China Industrial Securities International Financial Group Ltd. (6058) AI Stock Analysis

• Market Cap: HK$1.88B
• Dividend Yield: 2.13%
• Average Volume (3M): 6.49M
• Price to Earnings (P/E): 25.3
• Beta (1Y): 1.19
• Revenue Growth: 20.05%
• EPS Growth: 16.56%
• Country: HK
• Employees: 209
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): 0.01
• Shares Outstanding: 4,000,000,000
• 10 Day Avg. Volume: 6,434,200
• 30 Day Avg. Volume: 6,488,663
• 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$0.50
• Price Target Upside: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: HK$0.50 ▲(8.70% Upside)

The overall stock score is driven primarily by strong financial performance, with significant revenue growth and cash flow generation. However, technical analysis indicates bearish trends, and the stock appears overvalued based on its P/E ratio. These factors contribute to a moderate overall score.

China Industrial Securities International Financial Group Ltd. Business Overview & Revenue Model

Company Description

China Industrial Securities International Financial Group Limited provides a range of financial services in Hong Kong. Its Brokerage segment engages in the provision of securities, futures, and options, as well as insurance brokerage services. The company's Loans and Financing segment provides margin financing and secured or unsecured loans to customers. Its Corporate Finance segment offers corporate advisory, sponsor, placing, and underwriting services of debt and equity securities, as well as structured products arrangement services. The Assets Management segment provides fund management, discretionary account management, and investment advisory services. Its Financial Products and Investments segment trades and invests in funds, debt and equity securities, fixed income, derivatives, and other financial products. China Industrial Securities International Financial Group Limited was founded in 2011 and is based in Sheung Wan, Hong Kong. China Industrial Securities International Financial Group Limited is a subsidiary of Industrial Securities (Hong Kong) Financial Holdings Limited.

How the Company Makes Money

The company primarily generates revenue through its brokerage services, charging commissions and fees for facilitating trades on behalf of clients. In addition, it earns income from asset management by managing investment funds and portfolios for clients, collecting management fees and performance-based fees. Investment advisory services also contribute to revenue, where the company provides strategic guidance and recommendations to clients for a fee. Furthermore, the firm may benefit from proprietary trading and market-making activities, earning profits from the spread between buying and selling prices. Key partnerships with financial institutions and technology providers enhance its service offerings and operational efficiency, contributing to its overall earnings.

China Industrial Securities International Financial Group Ltd. Financial Statement Overview

Summary

China Industrial Securities International Financial Group Ltd. exhibits solid financial performance with strong revenue growth and improved profitability metrics. The Income Statement shows a significant revenue increase and improved profit margins, though historical volatility and high leverage pose risks. The Balance Sheet reflects high leverage with a Debt-to-Equity Ratio of 2.12, but an improving equity position indicates stability. Cash Flow performance is strong, with a turnaround in Free Cash Flow to $2.39B in 2024, enhancing liquidity despite leverage concerns.

Income Statement

The company has demonstrated significant revenue growth, with Total Revenue increasing from $439.8M in 2023 to $879.6M in 2024, marking a growth rate of approximately 100%. Gross Profit and Net Profit Margins have improved, indicating enhanced operational efficiency and profitability. The Gross Profit Margin is approximately 64.9%, and the Net Profit Margin is approximately 12.3% for 2024. Consistent EBIT and EBITDA margins also highlight strong earnings performance. However, historical volatility in revenues and earnings suggests potential risks.

Balance Sheet

The company's balance sheet shows a high Debt-to-Equity Ratio of 2.12 for 2024, reflecting significant leverage, which poses a risk in fluctuating market conditions. However, the Equity Ratio is approximately 26.9%, indicating a moderate level of equity financing. Return on Equity is about 2.6%, suggesting modest returns relative to shareholders' equity. The improvement in Stockholders' Equity from $4.12B in 2023 to $4.24B in 2024 is a positive indicator of financial stability.

Cash Flow

The company has achieved a significant turnaround in Free Cash Flow, moving from negative $9.97M in 2023 to a positive $2.39B in 2024, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is approximately 22.2, suggesting a robust conversion of earnings to cash. Such strong cash flow performance enhances the company's liquidity position despite the high leverage.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	567.79M	439.77M	202.62M	844.41M	1.22B
Gross Profit	567.79M	207.66M	110.56M	732.39M	315.82M
EBITDA	630.73M	404.45M	-67.31M	304.79M	3.68M
Net Income	108.09M	54.56M	-297.40M	40.09M	-492.54M
Balance Sheet
Total Assets	15.73B	16.55B	12.47B	16.79B	18.26B
Cash, Cash Equivalents and Short-Term Investments	11.36B	11.20B	7.70B	10.38B	10.25B
Total Debt	8.99B	8.71B	5.06B	8.21B	10.27B
Total Liabilities	11.50B	12.43B	8.48B	12.41B	14.92B
Stockholders Equity	4.24B	4.12B	3.99B	3.39B	3.35B
Cash Flow
Free Cash Flow	2.39B	-9.97M	2.04B	646.21M	2.84B
Operating Cash Flow	2.40B	-761.15K	2.06B	668.55M	2.86B
Investing Cash Flow	-781.58M	-2.00B	-2.45B	255.72M	-12.45M
Financing Cash Flow	-1.59B	1.07B	-2.37B	-860.48M	-5.92B

China Industrial Securities International Financial Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6058, the sentiment is Negative. The current price of 0.46 is below the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.65, and above the 200-day MA of 0.38, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 25.36 is Positive, neither overbought nor oversold. The STOCH value of 7.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6058.

China Industrial Securities International Financial Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6058	61 Neutral	HK$1.88B	25.26	2.32%	2.13%	20.05%	16.56%
1945	59 Neutral	405.55M	83.23	2.09%	―	-21.71%	-75.78%
0613	46 Neutral	2.12B	1,854.55	-14.97%	―	-27.12%	―
3623	45 Neutral	844.27M	-22.48	―	―	-66.98%	-115.16%
0279	35 Underperform	1.08B	-16.22	―	―	156.41%	21.56%
3329	31 Underperform	1.45B	-1.23	―	―	22.37%	20.18%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

China Industrial Securities International Financial Group Ltd. Corporate Events

China Industrial Securities Strengthens Financial Position with Major Guarantees

China Industrial Securities International Financial Group Ltd. announced the provision of three significant guarantees totaling up to US$200 million to secure obligations of its subsidiary, CISI Investment Limited, under Global Master Repurchase Agreements with three banks: Industrial and Commercial Bank of China (Asia) Limited, Hang Seng Bank, and Standard Chartered Bank. These guarantees reflect the company’s strategic move to bolster its financial operations and enhance its market positioning, without constituting notifiable or connected transactions under Hong Kong’s Listing Rules, thus maintaining transparency with shareholders and potential investors.

China Industrial Securities Expands Financial Guarantee to $50 Million

China Industrial Securities International Financial Group Ltd. announced an increase in its guarantee amount from $100,000 to $50 million to support future investment plans. This move, involving a guarantee with Nomura International PLC, is part of the company’s strategy to bolster its financial operations and enhance its market positioning.

CISI Acquires $24 Million in Bonds, Strengthening Market Position

China Industrial Securities International Financial Group Ltd., through its subsidiary CISI Investment, acquired bonds worth US$24 million on the open market, with a total consideration of approximately US$22.9 million. This acquisition is classified as a discloseable transaction under Hong Kong’s Listing Rules, requiring reporting and announcement but not shareholder approval. The bonds, issued by CSSC Capital 2015 Limited and guaranteed by CSSC (Hong Kong) Shipping Company Limited, are part of a larger US$400 million issuance and carry a fixed interest rate of 3% per annum, maturing in 2030. The transaction reflects the company’s strategic financial maneuvers and its engagement in the bond market, potentially impacting its financial positioning and stakeholder interests.

CISI Announces Discloseable Transaction in Fund Subscription

China Industrial Securities International Financial Group Ltd. has announced a discloseable transaction involving its subsidiaries, CISI Brokerage and CISI Capital, subscribing to the Participating Shares of the CISI Global HKD Money Market Fund. The total subscription amount is HK$174,250,000, funded from internal resources. This transaction, which falls under specific listing rules, does not require shareholder approval but necessitates reporting and announcement. The fund aims to achieve long-term returns by investing primarily in HKD-denominated short-term deposits and high-quality money market instruments, ensuring capital safety and liquidity.

CISI Financial Group Invests in Money Market Fund

China Industrial Securities International Financial Group Ltd. announced that its subsidiaries, CISI Brokerage and CISI Capital, have subscribed to the CISI Global USD Money Market Fund with a total investment of US$44,880,000. This transaction, classified as a discloseable transaction under Hong Kong’s Listing Rules, highlights the company’s strategic move to invest in short-term deposits and high-quality money market instruments, aiming for long-term returns while ensuring capital safety and liquidity.

China Industrial Securities Reports Increased Profit in Interim Results

China Industrial Securities International Financial Group Ltd. reported its unaudited interim results for the six months ending June 30, 2025, showing a profit increase to HK$102.9 million from HK$88.7 million in the previous year. Despite a slight decrease in total revenue, the company experienced growth in commission and fee income and interest revenue, indicating a positive impact on its financial performance and potential for future growth.

China Industrial Securities International Announces Upcoming Board Meeting

China Industrial Securities International Financial Group Ltd. has announced that its board will meet on August 18, 2025, to discuss and approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial health and potential shareholder returns, impacting stakeholders’ expectations and the company’s market positioning.

China Industrial Securities Secures US$65 Million Loan Facility

China Industrial Securities International Financial Group Limited has entered into a renewed facility agreement with a bank for an uncommitted revolving loan facility of up to US$65 million. The agreement stipulates that Industrial Securities Co., Ltd., the controlling shareholder, must maintain at least a 51% ownership stake in the company to avoid default. This move is significant for the company’s financial operations, ensuring liquidity and stability while maintaining shareholder control.

China Industrial Securities International Secures $40 Million Loan Facility

China Industrial Securities International Financial Group Limited announced the renewal of an uncommitted revolving loan facility with a bank lender, increasing the facility amount to US$40 million. This financial arrangement underscores the company’s strategic financial management and its reliance on Industrial Securities Co., Ltd. to maintain majority control, as a change in this control could trigger a default event. The company will continue to disclose relevant information in its interim and annual reports as required by the Listing Rules.

CISI Investment Subscribes to $10 Million Public Storage Notes

China Industrial Securities International Financial Group Ltd. announced that its subsidiary, CISI Investment, has subscribed to notes issued by Public Storage Operating Company, amounting to US$10 million. The transaction, considered a discloseable transaction under Hong Kong’s Listing Rules, reflects the company’s strategic financial maneuvers to enhance its investment portfolio, potentially impacting its market positioning and stakeholder interests.