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Capital Finance Holdings Limited (HK:8239)
:8239
Hong Kong Market
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Capital Finance Holdings Limited (8239) AI Stock Analysis

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HK:8239

Capital Finance Holdings Limited

(8239)

Rating:46Neutral
Price Target:
HK$2.00
▲(50.38%Upside)
The overall stock score is significantly impacted by the company's weak financial performance, especially with deteriorating revenue and profitability. While technical indicators suggest some bullish momentum, the negative valuation metrics highlight serious financial concerns.

Capital Finance Holdings Limited (8239) vs. iShares MSCI Hong Kong ETF (EWH)

Capital Finance Holdings Limited Business Overview & Revenue Model

Company DescriptionCapital Finance Holdings Limited (8239) is a Hong Kong-based company primarily engaged in the provision of short-term financing services. The company operates within the financial services sector, focusing on offering various financial products, including loans and credit facilities, to small and medium-sized enterprises (SMEs) and individuals. Capital Finance Holdings Limited aims to address the financing needs of those who may not have easy access to traditional banking services.
How the Company Makes MoneyCapital Finance Holdings Limited makes money through the interest and fees charged on the short-term loans and credit facilities it provides to its clients. The company's main revenue streams include interest income from the loans extended to SMEs and individuals, as well as service charges related to loan origination and management. Additionally, the company may have partnerships with other financial institutions or businesses that help expand its customer base and increase its lending capacity, though specific partnerships are not disclosed. The company's earnings are significantly influenced by the demand for its financial products, the prevailing interest rates, and its ability to effectively manage credit risk.

Capital Finance Holdings Limited Financial Statement Overview

Summary
The company faces significant financial challenges with declining revenues, negative profitability, and cash flow constraints. High debt levels and negative equity returns further underscore instability, necessitating immediate strategic actions to improve its financial position.
Income Statement
35
Negative
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
40
Negative
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
30
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.86M36.23M46.48M45.38M41.59M
Gross Profit13.61M33.63M44.51M43.09M38.01M
EBITDA-9.27M6.75M1.90M37.35M-26.26M
Net Income-16.91M-8.82M-4.28M-24.04M-78.22M
Balance Sheet
Total Assets155.65M219.25M294.86M416.50M470.75M
Cash, Cash Equivalents and Short-Term Investments72.24M93.18M105.73M101.53M156.06M
Total Debt77.30M117.17M180.27M286.82M433.81M
Total Liabilities83.50M129.74M193.54M298.64M444.73M
Stockholders Equity39.52M51.14M60.25M75.00M-20.99M
Cash Flow
Free Cash Flow22.76M52.68M88.62M36.87M-284.00K
Operating Cash Flow23.03M52.84M88.70M37.01M1.50M
Investing Cash Flow-273.00K2.82M11.93M8.48M-12.07M
Financing Cash Flow-41.12M-65.16M-85.48M-92.01M-96.74M

Capital Finance Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.33
Price Trends
50DMA
0.84
Positive
100DMA
0.71
Positive
200DMA
0.61
Positive
Market Momentum
MACD
0.19
Negative
RSI
68.23
Neutral
STOCH
55.74
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 1.33 is above the 20-day moving average (MA) of 1.02, above the 50-day MA of 0.84, and above the 200-day MA of 0.61, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 68.23 is Neutral, neither overbought nor oversold. The STOCH value of 55.74 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
HK$92.24B5.77-3.20%4.64%5.50%-56.25%
53
Neutral
HK$40.32M-5.40%2.97%-77.27%
51
Neutral
HK$90.80M-2.87%-17.40%11.19%
49
Neutral
HK$119.80M-20.36%91.60%-107.36%
49
Neutral
HK$50.76M-13.78%7.19%67.97%
46
Neutral
HK$202.70M-37.30%-46.81%-226.10%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8239
Capital Finance Holdings Limited
2.08
1.49
252.54%
HK:8621
Metropolis Capital Holdings Ltd.
0.04
0.02
100.00%
HK:8019
Hao Wen Holdings Ltd.
0.26
0.08
44.44%
HK:0736
China Properties Investment Holdings Limited
0.19
0.09
90.00%
HK:0379
China Ever Grand Financial Leasing Group Co., Ltd.
0.08
0.03
60.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025