Flying Financial Service Holdings Limited (8030) AI Stock Analysis

• Market Cap: HK$2.49B
• Dividend Yield: N/A
• Average Volume (3M): 454.58K
• Price to Earnings (P/E): 38.4
• Beta (1Y): -0.34
• Revenue Growth: -26.27%
• EPS Growth: -54.61%
• Country: HK
• Employees: 23
• Sector: Financial
• Sector Strength: 70
• Industry: Real Estate - Development
• EPS (TTM): N/A
• Shares Outstanding: 349,347,100
• 10 Day Avg. Volume: 472,355
• 30 Day Avg. Volume: 454,582
• PEG Ratio: -0.13
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 2.18
• P/FCF Ratio: -11.32
• 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: 50 Neutral
• Price Target: HK$7.00 ▼(-40.78% Downside)

The score is mainly supported by improved profitability and a debt-free balance sheet, but it is held back by weak cash generation (negative operating/free cash flow) and bearish technical signals (below key moving averages with negative MACD). Valuation is also a headwind given the high P/E and no dividend yield data.

Positive Factors

Debt-free balance sheet

Elimination of debt materially reduces interest burden and financial distress risk, strengthening long-term resilience in cyclical real estate. A zero-debt position improves capacity to fund projects, absorb downturns, and negotiate from a stronger liquidity position without relying on external leverage.

Sharply improved profitability

Sustained move to positive and scaling net income indicates durable improvement in core profitability and operational execution. Higher earnings provide capacity for reinvestment or reserves, and suggest the firm has structural drivers or a high-margin revenue mix supporting longer-term earnings power.

High returns on equity

ROE near 30% signals efficient capital use and attractive profit generation relative to equity, reflecting capable management allocation of resources. Persistently high ROE supports durable shareholder returns if earnings quality and cash conversion are sustained over subsequent cycles.

Negative Factors

Negative operating cash flow

Recurring negative operating and free cash flow despite accounting profits indicates weak cash conversion, constraining investment, dividends, and self-funded growth. Over months to years this structural cash shortfall raises reliance on financing or asset sales and impairs balance-sheet flexibility.

Revenue decline and volatility

A revenue contraction combined with prior profit/loss swings signals unstable demand or timing of project recognition in development. Structural revenue volatility complicates forecasting, undermines the durability of recent margin improvements, and increases execution risk for growth plans.

Balance-sheet volatility

Material year-to-year swings in equity and assets create uncertainty around asset values and capital adequacy. In real estate, such volatility often reflects timing and valuation risks that reduce predictability of returns and complicate long-term capital planning and stakeholder confidence.

Flying Financial Service Holdings Limited Business Overview & Revenue Model

Company Description

Flying Financial Service Holdings Limited, an investment holding company, engages in the provision of financial services to property developers in the People's Republic of China. The company operates through four segments: Investment in Property Development Projects; Operation of Financial Services Platform; Provision of Entrusted Loan, Pawn Loan, Other Loan Services, and Financial Consultation Services; and Finance Lease Services. It offers short-term and long-term loans and financial consultation services to borrowers and financial institutions. It also provides long-term finance lease services; investment income services; and operates a financial services platform. The company was founded in 2001 and is headquartered in Shenzhen, China.

How the Company Makes Money

Flying Financial Service Holdings Limited generates revenue primarily through the interest income and service fees from its loan products. The company offers various loan options, including secured and unsecured loans, and earns a significant portion of its income from the interest charged on these loans. In addition, the company may also receive fees for loan origination and other financial services provided to its clients. By targeting SMEs and individual customers, Flying Financial Service Holdings Limited taps into a broad market with substantial demand for flexible financing solutions. Its revenue is influenced by the prevailing interest rate environment, the creditworthiness of its clients, and the overall economic conditions in China. Strategic partnerships with financial institutions can also play a role in expanding its market reach and enhancing its service offerings.

Flying Financial Service Holdings Limited Financial Statement Overview

Summary

Strong reported profitability in 2023–2024 and an improved, debt-free balance sheet support the score, but recurring negative operating and free cash flow in 2022–2024 (including -24.3M in 2024) raises concerns about earnings quality and cash conversion.

Income Statement

Profitability has improved sharply versus 2019–2021, with the company returning to positive earnings in 2022 and scaling further in 2023–2024 (net income rising from 2.6M in 2022 to 54.9M in 2024). Reported margins are very strong in 2023–2024 (gross margin ~94–100% and net margin ~20% to ~44%), suggesting a high-value or non-traditional revenue mix. Offsetting this, revenue declined in 2024 (-8.5% YoY) after growth in 2022–2023, and the business has a history of very large losses and highly volatile profitability (notably 2019–2021).

Balance Sheet

Leverage appears conservative and has improved materially: total debt fell to zero in 2024 (from 7.1M in 2023), and the 2024 debt-to-equity ratio is 0.0. Equity has also expanded significantly since 2022, supporting a larger asset base. Returns on equity are strong in 2023–2024 (~31–32%), indicating efficient profit generation on the current equity base. The main risk is balance-sheet volatility across the period (equity and assets swung meaningfully year to year), which can be typical in real estate but increases uncertainty around durability of returns.

Cash Flow

Cash generation is the weak spot. Operating cash flow is negative in 2019–2020 and again in 2022–2024 (including -24.3M in 2024), despite positive reported earnings in the last three years—indicating profits are not consistently converting into cash. Free cash flow is also negative in 2022–2024 (roughly matching operating outflows), which limits financial flexibility. A positive is that free cash flow improved versus 2022 and 2023 (growth is strongly positive), but it remains below zero and therefore still a constraint.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	116.92M	125.71M	84.49M	76.67M	20.06M	19.72M
Gross Profit	116.92M	125.71M	79.75M	69.98M	13.47M	19.72M
EBITDA	0.00	193.99M	28.43M	10.33M	-264.74M	-485.93M
Net Income	56.00M	54.87M	16.93M	2.60M	-265.60M	-470.35M
Balance Sheet
Total Assets	292.81M	221.83M	102.37M	55.70M	88.20M	394.67M
Cash, Cash Equivalents and Short-Term Investments	0.00	54.60M	16.56M	4.91M	14.09M	3.57M
Total Debt	18.96M	0.00	7.14M	8.51M	5.95M	15.89M
Total Liabilities	90.90M	49.44M	47.29M	40.21M	92.59M	92.96M
Stockholders Equity	201.91M	172.39M	54.88M	15.24M	10.24M	289.48M
Cash Flow
Free Cash Flow	112.09M	-24.26M	-10.02M	-16.85M	5.05M	-7.14M
Operating Cash Flow	112.10M	-24.25M	-10.01M	-16.82M	5.05M	-7.12M
Investing Cash Flow	-6.22M	266.00K	182.00K	11.70M	8.00K	-29.00K
Financing Cash Flow	0.00	61.77M	22.14M	-1.52M	2.10M	-2.77M

Flying Financial Service Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8030, the sentiment is Negative. The current price of 11.82 is above the 20-day moving average (MA) of 7.19, above the 50-day MA of 9.84, and above the 200-day MA of 6.60, indicating a neutral trend. The MACD of -0.96 indicates Negative momentum. The RSI at 36.57 is Neutral, neither overbought nor oversold. The STOCH value of 84.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8030.

Flying Financial Service Holdings Limited 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%
1321	61 Neutral	HK$1.12B	12.42	1.84%	―	-54.44%	120.18%
0131	58 Neutral	HK$770.16M	-0.77	-16.32%	3.70%	-11.00%	-676.27%
8030	50 Neutral	HK$2.49B	38.38	38.47%	―	-26.27%	-54.61%
1813	44 Neutral	HK$734.53M	-0.38	-55.49%	―	-29.26%	88.87%
0147	42 Neutral	HK$3.93B	-13.28	-42.03%	―	―	―
1638	39 Underperform	HK$826.57M	-0.02	―	―	-45.46%	-33.35%