Finsoft Financial Investment Holdings Ltd. (8018) AI Stock Analysis

• Market Cap: HK$18.66M
• Dividend Yield: N/A
• Average Volume (3M): 5.03M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.05
• Revenue Growth: -6.25%
• EPS Growth: 84.71%
• Country: HK
• Employees: 66
• Sector: Financial
• Sector Strength: 72
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 504,232,940
• 10 Day Avg. Volume: 1,923,750
• 30 Day Avg. Volume: 5,033,408
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 44 reflects significant financial challenges, including declining revenues and persistent losses, which are the most impactful factors. Technical analysis shows neutral indicators, while valuation is poor due to negative earnings and lack of dividends. The absence of earnings call and corporate events data did not influence the score.

Finsoft Financial Investment Holdings Ltd. Business Overview & Revenue Model

Company Description

Finsoft Financial Investment Holdings Limited, an investment holding company, primarily develops, sells, and leases financial trading software solutions in Hong Kong and internationally. The company operates through five segments: Financial Trading Software Solutions, Other IT and Internet Financial Platforms Services, Money Lending, Assets Investments, and Others. The Financial Trading Software Solutions segment provides trading and settlement systems of financial products for financial institutions. The Other IT and Internet Financial Platforms Services segment offers e-commerce platforms, other online consultancy services, IT services, and other financial information. The Money Lending segment provides loan financing products. The Assets Investments segment trades in listed securities. The Others segment trades in gaming products; offers related marketing services; and operates stored valued master cards. The company also provides referral, administrative support, and corporate finance advisory services; invests in securities and equities; and develops a mobile e-commerce platform. It primarily serves banks and brokerage companies. The company was formerly known as Finsoft Corporation and changed its name to Finsoft Financial Investment Holdings Limited in June 2015. Finsoft Financial Investment Holdings Limited was incorporated in 2012 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Finsoft Financial Investment Holdings Ltd. generates revenue through multiple streams within the financial services sector. The company earns income from brokerage fees and commissions through its securities trading services. Additionally, it collects management fees from its asset management activities, where it manages investment portfolios on behalf of clients. The company also provides financial advisory services, for which it charges consulting and advisory fees. Significant partnerships with financial institutions and a diversified product offering contribute to its revenue generation. However, specific data on individual revenue contributions or partnerships is not available.

Finsoft Financial Investment Holdings Ltd. Financial Statement Overview

Summary

Finsoft Financial Investment Holdings Ltd. is facing significant financial challenges, including declining revenues, persistent net losses, and negative cash flows. Despite low leverage, the company's inability to generate profits and positive cash flows raises concerns about its financial stability and future growth prospects.

Income Statement

Finsoft Financial Investment Holdings Ltd. has faced declining revenues, with a notable decrease from 76.33M in 2020 to 49.05M in 2024. The company has struggled with profitability, evidenced by consistent net losses and negative EBIT and EBITDA margins. Despite some gross profit, the net profit margin remains negative due to high operational costs.

Balance Sheet

The balance sheet shows a reduction in total assets and liabilities over the years, with a current debt-to-equity ratio of 0.09, indicating low leverage. However, the company’s equity has decreased, and the return on equity is negative due to continuous net losses. The equity ratio is relatively stable, suggesting reliance on equity rather than debt.

Cash Flow

Cash flow statements indicate significant challenges, with negative operating and free cash flow in recent years. Despite some capital raised through financing activities, the company has not achieved positive cash flows from operations. The negative free cash flow growth rate highlights the ongoing struggle to generate cash internally.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.05M	52.33M	60.82M	66.64M	76.33M
Gross Profit	27.01M	31.15M	40.98M	46.64M	56.05M
EBITDA	-5.25M	-18.96M	-16.96M	-16.13M	-41.56M
Net Income	-12.34M	-28.19M	-27.57M	-26.33M	-50.26M
Balance Sheet
Total Assets	78.92M	68.60M	103.63M	139.48M	169.20M
Cash, Cash Equivalents and Short-Term Investments	20.86M	19.00M	32.25M	48.16M	46.49M
Total Debt	4.58M	5.16M	9.07M	14.65M	11.76M
Total Liabilities	27.21M	31.06M	40.12M	47.62M	48.15M
Stockholders Equity	51.71M	37.54M	65.83M	93.78M	121.59M
Cash Flow
Free Cash Flow	-20.11M	-13.11M	1.22M	10.82M	-49.30M
Operating Cash Flow	-19.13M	-12.23M	3.42M	11.25M	-48.23M
Investing Cash Flow	-1.47M	1.62M	-6.19M	-855.00K	-7.56M
Financing Cash Flow	22.24M	-7.13M	-7.83M	-7.08M	-2.34M

Finsoft Financial Investment Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8018, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 92.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8018.

Finsoft Financial Investment Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$17.53B	11.77	10.43%	3.83%	9.84%	1.31%
8100	62 Neutral	HK$89.33M	41.88	1.61%	1.00%	29.97%	―
8060	54 Neutral	HK$39.17M	―	-4.12%	―	11.42%	-63.93%
8036	53 Neutral	HK$40.24M	―	-4.42%	―	-17.12%	-241.18%
8131	46 Neutral	HK$39.49M	―	-523.99%	―	78.40%	72.37%
8290	45 Neutral	HK$42.00M	―	-2.07%	―	-6.88%	-100.00%
8018	44 Neutral	HK$18.66M	―	-27.10%	―	-6.25%	84.71%