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

• Market Cap: €14.87B
• Dividend Yield: 4.47%
• Average Volume (3M): 33.69M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.35
• Revenue Growth: 11.40%
• EPS Growth: 11.52%
• Country: HK
• Employees: 203
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.19
• Shares Outstanding: 1,697,296,300
• 10 Day Avg. Volume: 46,182,051
• 30 Day Avg. Volume: 33,692,758
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$9.00 ▲(21.62% Upside)

The overall stock score is primarily influenced by strong profitability and operational efficiency, but is significantly impacted by negative revenue growth, high leverage, and liquidity concerns. The bearish technical indicators and high P/E ratio further contribute to a cautious outlook.

Positive Factors

Profitability

Strong profitability and high margins indicate efficient cost management and effective operational performance, supporting long-term business sustainability.

Operational Efficiency

Operational efficiency enhances the company's ability to manage costs and resources effectively, contributing to sustained profitability and competitive advantage.

Return on Equity

A strong return on equity suggests the company is effectively using its shareholders' equity to generate profits, which is a positive indicator of financial health and management quality.

Negative Factors

Revenue Growth Challenges

Negative revenue growth poses a risk to future expansion and market position, potentially impacting the company's ability to capitalize on market opportunities.

High Leverage

High leverage increases financial risk and can strain cash flow, limiting the company's flexibility to invest in growth opportunities or weather economic downturns.

Negative Operating Cash Flow

Negative operating cash flow can lead to liquidity challenges, affecting the company's ability to fund operations and invest in growth, potentially impacting long-term stability.

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 primarily through brokerage commissions and fees from trading activities. The company earns a significant portion of its income from executing trades on behalf of clients in the securities and commodities markets. Additionally, it derives income from asset management services where it charges management fees based on the assets under management. The company may also engage in proprietary trading, where it trades its own capital to capture market opportunities, further contributing to its earnings. Strategic partnerships with financial institutions and technology providers enhance its trading capabilities and expand its service offerings, thereby positively impacting its revenue streams.

Bright Smart Securities & Commodities Group Limited Financial Statement Overview

Summary

The company demonstrates strong profitability and operational efficiency with high gross and net profit margins. However, it faces challenges with negative revenue growth and high leverage, which could pose financial risks. The cash flow position is concerning due to recent negative operating cash flows, impacting liquidity.

Income Statement

The company shows strong profitability with high gross and net profit margins, indicating efficient cost management. However, the revenue growth rate has been negative in recent years, which is a concern for future growth prospects. The EBIT and EBITDA margins are robust, reflecting effective operational performance.

Balance Sheet

The company has a high debt-to-equity ratio, suggesting significant leverage, which could pose financial risks. However, the return on equity is strong, indicating effective use of equity to generate profits. The equity ratio is moderate, showing a balanced asset structure.

Cash Flow

The cash flow situation is mixed, with negative operating cash flow in the latest period, indicating potential liquidity issues. The free cash flow to net income ratio is positive, suggesting that the company is generating cash relative to its net income. However, the free cash flow growth rate is negative, highlighting challenges in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	972.32M	972.32M	981.18M	1.20B	1.27B	1.55B
Gross Profit	855.28M	855.28M	840.50M	1.03B	1.08B	1.33B
EBITDA	949.83M	950.17M	-4.84M	878.76M	857.17M	1.14B
Net Income	617.63M	617.63M	558.84M	620.60M	561.50M	703.90M
Balance Sheet
Total Assets	7.69B	7.69B	7.08B	7.73B	9.77B	15.86B
Cash, Cash Equivalents and Short-Term Investments	478.05M	478.05M	441.27M	571.49M	574.29M	496.86M
Total Debt	4.42B	4.42B	3.87B	4.47B	5.27B	11.50B
Total Liabilities	6.19B	6.19B	5.63B	5.99B	7.30B	13.73B
Stockholders Equity	1.50B	1.50B	1.44B	1.73B	2.47B	2.13B
Cash Flow
Free Cash Flow	-165.57M	-165.57M	1.40B	2.17B	6.65B	-7.90B
Operating Cash Flow	-159.20M	-159.20M	1.41B	2.19B	6.66B	-7.88B
Investing Cash Flow	86.22M	420.65M	337.82M	-32.29M	-14.09M	-36.46M
Financing Cash Flow	-19.64M	-229.75M	-1.80B	-2.16B	-6.56B	7.83B

Bright Smart Securities & Commodities Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 7.4 is below the 20-day moving average (MA) of 7.54, below the 50-day MA of 8.63, and below the 200-day MA of 8.26, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 27.95 is Neutral, 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1476	64 Neutral	HK$4.97B	12.71	4.33%	―	58.09%	―
1375	60 Neutral	HK$20.11B	22.75	3.28%	1.24%	-36.99%	181.79%
1428	54 Neutral	€14.87B	24.07	43.44%	4.47%	11.40%	11.52%
1788	49 Neutral	€25.68B	36.64	4.78%	2.78%	32.03%	154.14%
0218	46 Neutral	€2.23B	-35.31	-2.44%	―	-45.13%	60.10%
0993	39 Underperform	€1.43B	―	―	―	-78.40%	-196.19%

Bright Smart Securities & Commodities Group Limited Corporate Events

Bright Smart Donates HK$10 Million to Support Tai Po Fire Victims

Bright Smart Securities & Commodities Group Limited announced a voluntary donation of HK$10 million to support the residents of Wang Fuk Court, Tai Po, following a tragic fire incident. This contribution, aimed at aiding reconstruction and providing economic and emotional support to affected families, underscores the company’s commitment to community support and corporate social responsibility.

Bright Smart Securities Reports Increased Interim Profits Amid Revenue Growth

Bright Smart Securities & Commodities Group Limited announced its unaudited interim results for the six months ending September 30, 2025, reporting a revenue increase to HK$496.9 million from HK$448.8 million in the previous year. Despite a decline in other net gains and increased operating expenses, the company achieved a profit of HK$326.9 million, up from HK$312 million, indicating strong operational performance and resilience in the financial market.

Bright Smart Securities Extends Long Stop Date for Share Purchase Agreement

Bright Smart Securities & Commodities Group Limited, incorporated in the Cayman Islands, is involved in a joint announcement regarding a possible unconditional mandatory cash offer by Morgan Stanley Asia Limited on behalf of Wealthiness and Prosperity Holding Limited. The announcement details the extension of the Long Stop Date for the completion of the share purchase agreement due to timing considerations related to reporting procedures and holiday periods. The Long Stop Date has been extended to 25 March 2026, with an increased deposit amount to facilitate the extension, reflecting ongoing adjustments to meet completion conditions.

Bright Smart Securities Announces Upcoming Board Meeting for Interim Results

Bright Smart Securities & Commodities Group Limited has announced a board meeting scheduled for November 26, 2025, to discuss and approve the interim results for the six months ending September 30, 2025. The meeting will also consider the potential payment of an interim dividend, which could impact shareholder returns and reflect the company’s financial health.

Bright Smart Securities Faces Uncertainty in Acquisition Offer

Bright Smart Securities & Commodities Group Limited, incorporated in the Cayman Islands, is involved in a potential acquisition scenario where Morgan Stanley Asia Limited, on behalf of Wealthiness and Prosperity Holding Limited, is making an unconditional mandatory cash offer for all issued shares of the company not already owned by the offeror. The announcement provides an update on the status of the completion conditions required for the offer to proceed. As of now, only one of the completion conditions has been satisfied, and with the Long Stop Date approaching, there is uncertainty about whether the remaining conditions will be met in time. The offeror is considering extending the Long Stop Date, and further updates will be provided as necessary.

Bright Smart Securities Updates CEO Remuneration Details

Bright Smart Securities & Commodities Group Limited has issued a supplemental announcement regarding the remuneration of its former chief executive officers, Mr. Ng Kim Wah and Mr. Leong Yean-Shen, Jimmy. The announcement details their compensation for the fiscal years ending March 2012 and March 2013, noting significant increases in their remuneration. This update is intended to provide additional transparency to shareholders and potential investors, emphasizing the importance of cautious engagement with the company’s shares.

Bright Smart Securities Updates on Potential Cash Offer Progress

Bright Smart Securities & Commodities Group Limited has announced an update regarding the possible unconditional mandatory cash offer by Morgan Stanley Asia Limited on behalf of Wealthiness and Prosperity Holding Limited. The offer is contingent upon the satisfaction of certain completion conditions, including regulatory approvals. The company has received approval from the SFC for the Offeror to become a substantial shareholder, but other conditions remain pending. The outcome of this offer could significantly impact the company’s shareholder structure and market positioning.

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.