SEHK:8207

Stock Analysis Report

Chong Sing Holdings FinTech Group

Executive Summary

Chong Sing Holdings FinTech Group Limited, an investment holding company, provides online financial services to small and medium-sized enterprises, merchants, and individuals through Internet and mobile solutions.

Rewards

Trading at 85.4% below its fair value

Risk Analysis

Shareholders have been diluted in the past year

Does not have a meaningful market cap (HK$277M)



Snowflake Analysis

Fair value with worrying balance sheet.

Share Price & News

How has Chong Sing Holdings FinTech Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8207 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

8207

1.7%

HK Consumer Finance

0.3%

HK Market


1 Year Return

-97.1%

8207

-29.2%

HK Consumer Finance

-5.1%

HK Market

Return vs Industry: 8207 underperformed the Hong Kong Consumer Finance industry which returned -20.3% over the past year.

Return vs Market: 8207 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

8207IndustryMarket
7 Day0%1.7%0.3%
30 Day0%-3.2%-3.9%
90 Day-7.7%-6.5%4.4%
1 Year-97.1%-97.1%-27.5%-29.2%-1.6%-5.1%
3 Year-98.8%-98.8%-26.1%-33.7%13.4%1.9%
5 Year-96.6%-96.6%-29.0%-40.1%15.6%-3.6%

Price Volatility Vs. Market

How volatile is Chong Sing Holdings FinTech Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chong Sing Holdings FinTech Group 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: 8207 (HK$0.01) is trading below our estimate of fair value (HK$0.08)

Significantly Below Fair Value: 8207 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8207 is unprofitable, so we can't compare its PE Ratio to the Consumer Finance industry average.

PE vs Market: 8207 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8207's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8207 is good value based on its PB Ratio (0x) compared to the HK Consumer Finance industry average (0.5x).


Next Steps

Future Growth

How is Chong Sing Holdings FinTech Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

43.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8207 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 8207 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 8207 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if 8207's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 8207's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 8207's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Chong Sing Holdings FinTech Group performed over the past 5 years?

-3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8207 is currently unprofitable.

Growing Profit Margin: 8207 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8207 is unprofitable, and losses have increased over the past 5 years at a rate of -3.7% per year.

Accelerating Growth: Unable to compare 8207's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8207 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (-11.1%).


Return on Equity

High ROE: 8207 has a negative Return on Equity (-17.86%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Chong Sing Holdings FinTech Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 8207 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8207's debt is covered by short term assets (assets are 2.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 8207 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 8207 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Financial Institutions Analysis

Asset Level: 8207's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 8207 has a sufficient allowance for bad loans.

Low Risk Liabilities: 8207 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 8207 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 8207 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 8207 has an appropriate level of bad loans.


Next Steps

Dividend

What is Chong Sing Holdings FinTech Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage6.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8207's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8207's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8207's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8207's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 8207 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 8207'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?

5.3yrs

Average management tenure


CEO

Yew Kiat Phang (51yo)

5.3yrs

Tenure

CN¥22,618,000

Compensation

Mr. Yew Kiat Phang has been the Chief Executive Officer and Vice Chairman of Credit China FinTech Holdings Limited (alternate name, Credit China Holdings Limited) since July 7, 2014 and has been its Execut ...


CEO Compensation Analysis

Compensation vs Market: Yew Kiat's total compensation ($USD3.16M) is above average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yew Kiat Phang
Vice Chairman & CEO5.3yrsCN¥22.62mno data
Jianhui Yang
Executive Director1.9yrsCN¥2.69mno data
Kwok Tam
Chief Financial Officer3.4yrsno datano data
Man Chun Leung
Chief Operating Officer0yrsno datano data
Zhen Dong Sun
Chief Legal Counsel0yrsno datano data
Sha Xie
Vice President of Corporate Development Department5.4yrsno datano data
Rong Yu Ma
Chief Business Supervisor0yrsno datano data
Jian Shen
Chairlady of First House Loan0yrsno datano data
Siu Man Kwok
Company Secretary5.3yrsno datano data
Gang Liu
Chief Executive Officer of UCF Pay Limited5.8yrsno datano data

5.3yrs

Average Tenure

48yo

Average Age

Experienced Management: 8207's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yew Kiat Phang
Vice Chairman & CEO5.3yrsCN¥22.62mno data
Jianhui Yang
Executive Director1.9yrsCN¥2.69mno data
Mary Jean Lau
Member of Advisory Panel5.3yrsCN¥17.00kno data
Poh Kiat Neo
Member of Advisory Panel5.3yrsCN¥17.00kno data
Ming Ge
Independent Non-Executive Director5.1yrsCN¥1.20mno data
Pang Ting
Honorary Chairman5.3yrsCN¥2.39mno data
Songqi Wang
Independent Non-Executive Director2.3yrsCN¥569.00kno data
Minggang Ou
Independent Non-Executive Director4yrsCN¥1.17mno data
Sze Lee
Member of Advisory Panel5.3yrsCN¥17.00kno data
Jia Sheng
Non-Executive Director5.8yrsCN¥3.14m0.0017% CN¥4.8k

5.3yrs

Average Tenure

51yo

Average Age

Experienced Board: 8207's board of directors are considered experienced (5.3 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 been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Company Information

Chong Sing Holdings FinTech Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chong Sing Holdings FinTech Group Limited
  • Ticker: 8207
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: HK$277.177m
  • Shares outstanding: 23.10b
  • Website: https://www.csfgroup.com

Number of Employees


Location

  • Chong Sing Holdings FinTech Group Limited
  • Office No. 45-120
  • 45th Floor
  • Causeway Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8207SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2010
CCFF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2010

Biography

Chong Sing Holdings FinTech Group Limited, an investment holding company, provides online financial services to small and medium-sized enterprises, merchants, and individuals through Internet and mobile solutions. It operates through Traditional Loans and Loans Financing, Third Party Payment Service, Online Investment and Technology–Enabled Lending Service, Blockchain Services, and Others segments. The company offers traditional financial services and related financing consultancy services, including entrusted, real estate-backed, pawn, and other loan services, as well as microfinance services; and Internet financing services, such as third party payment and prepaid card issuance, online investment and technology-enabled lending, and related activities on loan portfolio management. In addition, it provides transaction verification, social gaming, IT solution, and exhibition services, as well as engages in money lending activities. The company operates in the People’s Republic of China, Hong Kong, Vietnam, Canada, Singapore, and Georgia. The company was formerly known as Credit China FinTech Holdings Limited and changed its name to Chong Sing Holdings FinTech Group Limited in August 2017. Chong Sing Holdings FinTech Group Limited was founded in 2003 and is based in Causeway Bay, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/02 12:48
End of Day Share Price2019/07/05 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.