Finet Group Limited (8317) AI Stock Analysis

• Market Cap: HK$68.99M
• Dividend Yield: N/A
• Average Volume (3M): 4.28K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.07
• Revenue Growth: -12.96%
• EPS Growth: 61.54%
• Country: HK
• Employees: 32
• Sector: Industrials
• Sector Strength: 84
• Industry: Specialty Business Services
• EPS (TTM): >-0.01
• Shares Outstanding: 999,808,170
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 4,280
• PEG Ratio: -0.15
• Price to Book (P/B): 7.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -22.60
• 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: 42 Neutral
• Price Target: ―

Finet Group Limited faces significant profitability challenges, reflected in a low financial performance score. Technical indicators suggest the stock is oversold, indicating potential for a rebound, but risks remain high. Valuation is unattractive due to negative earnings, and with no dividend, the stock's appeal is further diminished.

Finet Group Limited Business Overview & Revenue Model

Company Description

Finet Group Limited, an investment holding company, develops, produces, and provides financial information services, advertising and investor relationship services, and technology solutions to corporate and retail clients in Hong Kong and the People's Republic of China. It operates through four segments: Financial Information, Advertising and Investor Relationship Service Business; Securities Business; Money Lending Business; and Property Investment Business. The company also offers branding promotion and communication, and internet advertising services; brokerage, underwriting, and asset management services; and money lending, video making, data hosting, financial public relationship and information management, online and offline advertising, financial, and value-added telecommunication services. In addition, it is involved in the production and distribution of programs through the FinTV brand; and investment in properties. The company was incorporated in 1998 and is headquartered in Wanchai, Hong Kong. Finet Group Limited is a subsidiary of Maxx Capital International Limited.

How the Company Makes Money

Finet Group Limited generates revenue through a combination of subscription fees for its financial information services, licensing fees for its software solutions, and consulting services. The company's key revenue streams include its online platforms that provide real-time market data and analytics to subscribers. Additionally, Finet Group earns money through strategic partnerships with financial institutions and corporations, which may involve customized software solutions or co-branded financial information services. The company's focus on delivering accurate and timely financial data is critical to maintaining its client base and ensuring recurring revenue from subscriptions and renewals.

Finet Group Limited Financial Statement Overview

Summary

Finet Group Limited faces challenges with profitability and revenue growth, but there are positive signs in cash flow management and debt reduction. The balance sheet remains strong due to a high equity ratio, though persistent losses pose a risk to long-term stability. Continued focus on improving operational efficiency and revenue growth is essential for future financial health.

Income Statement

The company has shown a declining revenue trend over the past years, with recent revenue growth of 4.4%. However, the gross profit margin remains negative, indicating that costs exceed revenue. The net profit margin is deeply negative at -63.2%, showing significant losses, though there is a slight improvement from the previous year. EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges.

Balance Sheet

The company has a manageable debt-to-equity ratio of 0.17, improved from previous years, indicating reduced leverage. The equity ratio is strong at 74.6%, suggesting a stable capital structure with substantial equity backing. However, the persistent losses impact the overall financial health despite the improvements in debt management.

Cash Flow

The cash flow situation shows improvement with positive operating cash flow and free cash flow in the latest period. The free cash flow to net income ratio is positive, indicating cash generation despite net losses. The company has managed to reverse negative cash flows from previous years, highlighting better cash management and operational efficiency.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
8.22M	13.43M	12.86M	14.25M	17.90M	25.99M
	Gross Profit
-5.34M	-162.00K	-5.31M	13.20M	16.21M	24.11M
	EBIT
-16.95M	-3.94M	-12.97M	-13.72M	-21.58M	-22.47M
	EBITDA
-7.87M	-4.99M	-12.46M	-11.57M	-11.01M	-16.34M
	Net Income Common Stockholders
-9.02M	-8.50M	-16.34M	-9.10M	-12.83M	-20.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.31M	8.55M	8.02M	17.58M	18.06M	9.31M
	Total Assets
77.28M	66.11M	62.10M	68.15M	119.30M	112.14M
	Total Debt
22.21M	8.46M	26.66M	17.98M	57.48M	36.87M
	Net Debt
3.90M	-92.00K	18.63M	401.00K	39.42M	28.58M
	Total Liabilities
38.53M	22.27M	43.05M	33.91M	75.94M	56.03M
	Stockholders Equity
45.61M	49.32M	25.75M	41.04M	50.64M	63.65M
Cash Flow		Free Cash Flow
-2.31M	1.24M	-8.55M	-10.06M	-260.00K	-13.29M
	Operating Cash Flow
-2.17M	1.38M	-8.46M	-9.54M	280.00K	-13.25M
	Investing Cash Flow
-21.00K	101.00K	-45.00K	11.20M	-529.00K	-113.00K
	Financing Cash Flow
8.89M	-801.00K	-665.00K	-1.65M	10.30M	4.00M

Finet Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8317, the sentiment is Negative. The current price of 0.07 is equal to the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 13.74 is Positive, neither overbought nor oversold. The STOCH value of 80.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8317.

Finet Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
8051	55 Neutral	HK$75.51M	1,526.32	0.03%	―	130.84%	-99.24%
8128	52 Neutral	HK$174.71M	16.00	4.17%	―	2.61%	8.70%
8317	42 Neutral	HK$68.99M	―	-18.09%	―	-12.96%	61.54%
8047	41 Neutral	HK$191.26M	―	-11.86%	―	6.29%	-128.95%
8111	36 Underperform	HK$56.70M	―	-114.02%	―	―	-51.39%