Victory Securities (Holdings) Co. Ltd. (8540) AI Stock Analysis

• Market Cap: HK$984.65M
• Dividend Yield: 0.67%
• Average Volume (3M): 368.79K
• Price to Earnings (P/E): 22.0
• Beta (1Y): -0.13
• Revenue Growth: 214.77%
• EPS Growth: N/A
• Country: HK
• Employees: 65
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.21
• Shares Outstanding: 212,548,000
• 10 Day Avg. Volume: 199,100
• 30 Day Avg. Volume: 368,789
• PEG Ratio: 2.23
• Price to Book (P/B): 3.55
• Price to Sales (P/S): 8.89
• P/FCF Ratio: -7.00
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$5.00 ▲(0.81% Upside)

The overall stock score of 54 reflects strong revenue growth but significant challenges in profitability and cash flow management. Technical analysis provides mixed signals, with slight bullish momentum. Valuation metrics suggest the stock is fairly valued, but the low dividend yield limits income potential. The absence of earnings call data and corporate events means these factors do not influence the score.

Victory Securities (Holdings) Co. Ltd. Business Overview & Revenue Model

Company Description

Victory Securities (Holdings) Co. Ltd. (8540) is a Hong Kong-based investment holding company primarily engaged in the provision of financial services. The company operates in various sectors, including securities brokerage, asset management, and corporate finance. Its core products and services include trading of securities, provision of margin financing, and advisory services for mergers and acquisitions, catering to a diverse clientele ranging from individual investors to institutional clients.

How the Company Makes Money

Victory Securities generates revenue through multiple streams, primarily from its brokerage services, where it earns commissions on trades executed for clients. Additionally, the company profits from its asset management services by charging management fees based on the assets under management. The margin financing segment contributes to earnings by providing loans to clients for trading purposes, with interest charged on outstanding balances. Corporate finance advisory services also represent a significant revenue source, where fees are collected for facilitating transactions and providing strategic advice. Furthermore, strategic partnerships with financial institutions and technology providers enhance its service offerings and operational efficiency, contributing positively to its financial performance.

Victory Securities (Holdings) Co. Ltd. Financial Statement Overview

Summary

Victory Securities (Holdings) Co. Ltd. shows strong revenue growth but struggles with profitability, evidenced by ongoing net losses. The balance sheet is solid with a high equity ratio and no debt, but cash flow challenges signal liquidity concerns. Improvement in profitability and cash flow management is needed for financial stability.

Income Statement

The company has experienced volatile revenue growth with a significant increase of 52.52% from 2023 to 2024. However, profitability remains a concern as net income has been negative for the past three years, resulting in a negative net profit margin. The gross profit margin remains strong at 100%, but EBIT and EBITDA margins are weak due to high operating costs.

Balance Sheet

The balance sheet reflects a solid equity base with an equity ratio of 33.18% in 2024. The debt-to-equity ratio is favorable at 0, since the company has no debt. Return on equity is negative due to losses, indicating inefficiency in generating returns from shareholders’ investments.

Cash Flow

Cash flow from operations turned negative in 2024, indicating potential liquidity issues. Free cash flow also shows a negative trend, which could hinder future investments. The operating cash flow to net income ratio is negative due to persistent losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	163.55M	68.22M	51.62M	65.24M	82.85M	76.85M
Gross Profit	163.55M	62.13M	45.15M	60.11M	75.91M	71.69M
EBITDA	62.77M	2.99M	-24.15M	-20.89M	22.11M	30.20M
Net Income	43.86M	-3.14M	-24.97M	-24.16M	15.11M	23.18M
Balance Sheet
Total Assets	702.01M	520.04M	300.75M	365.42M	496.49M	501.67M
Cash, Cash Equivalents and Short-Term Investments	92.08M	12.89M	23.67M	27.82M	18.48M	30.79M
Total Debt	10.24M	167.15M	96.20M	133.16M	213.55M	131.66M
Total Liabilities	490.50M	342.57M	137.65M	176.46M	280.54M	292.73M
Stockholders Equity	207.06M	172.55M	163.01M	188.91M	215.79M	208.94M
Cash Flow
Free Cash Flow	-11.43M	-87.52M	41.90M	106.96M	-62.21M	-28.06M
Operating Cash Flow	-10.59M	-87.15M	42.07M	108.17M	-61.18M	-24.57M
Investing Cash Flow	-962.93K	-5.93M	-2.49M	-7.09M	-7.63M	-1.99M
Financing Cash Flow	95.92M	72.32M	-53.63M	-90.76M	60.24M	38.15M

Victory Securities (Holdings) Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8540, the sentiment is Negative. The current price of 4.96 is below the 20-day moving average (MA) of 5.01, below the 50-day MA of 5.00, and above the 200-day MA of 4.73, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.67 is Neutral, neither overbought nor oversold. The STOCH value of 29.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8540.

Victory Securities (Holdings) Co. 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%
0717	58 Neutral	€714.53M	8.83	2.36%	―	-4.56%	―
2680	57 Neutral	HK$714.00M	121.43	2.99%	―	-22.46%	―
8540	54 Neutral	HK$984.65M	21.97	23.05%	0.67%	214.77%	―
0952	45 Neutral	HK$860.42M	-10.53	-4.03%	―	173.24%	-515.63%
0139	40 Underperform	HK$497.56M	-2.96	-16.07%	―	110.52%	2.14%
2324	38 Underperform	HK$58.07M	-1.20	-14.26%	―	2126.94%	36.49%