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China Investment and Finance Group Ltd (HK:1226)
:1226
Hong Kong Market

China Investment and Finance Group Ltd (1226) AI Stock Analysis

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HK:1226

China Investment and Finance Group Ltd

(1226)

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Neutral 47 (OpenAI - 5.2)
Rating:47Neutral
Price Target:
HK$0.75
▼(-1.45% Downside)
The score is held down primarily by weak financial performance (persistent losses and ongoing negative cash flow), reinforced by a soft technical setup (below key moving averages with negative MACD). A very low P/E provides some offset on valuation, but without a dividend yield and with fundamentals still under pressure, the overall profile remains below average.
Positive Factors
Profit Turnaround
The significant profit turnaround demonstrates effective investment strategies and enhances market confidence, indicating potential for sustained financial improvement.
Low Leverage
Low leverage provides a financial cushion, reducing refinancing risk and offering stability, which is crucial for long-term operational resilience.
Revenue Growth
Strong revenue growth indicates expanding market presence and potential for future profitability, supporting long-term business sustainability.
Negative Factors
Negative Cash Flow
Persistent negative cash flow suggests reliance on external funding, which can strain financial resources and hinder long-term growth.
Unstable Revenue and Margins
Unstable revenue and margins reflect inconsistent business performance, challenging the company's ability to achieve sustained profitability.
Recurring Net Losses
Ongoing net losses highlight challenges in achieving profitability, raising concerns about the company's long-term financial health and viability.

China Investment and Finance Group Ltd (1226) vs. iShares MSCI Hong Kong ETF (EWH)

China Investment and Finance Group Ltd Business Overview & Revenue Model

Company DescriptionChina Investment and Finance Group Limited is an equity fund launched and managed by China Everbright Securities (HK) Limited. The fund invests in the equity markets of Greater China. China Investment and Finance Group Limited was formed on April 26, 2002 and is domiciled in Cayman Islands.
How the Company Makes MoneyThe company generates revenue primarily through securities trading, where it buys and sells financial instruments to earn profits from market fluctuations. Another significant revenue stream is investment holding, where the company invests in a portfolio of assets, including equities and other securities, to earn dividends, interest, and capital gains. Additionally, China Investment and Finance Group Ltd engages in money lending activities, providing loans to clients and earning interest income. These activities are often supported by strategic partnerships and a strong network within the financial industry, contributing to the company's overall earnings.

China Investment and Finance Group Ltd Financial Statement Overview

Summary
China Investment and Finance Group Ltd faces significant financial challenges. The income statement reveals persistent losses and negative margins, indicating operational inefficiencies. While the balance sheet is supported by a strong equity base and low leverage, the negative ROE and declining equity ratio raise concerns. Additionally, negative cash flow metrics emphasize liquidity constraints. The company needs to address operational inefficiencies and improve cash generation to enhance financial health.
Income Statement
18
Very Negative
The income statement shows a concerning trend with negative revenue and significant net losses. The gross profit margin is negative, indicating costs exceed revenue. The net profit margin is also negative, highlighting persistent losses. Revenue growth has sharply declined from a positive position, further pressuring financial performance.
Balance Sheet
76
Positive
The balance sheet reflects a strong equity base with a low debt-to-equity ratio, indicating low leverage and financial stability. However, the equity ratio has slightly declined, suggesting a reduction in asset efficiency. Return on equity is negative, impacted by consistent net losses, which is a concern for investors.
Cash Flow
22
Negative
Cash flow statements reveal negative free cash flow, consistent with operating cash flow deficits, highlighting liquidity challenges. Free cash flow growth is negative, and the operating cash flow to net income ratio is unfavorable due to operational inefficiencies. These factors underscore difficulties in generating cash from core activities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue-2.86M3.17M-27.48M5.41M4.02M-1.42M
Gross Profit561.00K242.00K-41.70M5.41M-4.52M11.40M
EBITDA1.35M-4.97M-37.35M-40.67M0.004.57M
Net Income-5.47M-5.47M-37.77M-41.15M-7.02M3.57M
Balance Sheet
Total Assets160.74M160.74M168.29M204.50M225.72M203.26M
Cash, Cash Equivalents and Short-Term Investments132.15M132.15M123.28M170.85M171.37M123.98M
Total Debt5.56M5.56M6.22M5.02M12.57M4.42M
Total Liabilities7.36M7.36M9.43M7.86M16.00M7.75M
Stockholders Equity153.39M153.39M158.86M196.63M209.72M195.51M
Cash Flow
Free Cash Flow-677.00K-677.00K-20.47M-6.85M-7.93M-5.44M
Operating Cash Flow-677.00K-677.00K-20.47M-6.85M-7.93M-5.44M
Investing Cash Flow5.54M0.000.00-17.99M-27.50M-15.02M
Financing Cash Flow411.00K0.000.0023.59M15.99M6.67M

China Investment and Finance Group Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.76
Price Trends
50DMA
0.80
Negative
100DMA
0.82
Negative
200DMA
0.86
Negative
Market Momentum
MACD
-0.02
Positive
RSI
30.77
Neutral
STOCH
8.77
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1226, the sentiment is Negative. The current price of 0.76 is above the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.80, and below the 200-day MA of 0.86, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 30.77 is Neutral, neither overbought nor oversold. The STOCH value of 8.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1226.

China Investment and Finance Group Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
49
Neutral
HK$26.88M-1.86-35.08%-64.18%63.16%
48
Neutral
HK$214.68M-29.43-2.82%78.92%75.20%
47
Neutral
HK$288.82M1.9165.83%35.11%
45
Neutral
HK$462.07M45.0811.27%99.09%
42
Neutral
HK$523.08M-4.65-20.26%-166.78%85.53%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1226
China Investment and Finance Group Ltd
0.69
-0.11
-13.75%
HK:1835
Shanghai Realway Capital Assets Management Co., Ltd. Class H
1.56
-0.23
-12.85%
HK:2312
China Financial Leasing Group Ltd
1.10
0.98
816.67%
HK:0612
China Investment Fund Company Limited
0.34
0.09
36.73%
HK:0721
China Financial International Investments Limited
0.05
0.02
92.59%
HK:0810
China Internet Investment Finance Holdings Ltd.
0.14
-0.06
-31.16%

China Investment and Finance Group Ltd Corporate Events

China Investment and Finance Group Posts HK$0.76 NAV Per Share at End-2025
Jan 14, 2026

China Investment and Finance Group Limited reported that its unaudited consolidated net asset value per share stood at approximately HK$0.76 as of 31 December 2025. The disclosure provides investors with an updated snapshot of the company’s underlying asset value, which is a key metric for assessing performance and valuation in the investment company sector, and comes as the board, comprising one executive director and three independent non-executive directors, continues to oversee the group’s portfolio and capital position.

The most recent analyst rating on (HK:1226) stock is a Hold with a HK$0.72 price target. To see the full list of analyst forecasts on China Investment and Finance Group Ltd stock, see the HK:1226 Stock Forecast page.

China Investment and Finance Group Ltd Reports Net Asset Value
Dec 12, 2025

China Investment and Finance Group Ltd announced that its unaudited consolidated net asset value per share was approximately HK$0.74 as of November 30, 2025. This financial update provides stakeholders with a snapshot of the company’s financial health, potentially impacting investor perceptions and market positioning.

China Investment and Finance Group Releases 2025/26 Interim Report
Dec 2, 2025

China Investment and Finance Group Limited has announced the availability of its Interim Report for 2025/26 in both English and Chinese on its website and the Hong Kong Stock Exchange’s website. The company is encouraging shareholders to opt for email notifications for future corporate communications to reduce paper usage. This move is part of the company’s effort to streamline communication with stakeholders and enhance accessibility to its financial information.

China Investment and Finance Group Releases 2025/26 Interim Report
Dec 2, 2025

China Investment and Finance Group Limited has released its Interim Report for 2025/26, which is available in both English and Chinese on the company’s and the Hong Kong Stock Exchange’s websites. The company offers non-registered shareholders the option to request printed copies of corporate communications if they face difficulties accessing them online, ensuring stakeholders have access to important financial information.

China Investment and Finance Group Reports Strong Interim Results
Nov 21, 2025

China Investment and Finance Group Limited reported a significant turnaround in its financial performance for the six months ending September 30, 2025. The company achieved a profit of HK$147.57 million, a substantial improvement from a loss of HK$6.97 million in the previous year, driven by gains on equity instruments and a reversal of impairment losses. This positive result underscores the company’s effective investment strategies and positions it favorably in the financial industry, enhancing shareholder value and market confidence.

China Investment and Finance Group Reports Net Asset Value
Nov 12, 2025

China Investment and Finance Group Ltd announced that its unaudited consolidated net asset value per share was approximately HK$0.72 as of October 31, 2025. This financial update provides stakeholders with insight into the company’s current valuation, which may influence investor perceptions and market positioning.

China Investment and Finance Group Announces Positive Profit Turnaround
Nov 10, 2025

China Investment and Finance Group Limited has announced a positive profit alert, indicating a significant turnaround in its financial performance for the six months ended September 30, 2025. The company expects to report a consolidated net profit ranging from HK$140 million to HK$155 million, a substantial improvement from a net loss of approximately HK$7 million in the same period of 2024. This positive shift is primarily attributed to the improved performance of the Group’s listed equity investments, which swung from a loss of HK$6.3 million to a profit of approximately HK$146.8 million. Stakeholders are advised to exercise caution as the figures are based on unaudited management accounts and are subject to adjustments.

China Investment and Finance Group Schedules Board Meeting for Interim Results
Nov 10, 2025

China Investment and Finance Group Limited has announced a board meeting scheduled for November 21, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This meeting could impact the company’s financial strategy and stakeholder interests, reflecting its ongoing commitment to financial transparency and shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 30, 2025