China Art Financial Holdings Ltd (1572) AI Stock Analysis

• Market Cap: HK$211.31M
• Dividend Yield: N/A
• Average Volume (3M): 3.55M
• Price to Earnings (P/E): 43.1
• Beta (1Y): 0.75
• Revenue Growth: 16.97%
• EPS Growth: -59.72%
• Country: HK
• Employees: 44
• Sector: Financial
• Sector Strength: 72
• Industry: Specialty Retail
• EPS (TTM): >-0.01
• Shares Outstanding: 1,690,500,000
• 10 Day Avg. Volume: 5,208,800
• 30 Day Avg. Volume: 3,554,666
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 1

• Rating: 58 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by the company's stable financial position with strong equity and low debt levels. However, significant risks are posed by the declining net profit margin and absence of operating cash flow. Technical analysis shows strong momentum but indicates potential for a pullback due to overbought conditions. The high P/E ratio suggests overvaluation, further impacting the stock's attractiveness.

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 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 has a stable financial position with strong equity and low debt levels, which is a positive indicator for long-term stability. However, the declining net profit margin and the 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.34M	59.74M	27.34M	42.90M	56.74M
Gross Profit	22.46M	20.92M	26.72M	37.41M	53.78M
EBITDA	12.98M	17.10M	22.51M	29.17M	44.93M
Net Income	4.52M	11.02M	14.60M	25.36M	43.90M
Balance Sheet
Total Assets	1.14B	1.13B	1.11B	1.09B	1.16B
Cash, Cash Equivalents and Short-Term Investments	653.57M	695.82M	612.42M	717.05M	827.66M
Total Debt	7.71M	8.25M	7.56M	7.13M	1.25M
Total Liabilities	24.90M	27.21M	14.89M	13.96M	103.31M
Stockholders Equity	1.11B	1.10B	1.09B	1.08B	1.05B
Cash Flow
Free Cash Flow	-47.80M	75.61M	-109.72M	-25.59M	232.20M
Operating Cash Flow	-47.80M	75.61M	-109.72M	-25.47M	232.37M
Investing Cash Flow	1.26M	2.10M	5.14M	923.00K	3.35M
Financing Cash Flow	4.29M	5.68M	-58.00K	-86.06M	3.83M

China Art Financial Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 0.12 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 84.34 is Negative, neither overbought nor oversold. The STOCH value of 61.30 is Neutral, 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	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%
1572	58 Neutral	HK$211.31M	43.10	0.41%	―	16.97%	-59.72%
1939	55 Neutral	HK$4.20B	―	-8.52%	―	7.26%	27.70%
0620	―	HK$602.06M	―	-2.73%	―	―	―

China Art Financial Holdings Ltd Corporate Events

China Art Financial Holdings Ltd AGM Resolutions Passed Amid Shareholder Concerns

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

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.