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

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HK:1273

Hong Kong Finance Group Ltd.

(1273)

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Outperform 80 (OpenAI - 4o)
Rating:80Outperform
Price Target:
HK$0.50
▼(-5.66% Downside)
The overall stock score is driven by strong financial performance, positive technical indicators, and attractive valuation. The company's solid revenue growth and low leverage enhance its financial stability, while the bullish technical trend and low P/E ratio suggest potential for price appreciation. The high dividend yield further adds to its appeal for income-focused investors.

Hong Kong Finance Group Ltd. (1273) vs. iShares MSCI Hong Kong ETF (EWH)

Hong Kong Finance Group Ltd. Business Overview & Revenue Model

Company DescriptionHong 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 MoneyHong Kong Finance Group Ltd. generates revenue through multiple streams, primarily by charging fees for asset management and investment advisory services. The company earns management fees based on the assets under management (AUM) and performance fees linked to the returns generated for clients. Additionally, revenue is generated from brokerage commissions on securities trading and transaction fees for facilitating investment activities. Significant partnerships with financial institutions and technology providers enhance its service offerings and operational efficiency, contributing to its overall earnings. Market dynamics, client acquisition strategies, and the performance of financial markets also play crucial roles in driving the company's revenue.

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
75
Positive
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
80
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue126.88M152.81M136.73M163.27M154.88M157.60M
Gross Profit90.17M137.10M136.73M163.27M154.88M157.60M
EBITDA82.47M62.39M80.15M104.43M99.83M116.07M
Net Income46.34M46.17M42.69M58.88M70.55M73.22M
Balance Sheet
Total Assets1.11B1.02B1.13B1.13B1.18B1.10B
Cash, Cash Equivalents and Short-Term Investments32.02M34.23M28.38M29.88M24.88M80.02M
Total Debt198.08M105.00M307.04M326.57M426.44M406.71M
Total Liabilities277.24M168.94M318.38M341.49M440.45M425.13M
Stockholders Equity835.58M852.00M816.62M784.72M736.62M676.86M
Cash Flow
Free Cash Flow35.82M166.14M26.78M129.74M-34.98M219.09M
Operating Cash Flow41.17M169.98M28.96M130.05M-33.85M221.06M
Investing Cash Flow-3.31M-2.35M-139.00K-14.30M-29.13M-1.98M
Financing Cash Flow-47.55M-162.53M-30.32M-110.75M7.84M-154.34M

Hong Kong Finance Group Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.53
Price Trends
50DMA
0.46
Positive
100DMA
0.42
Positive
200DMA
0.38
Positive
Market Momentum
MACD
0.02
Positive
RSI
74.51
Negative
STOCH
81.82
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 0.53 is above the 20-day moving average (MA) of 0.51, above the 50-day MA of 0.46, and above the 200-day MA of 0.38, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 74.51 is Negative, neither overbought nor oversold. The STOCH value of 81.82 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$219.95M4.765.53%4.91%-1.58%8.16%
71
Outperform
HK$467.61M8.385.05%5.97%-5.52%-35.27%
68
Neutral
HK$255.00M87.93-21.78%-19.44%
46
Neutral
HK$128.24M-1.71-23.71%25.64%-25.07%
45
Neutral
HK$107.25M-0.70-2.07%-114.10%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1273
Hong Kong Finance Group Ltd.
0.53
0.24
82.76%
HK:1319
Oi Wah Pawnshop Credit Holdings Ltd.
0.25
0.04
21.89%
HK:1915
Yangzhou Guangling District Taihe Rural Micro-finance Company Limited Class H
0.26
-0.19
-42.22%
HK:2263
Fu Shek Financial Holdings Limited
0.24
0.06
33.33%
HK:0379
China Ever Grand Financial Leasing Group Co., Ltd.
0.07
0.03
75.00%
HK:0397
Power Financial Group Limited
0.05
-0.08
-61.54%

Hong Kong Finance Group Ltd. Corporate Events

Hong Kong Finance Group Announces Annual General Meeting and Share Issuance Plan
Jul 15, 2025

Hong Kong Finance Group Limited has announced its upcoming annual general meeting scheduled for September 3, 2025, where key agenda items include the approval of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. Additionally, the company seeks shareholder approval to authorize the board to issue new shares up to 20% of the current issued shares, which could impact the company’s capital structure and market positioning.

Hong Kong Finance Group Announces HK$9 Million Loan Agreement
Jun 30, 2025

Hong Kong Finance Group Limited announced a discloseable transaction involving a loan agreement with Customer B, granting a principal amount of HK$9,000,000. The loan, secured by a first mortgage on a residential property, is set at an interest rate of 1% per month for a term of six months. The company considers the risks manageable due to the collateral’s prime location and the borrower’s financial stability, funding the loan through its general working capital.

Hong Kong Finance Group Reports Increased Profit for FY2025
Jun 25, 2025

Hong Kong Finance Group Limited has announced its audited consolidated final results for the year ended 31 March 2025, reporting a profit attributable to owners of HK$46.173 million, an increase from the previous year. The company experienced a slight decrease in interest income but maintained a stable net interest income, with a notable reduction in impairment losses on loans and interest receivables. The financial position shows a decrease in total assets and liabilities, with a significant reduction in bank and other borrowings, indicating a potential improvement in financial stability.

Hong Kong Finance Group Announces Final Dividend for 2025
Jun 25, 2025

Hong Kong Finance Group Limited has announced a final ordinary dividend of HKD 0.013 per share for the financial year ending 31 March 2025. This announcement, dated 25 June 2025, outlines the key dates for shareholders, including the ex-dividend date on 8 September 2025 and the payment date on 10 October 2025. The declaration of this dividend reflects the company’s commitment to returning value to its shareholders and may impact investor sentiment positively.

Hong Kong Finance Group Announces New Loan Agreement
Jun 24, 2025

Hong Kong Finance Group Limited, a financial services company, has announced a new loan agreement involving a principal amount of HK$15,000,000 to be provided to multiple borrowers. This transaction, which follows a previous loan to one of the borrowers, is considered a discloseable transaction under the Listing Rules due to its aggregated value. The loan is secured by properties valued at approximately HK$112,900,000, and the company has assessed the credit risk as manageable, given the collateral and the borrowers’ credibility.

Hong Kong Finance Group to Review Annual Results and Dividend
Jun 13, 2025

Hong Kong Finance Group Limited has announced a board meeting scheduled for June 25, 2025, to approve the annual results for the year ended March 31, 2025, and to consider the payment of a final dividend. This meeting is significant as it will determine the company’s financial performance and potential shareholder returns, impacting its market position and stakeholder interests.

Hong Kong Finance Group Announces New Secured Loan Agreement
May 14, 2025

Hong Kong Finance Group Limited has announced a new loan agreement dated May 14, 2025, providing a HK$13,000,000 loan to Customers C and D. This loan is secured against prime real estate in Hong Kong and is intended to settle a previous loan of the same amount. The transaction is classified as discloseable under the Listing Rules, reflecting its significance to the company’s financial operations and market positioning. The company’s risk assessment indicates that the loan’s risks are manageable due to the strong collateral and the borrowers’ solid financial standing.

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: Aug 06, 2025