Want to see HK:1273 full AI Analyst Report?
Top Page
Hong Kong Finance Group Ltd.
(1273)
Select Model
Select Model
Rating:68Neutral
Price Target:
HK$0.76
▲(27.17% Upside)
Action:Downgraded
Date:07/18/26
The score is held back primarily by weak and highly volatile cash generation, including negative operating/free cash flow in 2026 despite strong reported margins. Offsetting this, valuation is very attractive (low P/E and solid yield) and technicals are modestly constructive with price trending above longer-term moving averages.
Positive Factors
High Net Margin
A ~42.7% net margin reflects a structurally profitable business model with either pricing power or low unit costs. Sustained high margins provide a durable earnings cushion against revenue downturns, supporting internal capital for dividends, reserves, or reinvestment over time.
Negative Factors
Negative Cash Flow
A switch to materially negative operating and free cash flow in 2026 after strong 2025 cash conversion signals inconsistent earnings quality and cash generation. Persistent cash volatility strains liquidity, raises reliance on external funding, and threatens sustainable payout and lending capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
High Net Margin
A ~42.7% net margin reflects a structurally profitable business model with either pricing power or low unit costs. Sustained high margins provide a durable earnings cushion against revenue downturns, supporting internal capital for dividends, reserves, or reinvestment over time.
Read all positive factors
Hong Kong Finance Group Ltd. (1273) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$296.72M
Dividend Yield6.71%
Average Volume (3M)41.60K
Price to Earnings (P/E)4.3
Beta (1Y)0.12
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. Volume29,200
30 Day Avg. Volume41,600
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...
How the Company Makes Money
null...
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
Positive
0.60
Price Trends
0.68
Positive
0.64
Positive
0.60
Positive
Market Momentum
<0.01
Negative
67.98
Neutral
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1273, the sentiment is Positive. The current price of 0.6 is below the 20-day moving average (MA) of 0.69, below the 50-day MA of 0.68, and below the 200-day MA of 0.60, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.98 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | HK$558.05M | 6.76 | 7.23% | 7.41% | -0.24% | 47.93% | |
72 Outperform | HK$341.80M | 5.92 | 8.47% | 7.20% | 99.18% | 272.34% | |
68 Neutral | HK$296.72M | 4.31 | 7.86% | 6.71% | 4.13% | 51.84% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | HK$541.49M | 6.51 | 26.92% | 3.57% | 7.43% | -15.99% | |
55 Neutral | HK$328.01M | 2.33 | 46.99% | ― | 1098.58% | ― |
* Financial Sector Average
HK:1273
Hong Kong Finance Group Ltd.
0.72
0.27
60.31%
HK:1319
Oi Wah Pawnshop Credit Holdings Ltd.
0.29
0.07
31.82%
HK:1073
Da Yu Financial Holdings Limited
0.10
-0.04
-28.06%
HK:1226
China Investment and Finance Group Ltd
0.80
0.02
1.92%
HK:8030
Flying Financial Service Holdings Limited
1.51
-3.02
-66.67%
HK:8215
First Credit Finance Group Ltd
―
―
―
Hong Kong Finance Group Ltd. Corporate Events
Hong Kong Finance Group Sets AGM to Approve Dividend, Director Re-Election and Share Issuance Mandate
Jul 14, 2026
Hong Kong Finance Group Limited has convened its annual general meeting for 2 September 2026 in Hong Kong, where shareholders will be asked to approve the audited consolidated financial statements for the year ended 31 March 2026 and a proposed fi...
Hong Kong Finance Group Grants HK$15 Million Secured Loan in Discloseable Transaction
Jul 6, 2026
Hong Kong Finance Group Ltd. has agreed, through its lending subsidiary HK Finance (PL), to provide HK$15 million in secured loans to a repeat customer, backed by a first mortgage over a residential property with parking at Beacon Hill Road in Kow...
Hong Kong Finance Group posts stronger profits and balance sheet growth for FY2026
Jun 24, 2026
Hong Kong Finance Group Ltd. reported a significant rise in profitability for the year ended 31 March 2026, with net interest income climbing to HK$152.4 million and operating profit jumping to HK$83.5 million. Profit attributable to shareholders ...
Hong Kong Finance Group Declares Final Cash Dividend for FY2026
Jun 24, 2026
Hong Kong Finance Group Limited has declared a final ordinary cash dividend of HKD 0.032 per share for the financial year ended 31 March 2026, underscoring its commitment to returning value to shareholders. The dividend, subject to shareholder app...
Hong Kong Finance Group Extends HK$15 Million Secured Loan in Discloseable Deal
Jun 24, 2026
Hong Kong Finance Group Limited has arranged a new secured loan of HK$15 million to four existing customers through its lending arm, HK Finance. The six-month facility, carrying interest of 1.45% per month, is backed by a second mortgage over high...
Hong Kong Finance Group forecasts 40%–60% profit surge on loan growth and cost control
Jun 16, 2026
Hong Kong Finance Group Limited expects profit attributable to shareholders for the year ended 31 March 2026 to rise by 40% to 60% from approximately HK$46.2 million a year earlier, driven by expanded loan receivables that boosted interest income....
Hong Kong Finance Group Sets June Board Meeting to Approve Annual Results
Jun 12, 2026
Hong Kong Finance Group Limited has scheduled a board meeting for 24 June 2026 to approve the annual results for the financial year ended 31 March 2026. The board will also consider the payment of a final dividend, a decision that could affect sha...
Hong Kong Finance Group Grants HK$4 Million Secured Loan in Discloseable Deal
May 29, 2026
Hong Kong Finance Group has agreed to extend a new secured loan of HK$4 million to three repeat customers under a nine-month facility carrying an interest rate of 18% per annum. The loan is backed by a second mortgage over two residential units an...
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.