Cornerstone Financial Holdings Limited (8112) AI Stock Analysis

• Market Cap: HK$29.14M
• Dividend Yield: N/A
• Average Volume (3M): 93.22K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.25
• Revenue Growth: -1.50%
• EPS Growth: 72.47%
• Country: HK
• Employees: 53
• Sector: Communication Services
• Sector Strength: 96
• Industry: Advertising Agencies
• EPS (TTM): -0.09
• Shares Outstanding: 229,418,440
• 10 Day Avg. Volume: 205,380
• 30 Day Avg. Volume: 93,218
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

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

The overall stock score is primarily impacted by significant financial challenges, including negative profitability and cash flow issues. Technical analysis provides some short-term bullish signals, but long-term trends remain negative. Valuation is unattractive due to a negative P/E ratio and lack of dividend yield.

Positive Factors

Strong Equity Base

A strong equity base provides financial stability and resilience, allowing the company to withstand economic downturns and invest in growth opportunities without relying heavily on debt.

Low Leverage

Low leverage reduces financial risk and interest obligations, providing the company with greater flexibility to navigate financial challenges and pursue strategic initiatives.

High Gross Profit Margins

Strong gross profit margins indicate effective cost management and pricing power, which can support profitability and competitive positioning in the long term.

Negative Factors

Negative Profitability

Negative profitability and declining revenue suggest operational inefficiencies and challenges in maintaining competitive pricing, which can hinder long-term growth and shareholder value.

Cash Flow Challenges

Negative cash flows indicate difficulties in generating sufficient cash to cover operational expenses and invest in growth, potentially impacting the company's ability to sustain operations and finance future initiatives.

Negative Return on Equity

Negative return on equity reflects poor financial performance and inefficiencies in generating returns from shareholders' investments, which can deter potential investors and affect capital raising efforts.

Cornerstone Financial Holdings Limited Business Overview & Revenue Model

Company Description

Cornerstone Financial Holdings Limited, an investment holding company, operates as a digital out-of-home media company in Hong Kong and Singapore. The company creates and deploys a network of flat-panel displays in the elevator lobbies of office, commercial, and residential buildings. It also offers securities dealings and brokerage, and margin financing services; and advertising and media services. In addition, the company engages in the film development, production, and distribution activities, as well as retail of skin care products. As of December 31, 2021, it deployed flat panel displays at 1,573 office, commercial, and residential buildings. The company was formerly known as Focus Media Network Limited and changed its name to Cornerstone Financial Holdings Limited in January 2018. Cornerstone Financial Holdings Limited was founded in 2004 and is headquartered in Causeway Bay, Hong Kong.

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, particularly in profitability and cash flow generation. While the balance sheet shows low leverage and a strong equity position, the persistent net losses and negative cash flows are concerning. The company needs to address its operational inefficiencies to improve its financial health and ensure sustainable growth.

Income Statement

The company has experienced declining revenue over recent years, with a negative revenue growth rate from 2023 to 2024. Gross profit margins remain relatively strong at around 63.8% for 2024, but the net profit margin is negative due to significant net losses, indicating profitability challenges. EBIT and EBITDA margins are also negative, reflecting ongoing operational difficulties.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.11, suggesting low leverage. However, the company's return on equity is negative due to net losses, which is a concern. The equity ratio is strong at 63.3%, indicating a solid equity base relative to total assets. Overall, the balance sheet reflects stability in terms of low debt but highlights profitability issues.

Cash Flow

The cash flow statement reveals negative operating cash flow and free cash flow, indicating cash generation issues. The free cash flow to net income ratio is negative, further highlighting cash flow challenges. The company has not shown positive free cash flow growth, which is a concern for future liquidity and investment capability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.08M	53.98M	57.96M	55.57M	56.13M	50.97M
Gross Profit	43.44M	34.42M	36.27M	35.88M	37.04M	32.47M
EBITDA	-58.15M	-11.53M	-37.21M	-19.83M	-653.29K	-36.63M
Net Income	-68.82M	-20.94M	-48.64M	-32.60M	-14.30M	-59.20M
Balance Sheet
Total Assets	175.58M	177.59M	207.77M	281.06M	240.43M	251.07M
Cash, Cash Equivalents and Short-Term Investments	79.60M	84.52M	98.80M	125.91M	102.07M	83.86M
Total Debt	10.15M	12.79M	15.06M	31.23M	31.62M	39.02M
Total Liabilities	50.83M	49.31M	57.51M	81.32M	69.78M	66.07M
Stockholders Equity	108.23M	112.41M	133.54M	182.02M	152.31M	167.90M
Cash Flow
Free Cash Flow	-24.35M	-37.96M	-23.67M	-25.68M	27.77M	35.09M
Operating Cash Flow	-24.18M	-37.81M	-23.56M	-25.59M	28.15M	38.34M
Investing Cash Flow	6.55M	7.44M	200.02K	-12.48M	-163.27K	-2.81M
Financing Cash Flow	-10.95M	1.49M	-12.54M	52.53M	-9.35M	-13.23M

Cornerstone Financial Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.13
• 50DMA: Positive
• 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:8112, the sentiment is Negative. The current price of 0.13 is below the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.13, and below the 200-day MA of 0.17, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 18.91 is Positive, 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
Sector *	60 Neutral	$47.27B	4.45	-11.27%	4.14%	1.88%	-40.90%
8112	47 Neutral	HK$29.14M	―	-17.19%	―	-1.50%	72.47%
1849	―	HK$40.00M	―		―	―	―
8121	60 Neutral	HK$26.11M	12.65	-3.24%	―	38.94%	-71.65%
8627	45 Neutral	HK$40.00M	14.86	-3.32%	―	-55.47%	-205.41%
0745	39 Underperform	HK$126.56M	―	-15.60%	―	56.76%	90.36%
8153	38 Underperform	HK$20.03M	―	-80.09%	―	-21.64%	-43.56%