Value Convergence Holdings Limited (0821) AI Stock Analysis

• Market Cap: HK$113.61M
• Dividend Yield: N/A
• Average Volume (3M): 606.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: N/A
• EPS Growth: 48.53%
• Country: HK
• Employees: 56
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.17
• Shares Outstanding: 329,297,200
• 10 Day Avg. Volume: 637,400
• 30 Day Avg. Volume: 606,375
• PEG Ratio: 0.01
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 1.35
• P/FCF Ratio: -10.63
• 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: 42 Neutral
• Price Target: HK$0.26 ▼(-13.67% Downside)

The score is held down primarily by weak financial performance—ongoing losses, negative margins, and negative operating/free cash flow—indicating operational and liquidity pressure. Technicals add further downside bias with price below key moving averages and negative MACD. Valuation provides limited support because the negative P/E reflects unprofitable operations and there is no dividend yield data.

Positive Factors

Balance sheet stability

A declining debt-to-equity ratio and on-balance cash reserves improve solvency and reduce near-term refinancing pressure. This durable strength provides a liquidity runway to manage operations, absorb shocks, and execute restructuring or strategic initiatives over the next several months.

High equity funding base

A high equity ratio means the company depends less on debt financing, lowering fixed interest burdens and default risk. Over a multi-month horizon this structural funding mix supports financial flexibility and preserves borrowing capacity if cash needs arise, aiding long-term stability.

Lower market sensitivity

A beta below 1 indicates lower systematic volatility versus the market, which can translate to steadier access to capital and reduced market-driven funding shocks. For strategic planning and funding over months, lower sensitivity helps management execute turnarounds with less external pressure.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flow signal the business cannot self-fund day-to-day operations or investments. Over 2–6 months this elevates reliance on external financing, increases liquidity risk, and constrains the company’s ability to invest in growth or shore up margins without new capital.

Sustained net losses and negative margins

Ongoing net losses and negative margins point to structural unprofitability and operational inefficiencies. Without durable margin improvement, the company faces difficulty generating retained earnings to fund operations, meaning profitability turnaround is required to restore long-run viability.

Volatile and declining revenue trend

A multi-year pattern of declining and volatile revenue undermines forecasting, economies of scale, and long-term margin recovery. This structural top-line weakness increases the likelihood of repeated funding needs and complicates strategic planning and investment prioritization over the coming months.

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 including commissions from securities brokerage services, management fees from asset management, and advisory fees from corporate finance activities. The company also earns income from proprietary trading and investment activities, which involve buying and selling financial instruments for profit. Key partnerships with financial institutions and other service providers enhance its service offerings, while a diverse client base ranging from individual investors to corporations contributes to its overall earnings. Additionally, market conditions and regulatory changes in the financial services sector can significantly impact the company's revenue potential.

Value Convergence Holdings Limited Financial Statement Overview

Summary

Financial fundamentals are weak: the income statement shows sustained losses and negative margins with volatile/declining revenue trends, and cash flow remains negative (negative operating and free cash flow), raising liquidity and funding risk. The balance sheet is comparatively more stable with cash reserves and improving leverage, but it does not offset poor profitability and cash generation.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.49M	66.05M	-50.73M	-97.59M	89.81M	85.26M
Gross Profit	42.21M	66.05M	-66.71M	-108.68M	109.20M	63.62M
EBITDA	-98.42M	-76.05M	-281.12M	-169.15M	46.36M	-18.22M
Net Income	-112.33M	-127.02M	-287.75M	-178.09M	15.19M	-32.32M
Balance Sheet
Total Assets	404.29M	451.60M	569.15M	808.90M	999.07M	929.26M
Cash, Cash Equivalents and Short-Term Investments	19.37M	18.39M	17.72M	332.90M	507.00M	60.83M
Total Debt	18.11M	13.48M	28.70M	33.80M	37.01M	28.62M
Total Liabilities	66.47M	66.91M	55.87M	61.25M	72.17M	90.56M
Stockholders Equity	337.85M	384.73M	513.72M	747.64M	926.90M	839.34M
Cash Flow
Free Cash Flow	-2.82M	-8.37M	-27.49M	-6.58M	45.45M	-199.68M
Operating Cash Flow	-2.82M	-8.23M	-27.37M	-6.26M	47.46M	-198.85M
Investing Cash Flow	78.00K	-216.00K	-15.62M	33.66M	-107.19M	97.59M
Financing Cash Flow	3.72M	9.17M	28.37M	-7.61M	70.07M	94.67M

Value Convergence Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 0.3 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.33, and below the 200-day MA of 0.38, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 58.73 is Neutral, neither overbought nor oversold. The STOCH value of 42.16 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 *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8098	47 Neutral	HK$96.80M	-4.89	-10.11%	―	-3.21%	-184.91%
0510	46 Neutral	HK$314.76M	-10.66	-13.85%	―	51.58%	69.53%
0821	42 Neutral	HK$113.61M	-0.86	-28.22%	―	―	48.53%
8123	41 Neutral	HK$77.49M	-0.93	-129.94%	―	-81.40%	-435.00%
8193	41 Neutral	HK$33.02M	1.68	47.82%	―	34.66%	―

Value Convergence Holdings Limited Corporate Events

Value Convergence Holdings Announces Board Composition and Roles

Value Convergence Holdings Limited announced the composition of its board of directors and their respective roles and functions. The board comprises both executive and independent non-executive directors, with Mr. Zhang Li serving as the Chairman. The announcement also detailed the membership of four board committees, highlighting the leadership roles within these committees. This update provides stakeholders with clarity on the governance structure and leadership roles within the company, potentially impacting its strategic direction and operational oversight.

The most recent analyst rating on (HK:0821) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Value Convergence Holdings Limited stock, see the HK:0821 Stock Forecast page.

Value Convergence Holdings Appoints New Executive Director

Value Convergence Holdings Limited has appointed Mr. Chai Nan as an executive director effective from November 25, 2025. Mr. Chai, with extensive experience in investment and corporate finance, is expected to bring valuable insights to the company, enhancing its strategic positioning in the financial services industry.

The most recent analyst rating on (HK:0821) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Value Convergence Holdings Limited stock, see the HK:0821 Stock Forecast page.

Value Convergence Holdings Limited Announces Rights Issue and Placing Results

Value Convergence Holdings Limited announced the results of its Rights Issue and Placing, revealing that the Rights Issue was under-subscribed, with only 16.56% of the available Rights Shares being taken up. The company raised approximately HK$34.7 million in net proceeds, which will be used to cover overhead expenses over the next 10 months, including rental, staff costs, professional fees, and other operating expenses. This financial maneuver aims to support the company’s operational needs and strategic initiatives.

The most recent analyst rating on (HK:0821) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Value Convergence Holdings Limited stock, see the HK:0821 Stock Forecast page.