FY Financial (Shenzhen) Co., Ltd. Class H (8452) AI Stock Analysis

• Market Cap: HK$95.23M
• Dividend Yield: N/A
• Average Volume (3M): 107.60K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.59
• Revenue Growth: 135.97%
• EPS Growth: -271.72%
• Country: HK
• Employees: 70
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): >-0.01
• Shares Outstanding: 89,840,000
• 10 Day Avg. Volume: 171,000
• 30 Day Avg. Volume: 107,600
• PEG Ratio: 0.05
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -3.16
• 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: 78.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: HK$0.50 ▲(78.57% Upside)

The overall stock score is primarily influenced by the company's mixed financial performance, with strong balance sheet metrics offset by profitability and cash flow challenges. Technical analysis indicates a bearish trend, and valuation metrics are weak due to a negative P/E ratio and lack of dividend yield. These factors collectively contribute to a lower overall score.

FY Financial (Shenzhen) Co., Ltd. Class H Business Overview & Revenue Model

Company Description

FY Financial (Shenzhen) Co., Ltd. operates as a financial services company in the People's Republic of China. It operates through two segments, Financial and Advisory Business, and Trading Operation Business. The Financial and Advisory Business segment offers direct finance leasing and sale-leaseback services; factoring services, such as financing and accounts receivable management services, as well as consulting services; and customer referral. This segment also provides advisory services, including market information, product recommendation, industry competition analysis, and operation process optimizing services, as well as financial and asset management advisory services. The Trading Operation Business segment engages in the import and domestic trade of medical equipment; and the provision of maintenance services in the medical equipment industry. It serves fast-moving consumer goods, electronics, alternative energy, medical, transportation, and machinery parts processing industries. FY Financial (Shenzhen) Co., Ltd. was founded in 2012 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

FY Financial (Shenzhen) Co., Ltd. generates revenue through interest income from the issuance of small loans. The company targets individuals and SMEs that might have limited access to traditional banking services due to various barriers. By offering competitive interest rates and flexible repayment terms, FY Financial attracts a range of borrowers. The company's revenue model relies heavily on the interest accrued on these loans, and it may also generate additional income from service fees associated with loan processing and management. Partnerships with local businesses and financial institutions may also enhance its revenue streams by extending its reach and increasing its customer base.

FY Financial (Shenzhen) Co., Ltd. Class H Financial Statement Overview

Summary

The company's financial performance is mixed. The balance sheet is strong with a high equity ratio and low debt-to-equity ratio, indicating financial stability. However, the income statement shows profitability challenges with negative net profit margins, and the cash flow statement highlights difficulties in cash generation.

Income Statement

The company has experienced significant fluctuations in revenue over the years, with a notable decline from 2019 to 2024. The Gross Profit Margin has been relatively stable but the Net Profit Margin has been negative in recent years, indicating profitability challenges. The EBIT and EBITDA margins have also been volatile, reflecting operational inefficiencies and cost management issues.

Balance Sheet

The balance sheet shows a solid equity position, with a high Equity Ratio indicating strong financial stability. The Debt-to-Equity Ratio is low, suggesting conservative leverage. However, the Return on Equity has been inconsistent, impacted by fluctuating net income levels.

Cash Flow

The company has faced challenges in maintaining positive operating cash flow, with significant negative cash flow in recent years. The Free Cash Flow has also been negative, raising concerns about cash generation capabilities. The ratios of operating and free cash flow to net income highlight these cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.07M	133.07M	57.07M	29.50M	35.75M	103.84M
Gross Profit	45.07M	44.87M	67.06M	12.59M	34.36M	69.17M
EBITDA	0.00	-4.93M	11.00M	-32.39M	19.85M	25.42M
Net Income	-1.14M	-6.87M	4.75M	-29.50M	14.93M	3.24M
Balance Sheet
Total Assets	559.64M	557.54M	486.55M	511.63M	553.16M	914.05M
Cash, Cash Equivalents and Short-Term Investments	0.00	26.08M	62.26M	182.95M	148.35M	142.02M
Total Debt	0.00	10.55M	11.25M	8.78M	1.02M	326.35M
Total Liabilities	118.78M	115.28M	35.74M	60.94M	77.57M	454.79M
Stockholders Equity	435.83M	436.97M	443.85M	439.07M	475.59M	459.26M
Cash Flow
Free Cash Flow	507.00K	-33.05M	-96.75M	103.42M	300.55M	497.68M
Operating Cash Flow	531.00K	-32.24M	-94.74M	108.28M	300.55M	500.21M
Investing Cash Flow	1.56M	-7.39M	-13.61M	-74.71M	29.53M	40.66M
Financing Cash Flow	-479.00K	3.45M	-12.35M	1.03M	-323.75M	-419.28M

FY Financial (Shenzhen) Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 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:8452, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.33, and below the 200-day MA of 0.36, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.66 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8452.

FY Financial (Shenzhen) Co., Ltd. Class H 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%
8019	55 Neutral	HK$96.14M	15.52	2.03%	―	-13.23%	―
8452	49 Neutral	HK$95.23M	26.55	-1.99%	―	135.97%	-271.72%
0379	46 Neutral	HK$134.98M	―	-21.07%	―	25.64%	-25.07%
3963	42 Neutral	HK$136.53M	―	-45.32%	―	-5.19%	36.15%