Bright Smart Securities & Commodities Group Limited (1428) AI Stock Analysis

• Market Cap: €17.53B
• Dividend Yield: 3%
• Average Volume (3M): 33.78M
• Price to Earnings (P/E): 30.2
• Beta (1Y): 1.52
• Revenue Growth: 8.71%
• EPS Growth: 10.51%
• Country: HK
• Employees: 203
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.18
• Shares Outstanding: 1,697,296,300
• 10 Day Avg. Volume: 23,428,173
• 30 Day Avg. Volume: 33,777,194
• PEG Ratio: 0.83
• Price to Book (P/B): 3.12
• Price to Sales (P/S): 4.82
• P/FCF Ratio: -28.29
• 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: €11.53
• Price Target Upside: 22.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: HK$11.50 ▲(22.34% Upside)

The overall stock score of 56 reflects the company's strong profitability and operational efficiency, but is tempered by concerns over revenue growth, high leverage, and liquidity issues. Technical indicators suggest bearish momentum, and the high P/E ratio raises valuation concerns. The dividend yield offers some income potential but may not be enough to counterbalance other risks.

Bright Smart Securities & Commodities Group Limited Business Overview & Revenue Model

Company Description

Bright Smart Securities & Commodities Group Limited, an investment holding company, provides financial services in Hong Kong. It operates through three segments: Securities Broking, Commodities and Futures Broking, and Bullion Trading. The company offers securities, commodities, and futures and stock options brokerage services; margin financing services; initial public offering brokerage and financing services; and forex and bullion trading services. It is also involved in the provision of asset management and administrative services; and production and broadcast finance programs. The company was founded in 1995 and is headquartered in Central, Hong Kong. Bright Smart Securities & Commodities Group Limited is a subsidiary of New Charming Holdings Limited.

How the Company Makes Money

Bright Smart Securities & Commodities Group Limited generates revenue through several key streams. The primary source of income is derived from brokerage fees charged on transactions executed on behalf of clients in the securities and commodities markets. Additionally, the company earns revenue from asset management services by charging management fees based on the assets under management (AUM). Financial advisory services also contribute to revenue, where the firm charges fees for providing expert financial guidance and strategies to clients. Significant partnerships with financial institutions and technology providers enhance its service offerings and operational efficiency, ultimately contributing to increased earnings.

Bright Smart Securities & Commodities Group Limited Financial Statement Overview

Summary

Bright Smart Securities & Commodities Group Limited is facing challenges with declining revenues and profitability pressures. While it has strong gross profit margins and operating cash flows, the high leverage and decreasing return on equity are areas of concern. The company should focus on stabilizing revenue growth and managing its debt levels to enhance financial stability and investor confidence.

Income Statement

The company has exhibited fluctuating revenue trends, with a decline in total revenue over the last fiscal year. The gross profit margin is strong, indicating effective cost management. However, the net profit margin has decreased, reflecting pressure on profitability. The company needs to address declining revenue and profitability to improve its financial health.

Balance Sheet

The company maintains a high debt-to-equity ratio, suggesting significant leverage, which could pose financial risks. Return on equity has decreased, indicating less efficient use of equity. The equity ratio is also low, reflecting reliance on debt financing. The balance sheet shows potential vulnerabilities that need careful management to avoid financial strain.

Cash Flow

The cash flow statement shows a positive operating cash flow, indicating good cash generation from core operations. However, free cash flow growth has been inconsistent, with a notable decrease in recent years. The company demonstrates strong operating cash flows, but needs to stabilize free cash flow generation to support long-term investments and debt repayment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	992.69M	972.32M	981.18M	1.20B	1.27B	1.55B
Gross Profit	925.76M	855.28M	840.50M	1.03B	1.08B	1.33B
EBITDA	480.62M	950.17M	-4.84M	878.76M	857.17M	1.12B
Net Income	567.24M	617.63M	558.84M	620.60M	561.50M	703.90M
Balance Sheet
Total Assets	8.12B	7.69B	7.08B	7.73B	9.77B	15.86B
Cash, Cash Equivalents and Short-Term Investments	634.89M	478.05M	441.27M	571.49M	574.29M	496.86M
Total Debt	3.17B	4.42B	3.87B	4.47B	5.27B	11.50B
Total Liabilities	6.93B	6.19B	5.63B	5.99B	7.30B	13.73B
Stockholders Equity	1.20B	1.50B	1.44B	1.73B	2.47B	2.13B
Cash Flow
Free Cash Flow	2.84B	-165.57M	1.40B	2.17B	6.65B	-7.90B
Operating Cash Flow	2.84B	-159.20M	1.41B	2.19B	6.66B	-7.88B
Investing Cash Flow	-4.82M	420.65M	337.82M	-32.29M	-14.09M	-36.46M
Financing Cash Flow	-2.94B	-229.75M	-1.80B	-2.16B	-6.56B	7.83B

Bright Smart Securities & Commodities Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1428, the sentiment is Negative. The current price of 9.4 is below the 20-day moving average (MA) of 11.42, below the 50-day MA of 12.78, and above the 200-day MA of 6.38, indicating a neutral trend. The MACD of -0.46 indicates Positive momentum. The RSI at 30.78 is Neutral, neither overbought nor oversold. The STOCH value of 8.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1428.

Bright Smart Securities & Commodities Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1476	65 Neutral	5.29B	13.17	2.13%	―	58.09%	0.00%
1375	60 Neutral	21.63B	41.36	0.00%	0.98%	-28.80%	23.21%
1788	56 Neutral	50.02B	71.37	2.33%	1.34%	32.03%	154.14%
1428	56 Neutral	€17.53B	30.20	42.24%	3.00%	8.71%	10.51%
0218	53 Neutral	3.04B	-45.68	-6.11%	―	-45.13%	60.10%
0993	39 Underperform	1.73B	-1.59	10.60%	―	-78.40%	-196.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Bright Smart Securities & Commodities Group Limited Corporate Events

Bright Smart Securities Updates on Possible Cash Offer Progress

Bright Smart Securities & Commodities Group Limited, in collaboration with Wealthiness and Prosperity Holding Limited, has announced a monthly update on a possible unconditional mandatory cash offer by Morgan Stanley Asia Limited. The offer is contingent on the satisfaction of certain completion conditions, which are currently being addressed with relevant authorities. The company and the offeror are actively working to meet these conditions, but none have been satisfied or waived as of the announcement date. Shareholders are advised to exercise caution and consult professional advisers regarding the offer.

The most recent analyst rating on (HK:1428) stock is a Hold with a HK$12.00 price target. To see the full list of analyst forecasts on Bright Smart Securities & Commodities Group Limited stock, see the HK:1428 Stock Forecast page.

Bright Smart Securities & Commodities Group Limited AGM Resolutions Passed

Bright Smart Securities & Commodities Group Limited announced that all resolutions proposed at its Annual General Meeting on August 26, 2025, were passed. The resolutions included re-election of directors, authorization of directors’ remuneration, re-appointment of KPMG as auditors, and granting mandates for share issuance and repurchase. The approval of these resolutions reflects the shareholders’ confidence in the company’s governance and strategic direction.

The most recent analyst rating on (HK:1428) stock is a Hold with a HK$12.00 price target. To see the full list of analyst forecasts on Bright Smart Securities & Commodities Group Limited stock, see the HK:1428 Stock Forecast page.

Bright Smart Securities Awaits Regulatory Approval for Cash Offer

Bright Smart Securities & Commodities Group Limited and Wealthiness and Prosperity Holding Limited have issued a joint announcement regarding a possible unconditional mandatory cash offer by Morgan Stanley Asia Limited. The offer is contingent upon the satisfaction of certain completion conditions, which are currently being addressed with relevant authorities. The announcement emphasizes that the offer will only proceed if these conditions are met, advising shareholders and potential investors to exercise caution.

Bright Smart Securities Awaits Completion Conditions for Share Offer

Bright Smart Securities & Commodities Group Limited, in conjunction with Wealthiness and Prosperity Holding Limited, announced an update on the potential unconditional mandatory cash offer by Morgan Stanley Asia Limited for all issued shares of the company not already owned by the offeror. The completion of this offer is contingent upon satisfying certain conditions, which are currently being addressed with relevant authorities. Stakeholders are advised to exercise caution as the offer’s progression remains uncertain, pending the fulfillment of these conditions.

Bright Smart Securities Announces 2025 AGM with Key Resolutions

Bright Smart Securities & Commodities Group Limited has announced its upcoming Annual General Meeting scheduled for August 26, 2025, in Hong Kong. Key agenda items include the consideration of audited financial statements, re-election of directors, and re-appointment of KPMG as auditors. The meeting will also address resolutions related to the issuance of additional shares, which could impact the company’s capital structure and shareholder value.

Bright Smart Securities Establishes Nomination Committee to Enhance Governance

Bright Smart Securities & Commodities Group Limited has outlined the terms of reference for its Nomination Committee, which was established by the board of directors. The committee is responsible for nominating board members and ensuring diversity, with a requirement for at least one member of a different gender and a majority being independent non-executive directors. This structure aims to enhance governance and ensure a balanced representation within the company’s leadership.

Bright Smart Securities Reports Strong Financial Growth for 2025

Bright Smart Securities & Commodities Group Limited announced its annual results for the year ending March 31, 2025, reporting a revenue increase to HKD 972.3 million from HKD 908.8 million the previous year. The company achieved a profit of HKD 617.6 million, up from HKD 558.8 million, indicating strong operational performance despite increased staff and operating costs. This financial growth underscores the company’s robust market positioning and potential positive implications for stakeholders.