KOALA Financial Group (8226) AI Stock Analysis

• Market Cap: HK$45.93M
• Dividend Yield: N/A
• Average Volume (3M): 200.59K
• Price to Earnings (P/E): 44.0
• Beta (1Y): 1.05
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 18
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 417,504,000
• 10 Day Avg. Volume: 186,120
• 30 Day Avg. Volume: 200,586
• PEG Ratio: <0.01
• Price to Book (P/B): 0.14
• Price to Sales (P/S): 2.21
• P/FCF Ratio: -2.10
• 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: 46 Neutral
• Price Target: HK$0.12 ▲(7.27% Upside)

The score is primarily held down by weak financial performance, driven by deteriorating profitability and negative operating/free cash flows. Technicals are mixed (only modest momentum with longer-term trend still weak), and valuation is unfavorable with a high P/E and no dividend yield.

Positive Factors

Low leverage / strong equity base

A low debt-to-equity profile and healthy capital base provide durable financial resilience. This lowers default and refinancing risk, supports regulatory and client confidence, and preserves capacity to fund strategic investments or absorb losses without immediate external financing.

Diversified fee-based revenue model

A mix of recurring management fees, performance fees, planning fees and partner-sourced revenues supports steadier cash flows and client stickiness. Structural diversification across client segments and products reduces reliance on any single stream and bolsters midterm revenue predictability.

High gross profit margin

Persistently high gross margins indicate underlying pricing power and low direct costs for core services. If operating expenses are addressed, this structural advantage can translate into sustainable net margin recovery and improved cash generation over the medium term.

Negative Factors

Declining revenue and profitability

Sustained revenue and profit declines erode internal funding for growth and increase reliance on external financing. Negative net margins signal structural cost or pricing issues that, if unresolved, will impair reinvestment capacity and long-term competitiveness in capital markets services.

Negative operating and free cash flow

Inability to convert earnings into cash constrains working capital, investment, and client servicing. Persistent negative OCF/FCF raises the need for external financing, increases vulnerability to market stress, and limits options for strategic initiatives or shareholder returns.

Very small operating scale

A very small headcount limits capacity to scale platforms, diversify product offerings, and manage institutional client complexity. Heavy reliance on a compact team heightens key-person risk and makes sustainable growth and operational redundancy more difficult in a competitive capital markets industry.

KOALA Financial Group Business Overview & Revenue Model

Company Description

KOALA Financial Group Limited, an investment holding company, engages in securities brokerage, share placements, underwriting, and money lending activities in Hong Kong. It is also involved in the securities investments; provision of securities placing and margin financing; leasing of investment properties; and provision of assets management services businesses. The company was formerly known as Sunrise (China) Technology Group Limited and changed its name to KOALA Financial Group Limited in June 2017. KOALA Financial Group Limited is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

KOALA Financial Group generates revenue primarily through its investment management services, which include fees charged for managing client portfolios and assets. Additionally, the company earns income from financial planning services, where clients pay for personalized advice and strategic planning. Key revenue streams include management fees, performance fees from investment products, and commissions on financial products sold. Strategic partnerships with financial institutions and investment platforms also contribute to its earnings, allowing KOALA to expand its service offerings and reach a broader client base.

KOALA Financial Group Financial Statement Overview

Summary

Income statement weakness (declining revenue/profitability and negative recent net margin) and very weak cash generation (negative operating and free cash flow) outweigh a comparatively stable balance sheet with low leverage and a healthy equity base.

Income Statement

The company has experienced declining revenue and profitability over the years. The gross profit margin remains high, but the net profit margin has turned negative in the most recent year, indicating significant challenges in maintaining profitability. The EBIT and EBITDA margins have also deteriorated, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio, suggesting financial stability. However, the return on equity has been inconsistent, with recent losses impacting overall performance. The equity ratio is healthy, indicating a strong capital base.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, indicating liquidity challenges. The operating cash flow to net income ratio is unfavorable, reflecting difficulties in converting earnings into cash. The company needs to improve its cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.40M	24.01M	30.56M	23.50M	25.86M	23.37M
Gross Profit	24.40M	22.96M	29.55M	21.65M	24.31M	21.69M
EBITDA	0.00	-23.75M	14.71M	-66.53M	103.34M	10.85M
Net Income	1.06M	-24.28M	7.75M	-59.42M	80.78M	4.26M
Balance Sheet
Total Assets	412.96M	406.23M	474.00M	478.25M	493.62M	416.14M
Cash, Cash Equivalents and Short-Term Investments	143.84M	134.61M	150.39M	208.89M	249.84M	167.31M
Total Debt	2.55M	3.67M	5.47M	10.20M	22.50M	33.99M
Total Liabilities	34.68M	34.74M	77.82M	91.24M	130.16M	143.51M
Stockholders Equity	378.28M	371.49M	391.46M	379.00M	353.05M	263.85M
Cash Flow
Free Cash Flow	-5.35M	-25.23M	-51.69M	-26.59M	10.99M	19.44M
Operating Cash Flow	-5.35M	-25.23M	-50.66M	-26.59M	10.99M	20.59M
Investing Cash Flow	2.67M	2.67M	741.00K	314.00K	-182.00K	-1.08M
Financing Cash Flow	-544.00K	-2.01M	-5.83M	63.99M	-13.40M	7.95M

KOALA Financial Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.11
• 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:8226, the sentiment is Negative. The current price of 0.11 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.11, and below the 200-day MA of 0.13, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.23 is Neutral, neither overbought nor oversold. The STOCH value of 21.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8226.

KOALA Financial Group 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%
8365	55 Neutral	HK$407.44M	-4.19	-44.10%	―	-16.56%	-769.12%
8439	51 Neutral	HK$51.35M	-26.92	-3.06%	6.45%	-10.35%	86.76%
8072	47 Neutral	HK$79.45M	-1.58	-13.20%	―	5.03%	70.32%
8226	46 Neutral	HK$45.93M	44.00	0.28%	―	―	―
3938	46 Neutral	HK$1.57B	-88.40	-11.63%	―	8.17%	54.75%
8193	41 Neutral	HK$33.02M	1.68	47.82%	―	34.66%	―