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CLSA Premium Ltd. (HK:6877)
:6877
Hong Kong Market

CLSA Premium Ltd. (6877) AI Stock Analysis

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HK

CLSA Premium Ltd.

(6877)

57Neutral
The overall score reflects a challenging financial performance with significant cash flow issues, balanced by positive technical indicators showing bullish momentum. However, the high P/E ratio suggests overvaluation, indicating potential risks if growth expectations are not met. Improvements in cash flow and revenue stability are crucial for a better outlook.

CLSA Premium Ltd. (6877) vs. S&P 500 (SPY)

CLSA Premium Ltd. Business Overview & Revenue Model

Company DescriptionCLSA Premium Ltd. (6877) is a financial services company that operates primarily in the Asia-Pacific region. The company specializes in providing leveraged foreign exchange and other trading services to retail and institutional clients. CLSA Premium Ltd. offers a wide range of trading products, including currency pairs, commodities, indices, and contracts for difference (CFDs), facilitated through its online trading platforms.
How the Company Makes MoneyCLSA Premium Ltd. generates revenue primarily through the spreads and commissions charged on the trades executed by its clients on its platforms. The company also earns income from overnight financing fees and other related transactional services. Its earnings are influenced by trading volumes, client activity, and market volatility. Additionally, CLSA Premium Ltd. may engage in strategic partnerships or collaborations with financial institutions to enhance its service offerings and expand its client base.

CLSA Premium Ltd. Financial Statement Overview

Summary
CLSA Premium Ltd. operates in a highly volatile industry, reflected in its fluctuating revenue and profit margins. While the company has maintained a strong equity position with minimal debt, its cash flow challenges pose significant risks. Continued improvement in revenue and cash flow generation will be crucial for stable growth.
Income Statement
45
Neutral
The company has shown significant revenue volatility, with recent revenue declining sharply from the previous year. Gross Profit Margin has been negative in the earlier years but improved to positive in the latest period. Net Profit Margin has experienced fluctuations but turned positive recently. This suggests a challenging but gradually improving financial performance.
Balance Sheet
60
Neutral
The balance sheet displays strong equity levels with minimal debt, resulting in a favorable Debt-to-Equity Ratio. However, the Equity Ratio has declined as total assets have decreased over time. The Return on Equity has improved, indicating better profitability relative to equity.
Cash Flow
40
Negative
Cash flow from operations has been consistently negative, reflecting challenges in generating cash from core activities. Free Cash Flow has shown improvement but remains negative, limiting the company's ability to invest in growth or pay dividends. The Operating Cash Flow to Net Income Ratio indicates inconsistency in cash conversion.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
86.49M199.68M40.39M2.78M4.71M
Gross Profit
28.26M43.06M-5.30M-23.04M-15.95M
EBIT
-2.85M14.57M-29.21M-57.62M-80.56M
EBITDA
-2.54M15.03M-9.29M-36.79M-67.28M
Net Income Common Stockholders
11.34M9.84M-29.52M-56.54M-71.64M
Balance SheetCash, Cash Equivalents and Short-Term Investments
205.17M222.39M211.79M234.47M289.83M
Total Assets
279.38M251.78M284.31M330.62M430.44M
Total Debt
0.001.28M6.86M9.64M10.70M
Net Debt
-205.17M-222.39M-204.93M-224.83M-276.08M
Total Liabilities
35.08M11.91M53.51M61.86M97.38M
Stockholders Equity
244.31M239.87M230.80M268.76M333.06M
Cash FlowFree Cash Flow
-19.90M1.82M-16.79M-40.12M-6.50M
Operating Cash Flow
-19.90M1.82M-16.79M-39.26M-5.87M
Investing Cash Flow
9.48M9.64M1.78M2.21M-2.58M
Financing Cash Flow
0.00-1.00K-2.12M-10.14M-12.35M

CLSA Premium Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.42
Price Trends
50DMA
0.24
Positive
100DMA
0.18
Positive
200DMA
0.14
Positive
Market Momentum
MACD
0.04
Positive
RSI
66.90
Neutral
STOCH
79.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6877, the sentiment is Positive. The current price of 0.42 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.24, and above the 200-day MA of 0.14, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 66.90 is Neutral, neither overbought nor oversold. The STOCH value of 79.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6877.

CLSA Premium Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$12.60B9.737.92%16985.68%12.21%-5.55%
57
Neutral
HK$853.98M75.004.68%-48.61%16.67%
53
Neutral
HK$2.56B-5.91%0.62%0.93%17.34%
47
Neutral
€135.60M-9.22%-5.75%57.80%
43
Neutral
€38.59M-6.76%-29.37%75.02%
39
Underperform
HK$166.82M-82.56%79.84%-219.70%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6877
CLSA Premium Ltd.
0.42
0.35
500.00%
HK:8050
Quantum Thinking Limited
0.12
-0.03
-20.00%
HK:1223
Symphony Holdings Limited
0.81
0.01
1.25%
HK:1166
Solartech International Holdings Limited
0.33
0.04
14.04%
HK:1080
Shengli Oil & Gas Pipe Holdings Ltd.
0.04
>-0.01
-2.70%

CLSA Premium Ltd. Corporate Events

CLSA Premium Limited Announces Relocation of Hong Kong Office
Apr 25, 2025

CLSA Premium Limited announced a change in its head office and principal place of business in Hong Kong, effective from May 1, 2025. The relocation to Central Plaza, Wanchai, Hong Kong, along with updates to its contact information, signifies a strategic move that may impact its operational efficiency and stakeholder engagement.

CLSA Premium Limited Announces Annual General Meeting and Key Resolutions
Apr 15, 2025

CLSA Premium Limited has announced its upcoming annual general meeting scheduled for May 9, 2025, in Hong Kong. Key agenda items include the adoption of financial statements for the year ending December 31, 2024, the re-election of several directors, and the re-appointment of BDO Limited as auditors. Additionally, the company seeks approval for a general mandate to issue additional shares, which could impact its market positioning and shareholder value.

CLSA Premium Limited Announces Major Board Restructuring
Apr 10, 2025

CLSA Premium Limited announced significant changes in its board of directors, effective April 2025, with the resignation of three directors due to personal and professional reasons. The company expressed gratitude for their contributions and simultaneously appointed new directors, including Mr. Ji Guangfei as the Chairman and CEO, and Ms. Li Jiang as the Deputy Chairman, to lead the company with their extensive experience in corporate management and healthcare.

CLSA Premium Clarifies Member Register Closure for AGM
Apr 7, 2025

CLSA Premium Limited announced a clarification regarding the closure of its register of members for a specified period in May 2025. This closure is necessary for shareholders to qualify for attending and voting at the upcoming Annual General Meeting (AGM), ensuring proper registration of share transfers by the specified deadline.

Beijing Tong Ren Tang Acquires Majority Stake in CLSA Premium Ltd.
Apr 1, 2025

CLSA Premium Ltd. has announced the closure of an unconditional mandatory cash offer made by Shanggu Securities Limited on behalf of Beijing Tong Ren Tang (Cayman) Limited. The offer, which closed on April 1, 2025, resulted in Beijing Tong Ren Tang acquiring approximately 79.01% of CLSA Premium’s total issued share capital. This acquisition marks a significant shift in the company’s ownership structure, potentially impacting its strategic direction and market positioning.

CLSA Premium Limited Reports 2024 Financial Results and Strategic Changes
Mar 17, 2025

CLSA Premium Limited has announced its audited results for the year ending December 31, 2024, revealing a significant decrease in sales from its healthcare business, dropping from HK$191,170,000 in 2023 to HK$86,489,000 in 2024. Despite this decline, the company managed to maintain a profit from continuing operations at HK$11,338,000, slightly down from the previous year’s HK$12,830,000, indicating resilience amidst challenging market conditions. The company also proposed a change of its name and amendments to its Memorandum and Articles of Association, signaling potential strategic shifts to better align with its evolving business focus.

CLSA Premium Maintains Adviser’s Stance on Cash Offer
Mar 17, 2025

CLSA Premium Limited, a company listed on the Hong Kong Stock Exchange, has announced that there is no change in the advice provided by its Independent Financial Adviser, Somerley Capital Limited, regarding an unconditional mandatory cash offer made by Shanggu Securities Limited on behalf of Beijing Tong Ren Tang (Cayman) Limited. The advice remains that the offer is fair and reasonable, and shareholders are encouraged to carefully review the relevant documents before making a decision. The announcement underscores the importance of caution for shareholders and potential investors in dealing with the company’s shares.

CLSA Premium Ltd. Receives Unconditional Cash Offer
Mar 11, 2025

CLSA Premium Limited, a company incorporated in the Cayman Islands, is the subject of an unconditional mandatory cash offer by Shanggu Securities Limited on behalf of Beijing Tong Ren Tang (Cayman) Limited. The offer, which excludes shares already owned by Beijing Tong Ren Tang or its affiliates, involves the despatch of a composite document detailing the offer’s terms, timetable, and recommendations to independent shareholders. The offer period began on March 11, 2025, and will close on April 1, 2025, with results announced the same day. This move could potentially impact the company’s market positioning and shareholder value.

CLSA Premium Limited Schedules Board Meeting for Annual Results Approval
Feb 28, 2025

CLSA Premium Limited, a company incorporated in the Cayman Islands, has announced that its board of directors will convene on March 17, 2025. The meeting’s agenda includes approving the annual results for the year ending December 31, 2024, and considering a final dividend recommendation. This announcement indicates a significant step in the company’s financial reporting process, potentially impacting its stakeholders and market performance.

CLSA Premium Limited Appoints Independent Financial Adviser
Feb 19, 2025

CLSA Premium Limited, a company incorporated in the Cayman Islands, announced the appointment of Somerley Capital Limited as an independent financial adviser. This move is part of the company’s compliance with the Takeovers Code, as it evaluates an offer involving its shareholders. The appointment seeks to provide independent advice on the fairness and reasonableness of the offer, enhancing transparency and ensuring informed decision-making for stakeholders.

CLSA Premium Limited Undergoes Major Share Transfer and Cash Offer
Feb 18, 2025

CLSA Premium Limited, incorporated in the Cayman Islands, has entered a Share Transfer Agreement with Beijing Tong Ren Tang (Cayman) Limited. The agreement involves the transfer of 813,316,000 shares, representing 40% of CLSA’s total issued share capital, for HK$97,994,000. This transaction obliges the Offeror to make an unconditional mandatory cash offer for all remaining shares of CLSA Premium Limited not already owned or agreed to be acquired by the Offeror. This strategic move increases the Offeror’s stake to 59.03% of the company, indicating a significant shift in control and a potential impact on the company’s market operations and investor landscape.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.