SEHK:6866

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Zuoli Kechuang Micro-finance

Executive Summary

Zuoli Kechuang Micro-finance Company Limited operates as a microfinance company in the People’s Republic of China. More Details


Snowflake Analysis

Undervalued with adequate balance sheet.

Share Price & News

How has Zuoli Kechuang Micro-finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6866 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 6866's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

6866

2.4%

HK Consumer Finance

-0.5%

HK Market


1 Year Return

2.2%

6866

23.9%

HK Consumer Finance

21.5%

HK Market

Return vs Industry: 6866 underperformed the Hong Kong Consumer Finance industry which returned 21.8% over the past year.

Return vs Market: 6866 underperformed the Hong Kong Market which returned 21.2% over the past year.


Shareholder returns

6866IndustryMarket
7 Day-1.1%2.4%-0.5%
30 Day29.6%10.7%2.1%
90 Day37.3%21.6%11.9%
1 Year2.2%2.2%27.8%23.9%26.2%21.5%
3 Year-34.8%-50.0%-25.2%-29.9%6.2%-4.9%
5 Year-48.2%-64.9%-19.9%-32.4%61.7%34.1%

Long-Term Price Volatility Vs. Market

How volatile is Zuoli Kechuang Micro-finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zuoli Kechuang Micro-finance 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: 6866 (HK$0.46) is trading below our estimate of fair value (HK$1.08)

Significantly Below Fair Value: 6866 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6866 is good value based on its PE Ratio (3.7x) compared to the HK Consumer Finance industry average (7.1x).

PE vs Market: 6866 is good value based on its PE Ratio (3.7x) compared to the Hong Kong market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6866's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6866 is good value based on its PB Ratio (0.3x) compared to the HK Consumer Finance industry average (0.6x).


Next Steps

Future Growth

How is Zuoli Kechuang Micro-finance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

27.7%

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 Zuoli Kechuang Micro-finance 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 Zuoli Kechuang Micro-finance performed over the past 5 years?

-3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6866 has high quality earnings.

Growing Profit Margin: 6866's current net profit margins (52.8%) are lower than last year (53.1%).


Past Earnings Growth Analysis

Earnings Trend: 6866's earnings have declined by 3.1% per year over the past 5 years.

Accelerating Growth: 6866's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6866 had negative earnings growth (-9.7%) over the past year, making it difficult to compare to the Consumer Finance industry average (-23.2%).


Return on Equity

High ROE: 6866's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Zuoli Kechuang Micro-finance's financial position?


Financial Position Analysis

Short Term Liabilities: 6866's short term assets (CN¥2.4B) exceed its short term liabilities (CN¥147.3M).

Long Term Liabilities: 6866's short term assets (CN¥2.4B) exceed its long term liabilities (CN¥562.0M).


Debt to Equity History and Analysis

Debt Level: 6866's debt to equity ratio (30.6%) is considered satisfactory.

Reducing Debt: 6866's debt to equity ratio has increased from 7.2% to 30.6% over the past 5 years.

Debt Coverage: 6866's debt is well covered by operating cash flow (44.1%).

Interest Coverage: Insufficient data to determine if 6866's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Zuoli Kechuang Micro-finance current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6866's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 6866'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 6866's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6866's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 6866 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 6866'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?

5.0yrs

Average management tenure


CEO

Sheng Yang (45 yo)

2.5yrs

Tenure

CN¥537,000

Compensation

Mr. Sheng Yang has been General Manager of Zuoli Kechuang Micro-Finance Company Limited since September 3, 2018, mainly responsible for its business management. Mr. Yang has been Executive Director & Vice ...


CEO Compensation Analysis

Compensation vs Market: Sheng's total compensation ($USD82.99K) is below average for companies of similar size in the Hong Kong market ($USD229.70K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yin Yu
Executive Chairman of the Boardno dataCN¥578.00k7.46%
CN¥ 40.5m
Sheng Yang
GM & Vice Chairman2.5yrsCN¥537.00kno data
Xuegen Zheng
Vice Chairmanno dataCN¥507.00k0.25%
CN¥ 1.4m
Fangfang Hu
Chief Financial Controller & Executive Director1.75yrsCN¥235.00kno data
Wing Yan Ho
Company Secretary5yrsno datano data

5.0yrs

Average Tenure

39yo

Average Age

Experienced Management: 6866's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yin Yu
Executive Chairman of the Boardno dataCN¥578.00k7.46%
CN¥ 40.5m
Sheng Yang
GM & Vice Chairman2.5yrsCN¥537.00kno data
Xuegen Zheng
Vice Chairmanno dataCN¥507.00k0.25%
CN¥ 1.4m
Fangfang Hu
Chief Financial Controller & Executive Director1.75yrsCN¥235.00kno data
Zhongmin Pan
Non-Executive Director6.58yrsCN¥6.00k1.0%
CN¥ 5.4m
Peijun Wang
Supervisor6.58yrsno datano data
Zhenlan Yang
Staff Representative Supervisor2.83yrsno datano data
Kin Man Chan
Independent Non-Executive Director0.75yrno datano data
Xuqiang Zhao
Independent Non-Executive Director0.75yrno datano data
Jie Yang
Independent Non-Executive Director0.75yrno datano data
Mingwan Zhou
Supervisor0.75yrno datano data
Suliang Wang
Chairman of Supervisory Board0.75yrno datano data

1.3yrs

Average Tenure

40.5yo

Average Age

Experienced Board: 6866's board of directors are not considered experienced ( 1.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Zuoli Kechuang Micro-finance Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zuoli Kechuang Micro-finance Company Limited
  • Ticker: 6866
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: HK$542.800m
  • Shares outstanding: 1.18b
  • Website: https://www.zlkcxd.cn

Number of Employees


Location

  • Zuoli Kechuang Micro-finance Company Limited
  • No. 399 Deqing Avenue
  • Wukang Road
  • Huzhou
  • Zhejiang Province
  • 313200
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6866SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJan 2015

Biography

Zuoli Kechuang Micro-finance Company Limited operates as a microfinance company in the People’s Republic of China. The company offers unsecured, guaranteed, collateralized, and pledged loans; enterprise lo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/03 10:17
End of Day Share Price2021/03/02 00:00
Earnings2020/09/30
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.