Somerley Capital Holdings Ltd (8439) AI Stock Analysis

• Market Cap: HK$47.68M
• Dividend Yield: 6.45%
• Average Volume (3M): 17.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: -10.35%
• EPS Growth: 86.76%
• Country: HK
• Employees: 46
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): <0.01
• Shares Outstanding: 146,705,890
• 10 Day Avg. Volume: 20,400
• 30 Day Avg. Volume: 17,333
• PEG Ratio: -0.01
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 97.67
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$0.50 ▲(56.25% Upside)

Somerley Capital Holdings Ltd's overall stock score is primarily impacted by financial performance challenges, including declining revenues and profitability issues. Technical indicators show neutral momentum, while valuation concerns arise from a negative P/E ratio despite a high dividend yield.

Positive Factors

Strong Equity Position

A strong equity position with low leverage indicates financial stability and a conservative approach, providing resilience against market fluctuations.

Positive Free Cash Flow

Positive free cash flow in 2025 suggests potential for reinvestment and growth, despite historical volatility in cash management.

High Dividend Yield

A high dividend yield can attract income-focused investors, providing a stable shareholder base and potential support for the stock price.

Negative Factors

Declining Revenue Trend

A declining revenue trend indicates potential market or operational challenges, which could impact long-term growth and profitability.

Profitability Issues

Weak profit margins suggest difficulty in cost management and pricing power, which may hinder sustainable profitability.

Inconsistent Cash Flows

Inconsistent cash flows and net losses can strain financial resources, limiting the company's ability to invest in growth opportunities.

Somerley Capital Holdings Ltd Business Overview & Revenue Model

Company Description

Somerley Capital Holdings Limited, an investment holding company, provides corporate finance advisory and asset management services in Hong Kong. It acts as a financial adviser to Hong Kong public listed companies, various shareholders, and investors, as well as parties seeking to control or invest in listed companies in Hong Kong; and financial adviser to independent board committees and/or independent shareholders of listed companies in Hong Kong. The company also act as a compliance adviser primarily for newly listed companies in Hong Kong; a sponsor to initial public offerings and listings of shares of companies on the Stock Exchange in Hong Kong; and an advisor for the cross-border mergers and acquisitions, as well as provides advisory services on secondary equity issues. In addition, it offers advisory services to the international clients, who are interested to undertake investment and disvestment transactions with the companies in Mainland China. Further, the company provides advisory services related to takeovers of listed companies, connected transactions, privatizations, initial public offerings, whitewash waivers, and secondary issues; acquisitions and disposals; spin-offs and reorganizations; and compliance with the Hong Kong listing rules. It serves the conglomerate, consumer, industrial, and renewables; energy, natural resources and infrastructure; financial institutions and insurance; property and construction; gaming and hospitality; and technology, media, and telecommunication industries. The company was incorporated in 2016 and is headquartered in Central, Hong Kong. Somerley Capital Holdings Limited is a subsidiary of Somerley Group Limited.

How the Company Makes Money

Somerley Capital Holdings generates revenue through multiple streams, primarily from advisory fees earned from mergers and acquisitions, underwriting fees from capital raising activities, and management fees associated with its asset management services. The company also earns performance-based fees tied to the success of its investment strategies. Key partnerships with local and international financial institutions enhance its service offerings and client base, contributing significantly to its earnings. Furthermore, Somerley's established reputation in the market allows it to attract high-profile clients, providing a steady flow of business.

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. Improving operational efficiency and reversing revenue decline is crucial 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	69.23M	51.60M	67.37M	61.00M	68.17M	75.46M
Gross Profit	5.98M	7.41M	19.56M	13.08M	30.71M	22.31M
EBITDA	5.62M	-6.20M	4.61M	1.37M	5.79M	18.33M
Net Income	-2.96M	-13.81M	-3.54M	-6.82M	-3.64M	8.54M
Balance Sheet
Total Assets	78.00M	81.09M	87.56M	100.63M	116.17M	115.81M
Cash, Cash Equivalents and Short-Term Investments	51.31M	52.15M	62.85M	65.25M	78.84M	96.48M
Total Debt	10.34M	12.26M	3.10M	10.38M	15.28M	3.78M
Total Liabilities	17.85M	18.56M	9.04M	15.67M	20.76M	11.27M
Stockholders Equity	60.12M	62.48M	78.44M	84.84M	95.16M	104.14M
Cash Flow
Free Cash Flow	4.46M	571.00K	4.93M	-2.15M	-6.65M	10.82M
Operating Cash Flow	4.51M	630.00K	5.21M	-1.11M	-5.73M	11.03M
Investing Cash Flow	646.00K	1.55M	2.39M	700.00K	-2.26M	28.71M
Financing Cash Flow	-8.10M	-10.72M	-10.95M	-10.93M	-13.47M	-10.63M

Somerley Capital Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.32
• 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 Positive. The current price of 0.32 is above the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.32, and below the 200-day MA of 0.34, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8168	56 Neutral	HK$132.52M	-13.58	-34.27%	―	-30.21%	-305.00%
3938	55 Neutral	HK$721.58M	-40.88	-11.63%	―	8.17%	54.75%
8439	51 Neutral	HK$47.68M	-25.00	-3.06%	6.45%	-10.35%	86.76%
8072	49 Neutral	HK$49.66M	-0.99	-13.20%	―	5.03%	70.32%
8226	49 Neutral	HK$45.51M	43.60	0.28%	―	―	―
8193	41 Neutral	HK$32.18M	1.64	47.82%	―	34.66%	―