Cornerstone Financial Holdings Limited (8112) AI Stock Analysis

• Market Cap: HK$24.55M
• Dividend Yield: N/A
• Average Volume (3M): 415.24K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.08
• Revenue Growth: -6.86%
• EPS Growth: 56.93%
• Country: HK
• Employees: 53
• Sector: Communication Services
• Sector Strength: 90
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 229,418,440
• 10 Day Avg. Volume: 15,594
• 30 Day Avg. Volume: 415,239
• 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: 1

• Rating: 45 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by significant financial challenges, including persistent net losses and negative cash flows. Technical analysis indicates a bearish trend with weak momentum, further weighing on the score. Valuation concerns, highlighted by a negative P/E ratio and lack of dividend yield, also contribute to the low 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, 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: 0.11
• 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 0.11 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.12, and below the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.42 is Neutral, neither overbought nor oversold. The STOCH value of 35.19 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	60 Neutral	HK$17.01M	9.88	-3.24%	―	38.94%	-71.65%
Sector *	56 Neutral	HK$68.37B	0.28	-4.91%	5.02%	-0.86%	-12.88%
8112	45 Neutral	HK$24.55M	―	-17.03%	―	-6.86%	56.93%
8627	45 Neutral	HK$43.20M	14.86	-1.14%	―	-37.67%	-152.00%
0745	39 Underperform	HK$145.31M	―	-15.60%	―	56.76%	90.36%
8153	38 Underperform	HK$20.80M	―	-80.09%	―	-21.64%	-43.56%