Somerley Capital Holdings Ltd (8439) AI Stock Analysis

• Market Cap: HK$52.81M
• Dividend Yield: 6.41%
• Average Volume (3M): 23.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: -22.98%
• EPS Growth: -285.25%
• Country: HK
• Employees: 46
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 146,705,890
• 10 Day Avg. Volume: 10,400
• 30 Day Avg. Volume: 23,333
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 28.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: HK$0.50 ▲(28.21% Upside)

Somerley Capital Holdings Ltd's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and profitability issues. Technical analysis shows positive short-term momentum, but valuation concerns due to a negative P/E ratio and overbought technical indicators limit upside potential.

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 within the financial sector, offering a range of services including mergers and acquisitions advisory, corporate restructuring, and financial advisory to public and private companies. Its core products and services are designed to assist clients in navigating complex financial transactions and optimizing their financial strategies.

How the Company Makes Money

Somerley Capital Holdings Ltd generates revenue primarily through fees charged for its advisory services. The company earns income by providing expert guidance on mergers and acquisitions, where it advises clients on potential transactions, valuation, negotiation, and deal structuring. Additionally, revenue is earned from corporate restructuring services, where the company assists in reorganizing a company’s structure, operations, or finances to improve efficiency and effectiveness. Financial advisory services also contribute to revenue, where Somerley offers advice on capital raising, business strategy, and financial planning. The company's earnings are significantly influenced by the volume and size of transactions they engage in, as well as their ability to maintain strong relationships with clients in the financial industry.

Somerley Capital Holdings Ltd Financial Statement Overview

Summary

Somerley Capital Holdings Ltd faces financial challenges with declining revenues and profitability issues, despite a strong equity base and low leverage. The company needs to improve operational efficiency and reverse revenue decline for future stability.

Income Statement

Somerley Capital Holdings Ltd has experienced a declining revenue trend over recent years, with significant net losses. Gross profit margin and EBIT margins remain weak, indicating challenges in maintaining profitability. The revenue decrease from 2024 to 2025 is a concern, reflecting potential market or operational difficulties.

Balance Sheet

The company's balance sheet shows a strong equity position with a low debt-to-equity ratio, which suggests financial stability and a conservative approach to leverage. However, the declining equity due to continued net losses poses a risk to future solvency.

Cash Flow

Somerley Capital Holdings Ltd has struggled with consistent positive cash flows. Despite a positive free cash flow in 2025, historical volatility and significant fluctuations in operating cash flow ratios indicate operational challenges and inefficiencies in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.71M	51.60M	67.37M	61.00M	68.17M	75.46M
Gross Profit	-252.00K	7.41M	19.56M	13.08M	15.49M	22.31M
EBITDA	-8.14M	-6.20M	5.42M	1.37M	5.79M	21.50M
Net Income	-13.81M	-13.81M	-3.54M	-6.82M	-3.64M	8.54M
Balance Sheet
Total Assets	81.09M	81.09M	87.56M	100.63M	116.17M	115.81M
Cash, Cash Equivalents and Short-Term Investments	52.15M	52.15M	62.85M	65.25M	78.84M	96.48M
Total Debt	12.26M	12.26M	3.10M	10.38M	15.28M	3.78M
Total Liabilities	18.56M	18.56M	9.04M	15.67M	20.76M	11.27M
Stockholders Equity	62.48M	62.48M	78.44M	84.84M	95.16M	104.14M
Cash Flow
Free Cash Flow	1.88M	571.00K	4.93M	-2.15M	-6.65M	10.82M
Operating Cash Flow	1.94M	630.00K	5.21M	-1.11M	-5.73M	11.03M
Investing Cash Flow	863.00K	1.55M	2.39M	700.00K	-2.26M	28.71M
Financing Cash Flow	-14.41M	-10.72M	-10.95M	-10.93M	-13.47M	-10.63M

Somerley Capital Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 0.39 is above the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.36, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.62 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	68 Neutral	$17.80B	11.94	9.89%	3.74%	9.69%	1.17%
8439	54 Neutral	HK$52.81M	―	-19.60%	6.41%	-22.98%	-285.25%
8226	48 Neutral	HK$52.61M	50.40	0.28%	―	―	―
3938	48 Neutral	HK$336.14M	―	-30.25%	17.86%	-54.24%	-779.59%
8168	44 Neutral	HK$62.64M	―	-34.27%	―	-30.21%	-305.00%
8193	41 Neutral	HK$55.96M	―	-34.21%	―	8.53%	86.05%
8072	40 Underperform	HK$48.83M	―	-11.33%	―	-19.96%	65.71%