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Value Convergence Holdings Limited (HK:0821)
:0821
Hong Kong Market
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Value Convergence Holdings Limited (0821) AI Stock Analysis

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HK:0821

Value Convergence Holdings Limited

(0821)

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Neutral 41 (OpenAI - 4o)
Rating:41Neutral
Price Target:
HK$0.50
▲(19.05% Upside)
The overall stock score of 41 reflects significant financial challenges, as indicated by negative profitability and cash flow issues. Technical analysis suggests bearish momentum, with the stock trading below key moving averages. Valuation is also a concern, with a negative P/E ratio and no dividend yield. These factors combine to create a challenging outlook for the stock.

Value Convergence Holdings Limited (0821) vs. iShares MSCI Hong Kong ETF (EWH)

Value Convergence Holdings Limited Business Overview & Revenue Model

Company DescriptionValue Convergence Holdings Limited, an investment holding company, provides financial services in Hong Kong. It operates through six segments: Brokerage and Financing, Corporate Finance and Other Advisory Services, Asset Management, Insurance Brokerage, Proprietary Trading, and Sales and Marketing of Digital Assets. The company offers securities, futures, and options brokering and dealing; margin financing and money lending; placing and underwriting services; and trades in equity and debt securities, and other financial products. It also provides mergers and acquisitions, research, corporate, insurance brokerage, asset management, financial advisory, management, registered office, business, and company secretarial services. Further, it sells and markets digital assets, such as Q-coins in an electronic platform. The company was founded in 1986 and is based in Wanchai, Hong Kong.
How the Company Makes MoneyValue Convergence Holdings Limited generates revenue through multiple streams including commissions from securities brokerage services, management fees from asset management, and advisory fees from corporate finance activities. The company also earns income from proprietary trading and investment activities, which involve buying and selling financial instruments for profit. Key partnerships with financial institutions and other service providers enhance its service offerings, while a diverse client base ranging from individual investors to corporations contributes to its overall earnings. Additionally, market conditions and regulatory changes in the financial services sector can significantly impact the company's revenue potential.

Value Convergence Holdings Limited Financial Statement Overview

Summary
Value Convergence Holdings Limited is facing significant financial headwinds. The income statement highlights ongoing operational challenges with negative profitability and fluctuating revenues. The balance sheet indicates stability in equity but potential reliance on shareholder funding. Cash flow struggles, marked by negative operational cash flows, suggest liquidity constraints. The company may need strategic adjustments to improve financial health and operational efficiency.
Income Statement
25
Negative
The income statement reflects a challenging financial position, with consistent negative net income in recent years. The company has experienced significant revenue volatility, highlighted by a negative revenue growth trend from 2020 to 2023. Furthermore, profitability metrics such as gross profit margin and net profit margin are negative, indicating financial instability and operational inefficiencies.
Balance Sheet
50
Neutral
The balance sheet shows a relatively stable equity position with a decreasing debt-to-equity ratio, indicating cautious leverage management. However, the company's equity ratio remains high, suggesting a reliance on shareholder equity. The presence of cash reserves is a positive aspect, providing some liquidity buffer.
Cash Flow
30
Negative
Cash flow analysis reveals operational challenges, with consistently negative operating cash flow over the years. The free cash flow position remains negative, impairing the company's ability to fund growth without external financing. The inability to generate positive free cash flow indicates potential liquidity issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue60.49M66.05M-50.73M-97.59M89.81M85.26M
Gross Profit42.21M66.05M-66.71M-108.68M109.20M63.62M
EBITDA-98.42M-114.69M-281.12M-169.15M46.36M-18.22M
Net Income-112.33M-127.02M-287.75M-178.09M15.19M-32.32M
Balance Sheet
Total Assets404.29M451.60M569.15M808.90M999.07M929.26M
Cash, Cash Equivalents and Short-Term Investments19.37M18.39M17.72M332.90M507.00M60.83M
Total Debt18.11M13.48M28.70M33.80M37.01M28.62M
Total Liabilities66.47M66.91M55.87M61.25M72.17M90.56M
Stockholders Equity337.85M384.73M513.72M747.64M926.90M839.34M
Cash Flow
Free Cash Flow-2.82M-8.37M-27.49M-6.58M45.45M-199.68M
Operating Cash Flow-2.82M-8.23M-27.37M-6.26M47.46M-198.85M
Investing Cash Flow78.00K-216.00K-15.62M33.66M-107.19M97.59M
Financing Cash Flow3.72M9.17M28.37M-7.61M70.07M94.67M

Value Convergence Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.42
Price Trends
50DMA
0.49
Negative
100DMA
0.44
Positive
200DMA
0.36
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
47.79
Neutral
STOCH
52.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0821, the sentiment is Positive. The current price of 0.42 is below the 20-day moving average (MA) of 0.45, below the 50-day MA of 0.49, and above the 200-day MA of 0.36, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 52.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0821.

Value Convergence 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
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
47
Neutral
HK$94.60M-1.47%0.25%78.57%
45
Neutral
$263.02M-8.91-13.85%51.58%69.53%
41
Neutral
HK$122.90M-1.04-28.22%48.53%
41
Neutral
HK$77.49M-129.94%-81.40%-435.00%
41
Neutral
HK$44.21M-34.21%8.53%86.05%
31
Underperform
-73.92%75.00%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0821
Value Convergence Holdings Limited
0.45
0.11
32.35%
HK:0510
CASH Financial Services Group
0.58
0.24
73.13%
HK:0812
Southwest Securities International Securities Limited
0.03
0.00
0.00%
HK:8098
CL Group (Holdings) Limited
0.04
<0.01
13.16%
HK:8123
Sinofortune Financial Holdings Limited
0.01
0.00
0.00%
HK:8193
Asia-Pac Financial Investment Company Limited
0.16
0.01
6.67%

Value Convergence Holdings Limited Corporate Events

Value Convergence Holdings Limited Announces Under-Subscribed Rights Issue
Oct 17, 2025

Value Convergence Holdings Limited announced the results of its Rights Issue, which was under-subscribed, with only 9.86% of the available Rights Shares being taken up. The company raised approximately HK$21,953,212 from the Rights Issue, and will allocate Excess Rights Shares to qualifying shareholders who applied. The under-subscription may impact the company’s capital raising efforts and its financial strategy moving forward.

The most recent analyst rating on (HK:0821) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Value Convergence Holdings Limited stock, see the HK:0821 Stock Forecast page.

Value Convergence Forms Joint Venture to Expand Service Offerings
Oct 6, 2025

Value Convergence Holdings Limited has announced the formation of a joint venture company in collaboration with Shenzhen Gaoge and Shenzhen Fenglinhui. The joint venture will focus on providing training, professional consulting services, and high-end conferences around RWA, with a total registered capital of RMB1 million. This strategic partnership is expected to enhance the company’s service offerings and consolidate its financial results into the Group’s account.

Value Convergence Holdings Announces Leadership Changes
Oct 2, 2025

Value Convergence Holdings Limited has announced significant leadership changes effective from October 2, 2025. Mr. Zhang Li has been appointed as an executive director and will also serve as the Chairman of the Board and the Executive Committee, succeeding Mr. Fu Yiu Man, Peter, who will continue as an executive director and a member of the Executive Committee. These changes are expected to influence the company’s strategic direction and operational focus.

Value Convergence Holdings Limited Announces Board Composition and Roles
Oct 2, 2025

Value Convergence Holdings Limited has announced the composition of its board of directors and the roles of each member within the board’s committees. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership dynamics and decision-making processes within the organization.

Value Convergence Holdings Secures Unanimous Approval for Strategic Resolutions
Sep 11, 2025

Value Convergence Holdings Limited announced the successful passing of all resolutions at their extraordinary general meeting held on September 11, 2025. The resolutions, which included a proposed Rights Issue and a Placing Agreement, were unanimously approved by shareholders, indicating strong support for the company’s strategic initiatives. This outcome is expected to positively impact the company’s financial operations and market positioning.

Value Convergence Holdings Limited Releases Interim Results for 2025
Aug 29, 2025

Value Convergence Holdings Limited has announced its unaudited interim results for the six months ending June 30, 2025. The announcement, which complies with the listing rules of the Hong Kong Stock Exchange, provides a comprehensive overview of the company’s financial performance and will be made available to shareholders who have requested printed communications. This disclosure is expected to offer insights into the company’s operational progress and financial health over the period, potentially impacting investor confidence and market positioning.

Value Convergence Holdings Announces EGM for Rights Issue and Placing Agreement
Aug 25, 2025

Value Convergence Holdings Limited has announced an extraordinary general meeting to discuss and potentially approve a rights issue and a placing agreement. The rights issue involves the allotment of up to 544,744,608 shares at HK$0.45 each, while the placing agreement pertains to the placement of unsubscribed shares. These measures are aimed at raising capital and could impact the company’s financial stability and shareholder value.

Value Convergence Holdings to Review Interim Results and Dividend
Aug 18, 2025

Value Convergence Holdings Limited has announced an upcoming Board of Directors meeting scheduled for August 29, 2025, where the board will approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, which could impact its market positioning and stakeholder interests.

Value Convergence Proposes Rights Issue to Raise HK$245.1 Million
Aug 6, 2025

Value Convergence Holdings Limited announced a proposed rights issue to raise up to approximately HK$245.1 million by issuing Rights Shares at HK$0.45 per share, on a non-underwritten basis. The initiative aims to strengthen the company’s financial position, with unsubscribed shares to be placed to independent investors, potentially impacting its market operations and shareholder value.

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: Nov 05, 2025