Guangdong Join-Share Financing Guarantee Investment Co., Ltd. Class H (1543) AI Stock Analysis

• Market Cap: HK$452.63M
• Dividend Yield: 6.48%
• Average Volume (3M): 232.07K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.24
• Revenue Growth: -15.82%
• EPS Growth: 2.51%
• Country: HK
• Employees: 291
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.01
• Shares Outstanding: 554,363,340
• 10 Day Avg. Volume: 183,000
• 30 Day Avg. Volume: 232,066
• PEG Ratio: 1.78
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 1.89
• P/FCF Ratio: -2.32
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$0.33 ▲(2.50% Upside)

The score is mainly held back by weak cash conversion (negative operating and free cash flow in 2022–2024) and low ROE despite moderate leverage. Offsetting factors include improving 2024 revenue growth and a reasonable valuation with a high dividend yield, while technical indicators are broadly neutral.

Positive Factors

Revenue Growth

The re-acceleration of revenue growth in 2024 indicates a positive shift in business momentum, suggesting stronger market demand and potential for sustained top-line expansion.

Net Margin

A healthy net margin of 10.9% in 2024 reflects efficient cost management and pricing power, supporting long-term earnings stability and competitive positioning.

Shareholder Structure

The increase in GD Re-Guarantee's stake to 10% strengthens strategic partnerships, potentially enhancing business opportunities and stability through aligned interests.

Negative Factors

Cash Flow

Persistent negative cash flow from operations indicates that profits are not converting to cash, posing risks to liquidity and financial flexibility if this trend continues.

Rising Debt Levels

Increased debt levels reduce financial flexibility and could lead to higher interest expenses, impacting long-term profitability and balance sheet health.

Low ROE

A low ROE of 2.1% suggests inefficiency in generating returns from equity, potentially limiting attractiveness to investors and impacting capital raising ability.

Guangdong Join-Share Financing Guarantee Investment Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Guangdong Join-Share Financing Guarantee Investment Co., Ltd., together with its subsidiaries, provides credit-based financing solutions to small and medium-sized enterprises (SMEs) for their financing and business needs in the People's Republic of China. It operates in two segments, Guarantees and SME Lending. The Guarantees segment offers financing guarantees, such as indirect and direct financing guarantees; non-financing guarantees, including attachment bonds, construction contract bonds, and other contract bonds; performance guarantees; and litigation guarantees. It also provides debt financing, internal control, and risk management related consulting services to the guarantee customers. This segment also offers guarantees on behalf of SMEs and individual business proprietors. The SME Lending segment provides loans and related financing consulting services to SME and micro enterprises or the owners of SME enterprises; and micro-lending to SMEs, individual business proprietors, and individuals. The company also offers investment and consulting services; microcredit, supply chain, and factoring services; and digital technology services. Guangdong Join-Share Financing Guarantee Investment Co., Ltd. was incorporated in 2003 and is headquartered in Foshan, China.

How the Company Makes Money

Guangdong Join-Share Financing Guarantee Investment Co., Ltd. generates revenue primarily through fees charged for its guarantee services. These fees are paid by clients—mostly SMEs—seeking to obtain loans or credit facilities from financial institutions. The company acts as a guarantor, reducing the risk for lenders and enabling clients to secure credit. Additionally, Guangdong Join-Share may earn interest and service fees from its financial leasing operations, where it leases equipment or machinery to clients. The company's earnings are influenced by the volume of guarantees and leases provided, the fee structure, and the financial health of the enterprises it serves. Partnerships with banks and other financial institutions are crucial, as they expand the company's reach and service offerings.

Guangdong Join-Share Financing Guarantee Investment Co., Ltd. Class H Financial Statement Overview

Summary

Guangdong Join-Share Financing Guarantee Investment Co., Ltd. showcases strong profitability with a solid gross profit margin and improved net profit margin. However, the company faces challenges in cash flow management, with operating cash flow at zero and consistently negative free cash flow. The balance sheet is stable with reasonable leverage and a solid equity base, but there is room for improvement in equity returns.

Income Statement

The company shows a solid gross profit margin of 86.2% in 2024, up from 86.5% in 2023, indicating strong profitability in core operations. The net profit margin has slightly increased to 10.9% from 11.4%, reflecting improved efficiency. However, revenue growth from 2023 to 2024 is modest at 15.2%, and EBIT margin decreased, suggesting some challenges in operational efficiency.

Balance Sheet

The debt-to-equity ratio stands at 0.51 in 2024, indicating a balanced leverage position. The return on equity has improved slightly to 2.1% from 1.9% in 2023, signaling better utilization of equity. The equity ratio remains robust at 52.2%, ensuring financial stability. Overall, the balance sheet is solid but shows room for improvement in equity returns.

Cash Flow

The cash flow statement reveals challenges, with operating cash flow at zero in 2024, indicating potential cash flow management issues. Free cash flow has consistently been negative, and the free cash flow to net income ratio is not calculable due to zero values, suggesting cash generation issues. The company needs to enhance cash flow generation to improve financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	358.38M	387.16M	336.04M	346.49M	369.10M	364.16M
Gross Profit	318.04M	333.76M	290.60M	310.81M	310.47M	311.03M
EBITDA	108.79M	111.56M	0.00	81.18M	147.40M	165.78M
Net Income	41.32M	42.18M	38.40M	42.58M	81.99M	106.58M
Balance Sheet
Total Assets	3.87B	3.88B	3.79B	3.67B	3.45B	3.19B
Cash, Cash Equivalents and Short-Term Investments	896.44M	699.62M	1.04B	883.17M	891.39M	896.54M
Total Debt	1.01B	1.04B	794.80M	805.85M	464.50M	205.31M
Total Liabilities	1.50B	1.52B	1.43B	1.32B	1.08B	774.45M
Stockholders Equity	2.02B	2.03B	2.02B	2.07B	2.10B	2.09B
Cash Flow
Free Cash Flow	47.01M	-315.65M	-41.41M	-45.95M	-160.87M	-25.16M
Operating Cash Flow	59.34M	-282.23M	-34.17M	-37.57M	-156.17M	-22.63M
Investing Cash Flow	-145.33M	-56.79M	-218.55M	-154.63M	220.89M	87.06M
Financing Cash Flow	99.94M	64.83M	241.20M	244.73M	72.68M	-154.99M

Guangdong Join-Share Financing Guarantee Investment Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1543, the sentiment is Negative. The current price of 0.32 is above the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.32, and above the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.79 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1543.

Guangdong Join-Share Financing Guarantee Investment Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1577	80 Outperform	HK$680.00M	6.20	8.46%	5.46%	-24.04%	60.24%
1669	71 Outperform	HK$368.00M	7.52	5.24%	5.43%	-1.47%	2.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6866	66 Neutral	HK$336.30M	5.57	2.75%	4.88%	-12.94%	-15.93%
1563	59 Neutral	HK$290.84M	21.50	0.49%	―	8.77%	-76.88%
1543	55 Neutral	HK$452.63M	10.14	2.04%	6.48%	-15.82%	2.51%
0605	53 Neutral	HK$188.16M	6.26	4.83%	―	-25.74%	―

Guangdong Join-Share Financing Guarantee Investment Co., Ltd. Class H Corporate Events

Foshan Financial Investment to Dispose of Shares in Guangdong Join-Share

Foshan Financial Investment Holding Co., Ltd., the largest shareholder of Guangdong Join-Share Financing Guarantee Investment Co., Ltd., plans to dispose of 60,000,000 domestic shares in the company. Despite this significant share disposal, Foshan Financial Investment will remain the largest shareholder, and the company does not anticipate any adverse effects on its operations.

Guangdong Join-Share Financing Announces Shareholder Agreement Change

Guangdong Join-Share Financing Guarantee Investment Co., Ltd. has entered into a Change of Shareholder Agreement, resulting in GD Yuecai transferring its shares to GD Re-Guarantee, increasing GD Re-Guarantee’s stake from 2.5% to 10%. This transaction includes a put option and a guaranteed return for GD Re-Guarantee, making it a substantial shareholder and a connected person of the company. The board has approved these changes, which are subject to reporting and announcement requirements under the Listing Rules, but are exempt from circular and shareholders’ approval requirements.

Guangdong Join-Share Announces Resignation of Joint Company Secretary

Guangdong Join-Share Financing Guarantee Investment Co., Ltd. announced the resignation of Mr. Ou Weiming as a joint company secretary, effective October 10, 2025. Mr. Lau Kwok Yin will continue as the sole company secretary, with Mr. Ou remaining as a non-executive director and executive vice president. The company has no plans to appoint a new joint secretary, and Mr. Ou’s responsibilities will be managed by Mr. Lau and other officers. The board expressed gratitude for Mr. Ou’s contributions, and there are no disagreements or issues related to his resignation.