Zuoli Kechuang Micro-finance Company Limited

SEHK:6866 Stock Report

Market Cap: HK$348.1m

Zuoli Kechuang Micro-finance Valuation

Is 6866 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 6866 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6866 (HK$0.3) is trading below our estimate of fair value (HK$0.78)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6866?

Key metric: As 6866 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6866. This is calculated by dividing 6866's market cap by their current earnings.
What is 6866's PE Ratio?
PE Ratio4.9x
EarningsCN¥66.12m
Market CapCN¥324.01m

Price to Earnings Ratio vs Peers

How does 6866's PE Ratio compare to its peers?

The above table shows the PE ratio for 6866 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10x
1319 Oi Wah Pawnshop Credit Holdings
6.2xn/aHK$414.4m
1577 Quanzhou Huixin Micro-credit
7.2xn/aHK$489.6m
1543 Guangdong Join-Share Financing Guarantee Investment
11.9xn/aHK$515.1m
2483 K Cash Fintech
14.7xn/aHK$880.0m
6866 Zuoli Kechuang Micro-finance
4.9xn/aHK$348.1m

Price-To-Earnings vs Peers: 6866 is good value based on its Price-To-Earnings Ratio (4.9x) compared to the peer average (10x).

Price to Earnings Ratio vs Industry

How does 6866's PE Ratio compare vs other companies in the Asian Consumer Finance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
6866 4.9xIndustry Avg. 14.2xNo. of Companies24PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6866 is good value based on its Price-To-Earnings Ratio (4.9x) compared to the Asian Consumer Finance industry average (14.2x).

Price to Earnings Ratio vs Fair Ratio

What is 6866's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6866 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6866's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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