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

• Market Cap: HK$398.00M
• Dividend Yield: 6.48%
• Average Volume (3M): 232.07K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.22
• 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: 51 Neutral
• Price Target: HK$0.25 ▼(-21.56% Downside)

The score is held back primarily by weak financial quality driven by multi-year negative operating/free cash flow, alongside bearish technicals (price below key moving averages and negative MACD). Partially offsetting these risks are a relatively low P/E and a high dividend yield.

Positive Factors

Essential financing-guarantee business

The company occupies a structural role facilitating SME access to bank credit through guarantee products. This creates recurring fee-based revenue potential and long-term client relationships tied to credit intermediation, supporting sustained demand across credit cycles.

Re-accelerating revenue growth

A renewed top-line uptick in 2024 indicates the firm can expand its guarantee book and fee income after a soft period. Sustained revenue momentum is a durable positive if it reflects higher origination and penetration rather than one-off items, enabling improved operating scale.

Manageable leverage

Moderate leverage preserves balance-sheet flexibility for underwriting guarantees and absorbing losses. A restrained debt profile reduces refinancing and interest-rate pressure risks, allowing the company to pursue growth without excessive funding strain over the medium term.

Negative Factors

Weak cash generation

Persistent negative operating and free cash flow means reported profits aren't converting to cash, raising reliance on external funds to support guarantee obligations and working capital. Continued cash deficits threaten liquidity, dividend sustainability, and funding of growth initiatives.

Low returns on equity

An ROE near 2% signals limited effectiveness in generating shareholder returns from the equity base. Over time low capital efficiency restricts internal capital accumulation, potentially forcing reliance on external financing and constraining competitive investment or reserve-building.

Exposure to credit-loss provisioning

As a guarantor, earnings depend on borrower performance and the scale of guarantees. Adverse borrower defaults or higher provisioning requirements would directly hit margins and capital. This structural exposure creates earnings volatility and capital strain in economic downturns.

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

Income statement and balance sheet are moderate (re-accelerating 2024 revenue growth and manageable leverage), but persistently negative operating and free cash flow in 2022–2024 is a major weakness and raises sustainability risk despite reported profitability.

Income Statement

Revenue growth re-accelerated in 2024 (+9.6% YoY) after a soft 2023, indicating improving top-line momentum. Profitability remains healthy with a ~10.9% net margin in 2024, though margins are materially below the 2019–2021 peak period (when net margins were far higher). Overall, earnings appear positive and fairly stable recently, but the longer-term trend shows pressure versus prior years.

Balance Sheet

Leverage looks manageable with 2024 debt-to-equity around 0.51, supported by a sizable equity base; however, debt has risen meaningfully versus 2019–2021 levels, reducing balance-sheet flexibility. Returns on equity are low (about 2.1% in 2024), suggesting the company is not generating strong profitability from its capital base despite moderate leverage.

Cash Flow

Cash generation is the clear weak spot: operating cash flow and free cash flow are negative in 2022–2024 (and worsened materially in 2024), indicating profits are not translating into cash. While 2019 showed strong positive operating and free cash flow, the multi-year pattern since then points to elevated cash outflows and higher funding/working-capital strain, increasing financial risk if it persists.

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: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.27, above the 50-day MA of 0.31, and above the 200-day MA of 0.30, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 41.57 is Neutral, neither overbought nor oversold. The STOCH value of 36.36 is Neutral, 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$360.00M	7.35	5.24%	5.43%	-1.47%	2.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6866	64 Neutral	HK$430.70M	7.13	2.75%	4.88%	-12.94%	-15.93%
1563	59 Neutral	HK$279.00M	20.63	0.49%	―	8.77%	-76.88%
0605	53 Neutral	HK$186.14M	6.19	4.83%	―	-25.74%	―
1543	51 Neutral	HK$398.00M	8.92	2.04%	6.48%	-15.82%	2.51%

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

Guangdong Join-Share Confirms Completion of 60 Million-Share Disposal by Largest Shareholder

Guangdong Join-Share Financing Guarantee Investment Co., Ltd. announced that Foshan Financial Investment has completed the disposal and share transfer registration of 60 million domestic shares in the company to six investors, a move that diversifies the shareholder base while maintaining Foshan Financial Investment as the single largest and substantial shareholder with approximately 24.16% of the issued share capital. The company stated that the transaction is not expected to have any adverse effect on the group’s operations, indicating business continuity despite the change in shareholding structure, while cautioning shareholders and potential investors to exercise care when dealing in its securities.

The most recent analyst rating on (HK:1543) stock is a Hold with a HK$0.26 price target. To see the full list of analyst forecasts on Guangdong Join-Share Financing Guarantee Investment Co., Ltd. Class H stock, see the HK:1543 Stock Forecast page.

Guangdong Join-Share Major Shareholder to Sell 60 Million Domestic Shares While Retaining Control

Guangdong Join-Share Financing Guarantee Investment Co., Ltd. announced that its substantial shareholder Foshan Financial Investment has agreed to dispose of 60 million domestic shares of the company to six independent investors for RMB76.914 million under a property transaction agreement, subject to settlement and confirmation by the GuangDong United Assets and Equity Exchange. Following the transaction, Foshan Financial Investment will remain the company’s single largest shareholder, retaining an approximate 24.16% stake, and the company does not expect the disposal to adversely affect the group’s operations, while cautioning shareholders and potential investors that the deal may or may not proceed as it remains conditional.

The most recent analyst rating on (HK:1543) stock is a Hold with a HK$0.33 price target. To see the full list of analyst forecasts on Guangdong Join-Share Financing Guarantee Investment Co., Ltd. Class H stock, see the HK:1543 Stock Forecast page.

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.