SEHK:1290

Stock Analysis Report

China Huirong Financial Holdings

Executive Summary

China Huirong Financial Holdings Limited, an investment holding company, financing and wealth management services to small and medium sized enterprises, and individuals in the People’s Republic of China.

Rewards

Earnings grew by 18.6% over the past year

Risk Analysis

Earnings have declined by -25.74% per year over past 5 years

Shareholders have been diluted in the past year



Snowflake Analysis

Acceptable track record with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1290 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

1290

0.06%

HK Consumer Finance

0.5%

HK Market


1 Year Return

15.4%

1290

-20.9%

HK Consumer Finance

-0.2%

HK Market

Return vs Industry: 1290 exceeded the Hong Kong Consumer Finance industry which returned -20.9% over the past year.

Return vs Market: 1290 exceeded the Hong Kong Market which returned -0.2% over the past year.


Shareholder returns

1290IndustryMarket
7 Day0%0.06%0.5%
30 Day2.9%-5.5%-3.8%
90 Day4.0%-8.3%-1.3%
1 Year16.8%15.4%-19.0%-20.9%3.4%-0.2%
3 Year6.5%4.0%-16.9%-26.2%18.8%6.7%
5 Year-6.8%-11.8%-28.2%-38.3%19.5%-0.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Huirong Financial Holdings undervalued compared to its fair value and its price relative to the market?

15.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1290 (HK$1.05) is trading above our estimate of fair value (HK$0.49)

Significantly Below Fair Value: 1290 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1290 is poor value based on its PE Ratio (15.4x) compared to the Consumer Finance industry average (6.6x).

PE vs Market: 1290 is poor value based on its PE Ratio (15.4x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1290's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1290 is overvalued based on its PB Ratio (0.6x) compared to the HK Consumer Finance industry average (0.5x).


Next Steps

Future Growth

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

-43.3%

Forecasted Diversified Financials 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 China Huirong Financial 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 China Huirong Financial Holdings performed over the past 5 years?

-25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1290 has high quality earnings.

Growing Profit Margin: 1290's current net profit margins (17.8%) are lower than last year (22.3%).


Past Earnings Growth Analysis

Earnings Trend: 1290's earnings have declined by -25.7% per year over the past 5 years.

Accelerating Growth: 1290's earnings growth over the past year (18.6%) exceeds its 5-year average (-25.7% per year).

Earnings vs Industry: 1290 earnings growth over the past year (18.6%) exceeded the Consumer Finance industry -7.5%.


Return on Equity

High ROE: 1290's Return on Equity (4.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Huirong Financial Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 1290 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1290's debt is covered by short term assets (assets are 2.7x debt).


Financial Institutions Analysis

Asset Level: 1290's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 1290 has a sufficient allowance for bad loans.

Low Risk Liabilities: 1290 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 1290 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1290 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 1290 has an appropriate level of bad loans.


Next Steps

Dividend

What is China Huirong Financial Holdings's current dividend yield, its reliability and sustainability?

1.21%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%2.3%markettop25%6.2%industryaverage6.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1290's dividend (1.21%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1290's dividend (1.21%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.23%).


Stability and Growth of Payments

Stable Dividend: 1290 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1290 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1290 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1290'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 China Huirong Financial Holdings's salary, the management and board of directors tenure and is there insider trading?

6.2yrs

Average board tenure


CEO

Min Wu (50yo)

0yrs

Tenure

CN¥1,721,000

Compensation

Mr. Min Wu serves as the Chief Executive Officer and President at China Huirong Financial Holdings Limited and has been its Chairman since June 1, 2017. Mr. Wu is responsible for the day-to-day operations  ...


CEO Compensation Analysis

Compensation vs Market: Min's total compensation ($USD244.65K) is about average for companies of similar size in the Hong Kong market ($USD226.68K).

Compensation vs Earnings: Min's compensation has been consistent with company performance over the past year.


Board Age and Tenure

6.2yrs

Average Tenure

49yo

Average Age

Experienced Board: 1290's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.7%.


Management Team

  • Min Wu (50yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: CN¥1.72m
  • Ching Ching Leung (38yo)

    Company Secretary

    • Tenure: 6.2yrs
  • Yu Cao (44yo)

    Chief Risk Officer

    • Tenure: 0yrs
  • Changsong Zhang (46yo)

    CFO, Executive Director & GM of Technology Finance Business Division

    • Tenure: 3.9yrs
    • Compensation: CN¥1.55m

Board Members

  • Yat Hong Tse (49yo)

    Independent Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: CN¥362.00k
  • Joe Zhang (56yo)

    Independent Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: CN¥362.00k
  • Ke Feng (45yo)

    Independent Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: CN¥362.00k
  • Min Wu (50yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: CN¥1.72m
  • You Zhuo (50yo)

    Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: CN¥50.00k
  • Cheng Zhang (34yo)

    Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: CN¥50.00k
  • Changsong Zhang (46yo)

    CFO, Executive Director & GM of Technology Finance Business Division

    • Tenure: 3.9yrs
    • Compensation: CN¥1.55m
  • Shu Zhang (53yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥50.00k
  • Xiaoming Ling (46yo)

    Non-Executive Director

    • Tenure: 1.6yrs

Company Information

China Huirong Financial Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Huirong Financial Holdings Limited
  • Ticker: 1290
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: HK$1.141b
  • Shares outstanding: 1.09b
  • Website: https://www.cnhuirong.com

Number of Employees


Location

  • China Huirong Financial Holdings Limited
  • Cultural and Creative Building
  • 22nd Floor
  • Suzhou
  • Jiangsu Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1290SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2013
2HFDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2013

Biography

China Huirong Financial Holdings Limited, an investment holding company, financing and wealth management services to small and medium sized enterprises, and individuals in the People’s Republic of China. I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 13:00
End of Day Share Price2019/12/11 00:00
Earnings2019/06/30
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.