Holly Futures Co. Ltd. Class H (3678) AI Stock Analysis

• Market Cap: HK$1.06B
• Dividend Yield: 0.26%
• Average Volume (3M): 24.86M
• Price to Earnings (P/E): 293.8
• Beta (1Y): 1.90
• Revenue Growth: 3.47%
• EPS Growth: 0.70%
• Country: HK
• Employees: 636
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Capital Markets
• EPS (TTM): >-0.01
• Shares Outstanding: 249,700,000
• 10 Day Avg. Volume: 11,171,100
• 30 Day Avg. Volume: 24,863,633
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$4.50
• Price Target Upside: 6.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: HK$4.50 ▲(6.38% Upside)

Holly Futures Co. Ltd. Class H has a strong financial foundation with robust revenue growth and efficient cash flow management, which significantly supports its stock score. However, the technical analysis indicates bearish momentum, and the valuation metrics suggest the stock may be overvalued, both of which weigh down the overall score. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective client acquisition, supporting long-term business expansion.

Cash Flow Management

Strong cash flow management ensures liquidity and financial flexibility, enabling strategic investments and risk mitigation.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk and enhances the company's ability to withstand economic fluctuations.

Negative Factors

Net Profit Margin

Low net profit margins suggest inefficiencies in cost management, which could limit profitability and require strategic improvements.

Limited Reinvestment

Limited reinvestment could hinder long-term growth prospects and the company's ability to innovate and expand its market presence.

Valuation Concerns

Potential overvaluation can lead to investor skepticism and affect stock performance, requiring careful management of market expectations.

Holly Futures Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Holly Futures Co. Ltd. Class H (3678) is a prominent player in the financial services sector, primarily focused on providing comprehensive futures trading and brokerage services. The company operates within the derivatives market, offering a range of financial instruments including commodity futures, stock index futures, and options. With a commitment to leveraging cutting-edge technology and fostering strategic partnerships, Holly Futures aims to enhance its market presence and deliver superior trading solutions to its clients.

How the Company Makes Money

Holly Futures generates revenue primarily through commissions and fees charged on futures trading transactions conducted by its clients. The company earns a significant portion of its revenue from brokerage fees when customers execute trades on various futures contracts. Additionally, Holly Futures may also generate income through proprietary trading, where it trades its own capital in the futures markets. The company may engage in strategic partnerships with financial institutions, which can provide access to a broader client base and enhance its service offerings, contributing to its overall earnings. Furthermore, Holly Futures could also benefit from ancillary services such as market analysis, advisory services, and educational programs, which can serve as additional revenue streams.

Holly Futures Co. Ltd. Class H Financial Statement Overview

Summary

Holly Futures Co. Ltd. Class H presents a strong financial profile with solid revenue growth, efficient cash flow management, and a robust balance sheet. The company's conservative leverage and substantial cash reserves mitigate financial risks. Improvements in profitability and return on equity highlight effective management. However, there is room for enhancing net profit margins through better cost control and strategic reinvestments for sustained growth.

Income Statement

Holly Futures Co. Ltd. Class H has demonstrated strong growth with a significant increase in total revenue over the years, highlighting robust revenue growth. The gross profit margin is very high at 100% due to matching gross profit and total revenue figures. Net profit margin improved considerably in the latest year, indicating enhanced profitability. EBIT and EBITDA margins show positive trends, reflecting efficient operational management. However, the net profit margin remains relatively low compared to the gross margin, pointing to potential cost management improvements.

Balance Sheet

The company's balance sheet reveals a strong equity position with a growing stockholders' equity base, contributing to a favorable equity ratio. The debt-to-equity ratio is low, indicating conservative leverage use, which reduces financial risk. The return on equity (ROE) has improved, suggesting better utilization of equity to generate profits. The strong cash reserves and low net debt position further enhance the financial stability of the company.

Cash Flow

Holly Futures Co. Ltd. Class H shows excellent cash flow management with significant free cash flow and operating cash flow, suggesting strong cash-generating capability. The free cash flow to net income ratio is robust, indicating that the company efficiently converts its income into free cash. The absence of significant capital expenditures further contributes to healthy cash flows, although it may suggest limited reinvestment in growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.34B	2.88B	1.94B	1.52B	1.63B	1.57B
Gross Profit	3.34B	179.72M	126.41M	1.52B	1.64B	327.57M
EBITDA	62.21M	79.12M	51.91M	42.94M	138.39M	123.27M
Net Income	44.30M	29.83M	7.79M	12.38M	80.21M	66.32M
Balance Sheet
Total Assets	9.24B	11.70B	9.31B	10.48B	8.08B	6.35B
Cash, Cash Equivalents and Short-Term Investments	0.00	785.47M	825.66M	6.88B	4.96B	3.90B
Total Debt	0.00	286.95M	191.27M	146.95M	174.65M	57.22M
Total Liabilities	7.36B	9.82B	7.47B	8.65B	6.40B	4.70B
Stockholders Equity	1.88B	1.88B	1.85B	1.84B	1.68B	1.65B
Cash Flow
Free Cash Flow	-2.61B	2.33B	-1.65B	1.86B	992.27M	791.61M
Operating Cash Flow	-2.60B	2.35B	-1.62B	1.93B	1.24B	803.07M
Investing Cash Flow	369.72M	37.79M	121.90M	148.93M	-24.72M	-310.40M
Financing Cash Flow	-122.24M	-157.14M	-9.79M	119.82M	44.82M	3.95M

Holly Futures Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.23
• 50DMA: Negative
• 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:3678, the sentiment is Neutral. The current price of 4.23 is below the 20-day moving average (MA) of 4.38, below the 50-day MA of 4.61, and above the 200-day MA of 3.32, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 43.60 is Neutral, neither overbought nor oversold. The STOCH value of 64.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3678.

Holly Futures Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.02B	11.58	9.93%	3.76%	9.73%	1.31%
3678	56 Neutral	HK$1.06B	293.75	0.72%	0.26%	3.47%	0.70%
93W	―	€190.83M	―		―	―	―
HQF	―	€90.09M	7.86	2.36%	―	―	―
6877	57 Neutral	HK$485.96M	170.71	1.16%	―	-21.08%	-73.08%
1461	54 Neutral	HK$781.48M	19.90	1.41%	1.96%	-18.71%	-45.10%
0952	45 Neutral	HK$940.32M	59.38	-4.03%	―	173.24%	-515.63%

Holly Futures Co. Ltd. Class H Corporate Events

Holly Futures Reports Q1 2025 Financial Results

Holly Futures Co. Ltd. reported its unaudited financial results for the first quarter of 2025, showing a total income from operations of RMB642,682,173.43 and a net profit attributable to shareholders of RMB1,203,151.63. The report, prepared in accordance with PRC GAAP, was simultaneously published in Hong Kong and Mainland China, reflecting the company’s commitment to transparency and compliance with listing requirements.

Holly Futures Schedules Board Meeting for Quarterly Results Review

Holly Futures Co. Ltd. has announced that its board of directors will hold a meeting on April 25, 2025, to review and approve the unaudited first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and may influence stakeholders’ perspectives on its market positioning and future prospects.

Holly Futures Shareholder Reduces Stake Below 5%

Holly Futures Co. Ltd. announced that a significant shareholder, Holly Su Industrial, has reduced its shareholding in the company from over 5% to just below 5% due to judicial compulsory enforcement. This reduction, which involved the disposal of 1,162,011 A Shares, does not affect the company’s control structure or its business operations, corporate governance, and daily management. The enforcement process and its timeline remain uncertain, but the change is not expected to have a material adverse impact on the company.

Holly Futures Discloses Supervisor Remuneration Details for 2018-2023

Holly Futures Co. Ltd. has issued a supplemental announcement regarding the remuneration of its supervisors for the years 2018 to 2023. This disclosure addresses omissions in previous annual reports, providing detailed financial compensation information as required by the Hong Kong Stock Exchange’s listing rules. The announcement aims to enhance transparency and compliance with regulatory standards, potentially impacting stakeholder trust and company governance.

Holly Futures Co., Ltd. Declares Final Dividend for 2024

Holly Futures Co., Ltd. has announced a final cash dividend of RMB 0.01 per share for the financial year ending December 31, 2024. The announcement, made on March 28, 2025, highlights the company’s commitment to returning value to its shareholders, although specific dates for shareholder approval, exchange rates, and payment details are yet to be disclosed.

Holly Futures Co. Ltd. Releases 2024 Annual Results

Holly Futures Co. Ltd. has announced its audited annual results for the year ended 31 December 2024. The results, reviewed by the audit committee and external auditors ShineWing Certified Public Accountants, comply with the Hong Kong Stock Exchange’s listing requirements. The full 2024 Annual Report will be available online by the end of April 2025. This announcement underscores the company’s commitment to transparency and adherence to regulatory standards, which may positively influence stakeholder confidence.

Holly Futures Faces Judicial Enforcement of Major Shareholder’s Shares

Holly Futures Co. Ltd., a joint stock company incorporated in the People’s Republic of China, is facing a potential judicial compulsory enforcement of shares held by a shareholder, Holly Su Industrial, which holds more than 5% of the company’s shareholding. The enforcement involves 18,132,223 A Shares, representing approximately 1.80% of the total issued share capital, and will be executed through centralised bidding and block trading transactions from March 14, 2025, to June 11, 2025. This action stems from a dispute over a property share transfer involving AVIC Trust Co., Ltd, leading to a court judgment mandating the enforcement of these shares.

Holly Futures Announces Expiration of Shareholding Change Plan

Holly Futures Co. Ltd. announced the expiration of a plan concerning the change in shareholding by Jiangsu Holly Su Industrial Co., Ltd., a significant shareholder holding more than 5% of the company’s shares. The plan involved the judicial compulsory enforcement of certain A shares, resulting in the disposal of approximately 1.77% of the company’s total issued share capital through centralised bidding and block trading transactions. This reduction in shareholding impacts Holly Su Industrial’s stake, decreasing it from 6.78% to 5.01%, potentially affecting the company’s market dynamics and shareholder structure.

Holly Futures Co., Ltd. Forms Strategic and ESG Committee for Enhanced Governance

Holly Futures Co., Ltd. has established a Strategic and ESG Committee under its Board of Directors to enhance its strategic development and corporate governance. This committee will focus on long-term development strategies, ESG initiatives, and significant investment decisions. It aims to align the company with domestic and international economic trends, policy directions, and industry developments. The committee will evaluate and suggest improvements for the company’s strategic planning, ESG policies, and capital operations, thus ensuring comprehensive oversight and adaptation to climate change concerns.

Holly Futures Announces Key Leadership and Structural Changes

Holly Futures Co. Ltd. held its 2025 first extraordinary general meeting and class meetings on 18 February 2025. The meetings resulted in several significant corporate governance changes, including the re-appointment and appointment of directors, the election of a new chairman, changes in the strategic committee, and amendments to the company’s articles of association. These decisions reflect a strategic shift in the company’s governance and operational structure, potentially impacting its market positioning and stakeholder relations positively by aligning with regulatory standards and enhancing leadership.

Holly Futures Co. Ltd. Announces Board of Directors and Their Roles

Holly Futures Co. Ltd. has detailed its board of directors, highlighting the roles and functions of each director and their committee memberships. This announcement provides clarity on the governance structure, potentially impacting the strategic direction and oversight of the company’s operations, which may be of interest to stakeholders and investors.