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

• Market Cap: HK$18.15M
• Dividend Yield: N/A
• Average Volume (3M): 869.39K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: 8.14%
• EPS Growth: 83.10%
• Country: HK
• Employees: 66
• Sector: Financial
• Sector Strength: 70
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 504,232,940
• 10 Day Avg. Volume: 828,010
• 30 Day Avg. Volume: 869,388
• PEG Ratio: 0.04
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.75
• P/FCF Ratio: -1.82
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Finsoft Financial Investment Holdings Ltd. is currently facing significant financial difficulties, with declining revenues and persistent net losses. The technical indicators suggest a bearish trend, and the negative P/E ratio highlights valuation concerns. These factors collectively result in a low overall stock score.

Finsoft Financial Investment Holdings Ltd. Business Overview & Revenue Model

Company Description

Finsoft Financial Investment Holdings Ltd. (8018) is a Hong Kong-based company specializing in financial technology solutions and investment services. The company operates primarily in the financial services sector, offering a range of products including software solutions for financial institutions, investment management services, and wealth management advisory. With a focus on enhancing operational efficiency and improving client service through innovative technology, Finsoft aims to cater to a diverse clientele, including banks, asset managers, and corporate clients.

How the Company Makes Money

Finsoft Financial Investment Holdings Ltd. generates revenue through multiple streams. Primarily, the company earns income from its software solutions, which include licensing fees for proprietary financial technology products used by banks and investment firms. Additionally, Finsoft provides consulting and implementation services that help clients integrate these technologies into their operations, contributing to service revenue. Investment management services also represent a significant revenue stream, where the company charges fees based on assets under management (AUM) and performance-based incentives. Furthermore, strategic partnerships with other financial institutions enhance its service offerings and expand market reach, thus driving additional revenue. Overall, the company's diversified revenue model, anchored in technology and financial services, positions it to capitalize on growing demand for digital solutions in finance.

Finsoft Financial Investment Holdings Ltd. Financial Statement Overview

Summary

Finsoft Financial Investment Holdings Ltd. is facing significant financial challenges, with declining revenues, persistent net losses, and negative cash flows. Despite low leverage, the inability to generate profits and positive cash flows raises concerns about 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.15M	49.05M	52.33M	60.82M	66.64M	76.33M
Gross Profit	26.62M	27.01M	31.15M	40.98M	46.64M	56.05M
EBITDA	-5.74M	-5.25M	-19.24M	-16.96M	-16.24M	-41.56M
Net Income	-10.17M	-12.34M	-28.19M	-27.16M	-24.95M	-49.11M
Balance Sheet
Total Assets	67.02M	78.92M	68.60M	103.63M	139.48M	169.20M
Cash, Cash Equivalents and Short-Term Investments	22.64M	20.86M	19.00M	32.25M	48.16M	46.49M
Total Debt	2.13M	4.58M	5.16M	9.07M	14.65M	11.76M
Total Liabilities	23.16M	27.21M	31.06M	40.12M	47.62M	48.15M
Stockholders Equity	43.86M	51.71M	37.54M	65.83M	93.78M	121.59M
Cash Flow
Free Cash Flow	-6.39M	-20.11M	-13.11M	1.22M	10.82M	-49.30M
Operating Cash Flow	-5.65M	-19.13M	-12.23M	3.42M	11.25M	-48.23M
Investing Cash Flow	446.00K	-1.47M	1.62M	-6.19M	-855.00K	-7.56M
Financing Cash Flow	-4.73M	22.24M	-7.13M	-7.83M	-7.08M	-2.34M

Finsoft Financial Investment Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.61 is Neutral, neither overbought nor oversold. The STOCH value of 31.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8131	53 Neutral	HK$69.52M	―	-523.99%	―	78.40%	72.37%
8100	52 Neutral	HK$97.78M	-20.95	-2.72%	1.00%	-13.40%	76.97%
8290	51 Neutral	HK$50.00M	-41.67	-2.07%	―	-6.88%	-100.00%
8060	46 Neutral	HK$32.64M	―	-4.12%	―	11.42%	-63.93%
8036	45 Neutral	HK$35.77M	―	-0.42%	―	-14.25%	77.78%
8018	41 Neutral	HK$18.15M	―	-21.34%	―	8.14%	83.10%