Bright Smart Securities & Commodities Group Limited (1428) AI Stock Analysis

• Market Cap: €10.98B
• Dividend Yield: 5.5%
• Average Volume (3M): 91.17M
• Price to Earnings (P/E): 19.4
• Beta (1Y): 1.31
• Revenue Growth: -5.88%
• EPS Growth: -18.17%
• Country: HK
• Employees: 203
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Capital Markets
• EPS (TTM): 0.33
• Shares Outstanding: 1,697,296,300
• 10 Day Avg. Volume: 72,999,886
• 30 Day Avg. Volume: 91,165,313
• PEG Ratio: N/A
• Price to Book (P/B): 9.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.14
• 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: 68 Neutral
• Price Target: ―

The overall stock score of 68 reflects a mixed outlook. The company's financial performance is challenged by declining revenues and high leverage, which poses risks. However, strong technical indicators suggest upward momentum, and the high dividend yield provides an attractive income opportunity. Investors should weigh the potential risks from financial vulnerabilities against the promising technical trends and dividend yield.

Bright Smart Securities & Commodities Group Limited Business Overview & Revenue Model

Company Description

Bright Smart Securities & Commodities Group Limited, an investment holding company, provides financial services in Hong Kong. It operates through three segments: Securities Broking, Commodities and Futures Broking, and Bullion Trading. The company offers securities, commodities, and futures and stock options brokerage services; margin financing services; initial public offering brokerage and financing services; and forex and bullion trading services. It is also involved in the provision of asset management and administrative services; and production and broadcast finance programs. The company was founded in 1995 and is headquartered in Central, Hong Kong. Bright Smart Securities & Commodities Group Limited is a subsidiary of New Charming Holdings Limited.

How the Company Makes Money

Bright Smart Securities & Commodities Group Limited makes money primarily through its securities broking and margin financing services. The company earns commission fees from its securities and commodities trading operations, where it acts as an intermediary for buying and selling financial instruments. Additionally, the margin financing segment generates revenue by providing clients with loans to invest in securities, earning interest on the borrowed amounts. The firm also benefits from wealth management services, where it charges management fees for portfolio management and investment advisory services. These revenue streams are supported by strategic partnerships with financial institutions and a strong presence in the financial markets of Hong Kong.

Bright Smart Securities & Commodities Group Limited Financial Statement Overview

Summary

Bright Smart Securities & Commodities Group Limited is facing challenges with declining revenues and profitability pressures. While it has strong gross profit margins and operating cash flows, the high leverage and decreasing return on equity are areas of concern. The company should focus on stabilizing revenue growth and managing its debt levels to enhance financial stability and investor confidence.

Income Statement

The company has exhibited fluctuating revenue trends, with a decline in total revenue over the last fiscal year. The gross profit margin is strong, indicating effective cost management. However, the net profit margin has decreased, reflecting pressure on profitability. The company needs to address declining revenue and profitability to improve its financial health.

Balance Sheet

The company maintains a high debt-to-equity ratio, suggesting significant leverage, which could pose financial risks. Return on equity has decreased, indicating less efficient use of equity. The equity ratio is also low, reflecting reliance on debt financing. The balance sheet shows potential vulnerabilities that need careful management to avoid financial strain.

Cash Flow

The cash flow statement shows a positive operating cash flow, indicating good cash generation from core operations. However, free cash flow growth has been inconsistent, with a notable decrease in recent years. The company demonstrates strong operating cash flows, but needs to stabilize free cash flow generation to support long-term investments and debt repayment.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
992.69M	981.18M	1.20B	1.27B	1.55B	1.08B
	Gross Profit
925.76M	840.50M	1.03B	1.08B	1.33B	904.35M
	EBIT
860.12M	864.90M	804.27M	779.63M	1.04B	667.47M
	EBITDA
480.62M	-4.84M	878.76M	857.17M	1.12B	757.11M
	Net Income Common Stockholders
567.24M	558.84M	620.60M	561.50M	703.90M	470.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
596.90M	441.27M	571.49M	574.29M	496.86M	526.20M
	Total Assets
8.52B	7.08B	7.73B	9.77B	15.86B	6.46B
	Total Debt
5.10B	3.87B	4.47B	5.27B	11.50B	3.18B
	Net Debt
4.50B	3.43B	3.97B	4.74B	11.09B	2.70B
	Total Liabilities
33.21M	5.63B	5.99B	7.30B	13.73B	4.56B
	Stockholders Equity
2.20B	1.44B	1.73B	2.47B	2.13B	1.90B
Cash Flow		Free Cash Flow
2.84B	1.40B	2.17B	6.65B	-7.90B	2.28B
	Operating Cash Flow
2.84B	1.41B	2.19B	6.66B	-7.88B	2.29B
	Investing Cash Flow
-4.82M	337.82M	-32.29M	-14.09M	-36.46M	-46.80M
	Financing Cash Flow
-2.94B	-1.80B	-2.16B	-6.56B	7.83B	-2.15B

Bright Smart Securities & Commodities Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1428, the sentiment is Positive. The current price of 6.24 is above the 20-day moving average (MA) of 6.17, above the 50-day MA of 4.12, and above the 200-day MA of 2.64, indicating a bullish trend. The MACD of 0.69 indicates Positive momentum. The RSI at 57.55 is Neutral, neither overbought nor oversold. The STOCH value of 37.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1428.

Bright Smart Securities & Commodities Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1428	68 Neutral	€10.98B	19.36	47.60%	5.50%	-5.88%	-18.17%
Sector *	64 Neutral	$12.66B	9.79	7.67%	17015.07%	12.23%	-6.06%
CIIHF		$49.90B	―	8.44%	3.92%	―	―
195H		€16.87B	9.45	8.73%	3.39%	―	―
3878	57 Neutral	HK$94.96M	12.34	2.81%	―	-46.10%	-38.04%

Bright Smart Securities & Commodities Group Limited Corporate Events

Bright Smart Securities Announces Major Share Sale and Mandatory Cash Offer

Bright Smart Securities & Commodities Group Limited announced a significant transaction involving the sale of approximately 50.55% of its issued shares to Wealthiness and Prosperity Holding Limited. The transaction, valued at HK$2,814,174,400, will lead to a mandatory cash offer for the remaining shares, potentially impacting the company’s market position and shareholder structure.

Bright Smart Securities Announces Major Share Sale and Potential Cash Offer

Bright Smart Securities & Commodities Group Limited has announced a significant transaction involving the sale of approximately 50.55% of its total issued shares to an offeror, as per a Share Purchase Agreement. This transaction, valued at HK$2,814,174,400, could lead to an unconditional mandatory cash offer for the remaining shares, impacting the company’s ownership structure and potentially altering its market positioning.

Bright Smart Securities Announces Trading Halt Pending Inside Information Release

Bright Smart Securities & Commodities Group Limited has announced a trading halt on its shares on the Hong Kong Stock Exchange as of April 23, 2025. This halt is pending the release of an announcement related to the Hong Kong Code on Takeovers and Mergers, indicating the presence of inside information that could impact the company’s operations and stakeholders.

Bright Smart Securities Reports 10% Profit Increase Amid Market Recovery

Bright Smart Securities & Commodities Group Limited announced a 10% increase in unaudited consolidated net profit after tax for the year 2024/25, reaching approximately HK$613 million. This growth is attributed to the company’s strategic promotional efforts and the revitalization of the Hong Kong stock market, which saw significant capital inflows and improved trading volumes. The company’s proactive business philosophy and diversified approach have positioned it well to capitalize on the recovering markets, benefiting stakeholders and enhancing its competitive edge in the financial industry.

Bright Smart Securities Updates on Connected Transactions and Financial Agreements

Bright Smart Securities & Commodities Group Limited announced a supplemental update regarding its renewal of continuing connected transactions, specifically relating to Financial Services Agreements and Brokerage Services Agreements. The company clarified the annual caps for interest income from margin financing for certain directors, noting that these transactions are de minimis and exempt from certain regulatory requirements. Additionally, the company set a lower annual cap for margin financing for Mr. Yip, based on historical usage and future expectations, ensuring compliance with pricing standards that align with independent third-party customers.

Bright Smart Securities Renews Financial and Brokerage Service Agreements

Bright Smart Securities & Commodities Group Limited has announced the renewal of its Continuing Connected Transactions through Financial Services and Brokerage Services Agreements. These agreements, effective from February 14, 2025, allow the company to continue offering financial and brokerage services to its directors and their associates. While the transactions exceed HK$3,000,000, they are subject to reporting and review requirements but are exempt from the need for Independent Shareholders’ approval, according to Chapter 14A of the Listing Rules.