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Victory Securities (Holdings) Co. Ltd. (HK:8540)
:8540
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Victory Securities (Holdings) Co. Ltd.
(8540)
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Rating:43Neutral
Price Target:―
Victory Securities (Holdings) Co. Ltd. faces significant challenges with profitability and cash flow management despite strong revenue growth. The bearish technical indicators and negative P/E ratio further emphasize financial instability. Although the dividend yield is high, its sustainability is in question due to ongoing losses.
Victory Securities (Holdings) Co. Ltd. (8540) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.02B
Dividend Yield0.66%
Average Volume (3M)535.91K
Price to Earnings (P/E)22.7
Beta (1Y)-0.19
Revenue Growth214.77%
EPS GrowthN/A
CountryHK
Employees65
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.21
Shares Outstanding212,518,000
10 Day Avg. Volume332,480
30 Day Avg. Volume535,909
Financial Highlights & Ratios
PEG Ratio2.23
Price to Book (P/B)3.55
Price to Sales (P/S)8.89
P/FCF Ratio-7.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Victory Securities (Holdings) Co. Ltd. Business Overview & Revenue Model
Company DescriptionVictory Securities (Holdings) Company Limited, an investment holding company, provides various financial services in Hong Kong. It offers securities/futures/insurance policies broking, placing and underwriting, securities advising, asset management, financial advisory, and investment and insurance consultancy services. The company was incorporated in 2016 and is headquartered in Hong Kong. Victory Securities (Holdings) Company Limited is a subsidiary of Dr. TT Kou's Family Company Limited.
How the Company Makes MoneyVictory Securities (Holdings) Co. Ltd. generates revenue through multiple streams within the financial services industry. The primary revenue source is its brokerage services, where the company earns commissions and fees from clients executing trades in securities and other financial instruments. Additionally, the company offers margin financing, providing loans to clients for trading purposes, and earns interest income from these loans. Asset management services contribute to the company's earnings as it charges management fees based on the assets under management. Victory Securities also earns advisory fees by providing financial consultancy and advisory solutions to both individual and corporate clients. Strategic partnerships and collaborations with other financial institutions enhance its service offerings and expand its client base, further contributing to its revenue growth.
Victory Securities (Holdings) Co. Ltd. Financial Statement Overview
Summary
Victory Securities (Holdings) Co. Ltd. demonstrates strong revenue growth but struggles with profitability, as evidenced by ongoing net losses. The balance sheet is strong with a high equity ratio and no debt, but cash flow challenges signal liquidity concerns. The company needs to focus on improving profitability and cash flow management to enhance 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.45
Neutral
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.60
Neutral
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.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 163.55M | 68.88M | 45.15M | 76.60M | 106.23M | 87.03M |
| Gross Profit | 163.55M | 62.13M | 46.22M | 61.85M | 85.46M | 69.66M |
| EBITDA | 62.77M | 0.00 | -17.86M | -12.94M | 28.48M | 33.21M |
| Net Income | 43.86M | -3.14M | -24.97M | -24.24M | 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 | 12.56M | 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
Negative
4.97
Price Trends
6.23
Negative
5.77
Negative
4.49
Positive
Market Momentum
-0.35
Negative
34.93
Neutral
63.14
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 4.97 is below the 20-day moving average (MA) of 5.29, below the 50-day MA of 6.23, and above the 200-day MA of 4.49, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 34.93 is Neutral, neither overbought nor oversold. The STOCH value of 63.14 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | €997.65M | 11.83 | 2.36% | ― | -4.56% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | HK$339.60M | ― | -17.76% | ― | 185.46% | -1997.94% | |
48 Neutral | HK$958.76M | 59.38 | -4.03% | ― | 173.24% | -515.63% | |
43 Neutral | HK$1.02B | 22.68 | 23.05% | 0.66% | 214.77% | ― | |
41 Neutral | HK$399.27M | ― | -16.07% | ― | 110.52% | 2.14% | |
38 Underperform | HK$62.12M | ― | -14.26% | ― | 2126.94% | 36.49% |
* Financial Sector Average
HK:8540
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.