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

• Market Cap: HK$224.10M
• Dividend Yield: 4.81%
• Average Volume (3M): 229.87K
• Price to Earnings (P/E): 4.9
• Beta (1Y): 0.19
• Revenue Growth: -1.58%
• EPS Growth: 8.16%
• Country: HK
• Employees: 50
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.05
• 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

• Rating: 82 Outperform
• Price Target: HK$0.50 ▼(-7.41% Downside)

The overall stock score is driven by strong technical indicators and attractive valuation metrics. The company's solid financial performance, particularly its revenue growth and balance sheet stability, further supports the positive outlook. The absence of earnings call data and corporate events does not detract from the overall positive assessment.

Hong Kong Finance Group Ltd. Business Overview & Revenue Model

Company Description

Hong Kong Finance Group Ltd. (1273) is a diversified financial services company based in Hong Kong, focusing on providing a range of financial solutions including investment advisory, asset management, and wealth management services. The company operates primarily in the financial services sector, catering to individual and institutional clients with tailored investment strategies and financial planning services. Its core products include mutual funds, securities trading, and financial consulting, aimed at helping clients achieve their financial goals.

How the Company Makes Money

Hong 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

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	126.88M	152.81M	136.73M	163.27M	154.88M	157.60M
Gross Profit	90.17M	137.10M	136.73M	163.27M	154.88M	157.60M
EBITDA	82.47M	62.39M	80.15M	104.43M	99.83M	116.07M
Net Income	46.34M	46.17M	42.69M	58.88M	70.55M	73.22M
Balance Sheet
Total Assets	1.11B	1.02B	1.13B	1.13B	1.18B	1.10B
Cash, Cash Equivalents and Short-Term Investments	32.02M	34.23M	28.38M	29.88M	24.88M	80.02M
Total Debt	198.08M	105.00M	307.04M	326.57M	426.44M	406.71M
Total Liabilities	277.24M	168.94M	318.38M	341.49M	440.45M	425.13M
Stockholders Equity	835.58M	852.00M	816.62M	784.72M	736.62M	676.86M
Cash Flow
Free Cash Flow	35.82M	166.14M	26.78M	129.74M	-34.98M	219.09M
Operating Cash Flow	41.17M	169.98M	28.96M	130.05M	-33.85M	221.06M
Investing Cash Flow	-3.31M	-2.35M	-139.00K	-14.30M	-29.13M	-1.98M
Financing Cash Flow	-47.55M	-162.53M	-30.32M	-110.75M	7.84M	-154.34M

Hong Kong Finance Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.54 is above the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.50, and above the 200-day MA of 0.40, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 59.78 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, 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
1273	―	HK$224.10M	4.85	5.53%	4.81%	-1.58%	8.16%
1319	―	HK$457.99M	8.21	―	6.09%	-5.52%	-35.27%
2263	―	HK$208.00M	71.72	0.81%	―	-21.78%	-19.44%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
0397	―	HK$114.09M	-0.75	-14.21%	―	-2.07%	-114.10%
0379	―	HK$121.49M	-1.62	-21.07%	―	25.64%	-25.07%

Hong Kong Finance Group Ltd. Corporate Events

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.

The most recent analyst rating on (HK:1273) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Hong Kong Finance Group Ltd. stock, see the HK:1273 Stock Forecast page.

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.

The most recent analyst rating on (HK:1273) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Hong Kong Finance Group Ltd. stock, see the HK:1273 Stock Forecast page.

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.

The most recent analyst rating on (HK:1273) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Hong Kong Finance Group Ltd. stock, see the HK:1273 Stock Forecast page.

Hong Kong Finance Group Secures Shareholder Approval for Key Resolutions at AGM

Hong Kong Finance Group Limited announced that all proposed resolutions were passed at its Annual General Meeting held on September 3, 2025. Key resolutions included the approval of financial statements, the declaration of a final dividend, re-election of directors, and granting mandates for share issuance and repurchase. The approval of these resolutions reflects shareholder confidence and supports the company’s strategic initiatives, potentially enhancing its market position and operational capabilities.

The most recent analyst rating on (HK:1273) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Hong Kong Finance Group Ltd. stock, see the HK:1273 Stock Forecast page.