Fu Shek Financial Holdings Limited (2263) AI Stock Analysis

• Market Cap: HK$167.00M
• Dividend Yield: N/A
• Average Volume (3M): 81.00K
• Price to Earnings (P/E): 50.6
• Beta (1Y): 0.35
• Revenue Growth: 31.76%
• EPS Growth: -35.29%
• Country: HK
• Employees: 15
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Capital Markets
• EPS (TTM): <0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 112,000
• 30 Day Avg. Volume: 81,000
• PEG Ratio: -1.87
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.80
• 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: 68 Neutral
• Price Target: ―

Fu Shek Financial Holdings Limited displays strong financial health with excellent cash flow generation and stable balance sheet metrics, contributing positively to the score. However, technical analysis indicates mixed momentum, and the high P/E ratio suggests valuation concerns. The absence of earnings call data and dividend yield also tempers the overall attractiveness of the stock.

Fu Shek Financial Holdings Limited Business Overview & Revenue Model

Company Description

Fu Shek Financial Holdings Limited (2263) is a Hong Kong-based company primarily engaged in the provision of financial services. The company's core services include securities brokerage, margin financing, and investment advisory. Fu Shek Financial Holdings is dedicated to delivering comprehensive financial solutions to its clients, leveraging its expertise and market insights to support investment strategies across various asset classes.

How the Company Makes Money

Fu Shek Financial Holdings Limited generates revenue through multiple streams within its financial services operations. The primary source of income is from securities brokerage services, where the company earns commissions on trades executed on behalf of clients. Additionally, the company offers margin financing, providing loans to clients for purchasing securities, with interest charged on these loans contributing a significant portion of revenue. Investment advisory services also play a role in the company's earnings, as Fu Shek provides clients with strategic investment advice for a fee. These diverse revenue streams are supported by the company's ability to maintain robust client relationships and adapt to market conditions.

Fu Shek Financial Holdings Limited Financial Statement Overview

Summary

Fu Shek Financial Holdings Limited exhibits solid financial performance with strong revenue growth and effective cost management. The company's balance sheet is robust with low leverage and a high equity ratio, signifying stability. Cash flow metrics are particularly impressive, demonstrating excellent cash generation capabilities, which bolster financial flexibility. Despite these strengths, there's potential for improving profitability metrics like ROE and net profit margin.

Income Statement

The company shows a strong gross profit margin of 46% but a moderate net profit margin of 7.9% for 2024. Revenue growth is substantial at 22.2%, indicating positive sales momentum. However, EBIT margin is impressive at 47.5%, suggesting effective cost management. EBITDA margin is lower at 11.2%, highlighting potential non-operational costs that need attention.

Balance Sheet

The balance sheet displays financial stability with a low debt-to-equity ratio of 0.003, indicating minimal leverage risk. ROE is modest at 1.0%, suggesting room for improvement in shareholder returns. The equity ratio is solid at 65.3%, showing a strong capital structure with substantial equity backing.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 100.2%, indicating robust cash generation. The operating cash flow to net income ratio of 28.1 highlights efficient cash conversion from earnings. Free cash flow to net income ratio is exceptionally high at 2803%, reflecting substantial liquidity and cash reserves.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
40.86M	45.15M	36.94M	38.03M	39.19M	61.50M
	Gross Profit
40.86M	20.77M	28.89M	25.40M	27.27M	51.65M
	EBIT
-2.11M	7.38M	20.73M	16.85M	16.45M	22.60M
	EBITDA
6.82M	5.05M	22.28M	18.68M	18.34M	24.39M
	Net Income Common Stockholders
3.29M	3.57M	12.01M	12.81M	10.69M	13.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
221.91M	230.65M	132.07M	103.72M	92.41M	149.53M
	Total Assets
483.99M	544.68M	519.85M	550.51M	538.33M	497.75M
	Total Debt
0.00	1.14M	1.27M	32.73M	1.51M	13.25M
	Net Debt
-221.91M	-229.51M	-130.80M	-71.00M	-90.90M	-136.28M
	Total Liabilities
126.99M	189.14M	167.89M	210.55M	211.18M	181.28M
	Stockholders Equity
357.00M	355.54M	351.97M	339.96M	327.15M	316.47M
Cash Flow		Free Cash Flow
17.84M	100.00M	49.94M	-16.03M	-43.47M	27.31M
	Operating Cash Flow
18.07M	100.24M	50.05M	-16.02M	-43.41M	27.37M
	Investing Cash Flow
-452.00K	-234.00K	-105.00K	-7.00K	-63.00K	-57.00K
	Financing Cash Flow
-1.01M	-1.42M	-31.56M	27.34M	-13.65M	91.99M

Fu Shek Financial Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.17
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2263, the sentiment is Negative. The current price of 0.17 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.17, and below the 200-day MA of 0.17, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 33.17 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2263.

Fu Shek Financial Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6030	74 Outperform	$401.71B	14.19	8.44%	4.92%	17.45%	8.24%
2263	68 Neutral	HK$167.00M	50.61	0.92%	―	31.76%	-35.29%
1177	66 Neutral	$98.90B	52.12	6.14%	2.17%	7.63%	-24.23%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%
1461	54 Neutral	HK$561.06M	114.29	0.18%	2.73%	-4.20%	-96.68%