Merdeka Financial Group Limited (8163) AI Stock Analysis

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Merdeka Financial Group Limited

(HKEX:8163)

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Rating:46Neutral

Price Target:HKD 0.03▼(-9.09% Downside)

Action:reiterated

Date:09/14/26

The score is held down primarily by persistently weak profitability (large net losses and negative operating margins) despite signs of stabilization in leverage and a recent return to positive operating/free cash flow. Technicals add further pressure given the price trading below key moving averages—especially the 200-day—while valuation offers limited support because earnings are negative and no dividend yield is available.

Positive Factors

Modest Current LeverageVery low current leverage reduces near-term balance-sheet pressure and leaves more flexibility to manage operations or fund recovery. This is a meaningful stabilizing factor after periods of higher financial volatility, although it does not by itself resolve the company’s profitability challenges.

Negative Factors

Deeply Negative ProfitabilityThe company remains far from sustainable profitability, with substantial net losses and negative operating margins showing that the current cost structure does not support the business. Persistent losses can consume capital, limit reinvestment capacity, and weaken the credibility of recent cash-flow improvement.

Merdeka Financial Group Limited (8163) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 33.83M
Dividend Yield: ―
Average Volume (3M): 425.93K
Price to Earnings (P/E): -2.2
Beta (1Y): 0.20
Revenue Growth: -15.30%
EPS Growth: 0.62%
Country: Hong Kong
Employees: 14
Sector: Financial
Sector Strength: 68
Industry: Financial - Conglomerates

Merdeka Financial Group Limited Business Overview & Revenue Model

Company Description

Operating across Hong Kong and the People's Republic of China, Merdeka Financial Group Limited operates as an investment holding company with diversified interests in commercial trade, financial services, and information technology. Its Commercial Op...

How the Company Makes Money

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Merdeka Financial Group Limited Financial Statement Overview

Summary

Financials are stabilizing but still weak overall: revenue is slightly down (about -4.8% TTM) and profitability remains deeply negative (net margin around -59%) with negative EBIT/EBITDA margins. The balance sheet shows modest current leverage (debt-to-equity ~0.05) but ROE is strongly negative (~-36%), and the multi-year history indicates volatility. Cash flow is a relative strength with positive TTM operating cash flow (~1.8M) and free cash flow (~1.2M), though FCF fell versus the prior period (~-21%), raising durability questions.

Income Statement

18Very Negative

Balance Sheet

56Neutral

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.62M	20.52M	23.36M	18.94M	18.15M	21.20M
Gross Profit	18.86M	17.46M	-16.87M	18.91M	-17.08M	-11.16M
EBITDA	-3.04M	-5.71M	-12.07M	-6.67M	-10.54M	-6.76M
Net Income	-12.98M	-12.08M	-27.27M	-25.67M	-30.62M	-31.12M
Balance Sheet
Total Assets	32.92M	34.81M	36.40M	56.71M	79.10M	88.89M
Cash, Cash Equivalents and Short-Term Investments	6.39M	7.59M	6.77M	18.43M	23.34M	36.66M
Total Debt	589.00K	1.49M	3.23M	80.93M	91.94M	95.70M
Total Liabilities	7.75M	6.61M	15.44M	91.52M	108.03M	116.39M
Stockholders Equity	25.17M	28.20M	20.96M	-34.80M	-28.93M	-27.50M
Cash Flow
Free Cash Flow	1.17M	934.00K	-11.80M	-8.84M	-5.77M	-1.61M
Operating Cash Flow	1.78M	1.54M	-11.67M	-7.98M	-5.75M	1.84M
Investing Cash Flow	4,000	2.14M	470.00K	1.28M	-3.20M	-3.27M
Financing Cash Flow	-4.37M	-3.06M	3.45M	-2.21M	-4.38M	10.27M

Merdeka Financial Group Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price0.03

Price Trends

50DMA0.04Negative

100DMA0.04Negative

200DMA0.04Negative

Market Momentum

MACD-0.00Negative

RSI0.26Positive

STOCH14.29Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8163, the sentiment is Negative. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of -0.00 indicates Negative momentum. The RSI at 0.26 is Positive, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8163.

Merdeka Financial Group Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

HK:8163 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HK:8621	52Neutral	HKD 40.32M	-1.38	-16.08%	―	-45.23%	54.71%
HK:8340	49Neutral	HKD 94.39M	-4.23	-29.52%	―	-36.37%	-288.55%
HK:8226	48Neutral	HKD 39.25M	20.21	0.53%	―	27.95%	876.00%
HK:8163	46Neutral	HKD 35.38M	-2.17	-48.64%	―	-15.30%	0.62%
HK:8210	42Neutral	HKD 41.95M	-2.52	-22.32%	―	-27.02%	-7100.00%

* Financial Sector Average

Performance Comparison

HK:8163 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:8163	Merdeka Financial Group Limited	0.03	-0.07	-67.00%
HK:8226	KOALA Financial Group	0.10	-0.02	-20.17%
HK:8340	Vinco Financial Group Limited	1.32	0.85	180.85%
HK:1225	Lerado Financial Group Co. Ltd.	0.26	0.06	26.83%
HK:8210	DLC Asia Ltd.	0.05	-0.01	-10.17%
HK:8621	Metropolis Capital Holdings Ltd.	0.04	0.01	31.25%

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.

Date of analysis: Sep 14, 2026

Merdeka Financial Group Limited AI Stock Analysis