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

• Market Cap: HK$14.12M
• Dividend Yield: N/A
• Average Volume (3M): 5.70M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.06
• Revenue Growth: -6.25%
• EPS Growth: 84.71%
• Country: HK
• Employees: 66
• Sector: Financial
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): -0.02
• Shares Outstanding: 504,232,940
• 10 Day Avg. Volume: 1,228,260
• 30 Day Avg. Volume: 5,695,538
• PEG Ratio: -0.03
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.70
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

Finsoft Financial Investment Holdings Ltd.'s overall stock score is primarily influenced by its weak financial performance and poor technical indicators. The negative P/E ratio and lack of dividend yield further undermine the stock's valuation appeal.

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 the sale and licensing of its financial trading software solutions and related services. The company earns money by providing customized software solutions to financial institutions, charging fees for software implementation, and ongoing maintenance and support services. Additionally, the company may receive revenue from consulting services related to its software solutions. Key revenue streams include software licensing fees, service fees for system integration, and recurring revenue from maintenance contracts. Strategic partnerships with technology firms and financial institutions enhance its market reach and contribute to its earnings.

Finsoft Financial Investment Holdings Ltd. Financial Statement Overview

Summary

Finsoft Financial Investment Holdings Ltd. is currently facing significant financial challenges, with declining revenues, persistent net losses, and negative cash flows. While the company maintains low leverage, the 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
	EBIT
-11.14M	-27.16M	-17.34M	-20.75M	-40.42M
	EBITDA
-5.25M	-18.96M	-16.96M	-16.13M	-41.56M
	Net Income Common Stockholders
-12.34M	-28.19M	-27.57M	-26.33M	-50.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.86M	19.00M	32.25M	48.16M	46.49M
	Total Assets
78.92M	68.60M	103.63M	139.48M	169.20M
	Total Debt
4.58M	5.16M	9.07M	14.65M	11.76M
	Net Debt
-6.28M	-4.06M	-17.87M	-22.89M	-22.46M
	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: Neutral
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8018, the sentiment is Neutral. The current price of 0.02 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.04, and below the 200-day MA of 0.06, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.15 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	64 Neutral	$12.76B	9.77	7.59%	16985.66%	12.30%	-7.71%
8106	55 Neutral	HK$70.92M	―	-12.75%	―	86.07%	84.96%
8018	43 Neutral	HK$14.12M	―	-27.10%	―	-6.25%	84.71%
8063		HK$11.24M	―	-37.62%	―	―	―
8239	42 Neutral	HK$62.87M	―	-37.30%	―	-46.81%	-226.10%
8196	40 Underperform	HK$21.62M	―	-9.50%	―	-58.07%	-331.12%
8163	40 Underperform	HK$63.46M	―		―	―	―