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Victory Securities (Holdings) Co. Ltd.
(8540)
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Rating:54Neutral
Price Target:
HK$4.50
▼(-1.75% Downside)
Action:Reiterated
Date:09/18/26
The score is driven primarily by mixed financial performance: strong TTM revenue growth and high gross margin are offset by negative EBIT/EBITDA and volatile profitability/free cash flow. Technical indicators are broadly neutral, offering limited support. Valuation is a meaningful headwind due to the high P/E and modest dividend yield.
Positive Factors
Revenue Growth and Gross Margin
Strong TTM revenue growth indicates continued demand for the company’s brokerage and related financial services, while the very high gross margin shows substantial revenue retained after direct costs. Together, these support reinvestment and potential operating leverage if cost control improves.
Negative Factors
Negative Operating Profitability
Negative EBIT and EBITDA show that strong gross profitability is not currently translating into sustainable operating earnings. This indicates meaningful operating cost pressure or volatility, limiting confidence that revenue growth will consistently produce stronger underlying profits over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Gross Margin
Strong TTM revenue growth indicates continued demand for the company’s brokerage and related financial services, while the very high gross margin shows substantial revenue retained after direct costs. Together, these support reinvestment and potential operating leverage if cost control improves.
Read all positive factors
Victory Securities (Holdings) Co. Ltd. (8540) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$868.64M
Dividend Yield0.96%
Average Volume (3M)268.87K
Price to Earnings (P/E)49.4
Beta (1Y)0.26
Revenue Growth4.08%
EPS Growth-73.74%
CountryHK
Employees114
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.09
Shares Outstanding212,975,200
10 Day Avg. Volume237,300
30 Day Avg. Volume268,866
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)3.79
Price to Sales (P/S)4.28
P/FCF Ratio6.31
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
Victory Securities (Holdings) Co. Ltd. Business Overview & Revenue Model
Company Description
Operating from its Hong Kong base, Victory Securities (Holdings) Company Limited is an investment holding enterprise that delivers a wide array of financial provisions. The firm specializes in brokerage services for equities, futures, and insuranc...
How the Company Makes Money
Victory Securities (Holdings) Co. Ltd. generates revenue mainly from securities-brokerage-related activities and associated financial services. Key revenue streams typically include: (1) Brokerage commissions and related handling fees earned when ...
Victory Securities (Holdings) Co. Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 228.89M | 211.64M | 68.22M | 51.62M | 65.24M | 82.85M |
| Gross Profit | 187.84M | 146.65M | 62.13M | 45.15M | 60.11M | 75.91M |
| EBITDA | -5.33M | 72.63M | 2.99M | -24.15M | -20.89M | 22.11M |
| Net Income | 17.66M | 60.36M | -3.14M | -24.97M | -24.16M | 15.11M |
Balance Sheet | ||||||
| Total Assets | 418.82M | 515.43M | 520.04M | 300.75M | 365.42M | 496.49M |
| Cash, Cash Equivalents and Short-Term Investments | 70.68M | 102.29M | 12.89M | 23.67M | 27.82M | 18.48M |
| Total Debt | 117.47M | 94.88M | 167.15M | 96.20M | 133.16M | 213.55M |
| Total Liabilities | 193.18M | 276.76M | 342.57M | 137.65M | 176.46M | 280.54M |
| Stockholders Equity | 225.72M | 239.23M | 172.55M | 163.01M | 188.91M | 215.79M |
Cash Flow | ||||||
| Free Cash Flow | 27.98M | 143.57M | -87.52M | 41.90M | 106.96M | -62.21M |
| Operating Cash Flow | 33.53M | 144.40M | -87.15M | 42.07M | 108.17M | -61.18M |
| Investing Cash Flow | 24.97M | 16.83M | -5.93M | -2.49M | -7.09M | -7.63M |
| Financing Cash Flow | -90.82M | -60.36M | 72.32M | -53.63M | -90.76M | 60.24M |
Victory Securities (Holdings) Co. Ltd. Technical Analysis
Positive
4.58
Price Trends
4.36
Positive
4.34
Positive
4.48
Negative
Market Momentum
<0.01
Negative
54.21
Neutral
55.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8540, the sentiment is Positive. The current price of 4.58 is above the 20-day moving average (MA) of 4.37, above the 50-day MA of 4.36, and above the 200-day MA of 4.48, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.21 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8540.
Victory Securities (Holdings) Co. Ltd. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | HK$27.59B | 18.79 | 9.18% | 2.41% | 43.49% | 109.36% | |
54 Neutral | HK$868.64M | 49.44 | 7.60% | 0.96% | 4.08% | -73.74% | |
54 Neutral | HK$11.48B | 17.13 | 33.51% | 22.30% | -1.70% | 8.52% | |
49 Neutral | HK$1.31B | 10.99 | 4.36% | 4.04% | 200.24% | ― | |
45 Neutral | HK$172.47M | -4.14 | -23.72% | 1.72% | 10.05% | -40.15% | |
45 Neutral | HK$809.99M | -0.83 | 6.05% | 0.98% | -21.71% | 8.04% |
* Financial Sector Average
HK:8540
Victory Securities (Holdings) Co. Ltd.
4.38
-0.60
-11.99%
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0.40
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0.10
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-47.22%
HK:1788
Guotai Junan International Holdings Limited
2.90
-1.56
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Bright Smart Securities & Commodities Group Limited
6.68
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-25.28%
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Shenwan Hongyuan (H.K.) Limited
0.86
-1.00
-53.78%
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.