holdings Limited Business Overview & Revenue Model

Company Description

Value Convergence Holdings Limited, an investment holding company, provides financial services in Hong Kong. It operates through six segments: Brokerage and Financing, Corporate Finance and Other Advisory Services, Asset Management, Insurance Brokerage, Proprietary Trading, and Sales and Marketing of Digital Assets. The company offers securities, futures, and options brokering and dealing; margin financing and money lending; placing and underwriting services; and trades in equity and debt securities, and other financial products. It also provides mergers and acquisitions, research, corporate, insurance brokerage, asset management, financial advisory, management, registered office, business, and company secretarial services. Further, it sells and markets digital assets, such as Q-coins in an electronic platform. The company was founded in 1986 and is based in Wanchai, Hong Kong.

How the Company Makes Money

Value Convergence Holdings Limited generates revenue through multiple streams. The primary source of income is commission fees earned from securities, futures, and options broking transactions executed on behalf of clients. Additionally, the company earns interest income from margin financing and IPO financing services, where clients borrow funds to invest in financial markets. The asset management division contributes to revenue through management and performance fees charged on the assets under management. Corporate finance advisory services, which include activities such as mergers and acquisitions advisory, capital raising, and restructuring services, also add to the company's earnings. Strategic partnerships with financial institutions and a strong client base further bolster the company's revenue generation capabilities.

Value Convergence Holdings Limited Financial Statement Overview

Summary

Value Convergence Holdings Limited is facing significant financial headwinds. The income statement highlights ongoing operational challenges with negative profitability and fluctuating revenues. The balance sheet indicates stability in equity but potential reliance on shareholder funding. Cash flow struggles, marked by negative operational cash flows, suggest liquidity constraints. The company may need strategic adjustments to improve financial health and operational efficiency.

Income Statement

The income statement reflects a challenging financial position, with consistent negative net income in recent years. The company has experienced significant revenue volatility, highlighted by a negative revenue growth trend from 2020 to 2023. Furthermore, profitability metrics such as gross profit margin and net profit margin are negative, indicating financial instability and operational inefficiencies.

Balance Sheet

The balance sheet shows a relatively stable equity position with a decreasing debt-to-equity ratio, indicating cautious leverage management. However, the company's equity ratio remains high, suggesting a reliance on shareholder equity. The presence of cash reserves is a positive aspect, providing some liquidity buffer.

Cash Flow

Cash flow analysis reveals operational challenges, with consistently negative operating cash flow over the years. The free cash flow position remains negative, impairing the company's ability to fund growth without external financing. The inability to generate positive free cash flow indicates potential liquidity issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.05M	-49.43M	-97.59M	124.78M	85.26M
Gross Profit	66.05M	-63.94M	-108.68M	109.20M	63.62M
EBITDA	0.00	-283.79M	-169.15M	46.36M	-18.22M
Net Income	-127.02M	-287.75M	-178.09M	6.80M	-32.32M
Balance Sheet
Total Assets	451.60M	569.15M	808.90M	999.07M	929.26M
Cash, Cash Equivalents and Short-Term Investments	18.39M	17.72M	32.31M	71.07M	60.83M
Total Debt	13.48M	28.70M	33.80M	37.01M	28.62M
Total Liabilities	66.91M	55.87M	61.25M	72.17M	90.56M
Stockholders Equity	384.73M	513.72M	747.64M	926.90M	839.34M
Cash Flow
Free Cash Flow	-8.37M	-27.49M	-6.58M	45.45M	-199.68M
Operating Cash Flow	-8.23M	-27.37M	-6.26M	47.46M	-198.85M
Investing Cash Flow	-216.00K	-15.62M	-27.95M	-107.19M	97.59M
Financing Cash Flow	9.17M	28.37M	-7.61M	70.07M	94.67M

Value Convergence Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 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:0821, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.03, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.54 is Neutral, neither overbought nor oversold. The STOCH value of 31.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0821.

Value Convergence Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	$16.84B	11.72	9.71%	3.76%	11.61%	-9.60%
0821	37 Underperform	HK$103.89M	―	-28.28%	―	―	56.86%
CFLSF		$16.21M	―	-15.30%	―	―	―
TJV			―		―	―	―
8098	52 Neutral	HK$103.40M	5.19	-1.47%	―	36.47%	―
8193	41 Neutral	HK$75.55M	―	-34.21%	―	-1.68%	49.77%
8123	33 Underperform	HK$77.49M	―	-152.03%	―	-78.96%	-565.00%

Value Convergence Holdings Limited Corporate Events

Value Convergence Holdings Limited Reports Improved 2024 Financial Results Amid Market Challenges

Value Convergence Holdings Limited reported its annual results for 2024, showing a decrease in revenue from continuing operations to HK$69,062,000 and a reduced loss from continuing operations at HK$127,029,000 compared to the previous year. Despite the challenging economic conditions and cautious market sentiment in Hong Kong, particularly in the tech sector, the company managed to improve its financial performance from 2023, reflecting resilience in its operations amidst a fluctuating Hang Seng Index and increased competition in the asset management sector.

Value Convergence Holdings to Announce Year-End Results and Dividend Decision

Value Convergence Holdings Limited announced a board meeting scheduled for March 28, 2025, to approve the final results for the year ended December 31, 2024, and consider a final dividend. This meeting is significant for stakeholders as it will determine the company’s financial performance and potential shareholder returns.