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

Fundamentals

Adequate balance sheet with questionable track record.

Risks

  • Quanzhou Huixin Micro-Credit is not covered by any analysts.

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


Market Performance


7 Day Return

0%

SEHK:1577

-3.5%

HK Consumer Finance

-0.6%

HK Market


1 Year Return

3.9%

SEHK:1577

-28.7%

HK Consumer Finance

-9.8%

HK Market

1577 outperformed the Consumer Finance industry which returned -28.7% over the past year.

1577 outperformed the Market in Hong Kong which returned -9.8% over the past year.


Share holder returns

1577IndustryMarket
7 Day0%-3.5%-0.6%
30 Day0%-9.8%-9.6%
90 Day-4.3%-9.3%-7.5%
1 Year8.4%3.9%-27.0%-28.7%-6.5%-9.8%
3 Yearn/a-17.1%-26.1%12.8%1.6%
5 Yearn/a-26.4%-36.2%7.2%-10.6%

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 based on future cash flows and its price relative to the stock market?

15%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Quanzhou Huixin Micro-Credit's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Quanzhou Huixin Micro-Credit's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Quanzhou Huixin Micro-Credit is overvalued based on earnings compared to the HK Consumer Finance industry average.

Quanzhou Huixin Micro-Credit is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Quanzhou Huixin Micro-Credit, we can't assess if its growth is good value.


Price Based on Value of Assets

Quanzhou Huixin Micro-Credit is overvalued based on assets compared to the HK Consumer Finance industry average.


Next Steps

Future Growth

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

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Quanzhou Huixin Micro-Credit is high growth as no revenue estimate data is available.

Quanzhou Huixin Micro-Credit's earnings are expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Unable to compare Quanzhou Huixin Micro-Credit's revenue growth to the Hong Kong market average as no estimate data is available.

Quanzhou Huixin Micro-Credit's earnings growth is positive but not above the Hong Kong market average.

Quanzhou Huixin Micro-Credit's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Quanzhou Huixin Micro-Credit will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

10.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Quanzhou Huixin Micro-Credit's year on year earnings growth rate has been positive over the past 5 years.

Quanzhou Huixin Micro-Credit's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Quanzhou Huixin Micro-Credit's 1-year earnings growth is negative, it can't be compared to the HK Consumer Finance industry average.


Return on Equity

Quanzhou Huixin Micro-Credit has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Quanzhou Huixin Micro-Credit used its assets more efficiently than the HK Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Quanzhou Huixin Micro-Credit improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Quanzhou Huixin Micro-Credit's financial position?


Financial Position Analysis

Quanzhou Huixin Micro-Credit is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Quanzhou Huixin Micro-Credit's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Quanzhou Huixin Micro-Credit's level of debt (18.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (28% vs 18.8% today).

Debt is not well covered by operating cash flow (1.6%, less than 20% of total debt).

Unable to confirm if the interest payments on Quanzhou Huixin Micro-Credit's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 5.7x debt.


Next Steps

Dividend

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

4.19%

Current Dividend Yield


Dividend Yield and Payments Analysis

Quanzhou Huixin Micro-Credit's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.29%).

Quanzhou Huixin Micro-Credit's dividend is below the markets top 25% of dividend payers in Hong Kong (6.26%).

Whilst dividend payments have been stable, Quanzhou Huixin Micro-Credit has been paying a dividend for less than 10 years.

Quanzhou Huixin Micro-Credit has only been paying a dividend for 2 years, and since then there has been no growth.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.6x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Quanzhou Huixin Micro-Credit's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Zhirui Wu (42yo)

6.8yrs

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

Zhirui's remuneration is lower than average for companies of similar size in Hong Kong.

Zhirui's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.9yrs

Average Tenure

41.5yo

Average Age

The tenure for the Quanzhou Huixin Micro-Credit management team is about average.


Board Age and Tenure

3.9yrs

Average Tenure

42yo

Average Age

The tenure for the Quanzhou Huixin Micro-Credit board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyCN¥2,400,00629 Nov 18
Erguan Hong
EntityIndividual
Shares1,500,000
Max PriceCN¥1.60
BuyCN¥576,00129 Nov 18
Weiqi Wu
EntityIndividual
Shares360,000
Max PriceCN¥1.60
BuyCN¥1,429,99729 Aug 18
Ming Ting Chong
EntityIndividual
Shares1,100,000
Max PriceCN¥1.30

Ownership Breakdown


Management Team

  • Yongwei Zhou (57yo)

    Chairman

    • Tenure: 9.6yrs
  • Ka Man Ng (41yo)

    Joint Company Secretary

    • Tenure: 3.6yrs
  • Zhirui Wu (42yo)

    GM & Executive Director

    • Tenure: 6.8yrs
    • Compensation: CN¥976.06k
  • Zhijiang Yan (37yo)

    Deputy GM

    • Tenure: 5.8yrs
    • Compensation: CN¥532.25k
  • Lijun Hong (32yo)

    Chairperson of the Supervisory Committee & Senior Manager

    • Tenure: 3.7yrs
  • Aiqing Liu (42yo)

    Head of Financial Department & Executive Director

    • Tenure: 2.4yrs
    • Compensation: CN¥437.08k
  • Bin Jiang (42yo)

    Deputy General Manager

    • Tenure: 4.3yrs
  • Wuji Lin (34yo)

    Senior Manager & Secretary to the Board

    • Tenure: 0.0yrs

Board Members

  • Leland Sun (57yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥83.46k
  • Yongwei Zhou (57yo)

    Chairman

    • Tenure: 9.6yrs
  • Zhirui Wu (42yo)

    GM & Executive Director

    • Tenure: 6.8yrs
    • Compensation: CN¥976.06k
  • Zhijiang Yan (37yo)

    Deputy GM

    • Tenure: 5.8yrs
    • Compensation: CN¥532.25k
  • Haiying Jiang (43yo)

    Non-Executive Director

    • Tenure: 4.2yrs
  • Lihe Zhang (42yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: CN¥83.46k
  • Lijun Hong (32yo)

    Chairperson of the Supervisory Committee & Senior Manager

    • Tenure: 3.7yrs
  • Aiqing Liu (42yo)

    Head of Financial Department & Executive Director

    • Tenure: 2.4yrs
    • Compensation: CN¥437.08k
  • Jianguo Lin (67yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥83.46k
  • Rongjun Cai (32yo)

    Non-Executive Director

    • Tenure: 1.2yrs

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$904.400m
  • 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-guar ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 13:04
End of Day Share Price2019/08/16 00:00
Earnings2018/12/31
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.