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China Industrial Securities International Financial Group Ltd. (HK:6058)
:6058
Hong Kong Market

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

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HK

China Industrial Securities International Financial Group Ltd.

(6058)

Rating:73Outperform
Price Target:
The overall stock score of 73 reflects strong financial performance with robust revenue growth and positive cash flow, tempered by high leverage. Technical analysis indicates strong upward momentum, albeit with potential for short-term correction due to overbought signals. Valuation is fair, but lacks the appeal of a dividend yield. The absence of recent corporate events or earnings call data limits additional insights into future prospects.

China Industrial Securities International Financial Group Ltd. (6058) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionChina 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 MoneyChina Industrial Securities International Financial Group Ltd. generates revenue through various financial service offerings. Key revenue streams include securities brokerage fees from executing trades on behalf of clients, interest income from margin financing provided to investors, and advisory fees from corporate finance services such as underwriting and mergers and acquisitions advisory. Additionally, the company earns management fees from its asset management services, which involve managing investment portfolios for clients. The firm may also earn revenue from proprietary trading and investments in financial products. Partnerships with other financial institutions and strategic client relationships further contribute to its earnings by enhancing its service offerings and expanding its client base.

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
78
Positive
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
70
Positive
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
82
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue567.79M439.77M258.00M844.41M576.70M
Gross Profit567.79M207.66M38.99M732.39M315.82M
EBITDA0.00404.45M-66.94M304.79M3.68M
Net Income108.09M54.56M-297.40M40.09M-492.54M
Balance Sheet
Total Assets15.73B16.55B12.47B16.79B18.26B
Cash, Cash Equivalents and Short-Term Investments11.36B11.20B7.70B10.38B10.25B
Total Debt8.99B8.71B5.06B8.21B10.27B
Total Liabilities11.50B12.43B8.48B13.41B14.92B
Stockholders Equity4.24B4.12B3.99B3.39B3.35B
Cash Flow
Free Cash Flow2.39B-9.97M2.04B646.21M2.84B
Operating Cash Flow2.40B-761.15K2.06B668.55M2.86B
Investing Cash Flow-781.58M-2.00B-2.45B255.72M-12.45M
Financing Cash Flow-1.59B1.07B-2.37B-860.48M-5.92B

China Industrial Securities International Financial Group Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.40
Price Trends
50DMA
0.34
Positive
100DMA
0.29
Positive
200DMA
0.26
Positive
Market Momentum
MACD
0.01
Positive
RSI
67.30
Neutral
STOCH
52.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6058, the sentiment is Positive. The current price of 0.4 is above the 20-day moving average (MA) of 0.38, above the 50-day MA of 0.34, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 67.30 is Neutral, neither overbought nor oversold. The STOCH value of 52.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6058.

China Industrial Securities International Financial Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$1.58B17.102.90%2.53%37.85%69.85%
67
Neutral
$16.67B11.449.71%3.91%11.61%-9.60%
€207.76M-13.33%
DE597
€96.59M-91.79%
56
Neutral
HK$381.52M29.332.12%-20.33%-21.84%
45
Neutral
HK$661.09M-12.79%90.50%-12.94%
35
Underperform
HK$951.37M
269.23%61.54%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6058
China Industrial Securities International Financial Group Ltd.
0.40
0.20
100.00%
DE:YUIA
Planetree International Development Limited
0.21
0.19
950.00%
DE:597
BOCOM International Holdings Co. Ltd.
0.03
<0.01
50.00%
HK:1945
Zero2IPO Holdings, Inc.
1.27
0.23
22.12%
HK:0279
Arta TechFin Corporation Limited
0.05
0.02
66.67%
HK:3623
China Success Finance Group Holdings Ltd.
1.05
0.21
25.00%

China Industrial Securities International Financial Group Ltd. Corporate Events

China Industrial Securities International Secures Subsidiary Obligations with BOCHK Guarantees
May 30, 2025

China Industrial Securities International Financial Group Ltd. has announced the provision of two guarantees to Bank of China (Hong Kong) Limited. The first guarantee, amounting to HK$710,000,000, secures obligations of its wholly-owned subsidiary, CISI Brokerage, while the second, amounting to HK$10,000,000, secures obligations of CISI Futures. These guarantees are part of the company’s strategic business development efforts and are not considered notifiable or connected transactions under Hong Kong’s listing rules.

China Industrial Securities International Renews HK$300 Million Loan Facility
May 30, 2025

China Industrial Securities International Financial Group Ltd. has renewed an uncommitted revolving loan facility of up to HK$300 million with a bank, allowing for borrowing in HKD, USD, or CNY. This renewal is contingent on the company’s controlling shareholder, Industrial Securities Co., Ltd., maintaining at least a 51% stake and management control. The facility’s renewal underscores the company’s ongoing efforts to secure flexible financing options, which may bolster its operational capabilities and market positioning.

CISI Investment Subscribes to US$15 Million in Bonds
May 29, 2025

China Industrial Securities International Financial Group Ltd. announced that its subsidiary, CISI Investment, has subscribed to bonds issued by YONGDA Investment Limited, with a total subscription amount of US$15 million. This transaction, which was funded through internal resources, is classified as a discloseable transaction under Hong Kong’s Listing Rules due to its aggregated percentage ratio exceeding 5% but remaining below 25%. The bonds, guaranteed by Shanghai Construction Group Co., Ltd., have a fixed interest rate of 4.60% per annum and are set to mature in June 2028.

China Industrial Securities International Financial Group Ltd. Announces Board Composition
May 16, 2025

China Industrial Securities International Financial Group Ltd. has announced the composition of its Board of Directors and the roles within its committees. This update reflects the company’s governance structure, which may influence its strategic direction and operational oversight, potentially impacting stakeholders’ confidence and the company’s positioning in the financial industry.

China Industrial Securities International Financial Group Ltd. AGM Resolutions Passed Unanimously
May 16, 2025

China Industrial Securities International Financial Group Ltd. successfully held its annual general meeting on May 16, 2025, where all proposed resolutions were unanimously approved by shareholders. Key resolutions included the adoption of the company’s financial statements for 2024, the declaration of a final dividend, re-election and appointment of directors, and the re-appointment of KPMG as the auditor. The meeting also granted mandates to the directors for share issuance and buybacks, and authorized financial transactions exceeding 10% of the company’s net asset value. These decisions are expected to strengthen the company’s governance and operational capabilities, potentially enhancing its market position and shareholder value.

CISI Group Subscribes to US$10 Million in Zhongyuan Asset Management Notes
Apr 30, 2025

China Industrial Securities International Financial Group Ltd., through its subsidiary CISI Investment, has subscribed to notes offered by Zhongyuan Asset Management Co., Ltd. for a total of US$10 million. This transaction, classified as a discloseable transaction under Hong Kong’s Listing Rules, reflects the company’s strategic investment decisions and its ongoing efforts to enhance its financial portfolio.

China Industrial Securities Acquires $8 Million in Bonds
Apr 29, 2025

China Industrial Securities International Financial Group Ltd. announced that its wholly-owned subsidiary, CISI Investment, acquired bonds worth US$8 million from the open market. This acquisition, when combined with previous ones, constitutes a discloseable transaction under Hong Kong’s Listing Rules, requiring reporting and announcement but not shareholder approval. The bonds, issued by Yankuang Group (Cayman) Limited and guaranteed by Shandong Energy Group Co., Ltd., have a coupon rate of 3.50% and mature in 2029. This strategic move is funded through internal resources and positions the company to potentially benefit from the financial instruments’ returns, reflecting its proactive investment strategy.

China Industrial Securities International Sells Bonds Worth US$8.6 Million
Apr 2, 2025

China Industrial Securities International Financial Group Ltd. has announced the disposal of bonds worth US$8.6 million by its subsidiary, CISI Investment, on the open market. The transaction, which does not require shareholder approval, is part of the company’s strategy to maintain a diversified investment portfolio and generate stable returns within an acceptable risk level.

China Industrial Securities Secures HK$100 Million Loan Facility
Apr 2, 2025

China Industrial Securities International Financial Group Limited has secured a revolving short-term loan facility of up to HK$100,000,000 from a bank, with the loan subject to annual review or demand. A key condition is that Industrial Securities Co., Ltd., the controlling shareholder, must maintain at least 51% ownership of the company’s issued share capital, which currently stands at approximately 57.31%. This financial move is significant for the company’s liquidity management and could impact its operational flexibility and stakeholder confidence.

China Industrial Securities International Announces AGM and Key Resolutions
Mar 28, 2025

China Industrial Securities International Financial Group Ltd. has announced its upcoming annual general meeting (AGM) scheduled for May 16, 2025. Key agenda items include the adoption of financial statements for 2024, declaration of a final dividend, re-election and appointment of directors, and re-appointment of KPMG as the auditor. The AGM will also consider resolutions to authorize the board to issue shares and related securities, potentially impacting the company’s capital structure and shareholder value.

China Industrial Securities International Declares Final Dividend for 2024
Mar 24, 2025

China Industrial Securities International Financial Group Ltd. has announced a final cash dividend of HKD 0.01 per share for the financial year ending December 31, 2024. This announcement, made on March 24, 2025, outlines key dates for shareholders, including the ex-dividend date on May 21, 2025, and the payment date set for June 17, 2025. The dividend reflects the company’s ongoing commitment to returning value to its shareholders, potentially impacting its market position and stakeholder confidence.

China Industrial Securities Secures $50 Million Loan Facility
Mar 24, 2025

China Industrial Securities International Financial Group Ltd. has secured a US$50 million revolving loan facility from a bank, with a maturity date set for one year from the agreement date. A condition of this loan is that Industrial Securities Co., Ltd. must maintain management control over the company, highlighting the importance of the parent company’s involvement in its operations.

China Industrial Securities International Announces Board Changes
Mar 24, 2025

China Industrial Securities International Financial Group Ltd. has announced proposed changes to its board, including the appointment of Mr. Chan Ho Wing and Ms. Du Li as independent non-executive directors, pending shareholder approval at the upcoming annual general meeting. These appointments are expected to bring significant expertise to the board, with Mr. Chan’s extensive experience in financial services and Ms. Du’s academic background in economics and finance. The changes in board composition are likely to impact the company’s strategic direction and governance, potentially enhancing its market positioning and stakeholder confidence.

China Industrial Securities International Reports Doubling of Profit in 2024
Mar 24, 2025

China Industrial Securities International Financial Group Ltd. reported its annual results for the year ending December 31, 2024, showing a significant increase in total revenue to HK$881 million from HK$543 million in 2023. The company’s profit for the year more than doubled to HK$108 million, driven by higher commission and fee income, interest revenue, and net trading and investment income, indicating a strong operational performance and improved market positioning.

CISI Financial Group Engages in Significant Treasury Bond Transaction
Mar 21, 2025

China Industrial Securities International Financial Group Ltd. announced a reverse repurchase transaction involving the purchase of United States Treasury Bonds valued at US$36,000,000 for US$16,927,850. This transaction, conducted by its subsidiary CISI Investment, is classified as a discloseable transaction under Hong Kong’s Listing Rules, requiring reporting and announcement but not shareholder approval. The deal is expected to impact the company’s financial positioning by leveraging U.S. Treasury Bonds, potentially enhancing its asset portfolio and offering strategic financial benefits.

China Industrial Securities International Renews HK$3 Billion Bank Facility
Mar 12, 2025

China Industrial Securities International Financial Group Ltd. has renewed an uncommitted bank facility agreement with a lender for up to HK$3 billion. This renewal is contingent on Industrial Securities Co., Ltd. maintaining at least a 51% ownership stake in the company, ensuring continued control by its major shareholder. The facility has a maturity of 12 months, subject to periodic review by the lender, and the company will continue to disclose relevant obligations in its interim and annual reports.

China Industrial Securities International Schedules Board Meeting for Annual Results
Mar 12, 2025

China Industrial Securities International Financial Group Ltd. has announced that its board of directors will meet on March 24, 2025, to consider and approve the company’s annual results for the year ending December 31, 2024. The meeting will also discuss the potential payment of a final dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting investor confidence and market perception.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 20, 2025