Victory Securities (Holdings) Co. Ltd. (HK:8540)
:8540
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Victory Securities (Holdings) Co. Ltd.
(8540)
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Rating:58Neutral
Price Target:
HK$4.50
▼(-1.75% Downside)
Action:ReiteratedDate:04/07/26
The score is primarily supported by improved 2025 fundamentals (profitability rebound, stronger balance sheet, and strong cash generation), but is held back by historically high volatility in results and currently weak technical trend/momentum. Valuation is roughly neutral with a moderate P/E and low dividend yield.
Positive Factors
Profitability Rebound
A sharp 2025 profitability rebound (net income 60.4M, ~28.5% margin) strengthens the firm's ability to self-fund operations and capital needs. Sustained margins of this level would support reinvestment, debt paydown and improved return on equity over the medium term.
Negative Factors
Earnings Volatility
Historic swings and multiple loss years through 2020–2024 undermine confidence in recurring profitability. Such volatility complicates budgeting, raises cyclicality of returns, and increases the probability that strong 2025 results may not persist absent structural changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Rebound
A sharp 2025 profitability rebound (net income 60.4M, ~28.5% margin) strengthens the firm's ability to self-fund operations and capital needs. Sustained margins of this level would support reinvestment, debt paydown and improved return on equity over the medium term.
Read all positive factors
Victory Securities (Holdings) Co. Ltd. (8540) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$913.32M
Dividend Yield0.66%
Average Volume (3M)368.79K
Price to Earnings (P/E)15.0
Beta (1Y)0.17
Revenue Growth214.77%
EPS GrowthN/A
CountryHK
Employees65
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.10
Shares Outstanding212,548,000
10 Day Avg. Volume199,100
30 Day Avg. Volume368,789
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)3.79
Price to Sales (P/S)4.28
P/FCF Ratio6.31
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
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Victory Securities (Holdings) Co. Ltd. Business Overview & Revenue Model
Company Description
Victory 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 managemen...
Victory Securities (Holdings) Co. Ltd. Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
72
Positive
Cash Flow
61
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 211.64M | 68.22M | 51.62M | 65.24M | 82.85M |
| Gross Profit | 146.65M | 62.13M | 45.15M | 60.11M | 75.91M |
| EBITDA | 72.63M | 2.99M | -24.15M | -20.89M | 22.11M |
| Net Income | 60.36M | -3.14M | -24.97M | -24.16M | 15.11M |
Balance Sheet | |||||
| Total Assets | 515.43M | 520.04M | 300.75M | 365.42M | 496.49M |
| Cash, Cash Equivalents and Short-Term Investments | 102.29M | 12.89M | 23.67M | 27.82M | 18.48M |
| Total Debt | 94.88M | 167.15M | 96.20M | 133.16M | 213.55M |
| Total Liabilities | 276.76M | 342.57M | 137.65M | 176.46M | 280.54M |
| Stockholders Equity | 239.23M | 172.55M | 163.01M | 188.91M | 215.79M |
Cash Flow | |||||
| Free Cash Flow | 143.57M | -87.52M | 41.90M | 106.96M | -62.21M |
| Operating Cash Flow | 144.40M | -87.15M | 42.07M | 108.17M | -61.18M |
| Investing Cash Flow | 16.83M | -5.93M | -2.49M | -7.09M | -7.63M |
| Financing Cash Flow | -60.36M | 72.32M | -53.63M | -90.76M | 60.24M |
Victory Securities (Holdings) Co. Ltd. Technical Analysis
Negative
4.58
Price Trends
4.66
Negative
4.78
Negative
5.42
Negative
Market Momentum
-0.04
Positive
48.09
Neutral
55.56
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 4.58 is below the 20-day moving average (MA) of 4.64, below the 50-day MA of 4.66, and below the 200-day MA of 5.42, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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 | HK$579.71M | 2.39 | 4.26% | ― | 84.88% | 122.45% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | HK$112.53M | 0.50 | 35.48% | ― | 2126.94% | 36.49% | |
58 Neutral | HK$913.32M | 15.01 | 29.87% | 0.66% | 214.77% | ― | |
57 Neutral | HK$690.00M | 3.77 | 3.00% | ― | -22.46% | ― | |
46 Neutral | HK$860.42M | -3.89 | -14.53% | ― | 173.24% | -515.63% | |
42 Neutral | HK$152.34M | -1.15 | -18.53% | ― | 110.52% | 2.14% |
* Financial Sector Average
HK:8540
Victory Securities (Holdings) Co. Ltd.
4.61
1.56
51.15%
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0.09
0.03
68.63%
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China Tonghai International Financial Limited
0.14
-0.03
-20.00%
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0.12
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-82.08%
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0.13
0.01
12.61%
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11.50
10.27
834.96%
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.