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Hong Kong Finance Group Ltd.
(1273)
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Rating:70Outperform
Price Target:
HK$0.79
▲(32.00% Upside)
Action:Upgraded
Date:10/18/26
The score is primarily driven by solid reported profitability and an attractive valuation (low P/E and high dividend yield), supported by a constructive technical trend. The biggest risk holding the score back is the sharp deterioration and volatility in cash flow (negative operating and free cash flow in 2026), which raises concerns about earnings quality and funding stability.
Positive Factors
Strong Profitability
A net margin near 43% indicates substantial earnings power relative to revenue and provides capacity to absorb operating costs, support capital needs, and fund shareholder returns. Improving operating and EBITDA margins also suggest profitability strengthened beyond simple revenue recovery.
Negative Factors
Negative Cash Generation
The shift from strong positive cash generation in 2025 to negative operating and free cash flow in 2026 raises concerns about earnings conversion and funding needs. Persistent volatility could pressure liquidity, reduce internally funded growth, and make reported profitability less dependable.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
A net margin near 43% indicates substantial earnings power relative to revenue and provides capacity to absorb operating costs, support capital needs, and fund shareholder returns. Improving operating and EBITDA margins also suggest profitability strengthened beyond simple revenue recovery.
Read all positive factors
Hong Kong Finance Group Ltd. (1273) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$290.50M
Dividend Yield6.86%
Average Volume (3M)14.27K
Price to Earnings (P/E)4.2
Beta (1Y)0.15
Revenue Growth4.13%
EPS Growth51.84%
CountryHK
Employees52
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)0.17
Shares Outstanding415,000,000
10 Day Avg. Volume3,200
30 Day Avg. Volume14,266
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.27
Price to Sales (P/S)1.49
P/FCF Ratio-3.59
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
Hong Kong Finance Group Ltd. Business Overview & Revenue Model
Company Description
Hong Kong Finance Group Limited operates as an investment holding company, primarily offering property mortgage loans to individuals and businesses across Hong Kong under the "Hong Kong Finance" brand. Beyond its core mortgage services, the compan...
Hong Kong Finance Group Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 164.24M | 152.81M | 136.73M | 163.27M | 154.88M |
| Gross Profit | 159.02M | 137.10M | 136.73M | 163.27M | 154.88M |
| EBITDA | 100.22M | 62.39M | 80.15M | 104.43M | 99.83M |
| Net Income | 70.13M | 46.17M | 42.69M | 58.88M | 70.55M |
Balance Sheet | |||||
| Total Assets | 1.15B | 1.02B | 1.13B | 1.13B | 1.18B |
| Cash, Cash Equivalents and Short-Term Investments | 22.98M | 34.23M | 28.38M | 29.88M | 24.88M |
| Total Debt | 224.70M | 105.00M | 307.04M | 326.57M | 426.44M |
| Total Liabilities | 241.97M | 168.94M | 318.38M | 341.49M | 440.45M |
| Stockholders Equity | 910.10M | 852.00M | 816.62M | 784.72M | 736.62M |
Cash Flow | |||||
| Free Cash Flow | -68.17M | 166.14M | 26.78M | 129.74M | -34.98M |
| Operating Cash Flow | -67.39M | 169.98M | 28.96M | 130.05M | -33.85M |
| Investing Cash Flow | -478.00K | -2.35M | -139.00K | -14.30M | -29.13M |
| Financing Cash Flow | 57.36M | -162.53M | -30.32M | -110.75M | 7.84M |
Hong Kong Finance Group Ltd. Technical Analysis
Neutral
0.60
Price Trends
0.71
Negative
0.69
Positive
0.63
Positive
Market Momentum
>-0.01
Positive
41.74
Neutral
39.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1273, the sentiment is Neutral. The current price of 0.6 is below the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.71, and below the 200-day MA of 0.63, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.74 is Neutral, neither overbought nor oversold. The STOCH value of 39.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1273.
Hong Kong Finance Group Ltd. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | HK$548.43M | 5.61 | 8.34% | 7.54% | 5.30% | 53.47% | |
70 Outperform | HK$290.50M | 4.22 | 7.86% | 6.86% | 4.13% | 51.84% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | HK$597.38M | 7.31 | 26.92% | 3.57% | 7.43% | -15.99% | |
62 Neutral | HK$341.80M | 5.92 | 8.47% | 7.20% | 99.18% | 272.34% | |
55 Neutral | HK$350.71M | 2.50 | 46.99% | ― | 1098.58% | ― |
* Financial Sector Average
HK:1273
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First Credit Finance Group Ltd
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Hong Kong Finance Group Ltd. Corporate Events
Hong Kong Finance Group Extends HK$8 Million Secured Loan to Repeat Borrower
Oct 16, 2026
Hong Kong Finance Group Ltd. has entered into a new loan agreement with a repeat customer, Customer AC, advancing HK$8 million for six months at an effective annual interest rate of 14.4%. The facility is secured by a first mortgage over a commerc...
Hong Kong Finance Group Renews HK$40 Million Secured Loan to Repeat Borrower
Sep 22, 2026
Hong Kong Finance Group Ltd. has entered into a new loan agreement through its subsidiary HK Finance (PL) to extend a HK$40 million loan to a repeat customer, Customer E, at an interest rate of 1.25% per month over a 12‑month term. The proce...
Hong Kong Finance Group Corrects AGM Poll Results, Confirms Strong Shareholder Support
Sep 4, 2026
Hong Kong Finance Group Ltd. clarified that the poll results from its annual general meeting on 2 September 2026 were misstated and has now provided the correct voting figures. The updated data confirm overwhelming shareholder support for all eigh...
Hong Kong Finance Group Wins Unanimous Backing at AGM, Approves Dividend and Share Mandates
Sep 2, 2026
Hong Kong Finance Group Ltd. reported that all resolutions at its annual general meeting on 2 September 2026 were passed by poll with unanimous support from voting shareholders. Ordinary business included approval of the audited financial statemen...
Hong Kong Finance Group Extends HK$21.7 Million in Secured Property Loans
Aug 19, 2026
Hong Kong Finance Group Ltd. has entered into a set of loan agreements on 19 August 2026 under which its unit HK Finance will provide HK$21.7 million in aggregate financing to three customers. The loans, secured by first and second mortgages over ...
Hong Kong Finance Group Unveils New Corporate Logo Without Impact on Operations
Aug 17, 2026
Hong Kong Finance Group Limited has adopted a new corporate logo with immediate effect, which will appear on all corporate documents, promotional materials, and the company’s website as part of a refreshed visual identity. The update undersc...
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.