Metropolis Capital Holdings Ltd. (8621) AI Stock Analysis

• Market Cap: HK$40.32M
• Dividend Yield: N/A
• Average Volume (3M): 124.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -31.28%
• EPS Growth: -400.00%
• Country: HK
• Employees: 22
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -0.03
• Shares Outstanding: 960,000,000
• 10 Day Avg. Volume: 130,400
• 30 Day Avg. Volume: 124,800
• PEG Ratio: -0.05
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 0.42
• 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: 65 Neutral
• Price Target: HK$0.05 ▲(63.33% Upside)

The score is driven primarily by mixed financial performance—strong balance sheet and improved cash generation offset by ongoing and widening losses—supported by positive technical momentum. Valuation is constrained by loss-making status (negative P/E) and no dividend yield data.

Positive Factors

Zero net debt and sizable equity base

The 2024 balance sheet shows zero reported debt and a large equity cushion, materially reducing financial risk and refinancing needs. This conservative capitalization improves resilience through downturns and underpins strategic flexibility over the next several quarters, though it alone won’t restore profitability.

Strong operating and free cash flow in 2024

Operating and free cash flow (~91.7M) were strongly positive in 2024 and exceeded accounting losses, indicating the business can generate real cash despite reported losses. Durable cash generation supports ongoing operations, reinvestment, and reduces near-term external funding needs if the trend persists.

Top-line recovery in latest year

Revenue growth of +12.3% in 2024 after a prior decline suggests recovering demand and potential scale benefits. Sustained top-line improvement can enable operating leverage and margin recovery over several quarters, provided the company controls below-gross costs and converts revenue into positive operating results.

Negative Factors

Widening operating losses

EBIT margin deterioration from about -16.2% to -21.5% in 2024 signals worsening core profitability. Persistent operating losses weaken internal funding capacity, impair reinvestment, and suggest structural cost or business-model issues that must be corrected to achieve durable profitability.

Deeply negative net margin

A net margin near -19.8% in 2024 indicates the company is significantly loss-making. Extended negative net margins erode equity and constrain ability to self-fund growth initiatives, increasing the likelihood of future capital raises or strategic restructurings if profitability is not restored.

Negative return on equity despite strong capital

ROE of about -5.5% shows the sizable equity base is not earning returns and capital is being deployed inefficiently. Negative ROE over time signals potential value destruction for shareholders and raises questions about management’s ability to convert financial strength into profitable operations.

Metropolis Capital Holdings Ltd. Business Overview & Revenue Model

Company Description

Metropolis Capital Holdings Limited, an investment holding company, provides finance lease, finance leasing advisory, and factoring services in the People's Republic of China. It offers vehicle finance leasing, and machinery and equipment finance leasing services to small and medium-sized enterprises, as well as individuals. The company was founded in 2009 and is headquartered in Shanghai, China. Metropolis Capital Holdings Limited is a subsidiary of View Art Investment Limited.

How the Company Makes Money

Metropolis Capital Holdings Ltd. generates revenue through interest income from its secured financing activities, advisory fees from investment consulting services, and potential capital gains from investment activities. The company's key revenue streams include interest earned on loans and credit facilities extended to clients, as well as fees charged for asset management and financial advisory services. Strategic partnerships with financial institutions and investment firms may also contribute to its earnings by facilitating larger investment portfolios and providing access to a broader client base.

Metropolis Capital Holdings Ltd. Financial Statement Overview

Summary

Financials are mixed: the balance sheet is strong (no debt and solid equity base) and 2024 operating/free cash flow is robust, but profitability remains a major weakness with widening operating losses and a deeply negative net margin despite revenue growth.

Income Statement

Revenue has grown in the last two years (2024: +12.3% after a 2023 decline), but profitability has deteriorated materially. The company remains loss-making (2024 net margin about -19.8%), and operating losses widened versus 2023 (EBIT moved from roughly -16.2% margin to about -21.5%). While gross margin improved sharply in 2024 versus 2023, it has been volatile over time and has not translated into positive earnings, indicating cost/credit pressure below the gross line.

Balance Sheet

The balance sheet appears conservatively positioned with zero debt reported in 2024 and a sizable equity base (equity ~186.6M vs assets ~262.7M). Leverage has improved meaningfully from prior years (debt-to-equity fell from ~0.58 in 2022 to 0.0 in 2024), reducing financial risk. The key weakness is returns: equity is not generating profits (2024 return on equity about -5.5%), reflecting that stronger capitalization has not yet translated into sustainable earnings power.

Cash Flow

Cash generation strengthened significantly: operating cash flow and free cash flow were both strongly positive in 2024 (~91.7M) and improved versus 2023, with free cash flow growth of ~13.5%. Cash flow also compares favorably to accounting losses in the recent period (cash flow exceeds net loss), suggesting better cash realization than earnings imply. The main concern is historical volatility—operating and free cash flow were negative in 2021 and 2022—so consistency through cycles remains to be proven.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.01M	52.18M	49.95M	48.62M	44.11M	39.99M
Gross Profit	11.01M	18.27M	15.30M	18.76M	17.95M	17.36M
EBITDA	0.00	-10.84M	-5.75M	-10.76M	1.24M	10.16M
Net Income	-38.70M	-10.34M	-6.11M	-3.64M	1.98M	8.16M
Balance Sheet
Total Assets	210.89M	262.70M	402.91M	383.12M	345.23M	335.45M
Cash, Cash Equivalents and Short-Term Investments	56.85M	69.70M	22.44M	57.65M	27.64M	16.72M
Total Debt	1.06M	0.00	41.28M	118.35M	78.92M	49.89M
Total Liabilities	48.65M	76.49M	206.30M	180.05M	138.01M	129.62M
Stockholders Equity	162.64M	186.61M	196.95M	203.05M	206.69M	204.71M
Cash Flow
Free Cash Flow	6.98M	91.73M	32.49M	-12.91M	-33.15M	-2.92M
Operating Cash Flow	6.98M	91.73M	32.58M	-12.89M	-33.13M	1.30M
Investing Cash Flow	3.62M	-7.10M	6.04M	-4.42M	3.91M	2.14M
Financing Cash Flow	-20.28M	-44.04M	-73.93M	46.55M	40.50M	-29.79M

Metropolis Capital Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Positive
• 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:8621, the sentiment is Positive. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.37 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8621.

Metropolis Capital Holdings 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%
8621	65 Neutral	HK$40.32M	-0.99	-21.16%	―	-31.28%	-400.00%
8019	54 Neutral	HK$68.72M	10.92	2.03%	―	-13.23%	―
8239	45 Neutral	HK$1.04B	-81.99	-35.17%	―	26.82%	68.75%
0736	44 Neutral	HK$198.77M	-7.23	-4.78%	―	-31.23%	33.60%