China Art Financial Holdings Ltd (1572) AI Stock Analysis

• Market Cap: HK$169.05M
• Dividend Yield: N/A
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -14.12%
• EPS Growth: -104.76%
• Country: HK
• Employees: 44
• Sector: Financial
• Sector Strength: 70
• Industry: Specialty Retail
• EPS (TTM): 0.00
• Shares Outstanding: 1,690,500,000
• 10 Day Avg. Volume: 1,109,200
• 30 Day Avg. Volume: 1,731,733
• PEG Ratio: -0.56
• Price to Book (P/B): 0.14
• Price to Sales (P/S): 2.11
• P/FCF Ratio: -3.15
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$0.10 ▲(1.00% Upside)

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.

Positive Factors

Revenue Growth

The company's strong revenue growth reflects its expanding market presence and successful business model in art finance services, which can drive long-term sustainability.

Strong Equity Base

A strong equity base provides financial stability, reducing reliance on debt and enhancing the company's ability to invest in growth opportunities.

Operational Efficiency

Robust operational efficiency, as indicated by strong EBIT and EBITDA margins, supports sustainable profitability and competitive positioning in the market.

Negative Factors

Limited Profitability

A low return on equity indicates limited profitability relative to equity, which may hinder the company's ability to attract investment and sustain growth.

Cash Flow Challenges

The absence of operating and free cash flow raises concerns about the company's ability to generate cash internally, which is crucial for funding operations and growth.

Declining Profitability

A significant decline in net profit margin suggests challenges in maintaining profitability, which could impact long-term financial performance if not addressed.

China Art Financial Holdings Ltd Business Overview & Revenue Model

Company Description

China Art Financial Holdings Limited, an investment holding company, operates as an art finance service provider in the People's Republic of China. The company operates through three segments: Art and Asset Pawn Business, Art and Asset Auction Business, and Art and Asset Sales Business. It provides pawn loan services secured by artworks and assets as collateral. The company's artwork collateral portfolio primarily includes zisha artworks, as well as paintings and calligraphies, and jewel artworks. It also offers online art auction services. The company was founded in 2004 and is headquartered in Yixing, the People's Republic of China. China Art Financial Holdings Limited is a subsidiary of Intelligenesis Investment Co., Ltd.

How the Company Makes Money

China Art Financial Holdings Ltd generates revenue through several key streams. Primarily, the company earns money from commissions and fees associated with art auctions and brokerage services, where it facilitates the buying and selling of artworks. Additionally, it may offer advisory services for clients looking to invest in art, charging fees for expert guidance on art valuation and investment strategies. The company might also engage in the direct sale of art products and related merchandise, contributing to its revenue. Strategic partnerships with galleries, artists, and other stakeholders in the art market can enhance its service offerings and expand its customer base, further bolstering its earnings potential.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.79M	71.34M	59.74M	27.34M	42.90M	56.74M
Gross Profit	16.36M	22.46M	26.11M	26.72M	37.41M	53.78M
EBITDA	5.90M	12.98M	17.10M	22.51M	29.17M	44.93M
Net Income	-638.00K	4.52M	11.02M	14.60M	25.36M	43.90M
Balance Sheet
Total Assets	1.14B	1.14B	1.13B	1.11B	1.09B	1.16B
Cash, Cash Equivalents and Short-Term Investments	588.01M	653.57M	695.82M	612.42M	717.05M	827.66M
Total Debt	20.93M	7.71M	8.25M	7.56M	7.13M	1.25M
Total Liabilities	27.05M	24.90M	27.21M	14.89M	13.96M	103.31M
Stockholders Equity	1.11B	1.11B	1.10B	1.09B	1.08B	1.05B
Cash Flow
Free Cash Flow	-101.15M	-47.80M	75.61M	-109.72M	-25.59M	232.20M
Operating Cash Flow	-101.15M	-47.80M	75.61M	-109.72M	-25.47M	232.37M
Investing Cash Flow	1.03M	1.26M	2.10M	5.14M	923.00K	3.35M
Financing Cash Flow	3.90M	4.29M	5.68M	-58.00K	-86.06M	3.83M

China Art Financial Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1572, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 86.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1572.

China Art Financial Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1572	54 Neutral	HK$169.05M	-250.00	-0.06%	―	-14.12%	-104.76%
1939	44 Neutral	HK$4.19B	-215.42	-7.74%	―	85.29%	39.63%
0620	39 Underperform	HK$552.71M	-17.34	-3.08%	―	-33.28%	91.18%

China Art Financial Holdings Ltd Corporate Events

China Art Financial Announces Director Resignation

China Art Financial Holdings Ltd announced the resignation of Mr. Chen Yunwei as a non-executive director effective from September 15, 2025, as he wishes to focus on other business engagements. The company expressed gratitude for Mr. Chen’s contributions and confirmed there are no disagreements or issues to report to the Hong Kong Stock Exchange or shareholders.

China Art Financial Holdings Ltd Announces Board Composition

China Art Financial Holdings Ltd has announced the composition of its board of directors and their respective roles within the company. The board includes executive, non-executive, and independent non-executive directors, with various members serving on the audit, remuneration, nomination, and risk management committees. This announcement may impact the company’s governance and strategic direction, potentially influencing its market positioning and stakeholder relations.