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

• Market Cap: HK$918.90M
• Dividend Yield: 0.32%
• Average Volume (3M): 9.61M
• Price to Earnings (P/E): 220.4
• Beta (1Y): 1.91
• Revenue Growth: -53.05%
• EPS Growth: -32.93%
• Country: HK
• Employees: 636
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): <0.01
• Shares Outstanding: 249,700,000
• 10 Day Avg. Volume: 5,472,700
• 30 Day Avg. Volume: 9,613,566
• PEG Ratio: 0.30
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 1.10
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: HK$3.50 ▲(1.16% Upside)

Holly Futures Co. Ltd. Class H's overall stock score is primarily influenced by its strong financial performance, which is offset by weak technical indicators and a high valuation. The company's robust financial health and efficient cash flow management are significant strengths. However, the bearish technical trends and high P/E ratio suggest caution, as the stock may be overvalued and experiencing downward momentum.

Positive Factors

Cash Flow Management

Strong cash flow management indicates the company's ability to generate cash efficiently, supporting operations and potential growth initiatives.

Balance Sheet Health

A robust balance sheet with low debt enhances financial stability and reduces risk, providing a solid foundation for future growth.

Profitability Improvements

Improvements in profitability suggest effective cost management and operational efficiency, contributing to long-term financial health.

Negative Factors

Revenue Decline

A significant decline in revenue growth raises concerns about the company's ability to maintain its market position and competitive edge.

Earnings Decline

Declining earnings per share growth may indicate challenges in maintaining profitability and could impact investor confidence.

Limited Reinvestment

Limited reinvestment in growth initiatives could hinder long-term expansion and adaptation to market changes.

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

Company Description

Holly Futures Co., Ltd. operates as a futures company in Mainland China and Honk Kong. The company primarily offers commodity and financial futures brokerage services; asset management services; futures and securities investment consulting services; and risk management services. It also provides financial assets investment products, including securities, funds, and wealth management products. In addition, the company offers variation basis trading, cooperative hedging, OTC derivatives and market making business, and warehouse receipt services. As of December 31, 2021, it operated 39 futures branches and 6 sub-branches. The company was founded in 1995 and is headquartered in Nanjing, the People's Republic of China.

How the Company Makes Money

Holly Futures Co. Ltd. generates revenue primarily through brokerage fees charged on futures and options trading. The company earns commissions for facilitating trades for clients on its platforms, which can vary based on the volume and type of transactions. Additionally, Holly Futures may derive income from providing margin financing to clients, earning interest on the funds lent. Other revenue streams include advisory services related to risk management and market analysis, as well as potential earnings from proprietary trading activities. Strategic partnerships with market exchanges and other financial institutions also enhance its service offerings and can contribute to its earnings through enhanced liquidity and access to diverse financial products.

Holly Futures Co. Ltd. Class H Financial Statement Overview

Summary

Holly Futures Co. Ltd. Class H presents a solid financial profile with strong revenue growth, efficient cash flow management, and a robust balance sheet. The company's conservative leverage and substantial cash reserves mitigate financial risks, while continuous 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	2.13B	2.88B	1.94B	1.52B	1.63B	1.57B
Gross Profit	2.17B	179.72M	126.41M	104.86M	1.64B	1.57B
EBITDA	99.97K	79.12M	51.91M	42.94M	138.39M	123.27M
Net Income	13.42M	29.83M	7.79M	12.38M	80.21M	66.32M
Balance Sheet
Total Assets	10.76B	11.70B	9.31B	10.48B	8.08B	6.35B
Cash, Cash Equivalents and Short-Term Investments	1.15B	785.47M	825.66M	6.88B	4.96B	3.90B
Total Debt	329.11M	286.95M	191.27M	146.95M	174.65M	57.22M
Total Liabilities	8.90B	9.82B	7.47B	8.65B	6.40B	4.70B
Stockholders Equity	1.86B	1.88B	1.85B	1.84B	1.68B	1.65B
Cash Flow
Free Cash Flow	-859.49M	2.33B	-1.65B	1.86B	992.27M	791.61M
Operating Cash Flow	-849.60M	2.35B	-1.62B	1.93B	1.24B	803.07M
Investing Cash Flow	162.32M	37.79M	121.90M	148.93M	-24.72M	-310.40M
Financing Cash Flow	-52.36M	-157.14M	-9.79M	119.82M	44.82M	3.95M

Holly Futures Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.46
• 50DMA: Negative
• 100DMA: Negative
• 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:3678, the sentiment is Positive. The current price of 3.46 is above the 20-day moving average (MA) of 3.36, below the 50-day MA of 3.65, and below the 200-day MA of 3.65, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 49.43 is Neutral, neither overbought nor oversold. The STOCH value of 36.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
0717	58 Neutral	€714.53M	8.83	2.36%	―	-4.56%	―
3678	58 Neutral	HK$918.90M	220.36	0.82%	0.32%	-53.05%	-32.93%
6877	57 Neutral	HK$333.46M	117.14	1.16%	―	-21.08%	-73.08%
1461	56 Neutral	HK$731.39M	18.62	1.41%	2.32%	-18.71%	-45.10%
0952	45 Neutral	HK$860.42M	-10.53	-4.03%	―	173.24%	-515.63%
0993	39 Underperform	€1.43B	―	―	―	-78.40%	-196.19%

Holly Futures Co. Ltd. Class H Corporate Events

Holly Futures Completes Shareholding Reduction Plan

Holly Futures Co. Ltd. announced the completion of a shareholding reduction plan by its controlling shareholder’s concerted parties, High Hope Group and Holly Logistics. The reduction involved the sale of 10,077,647 A shares, representing 1% of the company’s total share capital, through centralized bidding. This move is part of a strategic adjustment by the company’s stakeholders and may impact the company’s market positioning and shareholder dynamics.

Holly Futures Announces Proposed H Share Reduction by Subsidiary

Holly Futures Co. Ltd., a joint stock company incorporated in the People’s Republic of China, has announced a proposed reduction in its H shares by a subsidiary of its controlling shareholder, SOHO Holdings Group Zhong Shan Company Limited. The reduction will involve no more than 24,255,000 H shares, representing approximately 2.41% of the total issued shares, over a six-month period starting December 1, 2025. Despite this reduction, SOHO Holdings will continue to be the controlling shareholder, and the move is not expected to significantly impact Holly Futures’ operations, financial standing, or future development.

Holly Futures Co., Ltd. Enhances Governance with New Audit Committee

Holly Futures Co., Ltd. has established an audit committee under its board of directors to enhance its auditing system and procedures. This committee, comprised mainly of independent non-executive directors, is tasked with overseeing the appointment and performance of external auditors, ensuring their independence, and supervising the internal audit system. The move aims to strengthen the company’s governance framework, ensuring transparency and accountability in its financial operations, which is crucial for maintaining stakeholder trust and compliance with regulatory requirements.

Holly Futures Co., Ltd. Establishes Remuneration Committee for Enhanced Governance

Holly Futures Co., Ltd. has established a remuneration committee within its board of directors to oversee and regulate the remuneration system and procedures. This committee is responsible for advising the board on remuneration policies, appraisals, and compensation for directors and senior management, ensuring transparency and fairness in alignment with corporate goals and industry standards.

Soho Holly Futures Co., Ltd. Forms Strategic and ESG Committee to Enhance Governance

Soho Holly Futures Co., Ltd. has established a Strategic and ESG Committee under its Board of Directors to strengthen its strategic development and ESG initiatives. This move aims to improve decision-making processes, enhance investment strategies, and ensure compliance with disclosure requirements, thereby potentially impacting the company’s long-term growth and stakeholder engagement.

Holly Futures Reports Q3 2025 Financial Results

Holly Futures Co. Ltd. reported its unaudited financial results for the third quarter of 2025, ending September 30. The company achieved a total income from operations of RMB139.25 million and a net profit attributable to shareholders of RMB5.70 million. The report was prepared according to PRC GAAP and complies with the disclosure requirements of the Shenzhen Stock Exchange. This announcement was simultaneously published in Hong Kong and Mainland China, reflecting the company’s commitment to transparency and regulatory compliance.

Holly Futures Announces Key Governance Changes at 2025 EGM

Holly Futures Co. Ltd. held its second extraordinary general meeting of 2025 on October 28, where shareholders voted on several key governance changes. These included amendments to the Articles of Association, dissolution of the Supervisory Committee, and modifications to other governance policies, reflecting a strategic shift in the company’s management structure.

Holly Futures to Review Q3 Financial Results

Holly Futures Co. Ltd. has announced that its board of directors will convene on October 28, 2025, to review and approve the unaudited third quarterly results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

Holly Futures Announces 2025 Extraordinary General Meeting

Holly Futures Co. Ltd., a company incorporated in the People’s Republic of China and operating in Hong Kong, has announced the scheduling of its 2025 second extraordinary general meeting (EGM) to be held on October 28, 2025. The meeting will address several key resolutions, including proposed amendments to the Articles of Association, Rules of Procedures, and various governance policies. These changes are aimed at enhancing the company’s operational framework and governance structure, potentially impacting its strategic direction and stakeholder engagement.

Holly Futures Co. Ltd. Announces Governance Reforms and Supervisory Committee Dissolution

Holly Futures Co. Ltd. announced proposed amendments to its Articles of Association, Related Rules of Procedures, and other governance policies, alongside the dissolution of its Supervisory Committee. These changes aim to align with recent legal updates and improve corporate governance by transferring the supervisory functions to the Audit Committee, reflecting a strategic shift to enhance operational efficiency and compliance.