Fu Shek Financial Holdings Limited (2263) AI Stock Analysis

• Market Cap: HK$285.00M
• Dividend Yield: N/A
• Average Volume (3M): 342.00K
• Price to Earnings (P/E): 37.5
• Beta (1Y): 0.47
• Revenue Growth: -9.48%
• EPS Growth: 130.30%
• Country: HK
• Employees: 15
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): <0.01
• 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: 61 Neutral
• Price Target: HK$0.32 ▲(12.86% Upside)

The score is driven mainly by mixed financial quality: a very strong, low-leverage balance sheet is offset by weakened revenue/margins and recently negative, volatile cash generation. Technicals add support due to a clear uptrend and positive momentum, while the overall score is capped by a high P/E and no dividend yield provided.

Positive Factors

Balance Sheet Strength

A strong balance sheet with minimal leverage provides financial flexibility and stability, allowing the company to navigate market fluctuations effectively.

Profit Increase

The notable rise in profit driven by higher fee and commission income indicates improved operational efficiency and revenue generation capabilities.

Revenue from Fee and Commission

Increased revenue from fees and commissions suggests a strong market position and effective service offerings, contributing to sustainable growth.

Negative Factors

Revenue Decline

A significant revenue decline indicates challenges in market demand or competitive pressures, potentially impacting long-term growth prospects.

Cash Flow Volatility

Inconsistent cash flow generation raises concerns about earnings quality and financial sustainability, affecting future investment and growth opportunities.

Margin Compression

Margin compression reflects cost pressures or pricing challenges, which could hinder profitability and financial performance over time.

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

Balance sheet strength is a major positive (minimal leverage), but operating performance has weakened with a ~28% revenue decline and margin compression. Cash flow is the primary concern given negative operating/free cash flow in the latest year and high historical volatility, which reduces earnings quality confidence.

Income Statement

Profitability remains positive in the latest annual period (net margin ~8.7%), but earnings power has weakened materially versus prior years as revenue fell ~28% year over year and operating margins compressed sharply from the unusually strong 2022–2023 levels. Gross margin held relatively steady versus last year (~47% vs ~46%), suggesting the near-term pressure is more volume/market-driven than cost-driven, but the overall revenue trajectory is volatile and down versus earlier peaks.

Balance Sheet

The balance sheet is a clear strength: leverage is minimal (debt-to-equity ~0.001) and equity is large relative to the asset base, providing strong financial flexibility. Returns on equity are modest in the latest year (~0.8%) and have trended down from 2020–2023, indicating the company is currently generating low profitability on its capital despite the conservative balance sheet.

Cash Flow

Cash generation is the key weak spot: the latest year shows negative operating cash flow and negative free cash flow (both about -HK$11.0M), a sharp reversal from the very strong inflows in 2023–2024. Cash flow has been highly inconsistent over time (large positives in 2023–2024 but negatives in 2021–2022 and again in 2025), which increases uncertainty around earnings quality and near-term funding needs despite low leverage.

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: Neutral
• Last Price: 0.28
• 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 Neutral. The current price of 0.28 is below the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.28, and above the 200-day MA of 0.24, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8350	67 Neutral	HK$350.40M	20.39	47.28%	―	55.42%	159.42%
2263	61 Neutral	HK$285.00M	37.50	2.10%	―	-9.48%	130.30%
0851	55 Neutral	HK$357.20M	48.21	6.49%	―	144.16%	-62.50%
0211	50 Neutral	HK$180.33M	-3.62	-17.99%	―	―	―
0356	45 Neutral	HK$175.06M	-17.30	-15.38%	―	―	―

Fu Shek Financial Holdings Limited Corporate Events

Fu Shek Financial Holdings Reports Strong Interim Results for 2025

Fu Shek Financial Holdings Limited announced its interim results for the six months ended 30 September 2025, reporting a significant increase in profit and total comprehensive income compared to the previous year. The company achieved a profit before taxation of HK$6,100,000, a notable rise from HK$1,464,000 in the same period of 2024, driven by higher revenue from fee and commission income and interest income.

Fu Shek Financial Holdings Announces Significant Profit Increase

Fu Shek Financial Holdings Limited has issued a positive profit alert, indicating a significant increase in net profit for the six months ended 30 September 2025, compared to the same period in 2024. The expected net profit of approximately HK$6.2 million is attributed to increased commission and brokerage income, handling and other fee income, and interest income from margin financing services. The interim results are yet to be finalized and are based on unaudited management accounts, with the official announcement scheduled for 27 November 2025.

Fu Shek Financial Holdings Schedules Board Meeting for Interim Results

Fu Shek Financial Holdings Limited has announced a board meeting scheduled for November 27, 2025, to discuss and approve the unaudited interim results for the six months ending September 30, 2025. The meeting will also consider the declaration and payment of an interim dividend, reflecting the company’s ongoing financial management and potential shareholder returns.