SEHK:2003

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

2003

-0.2%

HK Consumer Finance

2.9%

HK Market


1 Year Return

5.7%

2003

-18.8%

HK Consumer Finance

0.7%

HK Market

Return vs Industry: 2003 exceeded the Hong Kong Consumer Finance industry which returned -18.8% over the past year.

Return vs Market: 2003 exceeded the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

2003IndustryMarket
7 Day1.5%-0.2%2.9%
30 Day-16.9%-5.3%-2.5%
90 Day-12.7%-12.7%-5.4%
1 Year5.7%5.7%-17.0%-18.8%4.4%0.7%
3 Yearn/a-18.7%-27.7%17.0%5.2%
5 Yearn/a-19.9%-30.9%20.2%0.2%

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?

1.12x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

Significantly Undervalued: 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 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

Low 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 (1.1x) compared to the HK Consumer Finance industry average (0.6x).


Next Steps

Future Growth

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

96.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2003 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 2003 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 2003 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 2003's revenue (37.4% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 2003's revenue (37.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 2003's Return on Equity is forecast to be high in 3 years time (27.1%)


Next Steps

Past Performance

How has VCREDIT Holdings performed over the past 5 years?

-8.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2003 is unprofitable, and losses have increased over the past 5 years at a rate of -8.7% 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 (-12.6%).


Return on Equity

High ROE: 2003 has a negative Return on Equity (-0.36%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 2003 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 2003 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is VCREDIT Holdings'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: 2003 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2003's debt is covered by short term assets (assets are 1.438430x debt).


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 122% per year.


Financial Institutions Analysis

Asset Level: 2003's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 2003 has a sufficient allowance for bad loans.

Low Risk Liabilities: 2003 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 2003 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 2003 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 2003 has an appropriate level of bad loans.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.3%industryaverage6.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of VCREDIT Holdings's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average board tenure


CEO

Stephen Liu (51yo)

0yrs

Tenure

CN¥175,860,000

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

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


Board Age and Tenure

1.6yrs

Average Tenure

49yo

Average Age

Experienced Board: 2003's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellCN¥248,20011 Jul 19
Yang Liu
EntityIndividual
Shares29,200
Max PriceCN¥8.50
SellCN¥190,041,89411 Jul 19
Yang Liu
EntityIndividual
Shares21,118,573
Max PriceCN¥9.00
BuyCN¥1,880,00011 Jul 19
Ngee Huat Seek
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares200,000
Max PriceCN¥9.40
SellCN¥560,95920 May 19
Atlantis Investment Management Limited
EntityCompany
Shares62,600
Max PriceCN¥8.96
SellCN¥499,54920 May 19
Atlantis Investment Management Limited
EntityCompany
Shares55,200
Max PriceCN¥9.05
BuyCN¥72,000,01720 May 19
Ting Ma
EntityIndividual
Role
Chairman of the Board
Chairman
Shares8,000,000
Max PriceCN¥9.00
SellCN¥130,26620 May 19
Yang Liu
EntityIndividual
Shares14,600
Max PriceCN¥8.92
SellCN¥423,00020 May 19
Atlantis Investment Management Limited
EntityCompany
Shares47,000
Max PriceCN¥9.00
SellCN¥1,001,80620 May 19
Atlantis Investment Management Limited
EntityCompany
Shares110,200
Max PriceCN¥9.09
SellCN¥311,30520 May 19
Atlantis Investment Management Limited
EntityCompany
Shares34,200
Max PriceCN¥9.10
SellCN¥1,037,70820 May 19
Atlantis Investment Management Limited
EntityCompany
Shares113,800
Max PriceCN¥9.12
SellCN¥1,177,16720 May 19
Atlantis Investment Management Limited
EntityCompany
Shares129,200
Max PriceCN¥9.11
SellCN¥1,623,75820 May 19
Atlantis Investment Management Limited
EntityCompany
Shares178,200
Max PriceCN¥9.11
SellCN¥934,85020 May 19
Atlantis Investment Management Limited
EntityCompany
Shares102,400
Max PriceCN¥9.13
SellCN¥916,47620 May 19
Atlantis Investment Management Limited
EntityCompany
Shares100,600
Max PriceCN¥9.11
SellCN¥937,29320 May 19
Atlantis Investment Management Limited
EntityCompany
Shares103,200
Max PriceCN¥9.08
SellCN¥2,826,25920 May 19
Atlantis Investment Management Limited
EntityCompany
Shares310,800
Max PriceCN¥9.09
SellCN¥319,00420 May 19
Atlantis Investment Management Limited
EntityCompany
Shares35,400
Max PriceCN¥9.01
SellCN¥459,40320 May 19
Atlantis Investment Management Limited
EntityCompany
Shares51,000
Max PriceCN¥9.01
SellCN¥295,71220 May 19
Atlantis Investment Management Limited
EntityCompany
Shares32,800
Max PriceCN¥9.02
SellCN¥331,66720 May 19
Atlantis Investment Management Limited
EntityCompany
Shares36,800
Max PriceCN¥9.01
SellCN¥39,68620 May 19
Atlantis Investment Management Limited
EntityCompany
Shares4,400
Max PriceCN¥9.02
SellCN¥625,31520 May 19
Atlantis Investment Management Limited
EntityCompany
Shares69,400
Max PriceCN¥9.01
SellCN¥608,46120 May 19
Atlantis Investment Management Limited
EntityCompany
Shares67,600
Max PriceCN¥9.00
SellCN¥926,45620 May 19
Atlantis Investment Management Limited
EntityCompany
Shares102,000
Max PriceCN¥9.08
SellCN¥1,114,89920 May 19
Atlantis Investment Management Limited
EntityCompany
Shares120,800
Max PriceCN¥9.23
SellCN¥590,73220 May 19
Atlantis Investment Management Limited
EntityCompany
Shares62,200
Max PriceCN¥9.50
SellCN¥536,88120 May 19
Atlantis Investment Management Limited
EntityCompany
Shares55,200
Max PriceCN¥9.73
SellCN¥8,852,49220 May 19
Atlantis Investment Management Limited
EntityCompany
Shares900,000
Max PriceCN¥9.84
SellCN¥2,158,11020 May 19
Atlantis Investment Management Limited
EntityCompany
Shares233,400
Max PriceCN¥9.25
SellCN¥4,956,18520 May 19
Atlantis Investment Management Limited
EntityCompany
Shares544,600
Max PriceCN¥9.10
SellCN¥48,60020 May 19
Atlantis Investment Management Limited
EntityCompany
Shares5,400
Max PriceCN¥9.00
SellCN¥1,80020 May 19
Atlantis Investment Management Limited
EntityCompany
Shares200
Max PriceCN¥9.00
SellCN¥338,40020 May 19
Atlantis Investment Management Limited
EntityCompany
Shares37,600
Max PriceCN¥9.00
SellCN¥303,96920 May 19
Atlantis Investment Management Limited
EntityCompany
Shares33,600
Max PriceCN¥9.05
SellCN¥72,000,01714 May 19
Yang Liu
EntityIndividual
Shares8,000,000
Max PriceCN¥9.00
BuyCN¥837,58702 Jan 19
Ting Ma
EntityIndividual
Role
Chairman of the Board
Chairman
Shares123,200
Max PriceCN¥6.80
BuyCN¥119,68028 Dec 18
Ting Ma
EntityIndividual
Role
Chairman of the Board
Chairman
Shares17,600
Max PriceCN¥6.80
BuyCN¥163,20024 Dec 18
Ting Ma
EntityIndividual
Role
Chairman of the Board
Chairman
Shares24,000
Max PriceCN¥6.80
BuyCN¥443,36021 Dec 18
Ting Ma
EntityIndividual
Role
Chairman of the Board
Chairman
Shares65,200
Max PriceCN¥6.80
BuyCN¥229,84020 Dec 18
Ting Ma
EntityIndividual
Role
Chairman of the Board
Chairman
Shares33,800
Max PriceCN¥6.80
BuyCN¥170,00519 Dec 18
Ting Ma
EntityIndividual
Role
Chairman of the Board
Chairman
Shares25,000
Max PriceCN¥6.80
BuyCN¥22,72005 Nov 18
Ting Ma
EntityIndividual
Role
Chairman of the Board
Chairman
Shares3,200
Max PriceCN¥7.10
BuyCN¥338,50130 Oct 18
Ting Ma
EntityIndividual
Role
Chairman of the Board
Chairman
Shares48,800
Max PriceCN¥6.94
BuyCN¥747,26929 Oct 18
Ting Ma
EntityIndividual
Role
Chairman of the Board
Chairman
Shares107,800
Max PriceCN¥6.93
BuyCN¥9,29026 Oct 18
Ting Ma
EntityIndividual
Role
Chairman of the Board
Chairman
Shares1,400
Max PriceCN¥6.64

Ownership Breakdown


Management Team

  • Johnathan Cha (54yo)

    Company Secretary

    • Tenure: 0yrs
  • Thomas Liu (46yo)

    COO & Executive Director

    • Tenure: 1.9yrs
    • Compensation: CN¥3.01m
  • Stephen Liu (51yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥175.86m
  • Jiafang Jin (41yo)

    Chief Technology Officer

    • Tenure: 0yrs
  • Sheng Luo (63yo)

    Chief Risk Officer

    • Tenure: 0yrs
  • Zheng Zhou (33yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • Fei Wang

    Director of Investor Relations

    • Tenure: 0yrs
  • Zhiping Yao

    Internal Control & Risk Consultant

    • Tenure: 0yrs

Board Members

  • Ngee Huat Seek (69yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥107.00k
  • Kevin Yip (55yo)

    Non-Executive Director

    • Tenure: 7.6yrs
  • Ting Ma (56yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: CN¥16.36m
  • Chak-Man Wu (47yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥107.00k
  • Thomas Liu (46yo)

    COO & Executive Director

    • Tenure: 1.9yrs
    • Compensation: CN¥3.01m
  • Kevin Chen (47yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥107.00k
  • Stephen Liu (51yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥175.86m
  • Jing Shen (33yo)

    Non-Executive Director

    • Tenure: 0yrs

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$3.649b
  • Shares outstanding: 493.84m
  • 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, consumption c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:59
End of Day Share Price2019/10/15 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.