Hong Kong Finance Group Ltd. (1273) AI Stock Analysis

• Market Cap: HK$253.15M
• Dividend Yield: 4.26%
• Average Volume (3M): 229.87K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.15
• Revenue Growth: -10.91%
• EPS Growth: 5.91%
• Country: HK
• Employees: 50
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.07
• Shares Outstanding: 415,000,000
• 10 Day Avg. Volume: 223,200
• 30 Day Avg. Volume: 229,866
• PEG Ratio: 0.34
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 0.94
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$0.50 ▼(-18.03% Downside)

The stock of Hong Kong Finance Group Ltd. is supported by strong financial performance and attractive valuation metrics. The company's solid revenue growth and low leverage enhance its financial stability. Despite the technical indicators suggesting an overbought condition, the stock's low P/E ratio and high dividend yield make it an appealing investment. Monitoring profitability and operational cash flow will be crucial for future performance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and successful client acquisition strategies, supporting long-term business sustainability.

Balance Sheet Stability

A strong balance sheet with low leverage enhances financial stability, providing resilience against economic fluctuations and supporting future growth initiatives.

Cash Flow Improvement

Enhanced cash generation capabilities improve financial flexibility, allowing for reinvestment in growth opportunities and strengthening the company's financial position.

Negative Factors

Profitability Pressure

Decreasing net profit margins suggest potential challenges in cost management or pricing power, which could impact long-term profitability if not addressed.

Operational Cash Flow Concerns

Low operational cash flow relative to net income may indicate inefficiencies in converting revenue into cash, potentially affecting liquidity and operational flexibility.

Modest Return on Equity

A modest return on equity indicates that the company may not be fully optimizing shareholder returns, which could impact investor confidence and long-term growth prospects.

Hong Kong Finance Group Ltd. Business Overview & Revenue Model

Company Description

Hong Kong Finance Group Limited, an investment holding company, provides property mortgage loans to individuals and corporations under the Hong Kong Finance brand name in Hong Kong. It also offers personal loans for HOS and public housing homeowners, as well as loans for SMEs; unsecured loans for property owners; and mortgage further advance, carpark mortgage, and mortgage loan transfer services. The company was founded in 1996 and is headquartered in Admiralty, Hong Kong. Hong Kong Finance Group Limited is a subsidiary of Tin Ching Holdings Limited.

How the Company Makes Money

Hong Kong Finance Group Ltd. generates revenue through multiple streams, primarily from brokerage commissions on trading activities, advisory fees from investment and asset management services, and interest income from financing activities. The company's brokerage services facilitate the buying and selling of securities, while its investment advisory services provide clients with tailored financial strategies for wealth management. Additionally, the company may earn revenue from corporate finance services such as capital raising and mergers and acquisitions advisory. Strategic partnerships with financial institutions and technology providers enhance its service offerings and operational efficiency, contributing to its overall earnings.

Hong Kong Finance Group Ltd. Financial Statement Overview

Summary

Hong Kong Finance Group Ltd. exhibits strong revenue growth and a solid balance sheet with low leverage. While profitability margins are slightly under pressure, the company maintains a robust cash flow position. Continued focus on improving operational cash flow and profitability will be key to sustaining financial health.

Income Statement

The company demonstrates strong revenue growth with a 20.44% increase in the latest year, indicating a positive trajectory. Gross profit margin remains high, showcasing efficient cost management. However, the net profit margin has slightly decreased compared to previous years, suggesting some pressure on profitability. Overall, the income statement reflects robust growth but with a need to monitor profitability closely.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.12, indicating conservative leverage and financial stability. Return on equity is modest at 5.42%, suggesting room for improvement in generating returns for shareholders. The equity ratio is healthy, reflecting a strong capital structure. Overall, the balance sheet is stable, with low leverage and a strong equity position.

Cash Flow

Cash flow performance has improved significantly, with a 363.76% growth in free cash flow, indicating enhanced cash generation capabilities. The free cash flow to net income ratio is nearly 1, showing efficient conversion of profits into cash. However, the operating cash flow to net income ratio is low, suggesting potential issues in cash flow from operations. Overall, cash flow is improving, but operational cash flow needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	137.26M	152.81M	136.73M	163.27M	154.88M	157.60M
Gross Profit	137.10M	137.10M	136.73M	163.27M	154.88M	157.60M
EBITDA	83.57M	62.39M	80.15M	104.43M	99.83M	116.07M
Net Income	46.17M	46.17M	42.69M	58.88M	70.55M	73.22M
Balance Sheet
Total Assets	1.02B	1.02B	1.13B	1.13B	1.18B	1.10B
Cash, Cash Equivalents and Short-Term Investments	34.23M	34.23M	28.38M	29.88M	24.88M	80.02M
Total Debt	105.00M	105.00M	307.04M	326.57M	426.44M	406.71M
Total Liabilities	168.94M	168.94M	318.38M	341.49M	440.45M	425.13M
Stockholders Equity	852.00M	852.00M	816.62M	784.72M	736.62M	676.86M
Cash Flow
Free Cash Flow	166.14M	166.14M	26.78M	129.74M	-34.98M	219.09M
Operating Cash Flow	169.98M	169.98M	28.96M	130.05M	-33.85M	221.06M
Investing Cash Flow	-3.84M	-2.35M	-139.00K	-14.30M	-29.13M	-1.98M
Financing Cash Flow	-162.53M	-162.53M	-30.32M	-110.75M	7.84M	-154.34M

Hong Kong Finance Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1273, the sentiment is Positive. The current price of 0.61 is above the 20-day moving average (MA) of 0.60, above the 50-day MA of 0.58, and above the 200-day MA of 0.44, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 75.81 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1273.

Hong Kong Finance Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1319	75 Outperform	HK$519.56M	8.16	―	6.70%	-7.82%	-5.16%
1273	74 Outperform	HK$253.15M	5.16	5.75%	4.26%	-10.91%	5.91%
2263	68 Neutral	HK$300.00M	40.79	2.10%	―	-9.48%	130.30%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
0379	47 Neutral	HK$118.11M	-1.58	-21.07%	―	25.64%	-25.07%
0397	42 Neutral	HK$100.40M	-0.67	-14.21%	―	-2.07%	-114.10%

Hong Kong Finance Group Ltd. Corporate Events

Hong Kong Finance Group Announces Interim Dividend Update

Hong Kong Finance Group Limited has announced an interim cash dividend for the six months ending September 30, 2025, amounting to HKD 0.016 per share. The ex-dividend date is set for December 29, 2025, with a payment date of January 14, 2026. The announcement updates previous information by changing the financial year-end date and the ex-dividend date, reflecting the company’s ongoing commitment to shareholder returns.

Hong Kong Finance Group Reports Stable Interim Results for 2025

Hong Kong Finance Group Limited reported its interim results for the six months ending September 30, 2025, showing a slight decrease in interest income but an overall increase in operating profit compared to the previous year. The company’s financial position remains strong with total assets of HK$1,085,196,000 and total equity of HK$873,905,000, indicating a stable outlook for stakeholders.

Hong Kong Finance Group Announces Interim Dividend

Hong Kong Finance Group Limited has announced an interim cash dividend of HKD 0.016 per share for the six months ending September 30, 2025. The ex-dividend date is set for December 30, 2025, with the payment date scheduled for January 14, 2026. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, and it may influence investor sentiment and market positioning as the company continues to navigate the financial landscape.

Hong Kong Finance Group to Announce Interim Results and Consider Dividend

Hong Kong Finance Group Limited has announced that its board of directors will meet on November 26, 2025, to approve the publication of its interim results for the six months ending September 30, 2025. The board will also consider the payment of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Hong Kong Finance Group Ltd. Announces New Loan Agreement

Hong Kong Finance Group Limited has entered into a New Loan Agreement with Customers J and K, providing a loan of HK$43,000,000. This transaction, which follows a previous loan of HK$3,000,000 to the same borrowers, is considered a discloseable transaction under Hong Kong’s Listing Rules due to its size. The loan is secured by a first mortgage on a residential property and a car parking space, with a valuation of approximately HK$60,000,000. This move is expected to strengthen the company’s financial operations and enhance its market positioning by leveraging secured lending opportunities.

Hong Kong Finance Group Announces Auditor Change to Deloitte

Hong Kong Finance Group Limited announced a change in its auditor, with PricewaterhouseCoopers resigning due to an inability to agree on remuneration terms for the upcoming financial year. Deloitte Touche Tohmatsu has been appointed as the new auditor, chosen for its extensive experience, industry knowledge, and market reputation. The change is not expected to impact the company’s interim results release, and the transition is seen as beneficial for the company’s shareholders.

Hong Kong Finance Group Announces New Loan Agreement

Hong Kong Finance Group Limited announced a new loan agreement with Customer AC, granting a loan of HK$8,000,000. This loan is collateralized by a commercial property in Hong Kong and will be used to settle a previous loan. The transaction is considered discloseable under the Listing Rules due to its size. The company has assessed the credit risk as manageable, citing the borrower’s strong repayment history and the property’s prime location.

Hong Kong Finance Group Announces New Loan Agreement to Settle Previous Debt

Hong Kong Finance Group Limited announced a new loan agreement on September 27, 2025, providing HK$16,000,000 in financial assistance to a group of borrowers. This new loan is intended to settle the outstanding balance of a previous loan of HK$18,000,000. The transaction is classified as discloseable under the Hong Kong Stock Exchange’s listing rules due to the aggregated loan amount exceeding certain percentage thresholds. This move reflects the company’s ongoing strategy to manage its loan portfolio while adhering to regulatory requirements.

Hong Kong Finance Group Provides HK$40 Million Loan with Prime Collateral

Hong Kong Finance Group Limited has entered into a Loan Agreement with Customer E, providing financial assistance amounting to HK$40,000,000. The loan is secured by a first mortgage on a residential property valued at approximately HK$145,000,000, with a loan-to-value ratio of 27.6%. The loan is considered a discloseable transaction under the Listing Rules, and the Group will finance it using its general working capital. The risk associated with the loan is deemed manageable due to the collateral’s prime location and the solid net worth of the guarantor, Customer F.