SEHK:2003

Stock Analysis Report

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Executive Summary

VCREDIT Holdings Limited, an investment holding company, provides online consumer finance services to prime and near-prime borrowers in China. More Details


Snowflake Analysis

Adequate balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2003's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.9%

2003

-0.2%

HK Consumer Finance

-0.7%

HK Market


1 Year Return

-51.6%

2003

-5.1%

HK Consumer Finance

0.4%

HK Market

Return vs Industry: 2003 underperformed the Hong Kong Consumer Finance industry which returned -5.1% over the past year.

Return vs Market: 2003 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

2003IndustryMarket
7 Day-9.9%-0.2%-0.7%
30 Day-13.8%-5.0%4.9%
90 Day-17.4%-5.8%1.2%
1 Year-51.6%-51.6%-2.3%-5.1%4.6%0.4%
3 Yearn/a-6.9%-17.1%-7.1%-17.2%
5 Yearn/a-25.5%-37.3%15.0%-4.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is VCREDIT Holdings undervalued compared to its fair value and its price relative to the market?

0.74x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 2003's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 2003's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 2003 is unprofitable, so we can't compare its PE Ratio to the HK Consumer Finance industry average.

PE vs Market: 2003 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2003's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2003 is overvalued based on its PB Ratio (0.7x) compared to the HK Consumer Finance industry average (0.4x).


Next Steps

Future Growth

How is VCREDIT Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

104.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 2003's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if 2003's earnings are forecast to grow faster than the Hong Kong market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2003's revenue (104% per year) is forecast to grow faster than the Hong Kong market (13.2% per year).

High Growth Revenue: 2003's revenue (104% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 2003's Return on Equity is forecast to be high in 3 years time


Next Steps

  • Explore growth companies in the Diversified Financials industry.

Past Performance

How has VCREDIT Holdings performed over the past 5 years?

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2003 is currently unprofitable.

Growing Profit Margin: 2003 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2003 is unprofitable, but has reduced losses over the past 5 years at a rate of 10% per year.

Accelerating Growth: Unable to compare 2003's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2003 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (-19.7%).


Return on Equity

High ROE: 2003 has a negative Return on Equity (-49.64%), as it is currently unprofitable.


Next Steps

Financial Health

How is VCREDIT Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2003's short term assets (CN¥8.7B) exceed its short term liabilities (CN¥2.4B).

Long Term Liabilities: 2003's short term assets (CN¥8.7B) exceed its long term liabilities (CN¥5.2B).


Debt to Equity History and Analysis

Debt Level: 2003's debt to equity ratio (307.1%) is considered high.

Reducing Debt: Insufficient data to determine if 2003's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 2003 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 2003 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 56.3% per year.


Next Steps

Dividend

What is VCREDIT Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2003's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2003'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 2003's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2003's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2003'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?

2.3yrs

Average board tenure


CEO

Stephen Liu (52 yo)

no data

Tenure

CN¥189,109,000

Compensation

Mr. Sai Wang Liu, also known as Stephen, is Co-Founder and Chief Executive Officer of VCREDIT Holdings Ltd. and has been its Executive Director since September 7, 2007. Mr. Liu is responsible for the overa ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD28.11M) is above average for companies of similar size in the Hong Kong market ($USD294.09K).

Compensation vs Earnings: Stephen's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Saiwang Liu
CEO & Executive Directorno dataCN¥189.11m6.72%
CN¥ 124.5m
Sai Liu
COO & Executive Director2.92yrsCN¥4.85m1.4%
CN¥ 25.9m
Ka-Kay Yip
Non-Executive Director8.58yrsno datano data
Ting Ma
Chairmanno dataCN¥17.16m37.94%
CN¥ 702.6m
Chak-Man Wu
Independent Non-Executive Director2.33yrsCN¥211.00k0.56%
CN¥ 10.3m
Penghui Chen
Independent Non-Executive Director2.33yrsCN¥211.00kno data
Jing Shen
Non-Executive Director1yrno datano data
Yuan Fang
Independent Non-Executive Director0.17yrno data0.021%
CN¥ 391.1k

2.3yrs

Average Tenure

48yo

Average Age

Experienced Board: 2003's board of directors are not considered experienced ( 2.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

VCREDIT Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: VCREDIT Holdings Limited
  • Ticker: 2003
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: HK$1.852b
  • Shares outstanding: 488.60m
  • Website: https://www.vcredit.com

Number of Employees


Location

  • VCREDIT Holdings Limited
  • Two Pacific Place
  • Suite 1918, 19th Floor
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2003SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2018
2003SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2018
2003SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2018

Biography

VCREDIT Holdings Limited, an investment holding company, provides online consumer finance services to prime and near-prime borrowers in China. The company offers credit card balance transfer and consumptio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 12:41
End of Day Share Price2020/10/29 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.