Merdeka Financial Group Limited (8163) AI Stock Analysis

• Market Cap: HK$92.53M
• Dividend Yield: N/A
• Average Volume (3M): 3.29M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.44
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 15
• Sector: Financial
• Sector Strength: 70
• Industry: Investment - Banking & Investment Services
• EPS (TTM): <0.01
• Shares Outstanding: 925,255,600
• 10 Day Avg. Volume: 593,215
• 30 Day Avg. Volume: 3,287,969
• PEG Ratio: -1.66
• Price to Book (P/B): 3.89
• Price to Sales (P/S): 3.49
• P/FCF Ratio: -6.91
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$0.10 ▼(-8.18% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, which poses significant risks to its stability and growth prospects. Technical analysis provides a neutral outlook, offering little support to offset financial concerns. Valuation metrics further highlight the challenges, with negative profitability indicators and no dividend yield. The absence of earnings call insights and corporate events leaves the financial distress as the dominant factor in the evaluation.

Positive Factors

Expanding Client Base

An expanding client base and strategic partnerships can drive long-term revenue growth, enhancing the company's market position and competitive edge.

Diverse Revenue Streams

Diverse revenue streams from asset management, advisory, and brokerage services provide resilience against market fluctuations and support sustainable growth.

Industry Position

Operating in a robust financial hub like Hong Kong positions the company well to leverage regional financial growth and attract a diverse client base.

Negative Factors

Negative Equity

Negative equity indicates financial instability and potential solvency issues, which can hinder the company's ability to invest and grow sustainably.

Declining Revenues

Consistently declining revenues suggest challenges in maintaining market share and profitability, impacting long-term growth prospects.

Negative Cash Flow

Negative cash flow from operations limits the company's ability to fund operations and investments, posing risks to financial health and growth potential.

Merdeka Financial Group Limited Business Overview & Revenue Model

Company Description

Merdeka Financial Group Limited (8163) is a financial services company based in Hong Kong, primarily focused on providing a range of financial and investment solutions. The company operates in sectors such as wealth management, asset management, and financial advisory services. Its core offerings include investment products, portfolio management, and strategic financial planning aimed at both individual and institutional clients.

How the Company Makes Money

Merdeka Financial Group Limited generates revenue through several key streams. The company earns money primarily from fees associated with its asset management services, including management and performance fees charged on the assets it manages for clients. Additionally, Merdeka may generate income from financial advisory services, where it charges clients for tailored investment advice and strategic planning solutions. Brokerage commissions from facilitating trades for clients and potential performance-based incentives also contribute to its earnings. Strategic partnerships with financial institutions and an expanding client base further enhance its revenue potential.

Merdeka Financial Group Limited Financial Statement Overview

Summary

Merdeka Financial Group Limited exhibits significant financial distress across all financial statements. The income statement reveals declining revenues and persistent losses. The balance sheet highlights a precarious financial position with negative equity. Cash flow analysis confirms operational cash flow challenges. The company faces significant hurdles in achieving financial stability and growth, with high risks of continued financial distress.

Income Statement

The company has experienced a significant decline in total revenue, with a negative trend over recent years. Gross profit margins have been negative, indicating high costs relative to revenues. Net profit margins are also negative, reflecting consistent net losses. EBIT and EBITDA margins are both negative, which suggests operating inefficiencies and ongoing financial challenges.

Balance Sheet

The company has a weak balance sheet with high total liabilities relative to assets. The debt-to-equity ratio is unfavorable due to negative stockholders' equity, posing a potential risk for financial stability. Despite some reduction in total debt, the equity position remains negative, indicating an ongoing solvency issue.

Cash Flow

Cash flow performance is concerning as operating cash flow has been negative, and free cash flow has not shown improvement. The company has failed to generate positive cash flow from operations, which is critical for covering ongoing expenses and investments. Free cash flow to net income ratio is not meaningful due to negative values.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.77M	23.36M	18.94M	18.15M	21.20M	39.86M
Gross Profit	1.45M	-16.87M	18.91M	-17.08M	-11.16M	30.36M
EBITDA	-7.60M	-14.91M	-6.67M	-10.54M	-6.76M	-77.98M
Net Income	-9.79M	-27.27M	-25.67M	-30.62M	-31.12M	-71.71M
Balance Sheet
Total Assets	49.89M	36.40M	56.71M	79.10M	88.89M	108.20M
Cash, Cash Equivalents and Short-Term Investments	9.50M	6.77M	18.43M	23.34M	36.66M	28.62M
Total Debt	2.37M	3.23M	80.93M	91.94M	95.70M	78.08M
Total Liabilities	10.24M	15.44M	91.52M	108.03M	116.39M	162.90M
Stockholders Equity	39.65M	20.96M	-34.80M	-28.93M	-27.50M	-62.78M
Cash Flow
Free Cash Flow	3.50M	-11.80M	-8.84M	-5.77M	-1.61M	-35.80M
Operating Cash Flow	3.64M	-11.67M	-7.98M	-5.75M	1.84M	-35.73M
Investing Cash Flow	2.46M	470.00K	1.28M	-3.20M	-3.27M	-1.12M
Financing Cash Flow	-803.00K	3.45M	-2.21M	-4.38M	10.27M	51.23M

Merdeka Financial Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 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:8163, the sentiment is Positive. The current price of 0.11 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.96 is Neutral, neither overbought nor oversold. The STOCH value of 50.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8163.

Merdeka Financial Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
0768	65 Neutral	HK$52.14M	4.36	12.66%	―	64.51%	104.35%
8168	56 Neutral	HK$222.87M	―	-34.27%	―	-30.21%	-305.00%
0804	49 Neutral	HK$274.10M	-4.50	-21.71%	―	50.60%	-12.96%
8163	45 Neutral	HK$92.53M	-6.17	―	―	―	―
8193	41 Neutral	HK$34.98M	1.78	47.82%	―	34.66%	―
2324	38 Underperform	HK$58.07M	-1.20	-14.26%	―	2126.94%	36.49%