Cornerstone Financial Holdings Limited (8112) AI Stock Analysis

• Market Cap: HK$28.68M
• Dividend Yield: N/A
• Average Volume (3M): 199.02K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.17
• Revenue Growth: -6.86%
• EPS Growth: 56.93%
• Country: HK
• Employees: 53
• Sector: Communication Services
• Sector Strength: 83
• Industry: Advertising Agencies
• EPS (TTM): -0.09
• Shares Outstanding: 229,418,440
• 10 Day Avg. Volume: 218,432
• 30 Day Avg. Volume: 199,017
• 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: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 38 Underperform
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score of 38 reflects significant financial challenges, including persistent net losses and negative cash flows. Technical analysis indicates bearish momentum, compounded by a negative P/E ratio and lack of dividend yield, making the stock unattractive in the current environment.

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
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: Neutral
• 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 Neutral. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.15, and below the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 31.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$17.01M	9.88	-3.24%	―	38.94%	-71.65%
Sector *	55 Neutral	HK$64.85B	-1.97	-3.61%	7.11%	-4.24%	-17.51%
8627	46 Neutral	HK$44.00M	14.86	-1.14%	―	-37.67%	-152.00%
0745	39 Underperform	HK$105.46M	―	-15.60%	―	8.54%	-333.05%
8112	38 Underperform	HK$28.68M	―	-17.03%	―	-6.86%	56.93%
8153	38 Underperform	HK$27.88M	―	-80.09%	―	-21.64%	-43.56%