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Zuoli Kechuang Micro-Finance

SEHK:6866
Snowflake Description

Undervalued with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
6866
SEHK
HK$513M
Market Cap
  1. Home
  2. HK
  3. Diversified Financials
Company description

Zuoli Kechuang Micro-Finance Company Limited operates as a microfinance company in the People’s Republic of China. The last earnings update was 182 days ago. More info.


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6866 Share Price and Events
7 Day Returns
10%
SEHK:6866
1.3%
HK Consumer Finance
2.3%
HK Market
1 Year Returns
-53.2%
SEHK:6866
-40.1%
HK Consumer Finance
-11.2%
HK Market
6866 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Zuoli Kechuang Micro-Finance (6866) 10% 22.2% 12.8% -53.2% -67.6% -
HK Consumer Finance 1.3% 2.9% 4.9% -40.1% -32.4% -25.4%
HK Market 2.3% 4.2% 10.2% -11.2% 27.9% 21.8%
1 Year Return vs Industry and Market
  • 6866 underperformed the Consumer Finance industry which returned -40.1% over the past year.
  • 6866 underperformed the Market in Hong Kong which returned -11.2% over the past year.
Price Volatility
6866
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Zuoli Kechuang Micro-Finance's competitors could be found in our database.

6866 Value

 Is Zuoli Kechuang Micro-Finance undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Zuoli Kechuang Micro-Finance to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Zuoli Kechuang Micro-Finance.

SEHK:6866 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= CN¥1.18 * 10.4%
CN¥0.12
Book Value of Equity per Share Median Book Value from the past 5 years. CN¥1.18
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:6866
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.68
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.684 (1 + (1- 25%) (137.74%))
1.262
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.26
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.262 * 5.96%)
9.52%

Discounted Cash Flow Calculation for SEHK:6866 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Zuoli Kechuang Micro-Finance is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SEHK:6866 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.4% – 9.52%) * CN¥1.18)
CN¥0.01
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥0.01 / (9.52% - 2%)
CN¥0.14
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥1.18 + CN¥0.14
CN¥1.31
SEHK:6866 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:6866)
1.169
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥1.31 x 1.169
HK$1.54
Value per share (HKD) From above. HK$1.54
Current discount Discount to share price of HK$0.44
= -1 x (HK$0.44 - HK$1.54) / HK$1.54
71.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Zuoli Kechuang Micro-Finance is available for.
Intrinsic value
>50%
Share price is HK$0.44 vs Future cash flow value of HK$1.54
Current Discount Checks
For Zuoli Kechuang Micro-Finance to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Zuoli Kechuang Micro-Finance's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Zuoli Kechuang Micro-Finance's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Zuoli Kechuang Micro-Finance's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Zuoli Kechuang Micro-Finance's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:6866 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in CNY CN¥0.13
SEHK:6866 Share Price ** SEHK (2019-03-18) in HKD HK$0.44
SEHK:6866 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.855 CN¥0.38
Hong Kong Consumer Finance Industry PE Ratio Median Figure of 18 Publicly-Listed Consumer Finance Companies 8.58x
Hong Kong Market PE Ratio Median Figure of 1,494 Publicly-Listed Companies 10.91x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Zuoli Kechuang Micro-Finance.

SEHK:6866 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:6866 Share Price ÷ EPS (both in CNY)

= 0.38 ÷ 0.13

2.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zuoli Kechuang Micro-Finance is good value based on earnings compared to the HK Consumer Finance industry average.
  • Zuoli Kechuang Micro-Finance is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Zuoli Kechuang Micro-Finance's expected growth come at a high price?
Raw Data
SEHK:6866 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 2.81x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
0.5%per year
Asia Consumer Finance Industry PEG Ratio Median Figure of 17 Publicly-Listed Consumer Finance Companies 1.11x
Hong Kong Market PEG Ratio Median Figure of 469 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Zuoli Kechuang Micro-Finance, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Zuoli Kechuang Micro-Finance's assets?
Raw Data
SEHK:6866 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in CNY CN¥1.35
SEHK:6866 Share Price * SEHK (2019-03-18) in HKD HK$0.44
SEHK:6866 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.855 CN¥0.38
Hong Kong Consumer Finance Industry PB Ratio Median Figure of 27 Publicly-Listed Consumer Finance Companies 0.68x
Hong Kong Market PB Ratio Median Figure of 2,137 Publicly-Listed Companies 0.99x
SEHK:6866 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:6866 Share Price ÷ Book Value per Share (both in CNY)

= 0.38 ÷ 1.35

0.28x

* Primary Listing of Zuoli Kechuang Micro-Finance.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zuoli Kechuang Micro-Finance is good value based on assets compared to the HK Consumer Finance industry average.
X
Value checks
We assess Zuoli Kechuang Micro-Finance's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. Zuoli Kechuang Micro-Finance has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

6866 Future Performance

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

  • No analysts cover Zuoli Kechuang Micro-Finance, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Zuoli Kechuang Micro-Finance expected to grow at an attractive rate?
  • Zuoli Kechuang Micro-Finance's earnings growth is positive but not above the low risk savings rate of 2%.
Growth vs Market Checks
  • Zuoli Kechuang Micro-Finance's earnings growth is positive but not above the Hong Kong market average.
  • Unable to compare Zuoli Kechuang Micro-Finance's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:6866 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:6866 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 0.5%
Hong Kong Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 32%
Asia Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 20.7%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 12.1%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:6866 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (8 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:6866 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-06-30 271 -52 158
2018-03-31 265 -33 153
2017-12-31 259 -15 149
2017-09-30 245 -14 148
2017-06-30 230 -13 146
2017-03-31 225 -29 146
2016-12-31 220 -44 146
2016-09-30 218 52 149
2016-06-30 216 148 152
2016-03-31 207 121 149
2015-12-31 198 93 146
2015-09-30 186 -36 129

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Zuoli Kechuang Micro-Finance's earnings are expected to grow by 0.5% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Zuoli Kechuang Micro-Finance is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:6866 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (8 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Zuoli Kechuang Micro-Finance Company Filings, last reported 8 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:6866 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-06-30 0.13
2018-03-31 0.13
2017-12-31 0.13
2017-09-30 0.13
2017-06-30 0.12
2017-03-31 0.12
2016-12-31 0.12
2016-09-30 0.13
2016-06-30 0.13
2016-03-31 0.13
2015-12-31 0.12
2015-09-30 0.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Zuoli Kechuang Micro-Finance will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Zuoli Kechuang Micro-Finance's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Zuoli Kechuang Micro-Finance has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

6866 Past Performance

  How has Zuoli Kechuang Micro-Finance performed over the past 5 years?

  • Zuoli Kechuang Micro-Finance's last earnings update was 182 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Zuoli Kechuang Micro-Finance's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Zuoli Kechuang Micro-Finance's year on year earnings growth rate has been positive over the past 5 years.
  • Zuoli Kechuang Micro-Finance's 1-year earnings growth is less than its 5-year average (7.7% vs 18.1%)
  • Zuoli Kechuang Micro-Finance's earnings growth has exceeded the HK Consumer Finance industry average in the past year (7.7% vs 2.9%).
Earnings and Revenue History
Zuoli Kechuang Micro-Finance's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Zuoli Kechuang Micro-Finance Company Filings, last reported 8 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:6866 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 271.21 157.75 54.90
2018-03-31 265.06 153.29 50.02
2017-12-31 258.90 148.83 45.14
2017-09-30 244.67 147.66 43.26
2017-06-30 230.44 146.49 41.39
2017-03-31 225.24 146.32 37.52
2016-12-31 220.05 146.15 33.65
2016-09-30 218.20 149.05 30.89
2016-06-30 216.36 151.96 28.13
2016-03-31 207.20 149.02 28.93
2015-12-31 198.05 146.09 29.74
2015-09-30 185.62 129.25 26.90
2015-06-30 173.18 112.41 24.06
2015-03-31 150.20 102.90 18.41
2014-12-31 127.23 93.40 12.77
2014-09-30 108.63 83.28 9.33
2014-06-30 90.03 73.16 5.88
2014-03-31 83.52 62.39 6.71
2013-12-31 77.01 51.62 7.53
2012-12-31 45.54 26.24 6.35

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Zuoli Kechuang Micro-Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Zuoli Kechuang Micro-Finance used its assets more efficiently than the HK Consumer Finance industry average last year based on Return on Assets.
  • Unable to establish if Zuoli Kechuang Micro-Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Zuoli Kechuang Micro-Finance's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Zuoli Kechuang Micro-Finance has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

6866 Health

 How is Zuoli Kechuang Micro-Finance's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Zuoli Kechuang Micro-Finance's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Zuoli Kechuang Micro-Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Zuoli Kechuang Micro-Finance has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Zuoli Kechuang Micro-Finance's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Zuoli Kechuang Micro-Finance Company Filings, last reported 8 months ago.

SEHK:6866 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 1,699.76 604.65 20.16
2018-03-31 1,699.76 604.65 20.16
2017-12-31 1,619.87 532.50 37.24
2017-09-30 1,619.87 532.50 37.24
2017-06-30 1,538.85 666.97 128.03
2017-03-31 1,538.85 666.97 128.03
2016-12-31 1,464.58 528.28 29.21
2016-09-30 1,464.58 528.28 29.21
2016-06-30 1,301.71 299.03 157.29
2016-03-31 1,301.71 299.03 157.29
2015-12-31 1,395.59 100.00 82.57
2015-09-30 1,395.59 100.00 82.57
2015-06-30 1,307.11 124.00 119.46
2015-03-31 1,307.11 124.00 119.46
2014-12-31 970.88 175.00 24.49
2014-09-30 970.88 175.00 24.49
2014-06-30 923.49 160.00 56.07
2014-03-31 923.49 160.00 56.07
2013-12-31 589.48 171.00 231.10
2012-12-31 349.46 120.00 19.61
  • Zuoli Kechuang Micro-Finance's level of debt (35.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (31% vs 35.6% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on Zuoli Kechuang Micro-Finance's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Zuoli Kechuang Micro-Finance's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Zuoli Kechuang Micro-Finance has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

6866 Dividends

 What is Zuoli Kechuang Micro-Finance's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Zuoli Kechuang Micro-Finance dividends.
If you bought HK$2,000 of Zuoli Kechuang Micro-Finance shares you are expected to receive HK$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Zuoli Kechuang Micro-Finance's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Zuoli Kechuang Micro-Finance's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:6866 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 4.5%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 922 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:6866 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2017-09-08 0.000 0.000
2017-08-17 0.000 0.000
2017-04-25 0.000 0.000
2017-03-20 0.000 0.000
2016-07-25 0.140 14.128

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Zuoli Kechuang Micro-Finance has not reported any payouts.
  • Unable to verify if Zuoli Kechuang Micro-Finance's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Zuoli Kechuang Micro-Finance's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Zuoli Kechuang Micro-Finance has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Zuoli Kechuang Micro-Finance's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Zuoli Kechuang Micro-Finance afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Zuoli Kechuang Micro-Finance has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

6866 Management

 What is the CEO of Zuoli Kechuang Micro-Finance's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sheng Yang
COMPENSATION CN¥347,000
AGE 43
TENURE AS CEO 0.5 years
CEO Bio

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 Chairman of the Board of Zuoli Kechuang Micro-Finance since April 7, 2016. He was the Chief Operating Officer of Zuoli Kechuang Micro-Finance Company Limited from August 2015 to September 2018. Mr. Yang was responsible for the internet financial business and the expansion of branches as well as the development of new products and new businesses. He accumulated ample experience on credit and management in Bank of China. From February 1994 to June 2003, Mr. Yang was a staff member at Huzhou City Branch of Bank of China. Mr. Yang served as the Deputy Head of Security Department in Huzhou City Branch of Bank of China from June 2003 to July 2007. Mr. Yang served as the Head of Security Department in Huzhou City Branch of Bank of China from July 2007 to August 2010. Mr. Yang served as the Head of General Management Department in Huzhou City Branch of Bank of China from January 2010 to August 2010. Mr. Yang was assigned to Anji County Branch of Bank of China as the president from August 2010 to January 2014. Mr. Yang was the president of Deqing County Branch of Bank of China from January 2014 to August 2015. Mr. Yang has served as the general manager of Deqing Jinhui Micro-finance Company Limited from April 2018 to August 2018. Since December 2016, Mr. Yang has served as the chairman of the board of directors of Hangzhou High-tech District (Binjiang) Xingyao Pu Hui Micro-finance Co., Ltd. Since March 2018, Mr. Yang has acted as a director of Zuoli (Shenzhen) Enterprise Development Co., Ltd. Since April 2018, Mr. Yang has served as the chairman of the board of directors of Shenzhen Qianhai Zuoli Yifang Commercial Factoring Co., Ltd. Since May 2018, he has served as the chairman of the board of directors of Deqing Zuoli Yifang Commercial Factoring Co., Ltd. and a director of Zuoli Xinchuang (Shanghai) Enterprise Management Co., Ltd.

CEO Compensation
  • Sheng's compensation has increased by more than 20% in the past year.
  • Sheng's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Zuoli Kechuang Micro-Finance management team in years:

3.3
Average Tenure
43
Average Age
  • The tenure for the Zuoli Kechuang Micro-Finance management team is about average.
Management Team

Yin Yu

TITLE
Chairman of the Board
COMPENSATION
CN¥467K
AGE
31

Sheng Yang

TITLE
GM & Vice Chairman
COMPENSATION
CN¥347K
AGE
43
TENURE
0.5 yrs

Xuegen Zheng

TITLE
Vice Chairman
COMPENSATION
CN¥347K
AGE
53

Haifeng Hu

TITLE
Executive Director
COMPENSATION
CN¥407K
AGE
52

Fangfang Hu

TITLE
Chief Financial Controller
AGE
37
TENURE
3.7 yrs

Jing Xia

TITLE
Deputy General Manager
COMPENSATION
CN¥165K
AGE
43
TENURE
4.9 yrs

Wing Yan Ho

TITLE
Company Secretary
AGE
37
TENURE
3 yrs
Board of Directors Tenure

Average tenure and age of the Zuoli Kechuang Micro-Finance board of directors in years:

4.8
Average Tenure
48
Average Age
  • The tenure for the Zuoli Kechuang Micro-Finance board of directors is about average.
Board of Directors

Sheng Yang

TITLE
GM & Vice Chairman
COMPENSATION
CN¥347K
AGE
43
TENURE
2.9 yrs

Xuegen Zheng

TITLE
Vice Chairman
COMPENSATION
CN¥347K
AGE
53

Haifeng Hu

TITLE
Executive Director
COMPENSATION
CN¥407K
AGE
52
TENURE
4.9 yrs

Hugo Ho

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥100K
AGE
46
TENURE
4.9 yrs

Yin Yu

TITLE
Chairman of the Board
COMPENSATION
CN¥467K
AGE
31

Xuejun Jin

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥100K
AGE
60
TENURE
4.9 yrs

Lianxi Huang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥100K
AGE
56
TENURE
4.9 yrs

Shengqing Dai

TITLE
Chairman of the Board of Supervisor
AGE
50
TENURE
0.8 yrs

Zhongmin Pan

TITLE
Non-Executive Director
COMPENSATION
CN¥6K
AGE
44
TENURE
4.6 yrs

Peijun Wang

TITLE
Supervisor
AGE
44
TENURE
4.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess Zuoli Kechuang Micro-Finance's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Zuoli Kechuang Micro-Finance has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

6866 News

Simply Wall St News

What Percentage Of Zuoli Kechuang Micro-Finance Company Limited (HKG:6866) Shares Do Insiders Own?

If you want to know who really controls Zuoli Kechuang Micro-Finance Company Limited (HKG:6866), then you'll have to look at the makeup of its share registry. … Zuoli Kechuang Micro-Finance is not a large company by global standards. … See our latest analysis for Zuoli Kechuang Micro-Finance

Simply Wall St -

Read This Before You Buy Zuoli Kechuang Micro-Finance Company Limited (HKG:6866) Because Of Its P/E Ratio

We'll look at Zuoli Kechuang Micro-Finance Company Limited's (HKG:6866) P/E ratio and reflect on what it tells us about the company's share price. … Zuoli Kechuang Micro-Finance has a price to earnings ratio of 2.42, based on the last twelve months. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

One Thing To Remember About The Zuoli Kechuang Micro-Finance Company Limited (HKG:6866) Share Price

If you're interested in Zuoli Kechuang Micro-Finance Company Limited (HKG:6866), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

What Does Zuoli Kechuang Micro-Finance Company Limited's (HKG:6866) PE Ratio Tell You?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … While 6866 might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.

Simply Wall St -

How Does Investing In Zuoli Kechuang Micro-Finance Company Limited (HKG:6866) Impact Your Portfolio?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

Simply Wall St -

Has Zuoli Kechuang Micro-Finance Company Limited (HKG:6866) Improved Earnings In Recent Times?

Assessing Zuoli Kechuang Micro-Finance Company Limited's (HKG:6866) past track record of performance is a valuable exercise for investors. … Today I will assess 6866's recent performance announced on 31 December 2017 and evaluate these figures to its longer term trend and industry movements. … Did 6866's recent earnings growth beat the long-term trend and the industry.

Simply Wall St -

Zuoli Kechuang Micro-Finance And Other Top Cheap Stocks

Recent undervalued companies based on their current market price include Zuoli Kechuang Micro-Finance and Kingboard Chemical Holdings. … Zuoli Kechuang Micro-Finance Company Limited (SEHK:6866) Zuoli Kechuang Micro-finance Company Limited operates as a microfinance company in the People’s Republic of China. … 148's stock is currently hovering at around -40% lower than its true value of $53.78, at the market price of HK$32.10, based on my discounted cash flow model.

Simply Wall St -

Three Stocks Trading At A Massive Discount

SEHK:6866 PE PEG Gauge Mar 26th 18 Hong Kong International Construction Investment Management Group Co., Limited (SEHK:687) Hong Kong International Construction Investment Management Group Co., Limited, an investment holding company, engages in foundation piling; property investment, development, and management; and machinery leasing and trading activities in the People’s Republic of China. … SEHK:687 PE PEG Gauge Mar 26th 18 Clear Media Limited (SEHK:100) Clear Media Limited, an investment holding company, operates as an outdoor advertising company primarily in the People’s Republic of China. … Also, 100’s PE ratio stands at 11.98x relative to its Media peer level of, 17.25x indicating that relative to its comparable company group, you can buy 100’s shares at a cheaper price.

Simply Wall St -

6866 Company Info

Description

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 loans, including agriculture loans and technology enterprises credit loans, as well as loans for other small and medium-sized enterprises (SMEs), and microenterprises; and individual loans, such as individual business, individual consumption, individual start-up, and other individual loans. It serves customers engaged in agricultural businesses and rural development activities; and customers residing in rural areas, as well as SMEs, microenterprises, and online retailers. The company was formerly known as Deqing Zuoli Kechuang Micro-Finance Company Limited and changed its name to Zuoli Kechuang Micro-Finance Company Limited in April 2014. Zuoli Kechuang Micro-Finance Company Limited was founded in 2011 and is headquartered in Huzhou, the People’s Republic of China.

Details
Name: Zuoli Kechuang Micro-Finance Company Limited
6866
Exchange: SEHK
Founded: 2011
HK$513,300,000
1,180,000,000
Website: http://www.zlkcxd.cn
Address: Zuoli Kechuang Micro-Finance Company Limited
No. 399 Deqing Avenue,
Wukang Road,
Huzhou,
Zhejiang Province, China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 6866 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 13. Jan 2015
Number of employees
Current staff
Staff numbers
136
Zuoli Kechuang Micro-Finance employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/18 12:51
End of day share price update: 2019/03/18 00:00
Last earnings filing: 2018/09/17
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.