SEHK:8317

Stock Analysis Report

Executive Summary

Finet Group Limited, an investment holding company, develops, produces, and provides financial information services, advertising and investor relationship services, and technology solutions to corporate and retail investors in the People's Republic of China.

Snowflake

Fundamentals

Poor track record with worrying balance sheet.

Share Price & News

How has Finet Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8317's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.0%

8317

-5.3%

HK Capital Markets

-4.2%

HK Market


1 Year Return

-2.0%

8317

-7.2%

HK Capital Markets

-2.6%

HK Market

Return vs Industry: 8317 exceeded the Hong Kong Capital Markets industry which returned -7.2% over the past year.

Return vs Market: 8317 matched the Hong Kong Market which returned -2.6% over the past year.


Shareholder returns

8317IndustryMarket
7 Day-2.0%-5.3%-4.2%
30 Day48.5%-1.4%-0.9%
90 Day12.6%-1.6%1.7%
1 Year-2.0%-2.0%-4.5%-7.2%0.9%-2.6%
3 Year-43.0%-43.0%-27.1%-33.3%19.6%7.6%
5 Year6.5%6.5%-7.6%-22.6%18.6%-1.0%

Price Volatility Vs. Market

How volatile is Finet Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Finet Group undervalued compared to its fair value and its price relative to the market?

4.91x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8317's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8317's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8317 is unprofitable, so we can't compare its PE Ratio to the Capital Markets industry average.

PE vs Market: 8317 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 8317's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8317 is overvalued based on its PB Ratio (4.9x) compared to the HK Capital Markets industry average (0.5x).


Next Steps

Future Growth

How is Finet Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.4%

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 Finet Group 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 Finet Group performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8317 has high quality earnings.

Growing Profit Margin: 8317 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8317 is unprofitable, but has reduced losses over the past 5 years at a rate of 3.4% per year.

Accelerating Growth: Unable to compare 8317's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8317 is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (-30.7%).


Return on Equity

High ROE: 8317 has a negative Return on Equity (-40.41%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Finet 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: 8317 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8317's debt is not covered by short term assets (assets are 0.8x 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: 8317 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 8317 has less than a year of cash runway if free cash flow continues to grow at historical rates of 56.5% each year.


Financial Institutions Analysis

Asset Level: 8317's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 8317 has a sufficient allowance for bad loans.

Low Risk Liabilities: 8317 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 8317 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 8317 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 8317 has an appropriate level of bad loans.


Next Steps

Dividend

What is Finet Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.4%industryaverage3.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8317's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8317'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 8317's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8317's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8317's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Finet Group's salary, the management and board of directors tenure and is there insider trading?

8.8yrs

Average board tenure


CEO

Yuk Yee Lo (59yo)

0yrs

Tenure

HK$1,776,000

Compensation

Ms. Yuk Yee Lo has been the Chairman of the Board and Compliance Officer of Finet Group Limited since January 25, 2011 and October 5, 2018 respectively and as its and Executive Director since October 2010  ...


CEO Compensation Analysis

Compensation vs Market: Yuk Yee's total compensation ($USD226.93K) is about average for companies of similar size in the Hong Kong market ($USD216.22K).

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


Board Age and Tenure

8.8yrs

Average Tenure

61yo

Average Age

Experienced Board: 8317's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 4.3%.


Management Team

  • Yuk Yee Lo (59yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: HK$1.78m
  • Yu Chung Lee (59yo)

    Head of IT & Executive Director

    • Tenure: 0.7yrs
    • Compensation: HK$70.00k
  • Aaron Chow

    Company Secretary & Financial Controller

    • Tenure: 0yrs

Board Members

  • Robert Siu (67yo)

    Independent Non-Executive Director

    • Tenure: 9.2yrs
    • Compensation: HK$120.00k
  • Yuk Yee Lo (59yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: HK$1.78m
  • Chi Hung Leung (63yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: HK$120.00k
  • Wai Kin Wong (61yo)

    Independent Non-Executive Director

    • Tenure: 9.2yrs
    • Compensation: HK$120.00k
  • Yu Chung Lee (59yo)

    Head of IT & Executive Director

    • Tenure: 0.7yrs
    • Compensation: HK$70.00k

Company Information

Finet Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Finet Group Limited
  • Ticker: 8317
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: HK$326.604m
  • Shares outstanding: 666.54m
  • Website: https://www.finet.hk

Number of Employees


Location

  • Finet Group Limited
  • Fortis Tower
  • 30th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8317SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2005

Biography

Finet Group Limited, an investment holding company, develops, produces, and provides financial information services, advertising and investor relationship services, and technology solutions to corporate an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 12:46
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.