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Victory Securities (Holdings) Co. Ltd. (HK:8540)
:8540
Hong Kong Market

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

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HK

Victory Securities (Holdings) Co. Ltd.

(8540)

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)

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

Company DescriptionVictory Securities (Holdings) Co. Ltd. (8540) is a Hong Kong-based financial services company that offers a comprehensive suite of products and services in the securities and investment sector. The company specializes in securities dealing and brokerage, asset management, margin financing, and financial advisory services. Catering primarily to individual and institutional clients, Victory Securities focuses on providing personalized and innovative solutions to meet diverse investment needs.
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
45
Neutral
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
60
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue68.88M45.15M60.11M83.91M71.69M
Gross Profit62.13M46.22M45.35M63.13M54.33M
EBITDA0.00-17.86M-12.94M28.48M33.21M
Net Income-3.14M-24.97M-24.24M15.11M23.18M
Balance Sheet
Total Assets520.04M300.75M365.42M496.49M501.67M
Cash, Cash Equivalents and Short-Term Investments12.56M23.67M27.82M18.48M30.79M
Total Debt0.0096.20M133.16M213.55M131.66M
Total Liabilities342.57M137.65M176.46M280.54M292.73M
Stockholders Equity172.55M163.01M188.91M215.79M208.94M
Cash Flow
Free Cash Flow-87.52M37.53M106.96M-62.21M-28.06M
Operating Cash Flow-87.15M37.91M108.17M-61.18M-24.57M
Investing Cash Flow-5.93M1.41M-7.09M-7.63M-1.99M
Financing Cash Flow72.32M-53.63M-90.76M60.24M38.15M

Victory Securities (Holdings) Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.10
Price Trends
50DMA
3.46
Positive
100DMA
3.33
Positive
200DMA
3.25
Positive
Market Momentum
MACD
0.49
Negative
RSI
75.69
Negative
STOCH
28.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8540, the sentiment is Positive. The current price of 5.1 is above the 20-day moving average (MA) of 3.95, above the 50-day MA of 3.46, and above the 200-day MA of 3.25, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 75.69 is Negative, neither overbought nor oversold. The STOCH value of 28.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8540.

Victory Securities (Holdings) Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$88.55B19.2613.20%2.60%-9.60%-27.18%
74
Outperform
$423.10B15.508.44%4.42%17.45%8.24%
64
Neutral
kr118.74B24.707.49%4.23%13.90%-82.08%
64
Neutral
$168.96B9.039.25%4.13%-25.29%17.94%
56
Neutral
€32.59B94.232.31%1.17%37.06%72.51%
43
Neutral
HK$951.65M-1.87%0.74%40.20%87.43%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8540
Victory Securities (Holdings) Co. Ltd.
5.84
2.70
85.99%
HK:1788
Guotai Junan International Holdings Limited
3.86
3.27
557.58%
HK:6030
CITIC Securities Co
23.20
12.33
113.33%
HK:6886
Huatai Securities Co
15.70
7.78
98.26%
HK:1093
CSPC Pharmaceutical Group
8.24
2.33
39.40%
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.Date of analysis: Apr 22, 2025