China Demeter Financial Investments Limited (8120) AI Stock Analysis

• Market Cap: HK$65.73M
• Dividend Yield: N/A
• Average Volume (3M): 176.49K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.26
• Revenue Growth: -19.83%
• EPS Growth: 5.64%
• Country: HK
• Employees: 153
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 135,522,300
• 10 Day Avg. Volume: 36,025
• 30 Day Avg. Volume: 176,487
• PEG Ratio: -0.02
• Price to Book (P/B): 7.87
• Price to Sales (P/S): 2.87
• P/FCF Ratio: 55.12
• 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: 50 Neutral
• Price Target: HK$0.45 ▼(-16.04% Downside)

The overall stock score is primarily impacted by weak financial performance, with declining revenues and profitability. Technical analysis provides some positive signals, but valuation remains poor due to negative earnings and no dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Diversified fee-based business model

The firm’s core focus on asset management, consultancy and advisory creates multiple fee streams (management and performance fees) that are structurally recurring. This diversified, fee-based model supports steadier revenue as AUM and client relationships grow, enhancing long-term income resilience and scalability independent of single-product dependency.

Strong gross profit margin

A resilient gross margin implies the company retains pricing power or low direct costs on its services, forming a stable base for profitability recovery. If operating expenses and losses are addressed, high gross margins improve the odds of translating revenue into sustainable operating profit over months as scale or efficiency initiatives take hold.

Positive operating cash flow vs net loss

Generating positive operating cash flow while reporting accounting losses signals real cash collection from clients and core activities. This cash conversion provides near-term liquidity to fund working capital and obligations, reducing reliance on external financing and improving the firm’s ability to execute strategic initiatives over the coming quarters.

Negative Factors

Declining revenues

Sustained revenue decline erodes scale economics critical to fee-based managers, shrinking AUM-linked fees and limiting margin recovery. Over 2–6 months this trend constrains reinvestment capacity, reduces pricing leverage, and increases pressure on management to halt attrition or find new client flows to restore durable top-line growth.

Falling free cash flow

A marked drop in free cash flow weakens the company’s ability to fund operations, capital needs, or opportunistic investments without raising external capital. Over the medium term, this reduces financial flexibility, amplifies refinancing and liquidity risk, and may force cost cutting that can impair growth or client service quality.

Decreasing equity & moderate leverage

Eroding shareholders' equity alongside reliance on liabilities raises solvency and covenant risk, limiting the company’s buffer against shocks. In a 2–6 month horizon, weaker equity reduces capacity to absorb losses, increases borrowing costs, and constrains strategic moves like acquisitions or product investment, hampering durable competitive positioning.

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 multiple streams, primarily by charging fees for its asset management and advisory services. These fees may include management fees based on the assets under management (AUM) and performance fees tied to the investment returns achieved for clients. The company may also earn income from proprietary trading activities and investments in financial instruments, such as stocks, bonds, and other securities. Key partnerships with financial institutions and industry players enhance its capabilities, enabling access to a broader range of investment opportunities and contributing to its overall earnings growth.

China Demeter Financial Investments Limited Financial Statement Overview

Summary

The company is experiencing declining revenues and profitability, with negative net profit, EBIT, and EBITDA margins. The debt-to-equity ratio is moderate, but decreasing equity and free cash flow highlight financial instability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.34M	134.34M	156.94M	141.90M	164.76M	136.87M
Gross Profit	81.52M	92.28M	104.37M	95.80M	109.99M	86.19M
EBITDA	-25.09M	-3.19M	-23.10M	1.78M	7.57M	965.00K
Net Income	-44.04M	-38.40M	-45.31M	-18.84M	-20.56M	-26.05M
Balance Sheet
Total Assets	148.37M	169.96M	195.56M	248.38M	256.55M	243.02M
Cash, Cash Equivalents and Short-Term Investments	51.02M	36.18M	37.68M	64.19M	65.14M	53.72M
Total Debt	41.19M	58.98M	61.33M	51.08M	59.01M	73.04M
Total Liabilities	102.66M	121.24M	113.14M	119.01M	122.65M	132.88M
Stockholders Equity	45.79M	48.99M	82.55M	128.55M	132.95M	108.77M
Cash Flow
Free Cash Flow	-3.62M	7.00M	22.12M	13.38M	-24.38M	16.95M
Operating Cash Flow	2.07M	12.69M	30.37M	18.18M	-16.04M	20.97M
Investing Cash Flow	-4.17M	-5.56M	-10.58M	-5.15M	-2.36M	-3.15M
Financing Cash Flow	-8.04M	-8.83M	-34.53M	-11.29M	23.43M	-12.17M

China Demeter Financial Investments Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 0.53 is above the 20-day moving average (MA) of 0.49, above the 50-day MA of 0.51, and above the 200-day MA of 0.48, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.79 is Neutral, neither overbought nor oversold. The STOCH value of 77.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8120	50 Neutral	HK$65.73M	-1.14	-72.12%	―	-19.83%	5.64%
8447	50 Neutral	HK$41.00M	-68.33	-3.70%	―	6.55%	98.02%
8495	45 Neutral	HK$136.32M	313.64	0.78%	―	-2.67%	22.22%
1443	42 Neutral	HK$67.60M	-1.12	-48.91%	4.48%	-13.13%	-873.33%
8519	42 Neutral	HK$34.79M	-7.49	-350.87%	―	-5.22%	-7.65%
8232	41 Neutral	HK$104.81M	-12.03	-77.73%	―	-2.95%	56.44%