SEHK:605

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China Financial Services Holdings

Executive Summary

China Financial Services Holdings Limited, an investment holding company, provides various financial services in the People’s Republic of China and the United Kingdom. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 605 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 605's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-2.6%

605

1.4%

HK Consumer Finance

1.1%

HK Market


1 Year Return

-74.3%

605

-2.9%

HK Consumer Finance

8.2%

HK Market

Return vs Industry: 605 underperformed the Hong Kong Consumer Finance industry which returned -3.1% over the past year.

Return vs Market: 605 underperformed the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

605IndustryMarket
7 Day-2.6%1.4%1.1%
30 Day10.9%1.6%7.2%
90 Day-27.7%-9.0%5.2%
1 Year-74.3%-74.3%0.04%-2.9%12.6%8.2%
3 Year-83.9%-84.4%-34.1%-38.2%0.4%-10.0%
5 Year-76.6%-78.9%-28.5%-39.7%30.6%8.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Financial Services Holdings 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: 605 (HK$0.11) is trading below our estimate of fair value (HK$0.38)

Significantly Below Fair Value: 605 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 605 is good value based on its PE Ratio (4.1x) compared to the HK Consumer Finance industry average (6.2x).

PE vs Market: 605 is good value based on its PE Ratio (4.1x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 605's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 605 is good value based on its PB Ratio (0.1x) compared to the HK Consumer Finance industry average (0.4x).


Next Steps

Future Growth

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

27.3%

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 Financial Services Holdings 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 Financial Services Holdings performed over the past 5 years?

-14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 605 has high quality earnings.

Growing Profit Margin: 605's current net profit margins (16.9%) are lower than last year (29.1%).


Past Earnings Growth Analysis

Earnings Trend: 605's earnings have declined by 14.6% per year over the past 5 years.

Accelerating Growth: 605's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 605 had negative earnings growth (-51.8%) over the past year, making it difficult to compare to the Consumer Finance industry average (-19.7%).


Return on Equity

High ROE: 605's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is China Financial Services Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 605's short term assets (HK$4.3B) exceed its short term liabilities (HK$1.3B).

Long Term Liabilities: 605's short term assets (HK$4.3B) exceed its long term liabilities (HK$403.8M).


Debt to Equity History and Analysis

Debt Level: 605's debt to equity ratio (32.8%) is considered satisfactory.

Reducing Debt: 605's debt to equity ratio has reduced from 33.3% to 32.8% over the past 5 years.

Debt Coverage: 605's debt is well covered by operating cash flow (75.7%).

Interest Coverage: 605's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

What is China Financial Services Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 605's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 605'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 605's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 605's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 605 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 605'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?

4.0yrs

Average board tenure


CEO

Don Kan (44 yo)

no data

Tenure

Mr. Lap Hung Kan, also known as Don, serves as Chief Executive Officer of Hong Kong Business at China Financial Services Holdings Limited. Mr. Kan is responsible for the daily operations and business devel...


Board Members

NamePositionTenureCompensationOwnership
Chai Hong Cheung
Executive VP & Executive Director6.5yrsHK$998.00k0.0049%
HK$ 22.6k
Chun Keung Chan
Independent Non-Executive Directorno dataHK$120.00kno data
Yuk Ming Chan
Non-Executive Chairman4.17yrsHK$1.10m0.49%
HK$ 2.3m
Lili Zhan
Independent Non-Executive Director2.5yrsHK$120.00kno data
Wing Fai Chan
Independent Non-Executive Director4.5yrsHK$120.00kno data
Mei Huang
Non-Executive Director5.17yrsHK$120.00kno data
Xiao Jun Zhang
Independent Non-Executive Director3.83yrsHK$120.00kno data
Yibing Dong
Non-Executive Director2.58yrsHK$120.00kno data
Feiyue Fang
Non-Executive Director0.25yrno datano data

4.0yrs

Average Tenure

52yo

Average Age

Experienced Board: 605's board of directors are considered experienced (4 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.


Ownership Breakdown

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


Top Shareholders

Company Information

China Financial Services Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Financial Services Holdings Limited
  • Ticker: 605
  • Exchange: SEHK
  • Founded:
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: HK$462.844m
  • Shares outstanding: 4.10b
  • Website: https://www.cfsh.com.hk

Number of Employees


Location

  • China Financial Services Holdings Limited
  • Central Plaza
  • 56th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
605SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 1993

Biography

China Financial Services Holdings Limited, an investment holding company, provides various financial services in the People’s Republic of China and the United Kingdom. The company primarily offers short-te...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:06
End of Day Share Price2020/11/26 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.