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

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


Market Performance


7 Day Return

0%

1577

-0.7%

HK Consumer Finance

2.2%

HK Market


1 Year Return

-17.7%

1577

-19.9%

HK Consumer Finance

-1.3%

HK Market

Return vs Industry: 1577 exceeded the Hong Kong Consumer Finance industry which returned -19.9% over the past year.

Return vs Market: 1577 underperformed the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

1577IndustryMarket
7 Day0%-0.7%2.2%
30 Day0%-5.3%-2.9%
90 Day-3.7%-13.0%-5.8%
1 Year-14.1%-17.7%-18.1%-19.9%2.3%-1.3%
3 Year-14.3%-24.0%-19.5%-28.4%15.6%3.9%
5 Yearn/a-20.2%-31.2%20.1%0.06%

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?

16%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: 1577 (HK$1.3) is trading below our estimate of fair value (HK$1.56)

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


Price Based on Earnings

PE vs Industry: 1577 is poor value based on its PE Ratio (9.3x) compared to the Consumer Finance industry average (8.3x).

PE vs Market: 1577 is good value based on its PE Ratio (9.3x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: 1577 is overvalued based on its PB Ratio (0.8x) compared to the HK Consumer Finance industry average (0.6x).


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?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 1577's forecast earnings growth (2.7% per year) is above the savings rate (2%).

Earnings vs Market: 1577's earnings (2.7% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

High Growth Earnings: 1577's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1577's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1577's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if 1577's Return on Equity is forecast to be high in 3 years time


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


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 (-12.6%).


Return on Equity

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


Return on Assets

ROA vs Industry: 1577 has a higher Return on Assets than the Consumer Finance industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 1577's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

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 8.288130x 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?

4.26%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%2.3%markettop25%6.3%industryaverage5.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 1577's dividend (4.26%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1577's dividend (4.26%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

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 2 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

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

5.1yrs

Average management tenure


CEO

Zhirui Wu (42yo)

6.9yrs

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: Insufficient data to establish whether Zhirui's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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


Management Age and Tenure

5.1yrs

Average Tenure

41.5yo

Average Age

Experienced Management: 1577's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

42yo

Average Age

Experienced Board: 1577's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

Insider Buying: 1577 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

BuyCN¥39,160,90820 Aug 19
Good Rising Investments Limited
EntityCompany
Shares29,444,361
Max PriceCN¥1.33
SellCN¥39,160,90820 Aug 19
Huanrong Zeng
EntityIndividual
Shares29,444,361
Max PriceCN¥1.33
BuyCN¥576,00129 Nov 18
Weiqi Wu
EntityIndividual
Shares360,000
Max PriceCN¥1.60
BuyCN¥2,400,00629 Nov 18
Erguan Hong
EntityIndividual
Shares1,500,000
Max PriceCN¥1.60

Ownership Breakdown


Management Team

  • Yongwei Zhou (57yo)

    Chairman

    • Tenure: 9.8yrs
  • Ka Man Ng (41yo)

    Joint Company Secretary

    • Tenure: 3.8yrs
  • Zhirui Wu (42yo)

    GM & Executive Director

    • Tenure: 6.9yrs
    • Compensation: CN¥976.06k
  • Zhijiang Yan (37yo)

    Deputy GM

    • Tenure: 5.9yrs
    • Compensation: CN¥532.25k
  • Lijun Hong (32yo)

    Chairperson of the Supervisory Committee & Senior Manager

    • Tenure: 3.8yrs
  • Aiqing Liu (42yo)

    Head of Financial Department & Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥437.08k
  • Bin Jiang (42yo)

    Deputy General Manager

    • Tenure: 4.5yrs
  • Wuji Lin (34yo)

    Senior Manager & Secretary to the Board

    • Tenure: 0yrs

Board Members

  • Leland Sun (57yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥83.46k
  • Yongwei Zhou (57yo)

    Chairman

    • Tenure: 9.8yrs
  • Zhirui Wu (42yo)

    GM & Executive Director

    • Tenure: 6.9yrs
    • Compensation: CN¥976.06k
  • Zhijiang Yan (37yo)

    Deputy GM

    • Tenure: 5.9yrs
    • Compensation: CN¥532.25k
  • Haiying Jiang (43yo)

    Non-Executive Director

    • Tenure: 4.3yrs
  • Lihe Zhang (42yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥83.46k
  • Lijun Hong (32yo)

    Chairperson of the Supervisory Committee & Senior Manager

    • Tenure: 3.8yrs
  • Aiqing Liu (42yo)

    Head of Financial Department & Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥437.08k
  • Jianguo Lin (67yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥83.46k
  • Rongjun Cai (32yo)

    Non-Executive Director

    • Tenure: 1.3yrs

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-guar ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 13:12
End of Day Share Price2019/10/11 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.

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