SEHK:290

Stock Analysis Report

China Fortune Financial Group

Executive Summary

China Fortune Financial Group Limited, an investment holding company, provides securities and proprietary trading, insurance brokerage, asset management, margin and corporate finance, and money lending services in Hong Kong.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has China Fortune Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 290 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

290

5.5%

HK Capital Markets

0.6%

HK Market


1 Year Return

-28.4%

290

-8.5%

HK Capital Markets

-5.7%

HK Market

Return vs Industry: 290 underperformed the Hong Kong Capital Markets industry which returned -8.5% over the past year.

Return vs Market: 290 underperformed the Hong Kong Market which returned -5.7% over the past year.


Shareholder returns

290IndustryMarket
7 Day-3.6%5.5%0.6%
30 Day-10.2%1.1%-0.8%
90 Day-3.6%14.1%4.1%
1 Year-28.4%-28.4%-5.7%-8.5%-2.2%-5.7%
3 Year-82.0%-82.0%-13.9%-21.8%13.8%2.3%
5 Year-61.3%-61.3%-10.6%-25.3%14.8%-4.2%

Price Volatility Vs. Market

How volatile is China Fortune Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Fortune Financial Group undervalued compared to its fair value and its price relative to the market?

1.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 290's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 290's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 290 is unprofitable, so we can't compare its PE Ratio to the Capital Markets industry average.

PE vs Market: 290 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 290's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 290 is overvalued based on its PB Ratio (1.3x) compared to the HK Capital Markets industry average (0.6x).


Next Steps

Future Growth

How is China Fortune Financial Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.6%

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 China Fortune Financial Group 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 China Fortune Financial Group performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 290 is currently unprofitable.

Growing Profit Margin: 290 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 290 is unprofitable, and losses have increased over the past 5 years at a rate of -0.7% per year.

Accelerating Growth: Unable to compare 290's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 290 is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (-24.2%).


Return on Equity

High ROE: 290 has a negative Return on Equity (-16.63%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Fortune Financial Group'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: 290 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 290's debt is covered by short term assets (assets are 1.5x 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: 290 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 290 has sufficient cash runway for 1.9 years if free cash flow continues to reduce at historical rates of -38.5% each year.


Financial Institutions Analysis

Asset Level: 290's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 290 has a sufficient allowance for bad loans.

Low Risk Liabilities: 290 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 290 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 290 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 290 has an appropriate level of bad loans.


Next Steps

Dividend

What is China Fortune Financial Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 290's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 290'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 290's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 290'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 290'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?

1.4yrs

Average management tenure


CEO

Yang Hua (44yo)

2yrs

Tenure

HK$3,560,000

Compensation

Mr. Yang Hua is the Co-founder and General Manager of Source Capital Management Co., Ltd. Mr. Hua has been the Chief Executive Officer and Executive Director of China Fortune Financial Group Ltd. since Feb ...


CEO Compensation Analysis

Compensation vs Market: Yang's total compensation ($USD457.40K) is above average for companies of similar size in the Hong Kong market ($USD226.09K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Zhichun Xie
Executive Chairman3.1yrsHK$8.02m29.98% HK$159.2m
Yang Hua
CEO & Executive Director2yrsHK$3.56mno data
Yi Zhu
Head of the Compliance & Risk Management Department and Executive Director1.4yrsHK$1.03mno data
Sai Sang Lai
Head of Electrical Engg Contracting Business0yrsHK$2.68mno data
Kwok Wah Poon
Managing Director of Excalibur Securities Limited and Managing Director of Excalibur Futures Limited0yrsno datano data
Ming Wai Mok
Company Secretary0.5yrsno datano data
Wai Hong Ho
Assistant Project Manager of Subsidiary Company0yrsHK$277.00kno data

1.4yrs

Average Tenure

57yo

Average Age

Experienced Management: 290's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Zhichun Xie
Executive Chairman3.1yrsHK$8.02m29.98% HK$159.2m
Yang Hua
CEO & Executive Director2yrsHK$3.56mno data
Yi Zhu
Head of the Compliance & Risk Management Department and Executive Director1.4yrsHK$1.03mno data
Kin Sang Chan
Independent Non-Executive Director5.6yrsHK$216.00kno data
Ling Wu
Non-Executive Director8.2yrsHK$600.00kno data
Hanting Han
Non-Executive Director2.3yrsHK$1.63mno data
Kung Chik Chiu
Independent Non-Executive Director2.9yrsHK$216.00kno data
Zhiwei Chen
Non-Executive Director1.8yrsHK$344.00kno data
Gaofeng Li
Independent Non-Executive Director2.3yrsHK$216.00kno data

2.3yrs

Average Tenure

44yo

Average Age

Experienced Board: 290'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 diluted in the past year, with total shares outstanding growing by 21.7%.


Top Shareholders

Company Information

China Fortune Financial Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Fortune Financial Group Limited
  • Ticker: 290
  • Exchange: SEHK
  • Founded:
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: HK$530.879m
  • Shares outstanding: 9.15b
  • Website: https://www.290.com.hk

Number of Employees


Location

  • China Fortune Financial Group Limited
  • COSCO Tower
  • 43rd Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
290SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2001

Biography

China Fortune Financial Group Limited, an investment holding company, provides securities and proprietary trading, insurance brokerage, asset management, margin and corporate finance, and money lending services in Hong Kong. The company operates through Brokerage and Margin Financing, Proprietary Trading, Corporate Finance, Money Lending and Factoring, Consultancy and Insurance Brokerage, and Asset Management segments. It offers financial advisory services, including transaction structuring; compliance of listing rules/takeovers codes; mergers and acquisitions advisory; project valuation; corporate rescue and resumption of trading; transactional documentation; and corporate restructuring and financing. The company also provides independent financial advisory services, such as connected transactions/ continuing connected transactions; takeovers codes related transactions; privatizations; independent opinion on adjustment of financial instruments; and independent advisory for the independent board committee and non-public disclosure issues. In addition, it offers pre-IPO advisory and sponsorship services; and discretionary investment portfolio management services for high net worth individuals and institutional clients. Further, the company provides wealth management services, which include personal financial planning, investment and portfolio management, retirement planning, education planning, and employee benefit schemes and MPF advisory, as well as family and business risk management and insurance protection services. Additionally, it offers immigration advisory services. The company was formerly known as China Fortune Group Limited and changed its name to China Fortune Financial Group Limited in September 2011. China Fortune Financial Group Limited is headquartered in Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 12:44
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.