SEHK:1461

Stock Analysis Report

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Executive Summary

LUZHENG FUTURES Company Limited, a futures company, provides brokerage services for commodity and financial futures in the People’s Republic of China. More Details


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has LUZHENG FUTURES's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1461 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 1461's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

1.6%

1461

3.6%

HK Capital Markets

1.5%

HK Market


1 Year Return

-19.5%

1461

39.4%

HK Capital Markets

11.3%

HK Market

Return vs Industry: 1461 underperformed the Hong Kong Capital Markets industry which returned 39.4% over the past year.

Return vs Market: 1461 underperformed the Hong Kong Market which returned 11.3% over the past year.


Shareholder returns

1461IndustryMarket
7 Day1.6%3.6%1.5%
30 Day5.1%4.9%8.1%
90 Day0%-1.2%6.0%
1 Year-19.5%-19.5%42.6%39.4%15.9%11.3%
3 Year-57.8%-62.9%-3.2%-10.4%1.7%-8.9%
5 Year-60.6%-67.4%0.5%-12.2%33.3%10.8%

Long-Term Price Volatility Vs. Market

How volatile is LUZHENG FUTURES's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is LUZHENG FUTURES undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1461 (HK$0.62) is trading below our estimate of fair value (HK$1.33)

Significantly Below Fair Value: 1461 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1461 is poor value based on its PE Ratio (14.6x) compared to the HK Capital Markets industry average (12.3x).

PE vs Market: 1461 is poor value based on its PE Ratio (14.6x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1461's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1461 is good value based on its PB Ratio (0.2x) compared to the HK Capital Markets industry average (0.5x).


Next Steps

Future Growth

How is LUZHENG FUTURES forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.5%

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 LUZHENG FUTURES 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 LUZHENG FUTURES performed over the past 5 years?

-11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1461 has high quality earnings.

Growing Profit Margin: 1461's current net profit margins (7.3%) are lower than last year (15.1%).


Past Earnings Growth Analysis

Earnings Trend: 1461's earnings have declined by 11.1% per year over the past 5 years.

Accelerating Growth: 1461's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1461 had negative earnings growth (-44%) over the past year, making it difficult to compare to the Capital Markets industry average (14.1%).


Return on Equity

High ROE: 1461's Return on Equity (1.7%) is considered low.


Next Steps

Financial Health

How is LUZHENG FUTURES's financial position?


Financial Position Analysis

Short Term Liabilities: 1461's short term assets (CN¥10.5B) exceed its short term liabilities (CN¥8.5B).

Long Term Liabilities: 1461's short term assets (CN¥10.5B) exceed its long term liabilities (CN¥20.9M).


Debt to Equity History and Analysis

Debt Level: 1461's debt to equity ratio (2.6%) is considered satisfactory.

Reducing Debt: 1461's debt to equity ratio has increased from 2.1% to 2.6% over the past 5 years.

Debt Coverage: 1461's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 1461's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is LUZHENG FUTURES current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1461's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1461's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1461's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1461's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1461 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 1461's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Qingbin Liu (51 yo)

4.25yrs

Tenure

CN¥1,224,000

Compensation

Mr. Qingbin Liu has been General Manager at Luzheng Futures Co., Ltd. since August 15, 2016 and has been its Chief Executive Officer. Mr. Liu joined Luzheng Futures in May 2014. He serves as Director of Zh...


CEO Compensation Analysis

Compensation vs Market: Qingbin's total compensation ($USD186.08K) is about average for companies of similar size in the Hong Kong market ($USD230.00K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jinlong Zhong
Executive Chairman0.92yrno datano data
Qingbin Liu
GM & CEO4.25yrsCN¥1.22mno data
Zhongwei Liang
Joint Secretary & Executive Director8.42yrsCN¥773.00kno data
Yunzhi Liu
Deputy GM & CFO11.92yrsno datano data
Hairan Wang
GM of Compliance & Risk Control Department & Employee Representative Supervisorno datano datano data
Hui Jiang
Deputy General Managerno datano datano data
Yingjian Pei
Deputy GM and Supervisor of Information & Technology Department8.33yrsno datano data
Jianmin Liu
Chief Risk Officerno datano datano data
Mingxia Shen
Deputy General Managerno datano datano data
Wing Shan Ng
Joint Company Secretaryno datano datano data

4.3yrs

Average Tenure

48yo

Average Age

Experienced Management: 1461's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jinlong Zhong
Executive Chairman0.92yrno datano data
Zhongwei Liang
Joint Secretary & Executive Director8.42yrsCN¥773.00kno data
Hairan Wang
GM of Compliance & Risk Control Department & Employee Representative Supervisorno datano datano data
Chuanshun Wang
Independent Non Executive Director7.92yrsCN¥119.00kno data
Feng Liu
Non Executive Director5.67yrsno datano data
Zhu Gao
Independent Non Executive Director8.83yrsCN¥119.00kno data
An Tie
Chairman of supervisory committeeno datano datano data
Dapeng Li
Independent Non-Executive Director4.42yrsCN¥119.00kno data
Hongsong Liu
Non-Executive Director0.92yrno datano data
Kainan Hu
Non-Executive Director0.92yrno datano data
Gang Ming
Non-Executive Director0.92yrno datano data
Jianping Zheng
Independent Non-Executive Director0.92yrno datano data

2.7yrs

Average Tenure

50.5yo

Average Age

Experienced Board: 1461's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

LUZHENG FUTURES Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LUZHENG FUTURES Company Limited
  • Ticker: 1461
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: HK$621.178m
  • Shares outstanding: 1.00b
  • Website: https://www.luzhengqh.com

Number of Employees


Location

  • LUZHENG FUTURES Company Limited
  • Securities Tower
  • 15-16 Floor
  • Jinan
  • Shandong Province
  • 250001
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1461SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares Foreign ListedHKHKDJul 2015

Biography

LUZHENG FUTURES Company Limited, a futures company, provides brokerage services for commodity and financial futures in the People’s Republic of China. The company’s Futures Brokerage segment offers futures...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 10:05
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.