SEHK:1577

Stock Analysis Report

Quanzhou Huixin Micro-Credit

Executive Summary

Quanzhou Huixin Micro-credit Co., Ltd., a microfinance company, provides various short-term financing solutions in the People’s Republic of China.


Snowflake Analysis

Slightly overvalued with questionable track record.

Share Price & News

How has Quanzhou Huixin Micro-Credit's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1577 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

1577

-2.4%

HK Consumer Finance

-3.3%

HK Market


1 Year Return

-15.6%

1577

-32.9%

HK Consumer Finance

-9.6%

HK Market

Return vs Industry: 1577 exceeded the Hong Kong Consumer Finance industry which returned -32.5% over the past year.

Return vs Market: 1577 underperformed the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

1577IndustryMarket
7 Day0%-2.4%-3.3%
30 Day0%-3.3%-3.8%
90 Day-5.8%-8.2%-0.2%
1 Year-11.9%-15.6%-31.3%-32.9%-6.3%-9.6%
3 Year-18.1%-27.4%-27.8%-35.3%11.2%-0.05%
5 Yearn/a-31.0%-41.6%12.7%-6.0%

Price Volatility Vs. Market

How volatile is Quanzhou Huixin Micro-Credit's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Quanzhou Huixin Micro-Credit undervalued compared to its fair value and its price relative to the market?

19.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1577 (HK$1.3) is trading below our estimate of fair value (HK$1.61)

Significantly Below Fair Value: 1577 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1577 is poor value based on its PE Ratio (9.3x) compared to the Consumer Finance industry average (6.4x).

PE vs Market: 1577 is good value based on its PE Ratio (9.3x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1577's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1577 is overvalued based on its PB Ratio (0.8x) compared to the HK Consumer Finance industry average (0.4x).


Next Steps

Future Growth

How is Quanzhou Huixin Micro-Credit forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.1%

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 Quanzhou Huixin Micro-Credit 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 Quanzhou Huixin Micro-Credit performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1577 has high quality earnings.

Growing Profit Margin: 1577's current net profit margins (65%) are lower than last year (68.6%).


Past Earnings Growth Analysis

Earnings Trend: 1577's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: 1577's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1577 had negative earnings growth (-7.4%) over the past year, making it difficult to compare to the Consumer Finance industry average (-11.1%).


Return on Equity

High ROE: 1577's Return on Equity (7.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

  • Explore strong past performing companies in the Diversified Financials industry.

Financial Health

How is Quanzhou Huixin Micro-Credit'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: 1577 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1577's debt is covered by short term assets (assets are 8.3x debt).


Financial Institutions Analysis

Asset Level: 1577's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 1577 has a sufficient allowance for bad loans.

Low Risk Liabilities: 1577 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 1577 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1577 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 1577 has an appropriate level of bad loans.


Next Steps

Dividend

What is Quanzhou Huixin Micro-Credit's current dividend yield, its reliability and sustainability?

4.27%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%2.3%markettop25%6.4%industryaverage6.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1577's dividend (4.27%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.32%).

High Dividend: 1577's dividend (4.27%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.41%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1577 has been paying a dividend for less than 10 years.

Growing Dividend: 1577 has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.6%), 1577's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Zhirui Wu (42yo)

7.3yrs

Tenure

CN¥976,059

Compensation

Mr. Zhirui Wu has been General Manager and Executive Director of Quanzhou Huixin Micro-Credit Co., Ltd. since November 20, 2012. Mr. Wu is primarily responsible for formulating and implementing corporate s ...


CEO Compensation Analysis

Compensation vs Market: Zhirui's total compensation ($USD139.14K) is below average for companies of similar size in the Hong Kong market ($USD225.90K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yongwei Zhou
Chairman10.1yrsno datano data
Zhirui Wu
GM & Executive Director7.3yrsCN¥976.06kno data
Aiqing Liu
Head of Financial Department & Executive Director2.9yrsCN¥437.08kno data
Zhijiang Yan
Deputy GM6.3yrsCN¥532.25kno data
Lijun Hong
Chairperson of the Supervisory Committee & Senior Manager4.2yrsno datano data
Bin Jiang
Deputy General Manager4.8yrsno datano data
Ka Man Ng
Joint Company Secretary4.1yrsno datano data
Wuji Lin
Senior Manager & Secretary to the Board0yrsno datano data

5.4yrs

Average Tenure

41.5yo

Average Age

Experienced Management: 1577's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yongwei Zhou
Chairman10.1yrsno datano data
Zhirui Wu
GM & Executive Director7.3yrsCN¥976.06kno data
Aiqing Liu
Head of Financial Department & Executive Director2.9yrsCN¥437.08kno data
Zhijiang Yan
Deputy GM6.3yrsCN¥532.25kno data
Lijun Hong
Chairperson of the Supervisory Committee & Senior Manager4.2yrsno datano data
Li Hsun Sun
Independent Non-Executive Director2.7yrsCN¥83.46kno data
Haiying Jiang
Non-Executive Director4.7yrsno datano data
Lihe Zhang
Independent Non-Executive Director5.6yrsCN¥83.46kno data
Jianguo Lin
Independent Non-Executive Director2.7yrsCN¥83.46kno data
Rongjun Cai
Non-Executive Director1.7yrsno datano data

4.4yrs

Average Tenure

42yo

Average Age

Experienced Board: 1577's board of directors are considered experienced (4.4 years average tenure).


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

Quanzhou Huixin Micro-Credit Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Quanzhou Huixin Micro-Credit Co., Ltd.
  • Ticker: 1577
  • Exchange: SEHK
  • Founded: 2010
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: HK$884.000m
  • Shares outstanding: 680.00m
  • Website: https://www.qzhuixin.net

Number of Employees


Location

  • Quanzhou Huixin Micro-Credit Co., Ltd.
  • Former Finance Building
  • 12th Floor
  • Quanzhou
  • Fujian Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1577SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDSep 2016

Biography

Quanzhou Huixin Micro-credit Co., Ltd., a microfinance company, provides various short-term financing solutions in the People’s Republic of China. The company offers revolving credit facilities, joint-guaranteed loans, targeted payment loans, bridge loans, and collateralized quick-access loans. It serves entrepreneurial individuals, small and medium-sized enterprises, and microenterprises. The company also provides investment advisory and financial leasing services. Quanzhou Huixin Micro-credit Co., Ltd. was founded in 2010 and is headquartered in Quanzhou, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 13:18
End of Day Share Price2020/02/25 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.