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China Art Financial Holdings Ltd (HK:1572)
:1572
Hong Kong Market
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China Art Financial Holdings Ltd (1572) AI Stock Analysis

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HK:1572

China Art Financial Holdings Ltd

(1572)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
HK$0.00
▼(-100.00% Downside)
The overall stock score is primarily influenced by financial performance and technical analysis. The company's strong equity base and low debt levels are positive, but the lack of cash flow and declining profitability are significant concerns. Technical indicators suggest a neutral to slightly bearish outlook, while the high P/E ratio indicates potential overvaluation.

China Art Financial Holdings Ltd (1572) vs. iShares MSCI Hong Kong ETF (EWH)

China Art Financial Holdings Ltd Business Overview & Revenue Model

Company DescriptionChina Art Financial Holdings Ltd (1572) is a company primarily engaged in the provision of art finance services in China. This includes art pawn loan services and art auction services, focusing on leveraging high-value artworks as collateral to provide financial solutions. The company operates within the niche segment of the financial services sector, catering to collectors, investors, and art enthusiasts.
How the Company Makes MoneyChina Art Financial Holdings Ltd generates revenue through its art pawn loan services and art auction services. The company provides short-term secured loans where art pieces are used as collateral, earning interest and fees from these financial transactions. Additionally, it organizes art auctions and charges commissions and service fees on successful sales. These revenue streams are supported by the company's expertise in art valuation and its extensive network within the art market. Partnerships with art galleries, collectors, and other stakeholders in the art industry enhance its ability to source valuable artwork and attract clients.

China Art Financial Holdings Ltd Financial Statement Overview

Summary
China Art Financial Holdings Ltd shows strong equity and low debt levels, indicating long-term stability. However, the declining net profit margin and absence of operating cash flow pose significant risks to financial health and operational sustainability.
Income Statement
60
Neutral
China Art Financial Holdings Ltd has demonstrated a mixed performance in its income statement metrics. The revenue growth rate from 2023 to 2024 is 19.41%, indicating a positive trend. However, the net profit margin decreased from 18.44% in 2023 to 6.34% in 2024, suggesting a decline in profitability. The gross profit margin is stable at about 31.48% for 2024. EBIT and EBITDA margins are strong at 19.08% and 18.19% respectively for 2024, indicating robust operational efficiency.
Balance Sheet
75
Positive
The balance sheet of China Art Financial Holdings Ltd shows strong financial stability. The debt-to-equity ratio is very low at 0.007 in 2024, indicating minimal leverage and suggesting low financial risk. The equity ratio is high at 97.80%, reflecting a strong equity base. Return on equity is modest at 0.41% in 2024, showing limited profitability relative to equity, although the company maintains a healthy asset base.
Cash Flow
40
Negative
The cash flow statement reveals significant challenges. The company reports zero operating and free cash flow for 2024, a drastic decline from the positive cash flow in 2023. This raises concerns about the company's ability to generate cash from its operations. The free cash flow to net income and operating cash flow to net income ratios cannot be evaluated due to the absence of cash flow figures.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue71.34M59.74M27.34M42.90M56.74M
Gross Profit22.46M26.11M26.72M37.41M53.78M
EBITDA12.98M17.10M22.51M29.17M44.93M
Net Income4.52M11.02M14.60M25.36M43.90M
Balance Sheet
Total Assets1.14B1.13B1.11B1.09B1.16B
Cash, Cash Equivalents and Short-Term Investments653.57M695.82M612.42M717.05M827.66M
Total Debt7.71M8.25M7.56M7.13M1.25M
Total Liabilities24.90M27.21M14.89M13.96M103.31M
Stockholders Equity1.11B1.10B1.09B1.08B1.05B
Cash Flow
Free Cash Flow-47.80M75.61M-109.72M-25.59M232.20M
Operating Cash Flow-47.80M75.61M-109.72M-25.47M232.37M
Investing Cash Flow1.26M2.10M5.14M923.00K3.35M
Financing Cash Flow4.29M5.68M-58.00K-86.06M3.83M

China Art Financial Holdings Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.10
Price Trends
50DMA
0.10
Negative
100DMA
0.10
Positive
200DMA
0.09
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
45.08
Neutral
STOCH
62.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1572, the sentiment is Neutral. The current price of 0.1 is above the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and above the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 62.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1572.

China Art Financial Holdings Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
54
Neutral
HK$169.05M36.21-0.06%-14.12%-104.76%
54
Neutral
HK$5.01B-8.52%7.26%27.70%
44
Neutral
HK$648.83M-3.08%-33.28%91.18%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1572
China Art Financial Holdings Ltd
0.10
-0.02
-16.67%
HK:1939
Tokyo Chuo Auction Holdings Ltd.
10.01
9.31
1330.00%
HK:0620
DTXS Silk Road Investment Holdings Company Limited
0.86
0.60
230.77%

China Art Financial Holdings Ltd Corporate Events

China Art Financial Holdings Ltd AGM Resolutions Passed Amid Shareholder Concerns
May 30, 2025

China Art Financial Holdings Ltd held its Annual General Meeting on May 30, 2025, where all proposed resolutions were passed by poll. Key resolutions included the approval of financial statements, re-election of directors, and re-appointment of auditors, all receiving unanimous support. However, resolutions granting directors the mandate to issue or repurchase shares were largely opposed, indicating shareholder concerns over potential dilution or strategic direction.

China Art Financial Holdings Appoints New CEO
May 13, 2025

China Art Financial Holdings Ltd has appointed Mr. Zou Chengyu as its new Chief Executive Officer, effective May 13, 2025. Mr. Zou brings extensive experience in the cultural and creative industry, having previously led a high-tech enterprise project and holding various representative roles in international and national organizations. His leadership is expected to enhance the company’s strategic positioning and operational growth.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2025