Cornerstone Financial Holdings Limited (8112) AI Stock Analysis

• Market Cap: HK$27.99M
• Dividend Yield: N/A
• Average Volume (3M): 538.09K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.14
• Revenue Growth: -6.86%
• EPS Growth: 56.93%
• Country: HK
• Employees: 53
• Sector: Communication Services
• Sector Strength: 71
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 229,418,440
• 10 Day Avg. Volume: 41,044
• 30 Day Avg. Volume: 538,092
• PEG Ratio: 0.15
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.26
• 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: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is primarily influenced by the company's financial performance, which is challenged by persistent net losses and negative cash flows. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall score.

Cornerstone Financial Holdings Limited Business Overview & Revenue Model

Company Description

Cornerstone Financial Holdings Limited (8112) is a diversified financial services company based in Hong Kong, primarily engaged in the provision of asset management, investment advisory, and financial planning services. The company operates across various sectors, including wealth management, private equity, and capital markets, catering to both individual and institutional clients. Cornerstone focuses on delivering tailored financial solutions and innovative investment strategies to enhance client portfolios and achieve long-term financial goals.

How the Company Makes Money

Cornerstone Financial Holdings Limited generates revenue through multiple streams, primarily from asset management fees, performance fees, and advisory fees associated with its investment services. The company earns a significant portion of its income by managing investment funds on behalf of clients, charging management fees based on the assets under management (AUM). Additionally, it receives performance fees when the funds exceed certain performance benchmarks. The advisory services offered to clients, including financial planning and investment consulting, also contribute to revenue through fee arrangements. Cornerstone may engage in strategic partnerships with other financial institutions or investment firms to expand its service offerings and client base, further enhancing its revenue potential. Market conditions and client investment performance play a crucial role in influencing the company's earnings, as they directly affect the AUM and the associated fees.

Cornerstone Financial Holdings Limited Financial Statement Overview

Summary

Cornerstone Financial Holdings Limited faces significant financial challenges, including persistent net losses, declining revenues, and negative cash flows. Despite a strong equity position and low leverage, the company struggles with profitability and cash generation.

Income Statement

Cornerstone Financial Holdings Limited's income statement indicates a challenging financial environment, marked by declining revenues and persistent net losses. The gross profit margin for 2024 was approximately 63.8%, showing effective cost management relative to revenue. However, the company has experienced negative EBIT and EBITDA margins, reflecting operational inefficiencies. The net profit margin is also negative due to continued net losses. Furthermore, the revenue growth rate has been negative, indicating a decline in sales over the past year.

Balance Sheet

The balance sheet analysis reveals a relatively conservative financial structure, with a debt-to-equity ratio of approximately 0.11, suggesting low leverage. The equity ratio stands at about 63.3%, indicating a strong equity position relative to total assets. However, the company's return on equity is negative, reflecting ongoing net losses. Despite a solid equity base, the company faces challenges in generating returns for shareholders.

Cash Flow

The cash flow statement highlights significant operational challenges, with a negative operating cash flow in 2024. Free cash flow has also been negative, indicating cash outflows exceeding cash inflows from operating activities. The operating cash flow to net income ratio is unfavorable, reflecting a weak ability to convert net income into cash. The company needs to address cash flow issues to ensure long-term sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.98M	57.96M	55.57M	56.13M	50.97M
Gross Profit	34.42M	36.27M	35.88M	37.04M	32.47M
EBITDA	-11.53M	-37.21M	-19.83M	-653.29K	-36.63M
Net Income	-20.94M	-48.64M	-32.60M	-14.30M	-59.20M
Balance Sheet
Total Assets	177.59M	207.77M	281.06M	240.43M	251.07M
Cash, Cash Equivalents and Short-Term Investments	84.52M	98.80M	125.91M	102.07M	83.86M
Total Debt	12.79M	15.06M	31.23M	31.62M	39.02M
Total Liabilities	49.31M	57.51M	81.32M	69.78M	66.07M
Stockholders Equity	112.41M	133.54M	182.02M	152.31M	167.90M
Cash Flow
Free Cash Flow	-37.96M	-23.67M	-25.68M	27.77M	35.09M
Operating Cash Flow	-37.81M	-23.56M	-25.59M	28.15M	38.34M
Investing Cash Flow	7.44M	200.02K	-12.48M	-163.27K	-2.81M
Financing Cash Flow	1.49M	-12.54M	52.53M	-9.35M	-13.23M

Cornerstone Financial Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 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:8112, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.14, and below the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.75 is Neutral, neither overbought nor oversold. The STOCH value of 21.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8112.

Cornerstone Financial Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8121	56 Neutral	HK$16.76M	9.45	-3.24%	―	38.94%	-71.65%
Sector *	55 Neutral	HK$68.46B	-1.62	-3.62%	5.57%	-4.09%	-17.08%
8627	50 Neutral	HK$47.20M	14.86	-1.14%	―	-37.67%	-152.00%
8112	47 Neutral	HK$27.99M	―	-17.03%	―	-6.86%	56.93%
8153	39 Underperform	HK$28.61M	―	-80.09%	―	-21.64%	-43.56%
0745	39 Underperform	HK$159.37M	―	-15.60%	―	8.54%	-333.05%