eBroker Group Limited (8036) AI Stock Analysis

• Market Cap: HK$26.82M
• Dividend Yield: N/A
• Average Volume (3M): 443.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: -14.25%
• EPS Growth: 77.78%
• Country: HK
• Employees: 53
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 1,230,000,000
• 10 Day Avg. Volume: 1,012,000
• 30 Day Avg. Volume: 443,333
• PEG Ratio: 0.08
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 1.76
• P/FCF Ratio: -6.82
• 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: 46 Neutral
• Price Target: HK$0.02 ▲(15.00% Upside)

The score is primarily weighed down by deteriorating financial performance (declining revenue, losses, and weak cash flow). Technicals also reflect sustained bearish momentum with the stock trading below major moving averages. Valuation is constrained by negative earnings (negative P/E) and no dividend yield data to provide support.

Positive Factors

Balance Sheet Strength

A very high equity ratio and minimal leverage provide durable financial resilience, allowing the company to absorb operating shocks, fund technology investment or product development internally, and avoid forced asset sales or costly refinancing during cyclical downturns.

Diversified Revenue Model

Multiple structural revenue streams (transaction fees, margin interest, advisory and partnerships) reduce reliance on any single source. This mix supports steadier cash generation over time and enables cross-selling, helping monetize client relationships as volumes and product adoption recover.

Platform Activity / Scale

Sustained average trading volume indicates platform usage and liquidity, which are durable competitive advantages for an online broker: higher activity drives recurring fee revenue, improves customer experience via liquidity, and creates cross-sell opportunities that support long-term revenue recovery.

Negative Factors

Declining Revenue and Profitability

A material, persistent revenue decline combined with a shift to net losses undermines operating leverage and long-term return prospects. Continued top-line contraction reduces ability to invest in product and marketing, pressuring market share and prolonging recovery to profitable scale.

Weak Cash Flow Generation

Negative operating and free cash flows signal structural cash conversion issues. This forces reliance on external financing or equity, constrains investment in platform improvements, and increases execution risk for strategic initiatives over the medium term if cash generation doesn't normalize.

Margin Deterioration

Falling gross and operating margins reflect rising costs or pricing pressure that erode the business's inherent scalability. Even if revenue stabilizes, lower unit economics make return to sustainable profitability harder and reduce capital available for growth or competitive reinvestment.

eBroker Group Limited Business Overview & Revenue Model

Company Description

eBroker Group Limited, an investment holding company, provides financial software solution services to financial institutions in Hong Kong. The company's trading solutions include eBrokerSys, sponsored DMA, institutional sales desk solutions, and global futures and options trading platform; and Algo solutions comprises Algo trader, volatility trading system, and market making system. In addition, it offers investment solutions, such as Alpha Investment system, fund administration system, and wealth management system; and enterprise solutions comprising back office system, portfolio risk reporting system, and data centers hosting and exchange colocation services. It also sells computer products. The company was incorporated in 2016 and is based in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

eBroker Group Limited generates revenue through several key streams. The primary source of income comes from brokerage fees charged on trades executed by clients on its platform. These fees may vary based on trade volume and the type of financial instrument being traded. Additionally, the company earns revenue from interest on margin loans provided to clients for leveraged trading. Another significant revenue stream is derived from advisory services, where eBroker provides investment guidance for a fee. The company may also engage in partnerships with financial institutions and fintech companies, enhancing its service offerings and expanding its customer base, which in turn contributes to its overall earnings.

eBroker Group Limited Financial Statement Overview

Summary

Overall financials are weak: revenue declined 17.1% YoY, profitability turned negative (net margin negative), and operating/free cash flow metrics are unfavorable. The main offset is a relatively strong balance sheet with a high equity ratio (87.6%) and low leverage (debt-to-equity 0.06).

Income Statement

The income statement reveals a challenging year with a significant decline in revenue and profitability. The gross profit margin decreased from 32.4% in 2023 to 30.9% in 2024. Net profit margin turned negative in 2024, indicating a loss, compared to a positive margin in 2023. The revenue growth rate was negative, showing a 17.1% decline from 2023 to 2024. EBIT and EBITDA margins also deteriorated, reflecting operational challenges.

Balance Sheet

The balance sheet remains relatively strong with a high equity ratio of 87.6% in 2024, indicating financial stability. The debt-to-equity ratio increased slightly but remains low at 0.06, suggesting manageable leverage. However, the return on equity turned negative due to the net loss, highlighting profitability concerns.

Cash Flow

Cash flow analysis shows a concerning trend with negative free cash flow growth and a negative operating cash flow to net income ratio in 2024. The free cash flow to net income ratio is also negative, indicating cash flow challenges. This reflects potential liquidity issues and the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.42M	31.20M	37.63M	38.58M	41.63M	40.41M
Gross Profit	9.29M	9.64M	12.21M	14.83M	13.65M	16.09M
EBITDA	-1.81M	984.00K	5.59M	5.12M	2.85M	4.73M
Net Income	-258.00K	-2.71M	1.92M	1.97M	327.00K	1.51M
Balance Sheet
Total Assets	69.53M	68.96M	66.66M	68.77M	67.82M	63.94M
Cash, Cash Equivalents and Short-Term Investments	30.35M	28.21M	39.17M	31.23M	32.23M	28.00M
Total Debt	2.74M	3.53M	1.05M	2.19M	3.08M	253.00K
Total Liabilities	7.57M	8.58M	4.09M	7.74M	8.27M	6.98M
Stockholders Equity	61.95M	60.38M	62.57M	61.03M	59.55M	56.96M
Cash Flow
Free Cash Flow	-5.07M	-8.06M	4.40M	4.21M	4.79M	-17.06M
Operating Cash Flow	-5.01M	-8.01M	5.53M	6.82M	7.83M	127.00K
Investing Cash Flow	-3.95M	-4.71M	-3.76M	-1.77M	-15.50M	-16.83M
Financing Cash Flow	-1.79M	-1.69M	-1.69M	-1.53M	-893.00K	-2.30M

eBroker Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8036, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.30 is Neutral, neither overbought nor oversold. The STOCH value of -37.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8036.

eBroker Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8018	47 Neutral	HK$24.71M	-2.43	-21.34%	―	8.14%	83.10%
8036	46 Neutral	HK$26.82M	-120.00	-0.42%	―	-14.25%	77.78%
8060	46 Neutral	HK$29.37M	-3.44	-11.34%	―	-5.06%	-457.45%
8131	44 Neutral	HK$42.55M	-7.72	-523.99%	―	78.40%	72.37%
8290	44 Neutral	HK$46.00M	-38.33	-2.07%	―	-6.88%	-100.00%