SEHK:2051

Stock Analysis Report

Executive Summary

51 Credit Card Inc., an investment holding company, operates a lending platform targeting credit card holders in the People’s Republic of China.


Snowflake Analysis

Undervalued with questionable track record.

Share Price & News

How has 51 Credit Card's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2051's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.7%

2051

4.7%

HK Consumer Finance

4.0%

HK Market


1 Year Return

-86.5%

2051

-39.5%

HK Consumer Finance

-20.1%

HK Market

Return vs Industry: 2051 underperformed the Hong Kong Consumer Finance industry which returned -40.9% over the past year.

Return vs Market: 2051 underperformed the Hong Kong Market which returned -20.1% over the past year.


Shareholder returns

2051IndustryMarket
7 Day2.7%4.7%4.0%
30 Day-34.2%-11.0%-11.3%
90 Day-48.3%-16.3%-15.6%
1 Year-86.5%-86.5%-38.0%-39.5%-17.2%-20.1%
3 Yearn/a-34.7%-41.4%-2.9%-12.7%
5 Yearn/a-41.8%-50.9%-6.8%-21.8%

Price Volatility Vs. Market

How volatile is 51 Credit Card's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 51 Credit Card undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2051 (HK$0.77) is trading below our estimate of fair value (HK$9.93)

Significantly Below Fair Value: 2051 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2051 is good value based on its PE Ratio (2.6x) compared to the Consumer Finance industry average (5.4x).

PE vs Market: 2051 is good value based on its PE Ratio (2.6x) compared to the Hong Kong market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2051's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2051 is good value based on its PB Ratio (0.2x) compared to the HK Consumer Finance industry average (0.4x).


Next Steps

Future Growth

How is 51 Credit Card forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.1%

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 51 Credit Card 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 51 Credit Card performed over the past 5 years?

73.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2051 has high quality earnings.

Growing Profit Margin: 2051's current net profit margins (8.9%) are lower than last year (40.1%).


Past Earnings Growth Analysis

Earnings Trend: 2051's earnings have grown significantly by 73.8% per year over the past 5 years.

Accelerating Growth: 2051's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2051 had negative earnings growth (-75.3%) over the past year, making it difficult to compare to the Consumer Finance industry average (-7.4%).


Return on Equity

High ROE: 2051's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is 51 Credit Card'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: 2051 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2051's debt is covered by short term assets (assets are 13x debt).


Financial Institutions Analysis

Asset Level: 2051's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 2051 has a sufficient allowance for bad loans.

Low Risk Liabilities: 2051 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 2051 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 2051 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 2051 has an appropriate level of bad loans.


Next Steps

Dividend

What is 51 Credit Card's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2051's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2051's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2051's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2051'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 2051'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?

2.6yrs

Average management tenure


CEO

Haitao Sun (39yo)

no data

Tenure

CN¥38,407,000

Compensation

Mr. Haitao Sun has been Chairman of the Board at China Netcom Technology Holdings Limited since August 17, 2017. Mr. Sun is an entrepreneur who has engaged in internet businesses since 2004 and founded sev ...


CEO Compensation Analysis

Compensation vs Market: Haitao's total compensation ($USD5.43M) is above average for companies of similar size in the Hong Kong market ($USD232.29K).

Compensation vs Earnings: Haitao's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Haitao Sun
Founderno dataCN¥38.41m10.08% CN¥92.5m
Ke Zhao
Executive Director & CFO2.33yrsCN¥22.24mno data
Yuzhi Yang
VP & Executive Director2.33yrsCN¥24.52mno data
Jianfei Zhu
Chief Operating Officerno datano datano data
Wei Guo
Chief Technology Officer3.67yrsno datano data
Chuanbo Zhang
Vice President of Marketing Affairs2.58yrsno datano data
Jun Yang
Chief Risk Officerno datano datano data
Hiu Ling Li
Company Secretary2yrsno datano data

2.6yrs

Average Tenure

35yo

Average Age

Experienced Management: 2051's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Haitao Sun
Founderno dataCN¥38.41m10.08% CN¥92.5m
Ke Zhao
Executive Director & CFO2.33yrsCN¥22.24mno data
Yuzhi Yang
VP & Executive Director2.33yrsCN¥24.52mno data
Xiang Ye
Independent Non-Executive Director2.08yrsCN¥104.00kno data
Yunli Zou
Non-Executive Director2.33yrsno datano data
Ti Wong
Independent Non-Executive Director2.08yrsCN¥128.00kno data
Dong Yang
Independent Non Executive Director0.75yrno datano data

2.3yrs

Average Tenure

44yo

Average Age

Experienced Board: 2051'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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 441%.


Top Shareholders

Company Information

51 Credit Card Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 51 Credit Card Inc.
  • Ticker: 2051
  • Exchange: SEHK
  • Founded: 2012
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: HK$917.573m
  • Shares outstanding: 1.19b
  • Website: https://www.u51.com

Number of Employees


Location

  • 51 Credit Card Inc.
  • Tower G
  • 12th-15th Floors
  • Hangzhou
  • Zhejiang Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2051SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2018
2JYDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2018
2051SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2018

Biography

51 Credit Card Inc., an investment holding company, operates a lending platform targeting credit card holders in the People’s Republic of China. The company offers personal financial services comprising personal credit management, credit card technology, and online credit facilitation and investment services. It serves individual credit card holders, individual borrowers, credit card issuing banks, and external online consumer finance platforms. The company was founded in 2012 and is headquartered in Hangzhou, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 13:32
End of Day Share Price2020/03/27 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.