SEHK:3903

Stock Analysis Report

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Market Cap

HK$2.9b

Last Updated

2021/07/27 16:38 UTC

Data Sources

Company Financials

Executive Summary

Hanhua Financial Holding Co., Ltd., together with its subsidiaries, provides integrated financial services in the People’s Republic of China. More Details


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Hanhua Financial Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3903 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: 3903's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.


Market Performance


7 Day Return

-1.6%

3903

-2.9%

HK Diversified Financial

-4.3%

HK Market


1 Year Return

85.1%

3903

21.9%

HK Diversified Financial

8.5%

HK Market

Return vs Industry: 3903 exceeded the Hong Kong Diversified Financial industry which returned 21.9% over the past year.

Return vs Market: 3903 exceeded the Hong Kong Market which returned 8.5% over the past year.


Shareholder returns

3903IndustryMarket
7 Day-1.6%-2.9%-4.3%
30 Day0%-3.4%-10.9%
90 Day82.4%-2.3%-11.0%
1 Year96.3%85.1%27.0%21.9%12.3%8.5%
3 Year26.5%19.2%3.5%-8.1%6.5%-5.4%
5 Year-10.6%-27.1%-20.5%-33.2%38.6%14.1%

Long-Term Price Volatility Vs. Market

How volatile is Hanhua Financial Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hanhua Financial Holding undervalued compared to its fair value and its price relative to the market?

15.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3903 (HK$0.62) is trading above our estimate of fair value (HK$0.46)

Significantly Below Fair Value: 3903 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3903 is poor value based on its PE Ratio (15.7x) compared to the Hong Kong Diversified Financial industry average (9x).

PE vs Market: 3903 is poor value based on its PE Ratio (15.7x) compared to the Hong Kong market (10.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3903's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3903 is good value based on its PB Ratio (0.3x) compared to the HK Diversified Financial industry average (0.6x).


Future Growth

How is Hanhua Financial Holding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.0%

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 Hanhua Financial Holding 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.


Past Performance

How has Hanhua Financial Holding performed over the past 5 years?

-3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3903 has high quality earnings.

Growing Profit Margin: 3903's current net profit margins (15.2%) are lower than last year (20.2%).


Past Earnings Growth Analysis

Earnings Trend: 3903's earnings have declined by 3.2% per year over the past 5 years.

Accelerating Growth: 3903's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3903 had negative earnings growth (-37.5%) over the past year, making it difficult to compare to the Diversified Financial industry average (9.7%).


Return on Equity

High ROE: 3903's Return on Equity (2.6%) is considered low.


Financial Health

How is Hanhua Financial Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 3903's short term assets (CN¥11.4B) exceed its short term liabilities (CN¥3.1B).

Long Term Liabilities: 3903's short term assets (CN¥11.4B) exceed its long term liabilities (CN¥3.7B).


Debt to Equity History and Analysis

Debt Level: 3903's debt to equity ratio (65.8%) is considered high.

Reducing Debt: 3903's debt to equity ratio has reduced from 67% to 65.8% over the past 5 years.

Debt Coverage: 3903's debt is well covered by operating cash flow (52.1%).

Interest Coverage: Insufficient data to determine if 3903's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Hanhua Financial Holding current dividend yield, its reliability and sustainability?

5.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3903's dividend (5.81%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.06%).

High Dividend: 3903's dividend (5.81%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.39%).


Stability and Growth of Payments

Stable Dividend: 3903 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3903 has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (91.3%), 3903's dividend payments are not 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

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure


CEO

Weilan Cui (50 yo)

6.33yrs

Tenure

CN¥3,107,000

Compensation

Mr. Weilan Cui is President at Hanhua Financial Holding Co., Ltd. since March 2016 and has been its Executive Director since May 27, 2015. He had been Executive President of Hanhua Financial Holding Co., L...


CEO Compensation Analysis

Compensation vs Market: Weilan's total compensation ($USD479.26K) is above average for companies of similar size in the Hong Kong market ($USD296.23K).

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


Leadership Team

Experienced Management: 3903's management team is seasoned and experienced (7.3 years average tenure).


Board Members

Experienced Board: 3903's board of directors are considered experienced (8.3 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hanhua Financial Holding Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hanhua Financial Holding Co., Ltd.
  • Ticker: 3903
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: HK$2.852b
  • Shares outstanding: 4.60b
  • Website: https://www.hanhua.com

Number of Employees


Location

  • Hanhua Financial Holding Co., Ltd.
  • Building A
  • 1st Floor
  • Chongqing
  • China

Listings


Biography

Hanhua Financial Holding Co., Ltd., together with its subsidiaries, provides integrated financial services in the People’s Republic of China. It operates through Partnership Finance Business, SME Lending, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/27 16:38
End of Day Share Price2021/07/27 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.