Asia Financial Holdings (0662) AI Stock Analysis

• Market Cap: HK$4.07B
• Dividend Yield: 3.51%
• Average Volume (3M): 3.93K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.31
• Revenue Growth: 8.12%
• EPS Growth: 74.22%
• Country: HK
• Employees: 364
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 0.46
• Shares Outstanding: 924,142,000
• 10 Day Avg. Volume: 4,000
• 30 Day Avg. Volume: 3,933
• PEG Ratio: 0.06
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 30.62
• 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

• Rating: 73 Outperform
• Price Target: HK$5.00 ▲(13.90% Upside)

Asia Financial Holdings scores well due to its strong financial performance, characterized by robust revenue growth, high margins, and financial stability. The technical analysis indicates a positive trend, though caution is advised due to the RSI nearing overbought levels. The stock's valuation is attractive with a low P/E ratio and a solid dividend yield, enhancing its appeal to value investors.

Asia Financial Holdings Business Overview & Revenue Model

Company Description

Asia Financial Holdings Ltd (0662) is a Hong Kong-based investment holding company engaged primarily in the insurance and financial services sectors. It offers a range of insurance products, including general insurance, life insurance, and reinsurance services. The company also invests in various financial instruments and engages in strategic partnerships to enhance its market presence and expand its service offerings.

How the Company Makes Money

Asia Financial Holdings makes money through its diverse portfolio of insurance products and financial services. The company's primary revenue stream comes from underwriting general and life insurance policies. It earns premiums from policyholders and invests these premiums in a range of financial instruments to generate investment income. Additionally, Asia Financial Holdings benefits from its strategic partnerships and joint ventures, which provide access to new markets and expand its client base. The company's investment activities also contribute significantly to its earnings, as it seeks to optimize returns from its investment portfolio across different asset classes.

Asia Financial Holdings Financial Statement Overview

Summary

Asia Financial Holdings exhibits strong financial health, driven by robust revenue and profit growth, a solid balance sheet with low leverage, and improved cash flow generation. The company benefits from high margins and financial stability, positioning it well within the life insurance sector.

Income Statement

Asia Financial Holdings has demonstrated strong revenue growth, with a significant increase from 2023 to 2024, reflecting a 23.63% growth rate. Gross and net profit margins are robust at 100% and 24.56% respectively, indicating excellent profitability. The EBIT and EBITDA margins of 28.63% and 29.25% further highlight operational efficiency. Consistent growth and high margins suggest a strong competitive position in the market.

Balance Sheet

The company maintains a very strong balance sheet with a low debt-to-equity ratio of 0.00024, indicating minimal leverage and financial stability. The equity ratio stands at 71.49%, underscoring a solid capital structure. Return on equity is healthy at 5.54%, showcasing effective utilization of shareholder funds. The low debt levels and high equity ratio reflect financial prudence and stability.

Cash Flow

There has been a remarkable turnaround in free cash flow, shifting from negative to positive over the last year, with a growth rate of 119.39%. The operating cash flow to net income ratio is 0.20, indicating a reasonable conversion of net income into operating cash flow. However, the overall cash flow generation relative to net income could be improved. The significant improvement in free cash flow is a positive development.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.63B	2.13B	2.25B	1.76B	1.34B
Gross Profit	2.63B	2.13B	925.30M	1.76B	1.45B
EBITDA	770.62M	493.80M	250.12M	730.04M	291.33M
Net Income	647.07M	346.75M	123.20M	677.62M	337.95M
Balance Sheet
Total Assets	16.33B	15.04B	15.64B	15.39B	15.92B
Cash, Cash Equivalents and Short-Term Investments	8.00B	7.86B	8.15B	8.36B	9.65B
Total Debt	2.77M	3.78M	5.87M	4.34M	3.54M
Total Liabilities	4.66B	4.29B	5.15B	5.01B	4.86B
Stockholders Equity	11.68B	10.75B	10.49B	10.38B	11.00B
Cash Flow
Free Cash Flow	119.68M	-616.95M	-1.12B	-115.97M	-30.65M
Operating Cash Flow	131.98M	-602.02M	-1.11B	-110.51M	-17.32M
Investing Cash Flow	32.26M	173.11M	252.72M	186.41M	-396.05M
Financing Cash Flow	-116.06M	-97.55M	-125.43M	-130.64M	-210.82M

Asia Financial Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.39
• 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:0662, the sentiment is Positive. The current price of 4.39 is above the 20-day moving average (MA) of 4.32, above the 50-day MA of 4.36, and above the 200-day MA of 4.06, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 54.34 is Neutral, neither overbought nor oversold. The STOCH value of 53.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0662.

Asia Financial Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0662	73 Outperform	HK$4.07B	5.76	6.37%	3.51%	8.12%	74.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1669	66 Neutral	HK$332.00M	6.86	5.24%	5.56%	-1.47%	2.86%
0376	49 Neutral	€20.05B	25.20	7.22%	―	19.01%	64.43%

Asia Financial Holdings Corporate Events

Asia Financial Holdings Completes Shareholding Disposal in Hong Kong Life Insurance

Asia Financial Holdings Limited has announced the completion of a significant transaction involving the disposal of its shareholding in Hong Kong Life Insurance Limited. This transaction, finalized on October 9, 2025, resulted in Asia Insurance, a subsidiary of the company, receiving a substantial payment of HK$294,666,666.66. The completion of this transaction is likely to impact the company’s financial positioning and could have implications for its strategic focus within the insurance sector.

The most recent analyst rating on (HK:0662) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Asia Financial Holdings stock, see the HK:0662 Stock Forecast page.

Asia Financial Holdings Declares Interim Dividend for 2025

Asia Financial Holdings Limited has announced an interim cash dividend of HKD 0.065 per share for the six months ending June 30, 2025. The dividend will be paid on October 6, 2025, with the record date set for September 26, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment positively.

The most recent analyst rating on (HK:0662) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Asia Financial Holdings stock, see the HK:0662 Stock Forecast page.

Asia Financial Holdings Updates Nomination Committee Terms

Asia Financial Holdings Limited has updated the terms of reference for its Nomination Committee, which is tasked with identifying and nominating suitable candidates for key executive roles within the company and its subsidiaries. The committee ensures fair and transparent nomination processes and is responsible for reviewing the board’s structure and diversity. This update aims to align the company’s nomination practices with the Corporate Governance Code under Hong Kong’s Listing Rules, potentially impacting the company’s governance and stakeholder confidence positively.

The most recent analyst rating on (HK:0662) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Asia Financial Holdings stock, see the HK:0662 Stock Forecast page.

Asia Financial Holdings Reports Strong Interim Results for 2025

Asia Financial Holdings Limited reported its unaudited interim results for the first half of 2025, showing a profit increase to HK$423.4 million from HK$361.4 million in the previous year. The company experienced a slight decline in insurance revenue but benefited from higher dividend and investment gains, resulting in a higher interim dividend per share of HK6.5 cents. This performance reflects the company’s strategic positioning in the financial services sector, with a notable increase in earnings per share, indicating strong returns for stakeholders.

The most recent analyst rating on (HK:0662) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Asia Financial Holdings stock, see the HK:0662 Stock Forecast page.

Asia Financial Holdings to Review Interim Results and Dividend

Asia Financial Holdings Limited has announced that its board of directors will convene on August 22, 2025, to approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and potential returns, impacting its market positioning and investor confidence.

Asia Financial Holdings Reports Unusual Share Movements

Asia Financial Holdings Limited has observed unusual fluctuations in its share price and trading volume on the Hong Kong Stock Exchange. The company’s board has investigated and found no underlying reasons or undisclosed information that could explain these movements. The company assures that its operations and financial position remain stable, advising shareholders and potential investors to exercise caution.