China Art Financial Holdings Ltd (1572) AI Stock Analysis

• Market Cap: HK$148.76M
• Dividend Yield: N/A
• Average Volume (3M): 3.40M
• Price to Earnings (P/E): 30.3
• Beta (1Y): 0.73
• Revenue Growth: 16.97%
• EPS Growth: -59.72%
• Country: HK
• Employees: 44
• Sector: Financial
• Sector Strength: 82
• Industry: Specialty Retail
• EPS (TTM): <0.01
• Shares Outstanding: 1,690,500,000
• 10 Day Avg. Volume: 3,580,800
• 30 Day Avg. Volume: 3,404,666
• PEG Ratio: -0.41
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.97
• 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

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

The overall stock score of 58 reflects a company with a stable financial position marked by strong equity and low debt levels. However, significant concerns arise from declining profitability and absent cash flow, which weigh heavily on the financial performance. Technical indicators suggest moderate momentum but point to caution in the longer term. The valuation appears stretched with a high P/E ratio and no dividend yield to offset potential risks.

China Art Financial Holdings Ltd Business Overview & Revenue Model

Company Description

China Art Financial Holdings Ltd (1572) is a company based in China that primarily engages in the provision of art financing services. The company operates within the financial services sector, focusing on art and collectible-related financial solutions. Its primary services include art-backed loans and art-related financial consultancy, catering to art owners and collectors seeking liquidity while retaining ownership of their valuable assets.

How the Company Makes Money

China Art Financial Holdings Ltd generates revenue through interest income and service fees associated with its art financing services. The company provides loans secured by high-value art pieces and collectibles, charging interest on these loans as a primary revenue stream. Additionally, it offers consultancy services for art-related financial transactions, earning fees for advisory roles. The company's ability to accurately appraise art and manage risk is crucial to its profitability. Significant partnerships with art galleries, auction houses, and private collectors enhance its clientele and contribute to its earnings.

China Art Financial Holdings Ltd Financial Statement Overview

Summary

China Art Financial Holdings Ltd shows stable financial stability with a strong balance sheet, reflected in a high equity ratio and low debt levels. However, the declining net profit margin and zero operating cash flow pose significant risks to financial health.

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: 0.09
• 50DMA: Positive
• 100DMA: Positive
• 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:1572, the sentiment is Positive. The current price of 0.09 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 58.25 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 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
1572	58 Neutral	HK$148.76M	30.34	0.41%	―	16.97%	-59.72%
Sector *	58 Neutral	$12.97B	5.12	-2.61%	5.35%	5.83%	-54.44%
1939	43 Neutral	HK$2.02B	―	-8.52%	―	-3.32%	-107.34%

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.

CEO Resignation Announced by China Art Financial Holdings

China Art Financial Holdings Ltd announced the resignation of its Chief Executive Officer, Ms. Lam Siu Mui, effective May 2, 2025, as she plans to focus on other business engagements. The company is actively seeking a suitable replacement and will make further announcements regarding the new appointment. The board expressed gratitude for Ms. Lam’s contributions during her tenure.

China Art Financial Holdings Announces AGM and Key Resolutions

China Art Financial Holdings Ltd has announced its upcoming annual general meeting to be held on May 30, 2025. Key agenda items include the approval of the 2024 financial statements, re-election of directors, and re-appointment of auditors. Additionally, the company seeks shareholder approval to authorize the board to issue new shares, which could impact its capital structure and market operations.