China Demeter Financial Investments Limited (8120) AI Stock Analysis

• Market Cap: HK$61.66M
• Dividend Yield: N/A
• Average Volume (3M): 316.72K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.33
• Revenue Growth: -14.40%
• EPS Growth: 25.64%
• Country: HK
• Employees: 153
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Restaurants
• EPS (TTM): -0.43
• Shares Outstanding: 135,522,300
• 10 Day Avg. Volume: 512,686
• 30 Day Avg. Volume: 316,717
• PEG Ratio: 0.21
• Price to Book (P/B): 9.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.91
• 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

China Demeter Financial Investments Limited is facing significant financial challenges with declining revenues and negative profitability margins. Technical indicators show some positive momentum, but the stock is nearing overbought conditions, which could limit further gains. The valuation metrics indicate the company is not currently profitable, presenting additional risks for investors.

China Demeter Financial Investments Limited Business Overview & Revenue Model

Company Description

China Demeter Financial Investments Limited, an investment holding company, engages in food and beverage, money lending, financial services, securities investment, alcoholic beverage distribution, and children education businesses in Hong Kong and Singapore. As of December 31, 2021, it operated 12 restaurants serving Japanese cuisine, Thai food, and western food in Hong Kong. The company also offers secured and unsecured loans to individuals and companies; advises and deals in securities; provides asset management services; and invests in listed and unlisted securities. In addition, it sells wine and whisky; trades in miscellaneous goods; and offers kindergarten and pre-school education services, as well as operates a childcare center. The company was formerly known as China Demeter Investments Limited and changed its name to China Demeter Financial Investments Limited in December 2016. China Demeter Financial Investments Limited was incorporated in 2000 and is headquartered in Admiralty, Hong Kong.

How the Company Makes Money

China Demeter Financial Investments Limited generates revenue through a variety of streams. In the financial services sector, it earns money by providing investment advisory services, managing client portfolios, and trading securities in the financial markets. The company's food and beverage operations, particularly focused on the wine industry, contribute to its revenue through the sales of wine products and related services. The agricultural segment, which deals with farming and other agri-related activities, also forms a part of its income. Additionally, strategic partnerships and investments in growth-oriented projects further support its earnings.

China Demeter Financial Investments Limited Financial Statement Overview

Summary

China Demeter Financial Investments Limited faces significant challenges with declining revenues and profitability, leading to negative margins. Although the debt-to-equity ratio is moderate, the decrease in equity and free cash flow highlights financial instability. The company needs to address its operational inefficiencies and improve cash generation to enhance its financial health.

Income Statement

The company is experiencing declining revenues, with a revenue decrease from 2023 to 2024. Gross profit margin remains strong but net profit margins are negative due to consistent losses. EBIT and EBITDA margins are also negative, indicating operational challenges.

Balance Sheet

The debt-to-equity ratio is moderate, indicating some leverage. However, stockholders' equity has decreased over the period, reflecting potential financial instability. The equity ratio is decreasing, suggesting increased reliance on liabilities.

Cash Flow

Free cash flow has decreased significantly from 2023 to 2024, indicating declining cash generation. The operating cash flow to net income ratio is positive, suggesting operational cash inflow despite net losses. However, the overall cash position is weakening as evidenced by declining free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
134.34M	156.94M	141.90M	177.49M	136.87M
	Gross Profit
92.28M	104.37M	95.80M	117.12M	86.19M
	EBIT
-29.85M	-28.22M	-21.28M	-16.21M	-2.33M
	EBITDA
-24.17M	-23.10M	1.78M	7.57M	965.00K
	Net Income Common Stockholders
-38.40M	-45.31M	-20.09M	-20.99M	-25.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
36.18M	45.04M	64.19M	65.14M	53.72M
	Total Assets
169.96M	195.56M	248.38M	256.55M	243.02M
	Total Debt
58.98M	61.33M	51.08M	59.01M	73.04M
	Net Debt
33.09M	33.74M	8.76M	18.44M	37.44M
	Total Liabilities
121.24M	113.14M	119.01M	122.65M	132.88M
	Stockholders Equity
48.99M	82.55M	128.55M	132.95M	108.77M
Cash Flow		Free Cash Flow
7.00M	22.12M	13.38M	-24.38M	16.95M
	Operating Cash Flow
12.69M	30.37M	18.18M	-16.04M	20.97M
	Investing Cash Flow
-5.56M	-10.58M	-5.15M	-2.36M	-3.15M
	Financing Cash Flow
-8.83M	-34.53M	-11.29M	23.43M	-12.17M

China Demeter Financial Investments Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8120, the sentiment is Positive. The current price of 0.46 is above the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.42, and below the 200-day MA of 0.46, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 54.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8120.

China Demeter Financial Investments Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$6.92B	11.84	3.00%	3.95%	2.60%	-21.94%
0863	61 Neutral	HK$7.08B	150.07	6.56%	―	78.59%	―
8120	47 Neutral	HK$61.66M	―	-58.38%	―	-14.40%	25.64%
1129	47 Neutral	HK$158.05M	―	-33.47%	―	-26.87%	-53.44%
1499	43 Neutral	HK$810.95M	―	-21.57%	―	37.43%	-3100.00%