China Tonghai International Financial Limited (0952) AI Stock Analysis

• Market Cap: HK$860.42M
• Dividend Yield: N/A
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: 173.24%
• EPS Growth: -515.63%
• Country: HK
• Employees: 200
• Sector: Financial
• Sector Strength: 70
• Industry: Investment - Banking & Investment Services
• EPS (TTM): 0.00
• Shares Outstanding: 6,197,049,300
• 10 Day Avg. Volume: 1,159,118
• 30 Day Avg. Volume: 1,549,101
• PEG Ratio: 0.11
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 3.35
• P/FCF Ratio: 6.05
• 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: 45 Neutral
• Price Target: HK$0.14 ▼(-2.14% Downside)

The overall stock score is primarily impacted by the company's financial performance, which shows significant profitability and cash flow challenges. Technical analysis suggests a neutral to slightly bearish outlook, while valuation metrics highlight concerns due to the negative P/E ratio and lack of dividend yield. These factors collectively result in a below-average stock score.

Positive Factors

Revenue Growth

The company has demonstrated significant revenue growth, indicating strong market demand and effective business strategies in its financial services operations.

Balance Sheet Stability

A stable balance sheet with manageable leverage provides financial resilience, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Improved Gross Profit Margins

Improved gross profit margins suggest better cost management and pricing power, enhancing the company's ability to generate profits from its core operations.

Negative Factors

Profitability Challenges

Persistent profitability issues, as indicated by negative net income, can hinder the company's ability to reinvest in its business and reward shareholders.

Cash Flow Issues

Weak cash flow management, with zero operating cash flow, limits the company's ability to finance operations and growth initiatives, posing long-term sustainability risks.

Declining Asset and Equity Levels

A decline in asset and equity levels may reduce the company's financial flexibility and ability to capitalize on future growth opportunities, impacting long-term stability.

China Tonghai International Financial Limited Business Overview & Revenue Model

Company Description

China Tonghai International Financial Limited, an investment holding company, provides various financial services in Hong Kong. It operates through Brokerage, Interest Income, Corporate Finance, Asset Management, Investments, and Others segments. The Brokerage segment provides discretionary and non-discretionary dealing services for securities, futures and options, margin financing, insurance broking, and wealth management services. The Interest Income segment offers money lending services, as well as earns interest income from debt instruments. The Corporate Finance segment offers securities placing, underwriting, and corporate finance and general advisory services. The Asset Management segment provides fund management, discretionary portfolio management, and portfolio management advisory services. The Investments segment invests in and trades in various investment products. The Others segment offers financial media services. The company also provides import/export trading, and Website management and other related services. China Tonghai International Financial Limited was formerly known as China Oceanwide International Financial Limited and changed its name to China Tonghai International Financial Limited in May 2018. The company was founded in 1986 and is headquartered in Central, Hong Kong. China Tonghai International Financial Limited is a subsidiary of Oceanwide Holdings International Financial Development Co., Ltd.

How the Company Makes Money

China Tonghai International Financial Limited generates revenue through several key streams: primarily, it earns commissions and fees from securities brokerage services, where it facilitates trading of stocks, bonds, and other financial instruments for clients. The company also derives income from asset management, managing investment portfolios for clients and charging management fees based on assets under management. Additionally, corporate finance advisory services contribute to revenue through advisory fees for mergers and acquisitions, capital raising, and other financial consulting services. Strategic partnerships with financial institutions and investment firms further enhance its service offerings and can lead to additional revenue opportunities.

China Tonghai International Financial Limited Financial Statement Overview

Summary

The company shows mixed financial health with fluctuating revenues and profitability challenges, as evidenced by negative net income. While the balance sheet is relatively stable with moderate leverage, declining asset and equity levels may pose future risks. Cash flow issues are notable, with operational cash flows drying up in the latest period.

Income Statement

The income statement reveals fluctuating revenue with a significant drop in the latest year, alongside a negative net income. Gross profit margins have improved from the previous year, but the overall net profit margin remains negative, indicating profitability challenges. The revenue has seen considerable volatility, impacting the company's financial stability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage levels. There is a significant equity base providing stability, although there is a decline in total assets and equity over the years. The equity ratio remains strong, suggesting a solid financial foundation despite the declining trend.

Cash Flow

Cash flow analysis highlights a concerning lack of free cash flow growth and a zero operating cash flow in the latest year, suggesting operational challenges. The free cash flow to net income ratio is not meaningful due to negative net income, further emphasizing cash flow issues. Overall, cash flow management appears weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	388.46M	376.21M	384.77M	-255.78M	-1.78B	1.10B
Gross Profit	388.46M	206.01M	98.30M	-1.14B	529.81M	683.65M
EBITDA	11.70M	4.51M	199.10M	-1.42B	-1.50B	268.81M
Net Income	-82.01M	-73.37M	119.54M	-1.58B	-2.26B	103.25M
Balance Sheet
Total Assets	4.15B	4.19B	4.06B	4.68B	6.84B	9.94B
Cash, Cash Equivalents and Short-Term Investments	971.34M	889.95M	824.32M	963.29M	1.70B	2.29B
Total Debt	518.68M	718.00M	735.52M	954.32M	1.55B	1.95B
Total Liabilities	2.15B	2.20B	2.00B	2.67B	3.24B	4.05B
Stockholders Equity	2.00B	1.99B	2.06B	2.01B	3.60B	5.89B
Cash Flow
Free Cash Flow	227.11M	208.22M	168.92M	475.17M	651.99M	351.76M
Operating Cash Flow	228.32M	209.82M	185.23M	476.43M	657.55M	362.16M
Investing Cash Flow	709.26M	50.98M	-16.31M	-1.26M	35.92M	-10.40M
Financing Cash Flow	-781.15M	-224.94M	-235.71M	-683.13M	-501.97M	-319.47M

China Tonghai International Financial Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0952, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.14, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.53 is Neutral, neither overbought nor oversold. The STOCH value of 37.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0952.

China Tonghai International Financial Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0717	69 Neutral	HK$633.64M	4.31	4.26%	―	84.88%	122.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
0335	63 Neutral	HK$1.80B	26.80	2.39%	2.14%	-20.02%	10.62%
0111	52 Neutral	HK$628.38M	45.79	1.47%	―	22.62%	―
0952	45 Neutral	HK$860.42M	-10.53	-4.03%	―	173.24%	-515.63%
0993	39 Underperform	HK$1.08B	-1.00	―	―	-78.40%	-196.19%

China Tonghai International Financial Limited Corporate Events

Quam Plus International Approves Share Options for Co-Chairmen

China Tonghai International Financial Limited, operating under the name Quam Plus International Financial Limited, is involved in the financial services industry, focusing on providing investment and financial solutions. The company recently held a Special General Meeting where shareholders approved the grant of share options to two of its Co-Chairmen, Mr. HAN and Mr. LAM. This decision, passed with overwhelming support, allows these executives to purchase a significant number of shares, potentially impacting the company’s leadership incentives and aligning their interests with shareholder value.

The most recent analyst rating on (HK:0952) stock is a Hold with a HK$0.14 price target. To see the full list of analyst forecasts on China Tonghai International Financial Limited stock, see the HK:0952 Stock Forecast page.

Quam Plus International Financial to Discuss Share Options for Co-Chairmen

Quam Plus International Financial Limited has announced a special general meeting to be held in Hong Kong to discuss the granting of share options to its Co-Chairmen, Mr. HAN Xiaosheng and Mr. Kenneth LAM Kin Hing. The resolution proposes granting 15,000,000 share options to Mr. HAN and 30,000,000 to Mr. LAM, allowing them to subscribe to ordinary shares at an exercise price of HK$0.16 per share. This move is part of the company’s share option scheme, aimed at incentivizing its leadership and aligning their interests with shareholders.

Quam Plus International Financial Limited Updates on Annual Report and Financial Agreements

Quam Plus International Financial Limited has announced a supplemental update related to its annual report for the year ended December 31, 2024. The company highlighted its continuing connected transactions through a Financial Services Agreement with Quam Securities, which is expected to generate additional revenue. The agreement includes connected dealings services and margin loans, with set annual caps for the transactions. Additionally, the company provided an update on its Share Option Scheme, detailing the number of shares available for issue, which represents a significant portion of the total issued shares.

China Tonghai Sells California Property in Discloseable Transaction

China Tonghai International Financial Limited, through its indirect wholly-owned subsidiary, has agreed to sell a property located in Hillsborough, California, for US$7.5 million. The transaction is considered a discloseable transaction under Hong Kong’s Listing Rules, as it exceeds 5% but is less than 25% of the applicable percentage ratio. The property, a vacant 2-storey home acquired in August 2023 as part of a debt settlement, has not generated rental income. This disposal may impact the company’s financial position by liquidating a non-performing asset.