Diversified Revenue StreamsMultiple revenue channels (personal loans, business loans, investment management fees and partner distribution) provide structural diversification. This reduces concentration risk, supports cross-selling, and can stabilize earnings volatility over a multi-month horizon even if one segment softens.

High Gross Profit MarginA 72% gross margin indicates strong underlying pricing power or lending yields before overhead and credit loss provisioning. That gross profitability provides a durable buffer to absorb operating costs or higher credit charges, supporting margin recovery if revenue stabilizes.

Trend Of Reduced LeverageEvidence of declining debt levels and a 25.4% equity ratio point to improving balance sheet structure. Lower leverage reduces insolvency risk and borrowing costs, improving financial flexibility and resilience over several months if management sustains the deleveraging trend.

Bears Say

Sharp Revenue DeclineA near-50% revenue drop compresses scale economics and weakens the company’s ability to cover fixed costs and fund growth. Such a pronounced top-line contraction undermines sustainable profitability and heightens execution risk over the medium term absent a clear revenue recovery plan.

No Operating Or Free Cash Flow In 2024An absence of operating and free cash flow is a material liquidity concern, forcing reliance on external financing or asset sales to fund operations. Over months this limits reinvestment capacity and increases refinancing and solvency risk unless cash generation reverses.

Deep Unprofitability And Negative ROEExtremely negative margins and negative ROE signal persistent loss-making operations that erode equity and investor confidence. Continued losses impair capital raising, constrain strategic options, and threaten long-term viability unless profitability is restored.

8239 FAQ

What was Capital Finance Holdings Limited’s price range in the past 12 months?

Capital Finance Holdings Limited lowest stock price was HK$0.40 and its highest was HK$11.97 in the past 12 months.

What is Capital Finance Holdings Limited’s market cap?

Capital Finance Holdings Limited’s market cap is HK$1.12B.

When is Capital Finance Holdings Limited’s upcoming earnings report date?

Capital Finance Holdings Limited’s upcoming earnings report date is Mar 25, 2026 which is in 30 days.

How were Capital Finance Holdings Limited’s earnings last quarter?

Currently, no data Available

Is Capital Finance Holdings Limited overvalued?

According to Wall Street analysts Capital Finance Holdings Limited’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Capital Finance Holdings Limited pay dividends?

Capital Finance Holdings Limited does not currently pay dividends.

What is Capital Finance Holdings Limited’s EPS estimate?

Capital Finance Holdings Limited’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Capital Finance Holdings Limited have?

Capital Finance Holdings Limited has 93,841,460 shares outstanding.

What happened to Capital Finance Holdings Limited’s price movement after its last earnings report?

Currently, no data Available

Which hedge fund is a major shareholder of Capital Finance Holdings Limited?

Currently, no hedge funds are holding shares in HK:8239

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Capital Finance Holdings Limited Stock Smart Score

Outperform

Technicals

Fundamentals

Return on Equity

-35.17%

Trailing 12-Months

Asset Growth

-14.81%

Trailing 12-Months

Top Smart Score Stocks >

Company Description

Capital Finance Holdings Limited

Capital Finance Holdings Limited, an investment holding company, provides short-term financing services in China and Hong Kong. It offers pawn and entrusted loans, micro-financing services, financial consultancy, and distressed debt assets management services. The company was formerly known as Ming Kei Holdings Limited and changed its name to Capital Finance Holdings Limited in November 2014. Capital Finance Holdings Limited is headquartered in Tsim Sha Tsui, Hong Kong.