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

• Market Cap: €19.82B
• Dividend Yield: 2.83%
• Average Volume (3M): 52.62M
• Price to Earnings (P/E): 31.8
• Beta (1Y): 1.56
• Revenue Growth: 8.71%
• EPS Growth: 10.51%
• Country: HK
• Employees: 203
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Capital Markets
• EPS (TTM): 0.18
• Shares Outstanding: 1,697,296,300
• 10 Day Avg. Volume: 54,368,807
• 30 Day Avg. Volume: 52,623,456
• 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: €11.95
• Price Target Upside: 4.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: HK$12.00 ▲(4.62% Upside)

The overall stock score reflects concerns about the company's high leverage and negative cash flow, which impact financial stability. Technical indicators suggest weak market momentum, and the high P/E ratio raises valuation concerns. Despite strong profitability, these factors weigh heavily on the stock's attractiveness.

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: 11.47
• 50DMA: Negative
• 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:1428, the sentiment is Negative. The current price of 11.47 is below the 20-day moving average (MA) of 12.32, below the 50-day MA of 12.03, and above the 200-day MA of 5.66, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 43.90 is Neutral, neither overbought nor oversold. The STOCH value of 37.72 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	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%
1428	55 Neutral	€19.82B	31.77	42.24%	2.83%	8.71%	10.51%
93W	―	€192.93M	―		―	―	―
GUE	―	€5.48B	117.44	4.78%	―	―	―
WAY	―	€350.08M	―	-2.44%	―	―	―
1375	60 Neutral	HK$21.32B	59.52	1.54%	0.92%	-36.60%	-21.50%
1476	60 Neutral	HK$5.31B	13.57	4.33%	―	58.09%	―

Bright Smart Securities & Commodities Group Limited Corporate Events

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.

Bright Smart Securities Updates on Mandatory Cash Offer Progress

Bright Smart Securities & Commodities Group Limited, incorporated in the Cayman Islands, is involved in a possible unconditional mandatory cash offer by Morgan Stanley Asia Limited for all issued shares not already owned by the offeror. The announcement provides an update on the satisfaction of completion conditions required for the offer to proceed. The offeror has submitted necessary applications and documents to relevant regulatory bodies, but as of the announcement date, none of the completion conditions have been satisfied or waived. Further updates will be provided as developments occur.

Bright Smart Securities Announces Board Meeting for Annual Results

Bright Smart Securities & Commodities Group Limited has announced that its board of directors will hold a meeting on June 27, 2025, to consider and approve the annual results for the fiscal year ending March 31, 2025. This meeting is significant as it will determine the company’s financial performance and could impact its market positioning and stakeholder interests.

Bright Smart Appoints Adviser for Strategic Offer Evaluation

Bright Smart Securities & Commodities Group Limited has appointed Somerley Capital Limited as the Independent Financial Adviser to guide the Independent Board Committee regarding an offer from Wealthiness and Prosperity Holding Limited. This appointment is part of the company’s strategic move to ensure the offer’s fairness and reasonableness, potentially impacting shareholder decisions and the company’s market positioning.

Bright Smart Securities Faces Delay in Cash Offer Document Dispatch

Bright Smart Securities & Commodities Group Limited and Wealthiness and Prosperity Holding Limited have announced a delay in the dispatch of a composite document related to a possible unconditional mandatory cash offer by Morgan Stanley Asia Limited. The delay is due to the need for additional time to satisfy completion conditions and finalize information for the document. The extension has been approved by the Executive, with the new deadline set for no later than seven days after completion or December 17, 2025, whichever comes first. This delay may impact the timeline of the offer process, affecting stakeholders involved.