Kingkey Financial International (Holdings) Ltd. (1468) AI Stock Analysis

• Market Cap: HK$451.57M
• Dividend Yield: N/A
• Average Volume (3M): 15.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.85
• Revenue Growth: -63.62%
• EPS Growth: 49.46%
• Country: HK
• Employees: 50
• Sector: Industrials
• Sector Strength: 86
• Industry: Conglomerates
• EPS (TTM): -0.07
• Shares Outstanding: 1,736,795,700
• 10 Day Avg. Volume: 20,966,900
• 30 Day Avg. Volume: 15,773,976
• PEG Ratio: -0.08
• Price to Book (P/B): 507.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 784.20
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 36 Underperform
• Price Target: ―

The overall stock score for Kingkey Financial International (Holdings) Ltd. reflects significant financial challenges, with declining revenues, persistent losses, and unstable cash flows. Technical analysis indicates a bearish trend with low momentum, while valuation metrics suggest undervaluation primarily due to ongoing financial distress. The high beta implies high volatility, adding to the risk profile of the stock.

Kingkey Financial International (Holdings) Ltd. Business Overview & Revenue Model

Company Description

Kingkey Financial International (Holdings) Limited, an investment holding company, engages in the insurance brokerage business in China, Hong Kong, and Denmark. It operates through Securities, Insurance Brokerage, Fur, Assets Management, and Money Lending segments. The Securities segment offers securities brokerage, margin financing, underwriting, sub-underwriting, placing, sub-placing, and consultancy services. The Insurance Brokerage segment provides insurance brokerage and wealth management services. The Fur segment offers fur skin brokerage and financing services, as well as sells pelted skin. The Assets Management segment engages in the provision and arrangement of fund management and asset management services. The Money Lending segment provides money lending services. The company was formerly known as UKF (Holdings) Limited and changed its name to Kingkey Financial International (Holdings) Limited in November 2019. The company was incorporated in 2015 and is headquartered in Kowloon, Hong Kong.

How the Company Makes Money

Kingkey Financial International (Holdings) Ltd. makes money through a diversified revenue model centered around its core financial services. The company's key revenue streams include commissions and fees from securities trading, management fees from asset management services, advisory fees from financial consultancy services, and interest income from money lending activities. These streams are supported by strategic partnerships with financial institutions and a strong client network, which help in expanding its market presence and enhancing its service offerings.

Kingkey Financial International (Holdings) Ltd. Financial Statement Overview

Summary

Kingkey Financial International (Holdings) Ltd. is experiencing financial distress, characterized by declining revenues, persistent losses, and unstable cash flows. The company faces challenges in profitability and efficient cash generation, making it vulnerable to economic fluctuations. While some balance sheet metrics show improvement, the overall financial health remains weak, requiring strategic shifts to stabilize and grow.

Income Statement

The income statement shows declining revenue and severe losses over the years. Gross profit margin has deteriorated, with gross profit decreasing from 122,692,000 to 58,397,000 from 2023 to 2024. The net profit margin is also negative and worsening, indicating significant profitability challenges. Revenue growth is negative, reflecting a downturn in business performance.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio has improved slightly due to decreased liabilities, but the company still faces high leverage with a ratio of approximately 0.39 in 2024. While stockholders' equity has increased, likely due to retained earnings, the equity ratio has decreased due to declining total assets. Return on Equity remains negative, indicating persistent unprofitability.

Cash Flow

Cash flow analysis indicates volatility. Free cash flow is positive in 2024, showing improvement from previous years. However, operating cash flow has decreased significantly, and the operating cash flow to net income ratio is unstable due to negative net income. This suggests difficulties in generating cash from operations despite reduced capital expenditures.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	187.96M	330.42M	331.31M	127.04M	148.64M	125.04M
Gross Profit	41.24M	58.40M	122.69M	85.99M	95.91M	40.93M
EBITDA	-96.98M	-715.12M	-1.10B	-46.11M	16.78M	-40.57M
Net Income	-621.13M	-551.25M	-1.16B	-73.13M	-8.44M	-70.31M
Balance Sheet
Total Assets	966.76M	866.60M	1.78B	1.32B	915.58M	643.11M
Cash, Cash Equivalents and Short-Term Investments	164.71M	118.58M	111.05M	174.04M	48.09M	42.14M
Total Debt	146.26M	159.57M	203.81M	251.01M	235.37M	136.69M
Total Liabilities	410.41M	461.59M	1.41B	525.97M	489.75M	215.98M
Stockholders Equity	561.54M	406.10M	240.54M	790.29M	425.83M	427.14M
Cash Flow
Free Cash Flow	-56.31M	49.03M	155.78M	-212.76M	-52.00M	-54.00M
Operating Cash Flow	-56.03M	70.56M	186.09M	-211.75M	-46.44M	-53.92M
Investing Cash Flow	-17.40M	-18.46M	-119.31M	-144.08M	-30.66M	1.52M
Financing Cash Flow	130.84M	-44.45M	-79.57M	434.79M	79.42M	-5.91M

Kingkey Financial International (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.26
• 50DMA: Positive
• 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:1468, the sentiment is Positive. The current price of 0.26 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.22, and below the 200-day MA of 0.51, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.76 is Neutral, neither overbought nor oversold. The STOCH value of 46.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1468.

Kingkey Financial International (Holdings) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	71 Outperform	¥254.55B	13.00	8.49%	3.09%	6.31%	12.77%
1468	36 Underperform	HK$451.57M	―	-17.78%	―	-63.62%	49.46%
8227		HK$451.64M	―		―	―	―
ICHA		€43.39M	―		―	―	―
W2T1		€33.67M	―	-4.41%	―	―	―
8162	65 Neutral	HK$527.50M	13.92	58.27%	―	41.04%	84.76%
0132	61 Neutral	HK$452.05M	7.32	1.80%	2.20%	-2.73%	126.11%

Kingkey Financial International (Holdings) Ltd. Corporate Events

Kingkey Financial Announces Major Acquisition with Share Issuance

Kingkey Financial International (Holdings) Limited has announced a major transaction involving the acquisition of an 80% equity interest in a target company, valued at a maximum consideration of HK$103,000,000. This acquisition will be satisfied through the issuance of up to 705,479,452 consideration shares, representing a significant increase in the company’s total issued shares. The transaction is classified as a major transaction under the Hong Kong Stock Exchange’s listing rules, requiring shareholder approval. The completion of this acquisition is contingent upon meeting certain conditions, and stakeholders are advised to exercise caution as there is no guarantee that these conditions will be fulfilled.

Kingkey Financial Explores Cryptocurrency Investments to Drive Growth

Kingkey Financial International (Holdings) Ltd. has announced plans to explore investment opportunities in cryptocurrencies, particularly Bitcoin, as part of its strategy to leverage blockchain technology for growth. The company aims to enhance shareholder value and demonstrate its commitment to technological advancements, despite acknowledging the volatility of the cryptocurrency market. The investment plans will be financed by existing cash reserves and are subject to approval by the company’s Investment Committee.

Kingkey Financial Explores Green Energy Partnerships in Malaysia

Kingkey Financial International (Holdings) Limited has announced a non-legally binding memorandum of understanding with MUJUR SINARJAYA SDN BHD and WRISE Group to explore business opportunities in the renewable energy sector in Malaysia, including the financing and development of green energy projects at Penang Technology Park. This potential cooperation aims to leverage the strengths of the involved parties in financial services and property development to promote sustainable energy solutions. The initiative reflects Kingkey Financial’s strategy to diversify its revenue streams and enhance its competitive position by advancing green energy initiatives and integrating AI applications.

Kingkey Financial Eyes Expansion into Virtual Asset Services

Kingkey Financial International (Holdings) Limited announced plans to enhance its digital offerings by potentially applying for consent to offer virtual asset dealing and advisory services. This strategic move aims to diversify its service offerings, attract a broader customer base, and tap into new revenue streams by integrating AI into risk management and decision-making processes, aligning with the company’s commitment to technological innovation in the financial sector.

Kingkey Financial Completes Strategic Acquisition, Alters Shareholding Structure

Kingkey Financial International (Holdings) Limited announced the completion of a discloseable transaction involving the acquisition of sale shares of a target company. As part of this transaction, 93,786,894 new shares were issued to the vendor, impacting the company’s shareholding structure by introducing a new stakeholder holding approximately 5.40% of the enlarged share capital.

Kingkey Financial Partners with SIAM AI to Lead in AI and Green Finance

Kingkey Financial International has announced a strategic collaboration with SIAM AI Corporation, emphasizing AI, green finance, and virtual asset services to bolster business growth. This joint venture is expected to position the company as a technological leader, enhancing its service offerings and ensuring long-term sustainability in the financial services sector.