Cornerstone Financial Holdings Limited (8112) AI Stock Analysis

• Market Cap: HK$20.88M
• Dividend Yield: N/A
• Average Volume (3M): 61.17K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.23
• Revenue Growth: -6.86%
• EPS Growth: 56.93%
• Country: HK
• Employees: 53
• Sector: Communication Services
• Sector Strength: 87
• Industry: Advertising Agencies
• EPS (TTM): -0.09
• Shares Outstanding: 229,418,440
• 10 Day Avg. Volume: 183,500
• 30 Day Avg. Volume: 61,173
• PEG Ratio: 0.11
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.48
• 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

• Rating: 37 Underperform
• Price Target: HK$0.00 ▼(-100.00%Downside)

Cornerstone Financial Holdings Limited's overall stock score reflects significant financial and operational challenges. Persistent losses, declining revenues, negative cash flows, and bearish technical indicators contribute to a low score, highlighting the company's need for strategic improvements and operational restructuring.

Cornerstone Financial Holdings Limited Business Overview & Revenue Model

Company Description

Cornerstone Financial Holdings Limited (8112) is a company engaged in the financial services sector. It primarily focuses on providing investment and financial solutions, catering to a diverse clientele including individuals, corporations, and institutional investors. The company's core services include asset management, financial advisory, and investment banking, aimed at facilitating wealth creation and management for its clients.

How the Company Makes Money

Cornerstone Financial Holdings Limited generates revenue through a variety of financial services. Its primary revenue streams include fees and commissions earned from asset management services, where the company invests and manages portfolios on behalf of clients. Additionally, it earns advisory fees from providing financial consultancy and strategic advice to businesses and individuals. The company may also generate income through underwriting and transactional services offered in its investment banking division. Key partnerships with financial institutions and strategic alliances play a significant role in expanding its service offerings and client base, thereby contributing to its earnings.

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's operational inefficiencies and negative cash flow require urgent attention to improve financial health.

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
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
	EBIT
-60.82M	-39.72M	-43.33M	-24.38M	-13.11M	-21.71M
	EBITDA
-58.15M	-11.53M	-37.21M	-19.83M	-653.29K	-36.63M
	Net Income Common Stockholders
-68.82M	-20.94M	-48.64M	-32.60M	-14.30M	-59.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
79.60M	84.52M	98.80M	125.91M	102.07M	83.86M
	Total Assets
175.58M	177.59M	207.77M	281.06M	240.43M	251.07M
	Total Debt
10.15M	12.79M	15.06M	31.23M	31.62M	39.02M
	Net Debt
-57.90M	-38.76M	-65.49M	-85.08M	-70.15M	-44.15M
	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: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 0.1 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.17, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 19.38 is Positive, neither overbought nor oversold. The STOCH value of 7.28 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
8299	66 Neutral	HK$2.30B	30.00	12.85%	―	957.74%	194.12%
8149	66 Neutral	HK$83.67M	43.91	0.49%	3.16%	-1.68%	-85.80%
Sector *	61 Neutral	$14.74B	5.97	-3.99%	6.57%	2.79%	-32.84%
8153	45 Neutral	HK$55.02M	―	-34.93%	―	8.14%	70.74%
8152	42 Neutral	HK$33.60M	―	-12.68%	―	-55.96%	-286.09%
8112	37 Underperform	HK$20.88M	―	-17.03%	―	-6.86%	56.93%