Capital Finance Holdings Limited (8239) AI Stock Analysis

• Market Cap: HK$78.83M
• Dividend Yield: N/A
• Average Volume (3M): 373.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -46.81%
• EPS Growth: -226.10%
• Country: HK
• Employees: 39
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Credit Services
• EPS (TTM): -0.35
• Shares Outstanding: 93,841,460
• 10 Day Avg. Volume: 555,746
• 30 Day Avg. Volume: 373,359
• PEG Ratio: -0.17
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.96
• 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

• Rating: 49 Neutral
• Price Target: HK$1.00 ▲(19.05%Upside)

The overall stock score is heavily influenced by the company's poor financial performance, characterized by declining revenues and negative profitability. While there is some technical strength indicating potential for short-term price appreciation, the negative market valuation further impacts the score adversely.

Capital Finance Holdings Limited Business Overview & Revenue Model

Company Description

Capital Finance Holdings Limited (8239) is a financial services provider based in Hong Kong. The company primarily operates in the microfinance sector, offering various financial solutions including personal loans, SME loans, and other credit-related services. With a focus on catering to underbanked individuals and small businesses, Capital Finance Holdings Limited aims to provide accessible and flexible financing options to its clients.

How the Company Makes Money

Capital Finance Holdings Limited makes money through the interest and fees charged on the loans and credit facilities it provides. The company's key revenue streams include interest income from personal and SME loans, as well as service fees related to loan origination and management. Additionally, the company may engage in strategic partnerships with other financial institutions to enhance its service offerings and expand its market reach, thereby contributing to its revenue growth.

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.86M	36.23M	46.48M	45.38M	41.59M
Gross Profit	13.61M	33.63M	44.51M	43.09M	38.01M
EBITDA	-9.27M	6.75M	1.90M	37.35M	-26.26M
Net Income	-16.91M	-8.82M	-4.28M	-24.04M	-78.22M
Balance Sheet
Total Assets	155.65M	219.25M	294.86M	416.50M	470.75M
Cash, Cash Equivalents and Short-Term Investments	72.24M	93.18M	105.73M	101.53M	156.06M
Total Debt	77.30M	117.17M	180.27M	286.82M	433.81M
Total Liabilities	83.50M	129.74M	193.54M	298.64M	444.73M
Stockholders Equity	39.52M	51.14M	60.25M	75.00M	-20.99M
Cash Flow
Free Cash Flow	22.76M	52.68M	88.62M	36.87M	-284.00K
Operating Cash Flow	23.03M	52.84M	88.70M	37.01M	1.50M
Investing Cash Flow	-273.00K	2.82M	11.93M	8.48M	-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 Price: 0.84
• 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:8239, the sentiment is Positive. The current price of 0.84 is above the 20-day moving average (MA) of 0.76, above the 50-day MA of 0.70, and above the 200-day MA of 0.57, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 61.36 is Neutral, neither overbought nor oversold. The STOCH value of 67.11 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 *	58 Neutral	$12.53B	5.19	-2.71%	5.24%	5.88%	-56.03%
8621	53 Neutral	HK$38.40M	―	-5.40%	―	2.97%	-77.27%
8019	51 Neutral	HK$106.82M	―	-2.87%	―	-17.40%	11.19%
0736	49 Neutral	HK$47.82M	―	-13.78%	―	7.19%	67.97%
8239	49 Neutral	HK$78.83M	―	-37.30%	―	-46.81%	-226.10%
0379	47 Neutral	HK$113.05M	―	-20.36%	―	91.60%	-107.36%