SEHK:8018

Stock Analysis Report

Finsoft Financial Investment Holdings

Executive Summary

Finsoft Financial Investment Holdings Limited, an investment holding company, primarily develops and sells financial trading software solutions.

Risk Analysis

Earnings have declined by -38.86% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have a meaningful market cap (HK$83M)



Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has Finsoft Financial Investment Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8018's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.9%

8018

-3.6%

HK Software

-3.7%

HK Market


1 Year Return

-17.1%

8018

20.1%

HK Software

1.0%

HK Market

Return vs Industry: 8018 underperformed the Hong Kong Software industry which returned 25.7% over the past year.

Return vs Market: 8018 underperformed the Hong Kong Market which returned 3.5% over the past year.


Shareholder returns

8018IndustryMarket
7 Day7.9%-3.6%-3.7%
30 Day13.3%17.6%-0.2%
90 Day65.9%15.0%4.1%
1 Year-17.1%-17.1%20.5%20.1%4.7%1.0%
3 Year-62.2%-62.2%39.1%37.5%20.1%7.9%
5 Year-99.3%-99.3%25.8%18.9%18.4%-1.3%

Price Volatility Vs. Market

How volatile is Finsoft Financial Investment Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Finsoft Financial Investment Holdings undervalued compared to its fair value and its price relative to the market?

0.45x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8018's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8018's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8018 is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: 8018 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8018's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8018 is good value based on its PB Ratio (0.4x) compared to the HK Software industry average (1.2x).


Next Steps

Future Growth

How is Finsoft Financial Investment Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

57.0%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Finsoft Financial Investment Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Finsoft Financial Investment Holdings performed over the past 5 years?

-38.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8018 is currently unprofitable.

Growing Profit Margin: 8018 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8018 is unprofitable, and losses have increased over the past 5 years at a rate of -38.9% per year.

Accelerating Growth: Unable to compare 8018's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8018 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (5%).


Return on Equity

High ROE: 8018 has a negative Return on Equity (-11.56%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Finsoft Financial Investment Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8018's short term assets (HK$203.2M) exceed its short term liabilities (HK$35.9M).

Long Term Liabilities: 8018's short term assets (HK$203.2M) exceed its long term liabilities (HK$878.0K).


Debt to Equity History and Analysis

Debt Level: 8018 is debt free.

Reducing Debt: 8018 had no debt 5 years ago.


Balance Sheet

Inventory Level: 8018 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 8018's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 8018 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 8018 has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -44.5% each year


Next Steps

Dividend

What is Finsoft Financial Investment Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.2%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8018's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8018's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8018's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8018's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8018's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Finsoft Financial Investment Holdings's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Finsoft Financial Investment Holdings has no CEO, or we have no data on them.


Management Age and Tenure

3.3yrs

Average Tenure

39.5yo

Average Age

Experienced Management: 8018's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

38yo

Average Age

Experienced Board: 8018's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 8018 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$13,31209 Jan 20
Xiongfeng Zhang
EntityIndividual
Shares260,000
Max PriceHK$0.051
BuyHK$26,50108 Jan 20
Kwok Pong Leung
EntityIndividual
Shares500,000
Max PriceHK$0.053
BuyHK$233,99603 Jan 20
Kwok Pong Leung
EntityIndividual
Shares4,500,000
Max PriceHK$0.052
BuyHK$23,99913 Dec 19
Kwok Pong Leung
EntityIndividual
Shares500,000
Max PriceHK$0.048
BuyHK$332,30911 Dec 19
Kwok Pong Leung
EntityIndividual
Shares6,270,000
Max PriceHK$0.053
BuyHK$15,84002 Dec 19
Kwok Pong Leung
EntityIndividual
Shares330,000
Max PriceHK$0.048
BuyHK$291,97919 Nov 19
Kwok Pong Leung
EntityIndividual
Shares5,840,000
Max PriceHK$0.05
BuyHK$192,88807 Nov 19
Kwok Pong Leung
EntityIndividual
Shares4,010,000
Max PriceHK$0.048
SellHK$120,00910 Oct 19
Kwok Pong Leung
EntityIndividual
Shares2,500,000
Max PriceHK$0.048
BuyHK$122,00526 Sep 19
Kwok Pong Leung
EntityIndividual
Shares2,440,000
Max PriceHK$0.05
BuyHK$400,14027 Jun 19
Kwok Pong Leung
EntityIndividual
Shares5,130,000
Max PriceHK$0.078
BuyHK$312,00225 Jun 19
Kwok Pong Leung
EntityIndividual
Shares3,900,000
Max PriceHK$0.08
BuyHK$463,13524 Jun 19
Kwok Pong Leung
EntityIndividual
Shares5,580,000
Max PriceHK$0.083
BuyHK$39,99921 Jun 19
Kwok Pong Leung
EntityIndividual
Shares500,000
Max PriceHK$0.08
BuyHK$249,01020 Jun 19
Kwok Pong Leung
EntityIndividual
Shares3,000,000
Max PriceHK$0.083
BuyHK$148,79720 Jun 19
Kwok Pong Leung
EntityIndividual
Shares1,860,000
Max PriceHK$0.08
BuyHK$418,40718 Jun 19
Kwok Pong Leung
EntityIndividual
Shares5,230,000
Max PriceHK$0.08
BuyHK$111,08621 May 19
Xiongfeng Zhang
EntityIndividual
Shares1,610,000
Max PriceHK$0.069
BuyHK$222,87724 Apr 19
Xiongfeng Zhang
EntityIndividual
Shares3,020,000
Max PriceHK$0.074
BuyHK$413,61530 Jan 19
Kwok Pong Leung
EntityIndividual
Shares4,400,000
Max PriceHK$0.094
BuyHK$460,01729 Jan 19
Kwok Pong Leung
EntityIndividual
Shares5,000,000
Max PriceHK$0.092
SellHK$2,296,88925 Jan 19
Xiongfeng Zhang
EntityIndividual
Shares24,750,000
Max PriceHK$0.093
BuyHK$14,874,93525 Jan 19
Hui Hui Zhu Liang
EntityIndividual
Shares125,000,000
Max PriceHK$0.12

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Cheuk Wai Wong (41yo)

    Business Development Director of iAsia

    • Ting Lin (49yo)

      Executive Director

      • Tenure: 3.6yrs
      • Compensation: HK$300.00k
    • Kei Lam Wong

      Financial Controller & Company Secretary

      • Tenure: 3.9yrs
    • Ching Yee Lam (38yo)

      Compliance Officer & Executive Director

      • Tenure: 3.6yrs
      • Compensation: HK$300.00k
    • Ho Pong Lam (32yo)

      Executive Director

      • Tenure: 0.08yrs
    • Wai Lung Chan (38yo)

      Chairman of the Board

      • Tenure: 2.6yrs
      • Compensation: HK$1.50m
    • Shaowu Shi (48yo)

      Executive Director

      • Tenure: 1.7yrs
      • Compensation: HK$75.00k

    Board Members

    • Kai Yeung Lam (50yo)

      Independent Non-Executive Director

      • Tenure: 4.6yrs
      • Compensation: HK$120.00k
    • May Jean Lee (58yo)

      Independent Non-Executive Director

      • Tenure: 6.3yrs
      • Compensation: HK$90.00k
    • Ting Lin (49yo)

      Executive Director

      • Tenure: 3.6yrs
      • Compensation: HK$300.00k
    • Ching Yee Lam (38yo)

      Compliance Officer & Executive Director

      • Tenure: 3.6yrs
      • Compensation: HK$300.00k
    • Ho Pong Lam (32yo)

      Executive Director

      • Tenure: 0.08yrs
    • Wai Lung Chan (38yo)

      Chairman of the Board

      • Tenure: 2.6yrs
      • Compensation: HK$1.50m
    • Shi Zhong (35yo)

      Independent Non-Executive Director

      • Tenure: 2.6yrs
      • Compensation: HK$90.00k
    • Shaowu Shi (48yo)

      Executive Director

      • Tenure: 1.7yrs
      • Compensation: HK$75.00k
    • Yu Man Lo (35yo)

      Non-Executive Director

      • Tenure: 1.3yrs
      • Compensation: HK$63.00k

    Company Information

    Finsoft Financial Investment Holdings Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Finsoft Financial Investment Holdings Limited
    • Ticker: 8018
    • Exchange: SEHK
    • Founded: 2012
    • Industry: Application Software
    • Sector: Software
    • Market Cap: HK$83.198m
    • Shares outstanding: 1.26b
    • Website: https://www.finsofthk.com

    Number of Employees


    Location

    • Finsoft Financial Investment Holdings Limited
    • Prosperity Millennia Plaza
    • 12th Floor
    • North Point
    • Hong Kong

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    8018SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2013
    FI83DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2013

    Biography

    Finsoft Financial Investment Holdings Limited, an investment holding company, primarily develops and sells financial trading software solutions. The company operates through Financial Trading Software Solutions, Other IT and Internet Financial Platforms Services, Money Lending, Assets Investments, and Others segments. The Financial Trading Software Solutions segment offers trading and settlement systems of financial products for financial institutions. The Other IT and Internet Financial Platforms Services provides e-commerce platforms, other online consultancy services, IT services, and other financial information. The Money Lending segment offers loan financing. The Assets Investments segment trades in listed securities, and invests in properties for rental income. The Others segment provides referral services to source, identify, and refer deal opportunities to interested parties; and corporate finance advisory services. This segment also trades in gaming products, as well as offers related marketing services. Finsoft Financial Investment Holdings Limited primarily serves financial institutions that conduct brokerage business of financial products traded in Hong Kong. The company was formerly known as Finsoft Corporation and changed its name to Finsoft Financial Investment Holdings Limited in June 2015. Finsoft Financial Investment Holdings Limited was incorporated in 2012 and is headquartered in North Point, Hong Kong. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 13:07
    End of Day Share Price2020/01/23 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.