Somerley Capital Holdings Ltd (8439) AI Stock Analysis

• Market Cap: HK$54.30M
• Dividend Yield: 6.76%
• Average Volume (3M): 16.40K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.03
• Revenue Growth: -13.53%
• EPS Growth: -953.91%
• Country: HK
• Employees: 46
• Sector: Financial
• Sector Strength: 76
• Industry: Financial - Capital Markets
• EPS (TTM): -0.01
• Shares Outstanding: 146,761,890
• 10 Day Avg. Volume: 10,400
• 30 Day Avg. Volume: 16,400
• PEG Ratio: -0.20
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -56.39
• 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: 54 Neutral
• Price Target: ―

The stock score is driven by a solid balance sheet and cash flow improvements, slightly offset by technical weakness and profitability challenges. Valuation is reasonable, supported by a high dividend yield, but the lack of earnings growth limits upside potential. The overall outlook remains cautious until operational efficiency and profitability show consistent improvement.

Somerley Capital Holdings Ltd Business Overview & Revenue Model

Company Description

Somerley Capital Holdings Ltd (8439) is a Hong Kong-based financial services company primarily engaged in providing corporate finance advisory services. The company operates mainly in the Hong Kong market and offers a range of services, including advising on mergers and acquisitions, corporate restructuring, and other financial advisory services to corporate clients across various industries.

How the Company Makes Money

Somerley Capital Holdings Ltd generates revenue through fees charged for its corporate finance advisory services. The company earns income by providing expert advice on mergers and acquisitions, assisting in corporate restructuring, and facilitating other financial transactions. These services are typically charged on a project basis or through retainer fees, depending on the nature and scope of the advisory work. The company's earnings are significantly influenced by the volume and complexity of transactions in the financial markets, as well as its ability to secure repeat business and establish long-term relationships with its corporate clients.

Somerley Capital Holdings Ltd Financial Statement Overview

Summary

Somerley Capital Holdings Ltd displays a mixed financial picture, with improvements in cash flow and a solid balance sheet contrasted by persistent challenges in achieving profitability. Revenue growth and financial stability provide a foundation for future recovery, but operational efficiency and profitability need enhancement to strengthen financial performance.

Income Statement

The company shows a declining revenue trend over the past five years, with recent revenue upturn not yet reaching past heights. Despite gross profit improvements, consistent net losses and negative EBIT margins highlight operational challenges. The recent revenue growth of 10.44% from last year is positive, but sustained profitability remains elusive.

Balance Sheet

The balance sheet is relatively strong, with a low debt-to-equity ratio indicating conservative leverage, and a high equity ratio of 89.6% reflecting financial stability. However, declining total assets and a shrinking stockholders' equity over the years pose concerns. Return on equity is negative due to net losses, impacting overall financial health.

Cash Flow

Cash flow has improved significantly, with positive operating and free cash flow in the latest period, contrasting prior negative trends. Operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to net losses. Despite recent improvement, historical volatility in cash flow remains a risk.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
61.93M	67.37M	61.00M	68.17M	75.46M	75.84M
	Gross Profit
8.41M	19.56M	13.08M	15.49M	22.31M	21.76M
	EBIT
-1.05M	-4.50M	-5.41M	-3.86M	-872.00K	-75.00K
	EBITDA
-12.47M	5.42M	1.37M	5.79M	21.50M	3.19M
	Net Income Common Stockholders
-14.40M	-3.54M	-6.82M	-3.64M	8.54M	-5.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.76M	62.85M	65.25M	78.84M	96.48M	84.91M
	Total Assets
83.89M	87.56M	100.63M	116.17M	115.81M	120.33M
	Total Debt
14.93M	3.10M	10.38M	15.28M	3.78M	13.22M
	Net Debt
-38.70M	-57.07M	-53.16M	-59.74M	-92.69M	-54.02M
	Total Liabilities
19.67M	9.04M	15.67M	20.76M	11.27M	19.82M
	Stockholders Equity
64.14M	78.44M	84.84M	95.16M	104.14M	98.87M
Cash Flow		Free Cash Flow
-4.13M	4.93M	-2.15M	-6.65M	10.82M	1.79M
	Operating Cash Flow
-4.07M	5.21M	-1.11M	-5.73M	11.03M	2.14M
	Investing Cash Flow
3.87M	2.39M	700.00K	-2.26M	28.71M	-21.17M
	Financing Cash Flow
-13.25M	-10.95M	-10.93M	-13.47M	-10.63M	-15.77M

Somerley Capital Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.37
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8439, the sentiment is Neutral. The current price of 0.37 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.37, and below the 200-day MA of 0.44, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.62 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8439.

Somerley Capital Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1093	76 Outperform	$87.63B	19.06	13.20%	2.62%	-9.60%	-27.18%
1475	71 Outperform	HK$7.19B	37.24	5.15%	2.31%	3.95%	-42.81%
Sector *	65 Neutral	$12.76B	9.91	7.89%	78.91%	12.06%	-7.95%
8439	54 Neutral	HK$54.30M	―	-19.60%	6.76%	-13.53%	-953.91%
1729	54 Neutral	HK$13.55B	29.97		0.58%	―	―