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

• Market Cap: HK$1.90B
• Dividend Yield: 2.11%
• Average Volume (3M): 5.44M
• Price to Earnings (P/E): 25.0
• Beta (1Y): 1.23
• 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: 3,425,000
• 30 Day Avg. Volume: 5,436,866
• PEG Ratio: 0.14
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 0.44
• 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: 64 Neutral
• Price Target: HK$0.50 ▲(4.17% Upside)

The stock's overall score is driven by strong financial performance, particularly in revenue growth and cash flow generation. However, technical indicators suggest weak momentum, and the valuation appears high, which tempers the overall attractiveness.

Positive Factors

Revenue Growth

The significant increase in revenue demonstrates the company's ability to expand its market presence and enhance service offerings, contributing to long-term financial stability.

Cash Flow Improvement

The turnaround in cash flow indicates strong cash generation capabilities, enhancing liquidity and providing financial flexibility to support future growth initiatives.

Profitability

Improved profit margins reflect enhanced operational efficiency and profitability, supporting sustainable earnings growth and competitive positioning in the financial services industry.

Negative Factors

High Leverage

High leverage can increase financial risk, particularly in volatile market conditions, potentially impacting the company's ability to invest in growth and manage operational costs.

Modest Return on Equity

A low return on equity indicates that the company may not be efficiently using its equity base to generate profits, which could affect investor confidence and long-term growth prospects.

Historical Revenue Volatility

Revenue and earnings volatility can lead to unpredictable financial performance, challenging the company's ability to maintain consistent growth and profitability over time.

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

China Industrial Securities International Financial Group Ltd. generates revenue through several key streams. The primary sources of income include brokerage fees from trading activities in securities and futures, management fees from asset management services, and advisory fees from investment banking services, including initial public offerings (IPOs) and mergers and acquisitions (M&A). The company also earns interest income from margin financing and other lending activities. Strategic partnerships with financial institutions and technology firms further enhance its service capabilities and market reach, contributing to overall earnings growth. Additionally, the firm's focus on expanding its digital platforms and enhancing client engagement helps drive transaction volumes and customer retention, ultimately impacting its revenue positively.

China Industrial Securities International Financial Group Ltd. Financial Statement Overview

Summary

The company shows strong financial performance with significant revenue growth and improved profitability metrics. Despite high leverage, robust cash flow generation and an improving equity base provide stability. Vigilance on debt levels is necessary.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	766.00M	1.03B	745.90M	202.62M	844.41M	1.22B
Gross Profit	722.43M	567.79M	664.94M	83.75M	732.39M	1.08B
EBITDA	668.17M	630.73M	404.45M	-67.31M	304.79M	-937.18K
Net Income	122.35M	108.09M	54.56M	-297.40M	40.09M	-492.54M
Balance Sheet
Total Assets	20.90B	15.73B	16.55B	12.47B	16.79B	18.26B
Cash, Cash Equivalents and Short-Term Investments	14.11B	11.36B	11.20B	7.70B	10.38B	10.25B
Total Debt	12.76B	8.99B	8.71B	5.06B	7.21B	10.27B
Total Liabilities	16.58B	11.50B	12.43B	8.48B	12.41B	14.92B
Stockholders Equity	4.32B	4.24B	4.12B	3.99B	4.39B	3.35B
Cash Flow
Free Cash Flow	1.24B	2.39B	-9.97M	2.04B	646.21M	2.84B
Operating Cash Flow	1.24B	2.40B	-761.15K	2.06B	668.55M	2.86B
Investing Cash Flow	-3.35B	-781.58M	-2.00B	-2.45B	255.72M	-12.45M
Financing Cash Flow	2.10B	-1.59B	1.07B	-2.37B	-860.48M	-5.92B

China Industrial Securities International Financial Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.48
• 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:6058, the sentiment is Neutral. The current price of 0.48 is below the 20-day moving average (MA) of 0.48, below the 50-day MA of 0.48, and above the 200-day MA of 0.46, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.38 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6058	64 Neutral	HK$1.90B	25.00	2.32%	2.11%	20.05%	16.56%
1945	61 Neutral	HK$426.58M	91.61	0.78%	―	-21.71%	-75.78%
0279	46 Neutral	HK$801.69M	-15.29	-499.08%	―	191.15%	-1.98%
0613	45 Neutral	HK$1.73B	1,636.36	>-0.01%	―	-27.12%	―
3623	45 Neutral	HK$681.12M	-18.12	-9.25%	―	-66.98%	-115.16%
3329	31 Underperform	HK$984.38M	-0.85	-99.49%	―	22.37%	20.18%

China Industrial Securities International Financial Group Ltd. Corporate Events

China Industrial Securities Adjusts Guarantee Agreements to Align with Investment Strategy

China Industrial Securities International Financial Group Ltd. has announced adjustments to its guarantee agreements with several major financial institutions, including Barclays, Citigroup, HSBC, Goldman Sachs, JP Morgan, UBS, and CNCBI. These changes, involving both increases and decreases in guarantee amounts, are part of the company’s strategy to align its future investment plans. The adjustments reflect the company’s ongoing efforts to manage its financial commitments and optimize its investment portfolio, potentially impacting its operational flexibility and stakeholder relationships.

CISI Acquires US$15 Million in Notes from Guangzhou Metro

China Industrial Securities International Financial Group Ltd. (CISI) has announced the acquisition of notes worth an aggregate principal amount of US$15,060,000, equivalent to approximately HK$118,221,000, through its wholly-owned subsidiary, CISI Investment. These acquisitions, conducted on the open market, are classified as a discloseable transaction under Hong Kong’s Listing Rules, necessitating reporting and announcement requirements but not requiring shareholder approval. The notes, issued by Guangzhou Metro Investment Finance (BVI) Limited and guaranteed by Guangzhou Metro Investment Finance (HK) Limited, come with a fixed interest rate of 2.31% per annum and mature on 17 September 2030. This strategic acquisition, funded from internal resources, underscores CISI’s active engagement in the financial markets and may enhance its investment portfolio.

China Industrial Securities International Renews $35M Loan Facility

China Industrial Securities International Financial Group Ltd. has renewed a US$35 million uncommitted revolving loan facility with a bank, effective from December 2, 2025. The renewal includes a condition 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 59.72%. This facility renewal is crucial for the company’s operational liquidity and reflects its ongoing financial strategy to maintain stability and shareholder value.

CISI Financial Group Sells US$20 Million in Bonds to Diversify Portfolio

China Industrial Securities International Financial Group Limited announced the disposal of bonds worth US$20 million on November 26, 2025. This transaction aligns with the company’s strategy to diversify its investment portfolio and generate stable returns, reflecting its commitment to enhancing shareholder value.

China Industrial Securities International Secures HK$930 Million in Guarantees

China Industrial Securities International Financial Group Limited has announced two significant guarantees with Bank of China (Hong Kong) Limited to secure obligations of its subsidiaries, CISI Brokerage and CISI Futures. These guarantees, totaling HK$930,000,000, reflect the company’s strategic move to bolster its subsidiaries’ financial stability and market operations, although they do not constitute notifiable or connected transactions under Hong Kong’s listing rules.

CISI Investment Acquires $20 Million in US Treasury Bonds

China Industrial Securities International Financial Group Ltd. announced that its subsidiary, CISI Investment, has acquired US Treasury bonds worth $20 million in principal amount on the open market. This acquisition aligns with the company’s strategy to diversify its investment portfolio and generate stable returns, reflecting a move to balance risk while enhancing shareholder value.

CISI Acquires Verizon Notes to Diversify Portfolio

China Industrial Securities International Financial Group Ltd. announced the acquisition of notes valued at US$25 million issued by Verizon Communications Inc. The acquisition aligns with the company’s strategy to diversify its investment portfolio and generate stable returns. This move is considered beneficial for the company and its shareholders, as it broadens revenue streams and enhances portfolio balance.

China Industrial Securities Secures HK$500 Million Loan Facility

China Industrial Securities International Financial Group Limited announced that it has entered into a facility agreement with a bank for an uncommitted revolving loan facility of up to HK$500,000,000. This agreement underscores the company’s strategic financial management and the importance of maintaining its controlling shareholder, Industrial Securities Co., Ltd., as a condition of the loan, which could impact its financial stability and stakeholder relations.

CISI Acquires US$17 Million in Notes, Strengthening Investment Portfolio

China Industrial Securities International Financial Group Ltd. announced that its subsidiary, CISI Investment, acquired notes worth US$17 million on the open market. These acquisitions, guaranteed by the Public Investment Fund of Saudi Arabia, are part of the company’s strategy to enhance its investment portfolio. The transaction is classified as a discloseable transaction under Hong Kong’s Listing Rules, requiring reporting and announcement but not shareholder approval. This move signifies the company’s ongoing efforts to strategically position itself in the financial market by leveraging international investment opportunities.

CISI Investment Acquires US$19 Million in Notes

China Industrial Securities International Financial Group Ltd. announced that its subsidiary, CISI Investment, has acquired notes worth US$19 million on the open market. These acquisitions, which are considered a discloseable transaction under Hong Kong’s Listing Rules, were funded from the company’s internal resources and are expected to enhance its investment portfolio.

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.