Sinofortune Financial Holdings Limited (8123) AI Stock Analysis

• Market Cap: HK$77.49M
• Dividend Yield: N/A
• Average Volume (3M): 2.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: -81.40%
• EPS Growth: -435.00%
• Country: HK
• Employees: 38
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Financial - Capital Markets
• EPS (TTM): <0.01
• Shares Outstanding: 7,748,958,000
• 10 Day Avg. Volume: 2,963,400
• 30 Day Avg. Volume: 2,940,240
• PEG Ratio: >-0.01
• Price to Book (P/B): 5.09
• Price to Sales (P/S): 2.36
• P/FCF Ratio: -3.25
• 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: 33 Underperform
• Price Target: ―

The overall stock score for Sinofortune Financial Holdings Limited reflects significant financial weaknesses, including declining revenues and persistent losses. The company has high leverage and negative cash flows, contributing to a low financial performance score. Technical analysis suggests a lack of market momentum, while valuation metrics such as a negative P/E ratio further highlight the company's financial challenges. The absence of positive earning call insights or corporate events results in a focus on these core issues.

Sinofortune Financial Holdings Limited Business Overview & Revenue Model

Company Description

Sinofortune Financial Holdings Limited, an investment holding company, engages in the sale of motor vehicles and provision of agency services in the People's Republic of China and Hong Kong. The company operates through Brokerage and Securities Margin Financing Services; Trading and Principal Investments; and Sales of Motor Vehicles, Provision of Agency Services and Accessories Sourcing segments. It offers securities and futures brokerage, and securities margin financing services; and precious metals brokerage and spot trading, as well as provides securities and futures contract trading services. The company is also involved in the trading and principal investment activities; and provision of education information and consultancy services. In addition, it is involved in the trade of motor vehicles, and provision of agency related services. The company was formerly known as First China Financial Network Holdings Limited and changed its name to Sinofortune Financial Holdings Limited in June 2017. Sinofortune Financial Holdings Limited was founded in 1999 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Sinofortune Financial Holdings Limited generates revenue primarily through its securities trading and brokerage services, where it earns commissions and fees from executing trades on behalf of clients. The company also makes money through margin financing, where it provides loans to customers for purchasing securities, earning interest income on these loans. Additionally, the company offers asset management services, charging management and performance fees based on the assets under management. Strategic partnerships with financial institutions and expansion into new financial products or markets may also contribute to its earnings.

Sinofortune Financial Holdings Limited Financial Statement Overview

Summary

Sinofortune Financial Holdings Limited is facing substantial financial challenges characterized by significant declines in revenue, persistent losses, high leverage, and negative cash flows. The company's financial position reflects both operational inefficiencies and financial risk, necessitating strategic measures to improve stability and profitability.

Income Statement

The company has experienced a significant decline in revenue from HK$166.5M to HK$32.1M, indicating a revenue growth rate of -80.7% over the last year. Margins have been consistently negative with the gross profit margin at 5.44% and a net profit margin of -307.2% for the latest period. Negative EBIT and EBITDA margins further highlight challenges in operational profitability.

Balance Sheet

The company exhibits a high debt-to-equity ratio of 1.91, indicating significant leverage and potential financial risk. Stockholders' equity has decreased, resulting in an equity ratio of 12.6%, signifying low equity financing. While liquidity is a concern, the cash position provides some buffer against liabilities.

Cash Flow

Operating cash flows have frequently been negative, and free cash flow remains at zero for the latest period, suggesting cash flow challenges. The absence of free cash flow growth and negative operating cash flow to net income ratios underline the company's struggles in generating cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.50M	32.15M	149.78M	180.81M	24.18M	69.07M
Gross Profit	7.00K	1.75M	2.44M	-11.45M	-11.61M	-12.96M
EBITDA	-9.11M	-19.64M	-6.94M	-26.62M	-28.59M	-45.67M
Net Income	6.97M	-98.75M	-15.78M	-30.67M	-32.10M	-41.56M
Balance Sheet
Total Assets	137.26M	117.75M	244.28M	232.80M	295.57M	242.66M
Cash, Cash Equivalents and Short-Term Investments	9.51M	13.53M	36.26M	33.74M	55.69M	94.75M
Total Debt	35.14M	28.43M	31.03M	26.62M	11.28M	2.84M
Total Liabilities	114.50M	102.98M	126.06M	95.39M	116.94M	36.05M
Stockholders Equity	22.81M	14.87M	118.05M	137.22M	178.40M	206.39M
Cash Flow
Free Cash Flow	-1.01M	-23.33M	-17.18M	-33.93M	-48.86M	-22.64M
Operating Cash Flow	-1.01M	-21.13M	-15.50M	-33.73M	-48.84M	-20.02M
Investing Cash Flow	-10.00K	21.32M	208.00K	-728.00K	-695.00K	2.81M
Financing Cash Flow	-3.00M	-2.61M	1.74M	12.45M	8.13M	-4.80M

Sinofortune Financial Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0804	53 Neutral	HK$274.10M	―	-21.71%	―	50.60%	-12.96%
8193	41 Neutral	HK$44.21M	―	-34.21%	―	8.53%	86.05%
0372	39 Underperform	€49.95M	―	―	―	0.26%	-1296.09%
2324	38 Underperform	HK$62.12M	―	-14.26%	―	2126.94%	36.49%
0821	37 Underperform	HK$348.77M	―	-28.22%	―	―	48.53%
8123	33 Underperform	HK$77.49M	―	-129.94%	―	-81.40%	-435.00%