Capital Finance Holdings Limited (8239) AI Stock Analysis

• Market Cap: HK$918.71M
• Dividend Yield: N/A
• Average Volume (3M): 258.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: 26.82%
• EPS Growth: 68.75%
• Country: HK
• Employees: 39
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -0.09
• Shares Outstanding: 93,841,460
• 10 Day Avg. Volume: 266,641
• 30 Day Avg. Volume: 258,175
• PEG Ratio: -0.05
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 2.65
• P/FCF Ratio: 2.19
• 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: 48 Neutral
• Price Target: HK$10.50 ▲(1.65% Upside)

The overall stock score is heavily impacted by the poor financial performance, which is the most significant factor. Despite some positive technical indicators, the company's financial instability and negative valuation metrics weigh down the score. The lack of earnings call data and corporate events further limits the assessment.

Positive Factors

Revenue Growth

The company's revenue growth indicates potential market expansion and increased demand for its financial services, which could enhance long-term profitability if sustained.

High Gross Profit Margin

A high gross profit margin suggests strong pricing power and cost management, which can provide a buffer against operational challenges and support future profitability.

Diversified Revenue Streams

Diversified revenue streams from loans and investment services reduce dependency on a single income source, enhancing resilience against market fluctuations.

Negative Factors

Declining Revenue

A significant decline in revenue indicates potential loss of market share or demand, posing a risk to long-term financial stability and growth prospects.

Negative Profitability

Operating at a loss with negative profitability suggests inefficiencies and challenges in covering costs, which could hinder future investment and growth.

Cash Flow Instability

Lack of cash flow raises concerns about liquidity and the ability to sustain operations, potentially necessitating external financing and impacting financial health.

Capital Finance Holdings Limited Business Overview & Revenue Model

Company Description

Capital Finance Holdings Limited (8239) is a financial services company based in Hong Kong, primarily engaged in providing various financing solutions and investment services. The company operates in sectors such as consumer finance, corporate financing, and investment management, offering products that include personal loans, business loans, and investment advisory services aimed at both individual and corporate clients.

How the Company Makes Money

Capital Finance Holdings Limited generates revenue through multiple channels, primarily by charging interest on loans provided to consumers and businesses. The company has a diversified portfolio that includes personal loans, which typically carry higher interest rates, and business loans that may involve larger sums with varying terms. Additionally, the company earns fees from its investment management services, which include advisory fees and performance-based fees from managed investment products. Partnerships with financial institutions and other service providers enhance their product offerings, allowing them to reach a broader customer base and increase their earnings through cross-selling opportunities. Factors such as market demand for credit, interest rate fluctuations, and the overall economic environment significantly influence the company's profitability.

Capital Finance Holdings Limited Financial Statement Overview

Summary

Capital Finance Holdings Limited faces significant financial challenges, including declining revenues, negative profitability, and cash flow constraints. The high debt levels and negative equity returns further underscore the company's instability in the competitive financial services industry. Immediate strategic actions are necessary to improve financial performance and ensure long-term viability.

Income Statement

The income statement shows a concerning decline in revenue from 2023 to 2024, with a sharp decrease from $36.23 million to $18.86 million. The gross profit margin remains relatively high at 72.14% in 2024, but the company is operating at a loss with a negative net profit margin of -89.64%. EBIT and EBITDA margins have also deteriorated, reflecting significant operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to substantial liabilities compared to equity, though debt has decreased over time. The equity ratio is 25.40%, indicating moderate reliance on equity financing. However, the company has struggled to generate positive returns on equity, with ROE being negative due to consecutive net losses.

Cash Flow

The cash flow statement indicates instability, with no operating or free cash flow reported in 2024. In previous years, free cash flow was positive, but the absence of cash flow in the most recent year raises concerns about liquidity and the ability to sustain operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.39M	18.86M	36.23M	1.51M	2.16M	2.81M
Gross Profit	33.45M	13.61M	33.63M	-24.17M	-37.41M	-46.31M
EBITDA	10.17M	-9.27M	6.00M	26.37M	33.44M	-25.25M
Net Income	-13.02M	-16.91M	-8.82M	-7.63M	-19.02M	-75.95M
Balance Sheet
Total Assets	150.42M	155.65M	219.25M	294.86M	416.50M	470.75M
Cash, Cash Equivalents and Short-Term Investments	84.50M	72.24M	93.18M	105.73M	101.53M	156.06M
Total Debt	75.20M	76.30M	117.17M	180.27M	286.82M	433.81M
Total Liabilities	83.16M	83.50M	129.74M	193.54M	298.64M	444.73M
Stockholders Equity	32.89M	39.52M	51.14M	60.25M	75.00M	-20.99M
Cash Flow
Free Cash Flow	16.62M	22.76M	52.68M	88.62M	36.87M	-284.00K
Operating Cash Flow	16.89M	23.03M	52.84M	88.70M	37.01M	1.50M
Investing Cash Flow	1.78M	-273.00K	2.82M	11.93M	8.48M	-12.07M
Financing Cash Flow	-13.88M	-41.12M	-65.16M	-85.48M	-92.01M	-96.74M

Capital Finance Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.33
• 50DMA: Positive
• 100DMA: Positive
• 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:8239, the sentiment is Positive. The current price of 10.33 is above the 20-day moving average (MA) of 10.29, above the 50-day MA of 10.01, and above the 200-day MA of 3.73, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 55.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8239.

Capital Finance Holdings 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%
8019	55 Neutral	HK$96.14M	15.52	2.03%	―	-13.23%	―
8621	53 Neutral	HK$24.96M	―	-21.16%	―	-31.28%	-400.00%
0736	49 Neutral	HK$240.45M	―	-4.78%	―	-31.23%	33.60%
8239	48 Neutral	HK$918.71M	-70.53	-35.17%	―	26.82%	68.75%
0379	47 Neutral	HK$145.11M	-1.94	-21.07%	―	25.64%	-25.07%