Fu Shek Financial Holdings Limited (2263) AI Stock Analysis

• Market Cap: HK$255.00M
• Dividend Yield: N/A
• Average Volume (3M): 342.00K
• Price to Earnings (P/E): 87.9
• Beta (1Y): 0.39
• Revenue Growth: -21.78%
• EPS Growth: -19.44%
• Country: HK
• Employees: 15
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 575,000
• 30 Day Avg. Volume: 342,000
• PEG Ratio: -3.14
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 5.34
• P/FCF Ratio: -16.03
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• 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.

Positive Factors

Cash Generation

Strong cash generation enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Balance Sheet Health

A strong balance sheet with low leverage provides stability and reduces financial risk, supporting long-term operational resilience.

Revenue Growth

Consistent revenue growth reflects effective market strategies and product demand, enhancing the company's competitive position.

Negative Factors

Profitability Metrics

Low ROE indicates inefficiencies in generating returns on equity, which may hinder long-term shareholder value creation.

Net Profit Margin

A moderate net profit margin suggests potential challenges in cost management, which could impact profitability and competitive edge.

Earnings Growth

Negative EPS growth indicates declining profitability, which may affect investor confidence and limit future investment capacity.

Fu Shek Financial Holdings Limited Business Overview & Revenue Model

Company Description

Fu Shek Financial Holdings Limited, together with its subsidiaries, provides financial and securities services in Hong Kong. It offers securities trading services, including brokerage and margin financing; placing and underwriting services; and asset management services. The company was founded in 2001 and is headquartered in Admiralty, Hong Kong. Fu Shek Financial Holdings Limited is a subsidiary of Man Chase Holdings Limited.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	32.95M	32.95M	45.15M	39.89M	39.14M	39.92M
Gross Profit	15.50M	15.50M	20.77M	28.89M	25.40M	27.27M
EBITDA	3.81M	3.81M	5.05M	16.19M	18.20M	16.05M
Net Income	2.88M	2.88M	3.57M	12.01M	12.81M	10.69M
Balance Sheet
Total Assets	544.49M	544.49M	544.68M	519.85M	550.51M	538.33M
Cash, Cash Equivalents and Short-Term Investments	218.90M	218.90M	230.65M	132.07M	103.72M	233.95M
Total Debt	470.00K	470.00K	1.14M	1.27M	32.73M	1.51M
Total Liabilities	186.07M	186.07M	189.14M	167.89M	210.55M	211.18M
Stockholders Equity	358.42M	358.42M	355.54M	351.97M	339.96M	327.15M
Cash Flow
Free Cash Flow	-10.98M	-10.98M	100.00M	49.94M	-16.03M	-43.47M
Operating Cash Flow	-10.98M	-10.98M	100.24M	50.05M	-16.02M	-43.41M
Investing Cash Flow	0.00	0.00	-234.00K	-105.00K	-7.00K	-63.00K
Financing Cash Flow	-720.00K	-776.00K	-1.42M	-31.56M	27.34M	-13.65M

Fu Shek Financial Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.26 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.24, and above the 200-day MA of 0.21, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.02 is Neutral, neither overbought nor oversold. The STOCH value of 72.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2263	68 Neutral	HK$255.00M	87.93	0.81%	―	-21.78%	-19.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8350	67 Neutral	HK$355.20M	20.67	47.28%	―	55.42%	159.42%
0851	54 Neutral	€193.15M	26.07	6.49%	―	144.16%	-62.50%
0211	45 Neutral	€205.25M	-3.49	-17.99%	―	―	―