CMBC Capital Holdings Limited (1141) AI Stock Analysis

• Market Cap: HK$1.45B
• Dividend Yield: N/A
• Average Volume (3M): 995.53K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.77
• Revenue Growth: 126.33%
• EPS Growth: N/A
• Country: HK
• Employees: 92
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.11
• Shares Outstanding: 1,096,968,800
• 10 Day Avg. Volume: 1,165,702
• 30 Day Avg. Volume: 995,529
• PEG Ratio: -0.10
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 1.40
• 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: 58 Neutral
• Price Target: HK$1.50 ▲(89.87% Upside)

The score is led by mixed financial performance: profitability and a cleaner balance sheet are positives, but revenue volatility and missing recent cash flow data are key risks. Technicals are supportive with price above major moving averages, though overbought signals temper the outlook. Valuation appears moderate based on the P/E, with no dividend yield data to improve the score.

Positive Factors

High EBIT margin and return to profit

A 67.3% EBIT margin on a return to profitability in 2024 indicates durable operational efficiency. Elevated margins create a buffer versus revenue swings, improve internal cash generation and reinvestment capacity, and enhance earnings resilience over the medium term.

Cleaned balance sheet (debt repaid)

Complete debt repayment and equity rising to $1.39B materially strengthen solvency and financial flexibility. A cleaner capital structure reduces refinancing and interest burden risks, allowing management to pursue strategic investments or withstand downturns without adding leverage.

Historical free cash flow generation

Reported free cash flow of $2.36B in 2023 demonstrates the company's ability to convert earnings into cash under favorable conditions. This historical cash-generation capability implies inherent operational cash conversion potential and provides optionality for capex, deleveraging or returns.

Negative Factors

Volatile and erratic revenue history

Pronounced revenue volatility, including a negative revenue year in 2023, undermines forecasting and strategic planning. Persistent top-line instability suggests dependence on episodic transactions or market cycles, which can impair long-term growth visibility and stakeholder confidence.

Missing recent operating/free cash flow data

The absence of operating and free cash flow figures in 2024 creates material uncertainty about current liquidity and cash-generation trends. Without recent cash flow transparency, assessing the company's ability to fund operations, service obligations, or finance growth over the medium term is impaired.

Historical leverage and equity fluctuations

Prior high leverage and notable equity fluctuations indicate past capital-structure instability. Even with debt now repaid, that historical pattern raises concerns about resilience in stressed markets and suggests management must sustain conservative financing policies to avoid repeating cyclical leverage swings.

CMBC Capital Holdings Limited Business Overview & Revenue Model

Company Description

CMBC Capital Holdings Limited, an investment holding company, provides loan financing services primarily in Hong Kong. It operates through Securities; Fixed-Income Direct Investment, Other Investment and Financing; Asset Management; and Corporate Finance and Advisory segments. The Securities segment offers brokerage, securities margin financing, and securities underwriting/placing services. The Fixed-Income Direct Investment segment invests and trades in fixed-income securities. Other Investment and Financing segment invests and trades in equity securities, bonds, and funds, as well as trades in fixed-income securities, and provides loan financing services. The Asset Management segment provides asset management services. The Corporate Finance and Advisory segment offers sponsorship, financial advisory, and financial arrangement services. The company was formerly known as Skyway Securities Group Limited and changed its name to CMBC Capital Holdings Limited in May 2017. The company was incorporated in 1998 and is headquartered in Central, Hong Kong. CMBC Capital Holdings Limited operates as a subsidiary of CMBC International Investment Limited.

How the Company Makes Money

CMBC Capital Holdings generates revenue through multiple streams, primarily from fees earned on asset management and advisory services. The company charges management fees based on the assets under management (AUM) and performance fees tied to the investment returns generated for clients. Additionally, revenue is derived from brokerage commissions on securities trading activities and underwriting fees from corporate finance transactions. The company's strategic partnerships with other financial institutions and investment firms enhance its capabilities and broaden its market reach, contributing to its overall earnings. Furthermore, fluctuations in market conditions and investment performance can significantly impact revenue, underscoring the importance of effective asset management and investment strategies.

CMBC Capital Holdings Limited Financial Statement Overview

Summary

Mixed fundamentals: a return to profitability in 2024 with strong EBIT margin (67.3%) and improved balance sheet (debt repaid; equity up to $1.39B), but history shows volatile/erratic revenue (including negative revenue in 2023) and the latest period lacks operating/free cash flow figures, increasing liquidity uncertainty.

Income Statement

CMBC Capital Holdings Limited's income statement reflects significant volatility. Recent annual reports show a return to profitability in 2024 with a net income of $50.8M and a gross profit margin of 100%, as the revenue and gross profit figures are equal, indicating a complete recovery from the previous year's losses. However, the company's revenue has been inconsistent, with negative revenue in 2023 and sharp declines in earlier years. The EBIT margin in 2024 stands strong at 67.3%, signaling improved operational efficiency. Despite these improvements, the historical trend of negative net income and declining revenues poses potential risks.

Balance Sheet

The balance sheet of CMBC Capital Holdings Limited indicates relatively stable equity with stockholders' equity improving to $1.39B in 2024. The company's debt-to-equity ratio has improved significantly to 0, as total debt has been fully repaid. The equity ratio stands at 36.1% in 2024, reflecting a healthy proportion of equity financing. However, the previous high debt levels and fluctuations in equity suggest historical leverage risks.

Cash Flow

The cash flow analysis reveals concerns, primarily due to the lack of operating and free cash flows reported in 2024. In previous years, there was a strong free cash flow of $2.36B in 2023, but the recent absence of cash flow figures poses uncertainties about the company's liquidity position. The previous operating cash flow to net income ratio was favorable, indicating efficient cash generation, but the absence of recent data makes current evaluations challenging.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	307.36M	269.70M	172.30M	510.24M	895.38M	1.02B
Gross Profit	307.36M	269.70M	-222.24M	426.28M	801.66M	930.06M
EBITDA	254.97M	208.87M	-278.25M	189.84M	615.04M	943.66M
Net Income	89.05M	50.79M	-572.31M	-436.60M	291.16M	393.22M
Balance Sheet
Total Assets	4.95B	3.84B	4.56B	10.85B	14.54B	11.17B
Cash, Cash Equivalents and Short-Term Investments	3.24B	2.61B	3.93B	9.66B	12.23B	8.45B
Total Debt	0.00	2.01B	2.93B	8.76B	10.91B	7.93B
Total Liabilities	3.39B	2.46B	3.31B	9.25B	11.78B	8.57B
Stockholders Equity	1.56B	1.39B	1.25B	1.60B	2.76B	2.60B
Cash Flow
Free Cash Flow	-1.06B	396.86M	2.36B	571.90M	219.78M	1.52B
Operating Cash Flow	-1.05B	399.10M	2.36B	572.42M	220.75M	1.52B
Investing Cash Flow	-5.20M	-2.24M	-3.59M	-521.00K	-970.00K	-482.00K
Financing Cash Flow	221.33M	-594.62M	-2.91B	-351.36M	170.74M	-1.53B

CMBC Capital Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1141, the sentiment is Positive. The current price of 0.79 is below the 20-day moving average (MA) of 0.99, below the 50-day MA of 0.88, and above the 200-day MA of 0.75, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 86.00 is Negative, neither overbought nor oversold. The STOCH value of 95.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1141.

CMBC Capital Holdings 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%
1073	63 Neutral	HK$410.16M	25.53	2.26%	2.51%	-14.94%	―
1141	58 Neutral	HK$1.45B	16.30	6.23%	―	126.33%	―
0111	52 Neutral	HK$628.38M	45.79	1.47%	―	22.62%	―
0329	42 Neutral	HK$517.41M	118.97	1.61%	―	3.82%	―
0139	42 Neutral	HK$224.82M	-1.34	-16.07%	―	110.52%	2.14%

CMBC Capital Holdings Limited Corporate Events

CMBC Capital Flags Profit Surge on Strong Fee-Based Business Growth

CMBC Capital Holdings Limited has issued a positive profit alert, projecting consolidated net profit of approximately HK$130 million to HK$170 million for the year ended 31 December 2025, a sharp rise of about 156% to 235% from HK$50.8 million a year earlier. Management attributes the surge in earnings to the company’s ongoing business transformation and development, which have delivered a significant year-on-year increase in fee-based revenue from securities underwriting, asset management, sponsorship services and wealth management-related businesses, underscoring a stronger earnings mix and an improving competitive position in Hong Kong’s financial services sector, though the figures remain subject to audit and potential adjustment.

The most recent analyst rating on (HK:1141) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on CMBC Capital Holdings Limited stock, see the HK:1141 Stock Forecast page.