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

• Market Cap: HK$1.04B
• Dividend Yield: 0.27%
• Average Volume (3M): 12.65M
• Price to Earnings (P/E): 288.2
• Beta (1Y): 1.90
• Revenue Growth: 3.47%
• EPS Growth: 0.70%
• 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: 7,937,200
• 30 Day Avg. Volume: 12,649,600
• 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: HK$4.50
• Price Target Upside: 10.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: HK$4.50 ▲(10.29% Upside)

Holly Futures Co. Ltd. Class H has a solid financial foundation with strong revenue growth and cash flow management, which is the most significant positive factor. However, the technical analysis indicates bearish trends, and the valuation suggests the stock may be overvalued, both of which weigh down the overall score.

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 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 demonstrates strong financial performance with significant revenue growth, efficient cash flow management, and a robust balance sheet. The company has a high gross profit margin and improved net profit margin, though there is room for better cost management. The balance sheet shows a strong equity position and low leverage, enhancing financial stability.

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	2.17B	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	0.00	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: Negative
• Last Price: 4.08
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 4.08 is below the 20-day moving average (MA) of 4.18, below the 50-day MA of 4.34, and above the 200-day MA of 3.44, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 42.11 is Neutral, neither overbought nor oversold. The STOCH value of 40.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
0717	69 Neutral	HK$997.65M	11.83	2.36%	―	-4.56%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1461	60 Neutral	HK$801.52M	20.41	1.41%	1.96%	-18.71%	-45.10%
3678	57 Neutral	HK$1.04B	288.19	0.72%	0.27%	3.47%	0.70%
6877	57 Neutral	HK$451.39M	155.00	1.16%	―	-21.08%	-73.08%
0952	48 Neutral	HK$958.76M	59.38	-4.03%	―	173.24%	-515.63%
0993	39 Underperform	€1.59B	―	―	―	-78.40%	-196.19%

Holly Futures Co. Ltd. Class H Corporate Events

Holly Futures Co., Ltd. Updates Accounting Policies

Holly Futures Co., Ltd. has announced changes to its accounting policies following a board meeting. The changes align with new regulations from the China Futures Association and the Ministry of Finance, impacting how the company recognizes income from trade activities and treats contracts for buying and selling standard warehouse receipts as financial instruments. This adjustment is expected to streamline their financial reporting and enhance compliance with industry standards.

The most recent analyst rating on (HK:3678) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Holly Futures Co. Ltd. Class H stock, see the HK:3678 Stock Forecast page.

Holly Futures Releases 2025 Interim Results

Holly Futures Co. Ltd. announced its unaudited consolidated interim results for the first half of 2025, showing comparative figures from the same period in 2024. The interim results comply with the listing rules of the Hong Kong Stock Exchange and have been reviewed by the company’s audit committee, indicating a commitment to transparency and regulatory compliance.

The most recent analyst rating on (HK:3678) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Holly Futures Co. Ltd. Class H stock, see the HK:3678 Stock Forecast page.

Holly Futures Announces Board Composition and Governance Roles

Holly Futures Co. Ltd. Class H, a company incorporated in the People’s Republic of China, has announced the composition of its board of directors and their respective roles within the organization. The board comprises executive, non-executive, and independent non-executive directors, each serving on various committees such as Audit, Remuneration, Nomination, Risk Management, and Strategic and ESG. This announcement highlights the company’s governance structure, which is crucial for stakeholders as it outlines the leadership responsible for driving the company’s strategic initiatives and managing risks.

The most recent analyst rating on (HK:3678) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Holly Futures Co. Ltd. Class H stock, see the HK:3678 Stock Forecast page.

Holly Futures Co., Ltd. Updates Nomination Committee Composition

Holly Futures Co., Ltd. has announced changes to its Nomination Committee, appointing Ms. Jiang Haiying and Mr. Lo Wah Wai as new members. This change aligns with amendments to the Listing Rules and the Corporate Governance Code, aiming to enhance the committee’s effectiveness, diversity, and overall corporate governance practices.

The most recent analyst rating on (HK:3678) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Holly Futures Co. Ltd. Class H stock, see the HK:3678 Stock Forecast page.

Holly Futures Announces Shareholding Reduction Plan

Holly Futures Co. Ltd. announced a plan for shareholding reduction by its controlling shareholder’s concerted parties, Jiangsu High Hope International Group Corporation and Jiangsu Holly International Logistics Corporation. The plan involves reducing up to 10,077,777 A shares, approximately 1% of the company’s total share capital, over a three-month period starting from September 2025. This move aims to optimize asset structure and focus on core business operations, without altering the company’s control.

Holly Futures Schedules Board Meeting to Review Interim Results

Holly Futures Co. Ltd. has announced a board meeting scheduled for August 28, 2025, to review and approve the unaudited interim results for the first half of the year and to consider the payment of an interim dividend. This meeting could impact the company’s financial performance and investor relations, as it will address key financial results and potential dividend distribution.

Holly Futures Issues Profit Warning Amid Market Challenges

Holly Futures Co. Ltd. has issued a profit warning, indicating a significant decrease in net profit for the first half of 2025 compared to the same period in 2024. The company attributes this decline to decreased market interest rates and intensified market competition, which have negatively impacted net interest income, handling fees, and net commission income. Despite these challenges, Holly Futures is undergoing a transformation phase, emphasizing operational breakthroughs, reform, and compliance to improve its business performance.

Holly Futures Co. Ltd. Approves Key Resolutions at AGM

Holly Futures Co. Ltd. held its Annual General Meeting (AGM) on June 26, 2025, where several key resolutions were approved, including the annual reports for A Shares and H Shares for the year ended December 31, 2024. The meeting was conducted in compliance with relevant PRC laws and regulations, and a significant portion of shareholders participated either in person or through online voting. The AGM also addressed the distribution of the 2024 final dividend and the termination of the change of stock short name, indicating a stable operational focus and commitment to shareholder interests.

Holly Futures Updates Final Dividend Details for 2024

Holly Futures Co., Ltd. has announced an update to its final cash dividend for the year ended December 31, 2024. The dividend declared is RMB 0.01 per share, with the payment to be made in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.09494. The ex-dividend date is set for July 10, 2025, with the record date on July 17, 2025, and payment scheduled for August 8, 2025. The company will apply a withholding tax rate of 10% for non-resident enterprise and individual shareholders, while a 20% rate applies to domestic individual shareholders investing through the Shanghai-Hong Kong or Shenzhen-Hong Kong Stock Connect.