Cornerstone Financial Holdings Limited (8112) AI Stock Analysis

• Market Cap: HK$26.15M
• Dividend Yield: N/A
• Average Volume (3M): 150.69K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.16
• Revenue Growth: -1.50%
• EPS Growth: 72.47%
• Country: HK
• Employees: 53
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 229,418,440
• 10 Day Avg. Volume: 153,600
• 30 Day Avg. Volume: 150,692
• PEG Ratio: 0.04
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.85
• P/FCF Ratio: -1.21
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: HK$0.11 ▼(-11.67% Downside)

The overall stock score of 43 reflects significant financial and technical challenges. The company's financial performance is hindered by profitability and cash flow issues, while technical indicators suggest bearish momentum. The negative P/E ratio and lack of dividend yield further weigh on the valuation. These factors collectively indicate a high-risk investment with substantial challenges to overcome.

Positive Factors

Strong Equity Position

A strong equity position provides financial stability, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Low Leverage

Low leverage reduces financial risk, providing the company with greater flexibility to manage its operations and pursue strategic initiatives without the burden of high debt.

Gross Profit Margins

Strong gross profit margins indicate efficient cost management and pricing power, which can support long-term profitability as the company scales its operations.

Negative Factors

Negative Revenue Growth

Declining revenue growth suggests challenges in market demand or competitive positioning, which could hinder the company's ability to expand and capture market share.

Profitability Challenges

Negative profitability impacts the company's ability to reinvest in its business, potentially limiting growth and innovation in the long term.

Cash Flow Issues

Negative cash flow can strain the company's liquidity, affecting its capacity to meet obligations and invest in future growth opportunities.

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 investment management, wealth management, and financial advisory services. The company operates across several sectors, including asset management, private equity, and corporate finance, offering a range of products and services designed to meet the financial needs of individual and institutional clients. With a focus on delivering tailored investment solutions, Cornerstone Financial aims to enhance client portfolios through strategic asset allocation and robust market analysis.

How the Company Makes Money

Cornerstone Financial Holdings Limited generates revenue through multiple streams, primarily from management fees charged on assets under management (AUM) in its investment funds and portfolios. Additionally, the company earns performance fees based on the returns generated for clients, incentivizing strong investment performance. Another significant revenue source is advisory fees from clients seeking financial and investment advice, particularly in mergers and acquisitions. Partnerships with financial institutions and other investment firms also contribute to its earnings by enabling Cornerstone to access a broader client base and enhance its service offerings. Furthermore, the company may engage in proprietary trading, allowing it to capitalize on market opportunities and generate additional income.

Cornerstone Financial Holdings Limited Financial Statement Overview

Summary

Cornerstone Financial Holdings Limited faces significant financial challenges, particularly in profitability and cash flow generation. Despite a strong equity base and low leverage, persistent net losses and negative cash flows are concerning, indicating the need for operational improvements.

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	53.84M	53.98M	57.96M	55.57M	56.13M	50.97M
Gross Profit	24.91M	34.42M	36.27M	35.88M	37.04M	32.47M
EBITDA	-55.95M	-11.53M	-37.21M	-19.83M	-653.29K	-36.63M
Net Income	-31.59M	-20.94M	-48.64M	-31.99M	-15.54M	-58.08M
Balance Sheet
Total Assets	217.41M	177.59M	207.77M	281.06M	240.43M	251.07M
Cash, Cash Equivalents and Short-Term Investments	81.68M	84.52M	98.80M	125.91M	102.07M	83.86M
Total Debt	64.62M	12.79M	15.06M	31.23M	31.62M	39.02M
Total Liabilities	110.59M	49.31M	57.51M	81.32M	69.78M	66.07M
Stockholders Equity	90.82M	112.41M	133.54M	182.02M	152.31M	167.90M
Cash Flow
Free Cash Flow	-20.83M	-37.96M	-23.67M	-25.68M	27.77M	35.09M
Operating Cash Flow	-20.73M	-37.81M	-23.56M	-25.59M	28.15M	38.34M
Investing Cash Flow	1.13M	7.44M	200.02K	-12.48M	-163.27K	-2.81M
Financing Cash Flow	362.19K	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: Positive
• 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 0.12, below the 50-day MA of 0.13, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.24 is Neutral, neither overbought nor oversold. The STOCH value of 35.79 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
8121	55 Neutral	HK$23.11M	―	-7.45%	―	34.13%	-139.87%
8627	45 Neutral	HK$43.20M	―	-3.32%	―	-55.47%	-205.41%
8112	43 Neutral	HK$26.15M	―	-17.19%	―	-1.50%	72.47%
8153	40 Underperform	HK$25.31M	―	-55.12%	―	-16.79%	62.70%
0745	39 Underperform	HK$126.56M	-11.74	31.70%	―	56.81%	―