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China Financial Services Holdings Limited (HK:0605)
:0605
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China Financial Services Holdings Limited (0605) AI Stock Analysis

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HK:0605

China Financial Services Holdings Limited

(0605)

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Neutral 53 (OpenAI - 4o)
Rating:53Neutral
Price Target:
HK$1.00
▼(-11.50% Downside)
The overall stock score reflects significant operational challenges and weak technical indicators. While the stock appears undervalued based on its P/E ratio, the lack of operational cash flow and bearish technical signals are major concerns.

China Financial Services Holdings Limited (0605) vs. iShares MSCI Hong Kong ETF (EWH)

China Financial Services Holdings Limited Business Overview & Revenue Model

Company DescriptionChina Financial Services Holdings Limited, together with its subsidiaries, provides various financial services in the People's Republic of China. The company primarily offers short-term financial services; provides direct loans, including real estate mortgage loans; mortgage loans of civil products, equity, movable properties, etc.; and loans for farmers. It also offers e-commerce and automobile supply chain finance; consumer finance, such as individual and installment credit loans; financial guarantees; financial leasing; and fund management services. China Financial Services Holdings Limited is based in Wanchai, Hong Kong.
How the Company Makes MoneyThe company generates revenue through multiple streams, primarily from its brokerage services, which include commissions from trading activities for both retail and institutional clients. Additionally, it earns income from asset management fees charged for managing client portfolios and investments. Corporate finance advisory services also contribute to the revenue, with fees collected for advisory services related to mergers and acquisitions, capital raising, and other financial consulting. Strategic partnerships with other financial institutions and technology providers enhance its service offerings and operational efficiency, further supporting its revenue generation efforts.

China Financial Services Holdings Limited Financial Statement Overview

Summary
The company faces significant operational challenges with negative EBIT and shrinking revenues. Despite improvements in net income and debt management, the lack of operational cash flow indicates potential liquidity issues.
Income Statement
45
Neutral
The income statement reveals a significant decline in revenue from 2019 to 2024, with a notable drop in gross profit margins. The net profit margin improved in 2024 due to a return to positive net income, but the EBIT and EBITDA margins remain negative, indicating operational inefficiencies. Revenue growth has been inconsistent, reflecting volatility in the company's core operations.
Balance Sheet
65
Positive
The balance sheet shows a stable equity position with a reduction in liabilities over time. The debt-to-equity ratio has decreased from previous years, indicating improved leverage management. ROE turned positive in 2024, reflecting better profitability. However, the equity ratio has been declining, suggesting a potential risk in asset financing stability.
Cash Flow
55
Neutral
Cash flow analysis highlights strong free cash flow generation in earlier periods, but a complete lack of operational cash flows in 2024 raises concerns. Free cash flow to net income ratios were previously strong but are now non-existent, reflecting possible cash management issues. The absence of current operating cash flow data suggests operational challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue96.30M106.95M141.59M212.78M324.52M745.03M
Gross Profit96.30M97.71M126.31M71.87M101.87M394.00M
EBITDA-47.15M-53.19M-57.05M7.08M-173.90M-785.93M
Net Income29.96M41.23M-159.97M-52.55M-250.06M-1.22B
Balance Sheet
Total Assets1.67B1.74B2.21B2.64B3.37B4.05B
Cash, Cash Equivalents and Short-Term Investments285.75M273.02M481.51M411.60M571.67M595.50M
Total Debt630.49M679.24M1.14B1.38B1.80B2.18B
Total Liabilities955.22M1.00B1.51B1.77B2.36B2.82B
Stockholders Equity641.45M657.24M620.71M789.73M923.82M1.14B
Cash Flow
Free Cash Flow157.45M72.17M285.44M246.19M589.24M1.16B
Operating Cash Flow158.65M73.37M286.82M247.17M590.73M1.16B
Investing Cash Flow76.78M64.62M-18.97M21.02M6.59M2.97M
Financing Cash Flow-275.11M-312.18M-221.00M-406.41M-633.84M-1.31B

China Financial Services Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.13
Price Trends
50DMA
1.24
Negative
100DMA
1.33
Negative
200DMA
1.32
Negative
Market Momentum
MACD
-0.03
Negative
RSI
42.49
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0605, the sentiment is Negative. The current price of 1.13 is below the 20-day moving average (MA) of 1.18, below the 50-day MA of 1.24, and below the 200-day MA of 1.32, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 42.49 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0605.

China Financial Services Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
HK$342.20M6.422.48%4.79%-25.70%-39.65%
$18.00B11.429.92%3.81%9.73%1.22%
HK$332.00M6.785.24%5.50%-1.47%2.86%
HK$333.11M11.451.12%-9.75%-81.16%
HK$226.60M7.544.83%-25.74%
HK$98.82M-11.04-1.99%135.97%-271.72%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0605
China Financial Services Holdings Limited
1.13
-1.07
-48.64%
HK:1563
International Alliance Financial Leasing Co., Ltd.
0.20
-0.08
-28.57%
HK:1669
Global International Credit Group Ltd.
0.84
0.33
64.71%
HK:1915
Yangzhou Guangling District Taihe Rural Micro-finance Company Limited Class H
0.26
-0.25
-49.02%
HK:6866
Zuoli Kechuang Micro-finance Co. Ltd. Class H
0.29
<0.01
3.57%
HK:8452
FY Financial (Shenzhen) Co., Ltd. Class H
0.28
-0.14
-33.33%

China Financial Services Holdings Limited Corporate Events

China Financial Services Announces RMB17 Million Loan Agreement
Oct 22, 2025

China Financial Services Holdings Limited has announced a discloseable transaction involving a loan agreement with UDSL as the lender and two customers as the borrowers. The loan, amounting to RMB17,000,000 with a 14.4% annual interest rate, is secured by a mortgage on a residential property and parking spaces in Beijing. This transaction, subject to certain listing rules, highlights the company’s active role in financial assistance and its strategic positioning in the market.

The most recent analyst rating on (HK:0605) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China Financial Services Holdings Limited stock, see the HK:0605 Stock Forecast page.

China Financial Services Holdings Announces Discloseable Loan Transaction
Oct 17, 2025

China Financial Services Holdings Limited announced a discloseable transaction involving the provision of financial assistance through two secured loans totaling RMB12,100,000 to Customers FF and FG. The loans, granted within a 12-month period, require aggregation under Hong Kong’s Listing Rules, as they exceed certain percentage ratios, necessitating notification and announcement. The latest loan agreement, Loan B, involves a principal amount of RMB4,000,000 with a 12% interest rate, secured by a mortgage on a property in Beijing and a corporate guarantee.

The most recent analyst rating on (HK:0605) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China Financial Services Holdings Limited stock, see the HK:0605 Stock Forecast page.

China Financial Services Announces Discloseable Loan Transaction
Oct 10, 2025

China Financial Services Holdings Limited has announced a new loan agreement dated 10 October 2025, where UDSL, a subsidiary, will provide a loan of RMB20,000,000 to Customer FE for a term of three months. This transaction, secured by a mortgage and guarantees, is classified as a discloseable transaction under the Hong Kong Stock Exchange Listing Rules, indicating its significance to the company’s operations and compliance requirements.

The most recent analyst rating on (HK:0605) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China Financial Services Holdings Limited stock, see the HK:0605 Stock Forecast page.

China Financial Services Announces Discloseable Loan Transaction
Sep 17, 2025

China Financial Services Holdings Limited announced a discloseable transaction involving a loan agreement with Customer FB. The agreement, dated September 17, 2025, involves SZCG, a subsidiary of the company, providing a loan of RMB14,000,000 at an annual interest rate of 12% for a six-month term. The loan is secured by a first legal charge mortgage on a residential property in Shenzhen valued at approximately RMB20,692,000. This transaction is significant as it exceeds the 5% threshold under the Listing Rules, necessitating disclosure.

China Financial Services Clarifies 2014 Scheme Details in Supplemental Announcement
Sep 16, 2025

China Financial Services Holdings Limited has issued a supplemental announcement regarding its 2014 Scheme, clarifying the number of securities available for issue and the expiration of options under the scheme. The announcement highlights that the scheme expired on 19 May 2024, with no further options available for grant by the end of 2024, impacting the company’s share capital structure.

China Financial Services Holdings Reports Decline in Interim Financial Results
Aug 28, 2025

China Financial Services Holdings Limited reported a significant decline in its interim financial results for the six months ending June 30, 2025. The company experienced a 22.8% decrease in income from interest and financing consultancy services compared to the previous year, alongside a 61.5% increase in losses attributable to company owners. This financial downturn reflects challenges in the company’s operational performance, potentially impacting its market position and stakeholder confidence.

China Financial Services Holdings Issues Profit Warning Amid Economic Uncertainty
Aug 21, 2025

China Financial Services Holdings Limited has issued a profit warning, anticipating a significant increase in losses for the first half of 2025, ranging from HK$28 million to HK$31 million, compared to a loss of HK$18.3 million in the same period of 2024. This increase is attributed to a decline in revenue from its financing business due to economic uncertainties and stricter credit control measures, impacting the company’s financial performance and signaling caution for shareholders and potential investors.

China Financial Services Holdings Announces Discloseable Loan Transaction
Aug 12, 2025

China Financial Services Holdings Limited announced a discloseable transaction involving a loan agreement with Customer FA. The company, through its subsidiary CDVC, will provide a loan of RMB25,000,000 for a one-year term at an interest rate of 16% per annum. The loan is secured by a first legal charge mortgage on a commercial property in Chengdu and a personal guarantee from the borrower. This transaction is significant as it meets the criteria for a discloseable transaction under the Hong Kong Stock Exchange’s listing rules, indicating a strategic financial move that may impact the company’s market positioning and stakeholder interests.

China Financial Services Holdings to Review Interim Results
Aug 8, 2025

China Financial Services Holdings Limited has announced that its board of directors will meet on August 28, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the remainder of the year.

China Financial Services Holdings Announces RMB19 Million Loan Agreement
Aug 1, 2025

China Financial Services Holdings Limited has announced a discloseable transaction involving a loan agreement with Customer EZ, where SZCG, a subsidiary, will provide a loan of RMB19,000,000 for a one-year term at an interest rate of 12% per annum. This transaction, secured by a mortgage on a residential property in Shenzhen valued at approximately RMB27,415,000, is subject to notification and announcement requirements under the Hong Kong Stock Exchange’s Listing Rules, indicating its significance to the company’s financial operations and compliance obligations.

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: Oct 07, 2025