SEHK:1806

Stock Analysis Report

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Executive Summary

Huifu Payment Limited provides third-party payment services in Mainland China. More Details


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.

Share Price & News

How has Huifu Payment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1806's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.4%

1806

-5.0%

HK IT

-0.6%

HK Market


1 Year Return

-27.8%

1806

7.5%

HK IT

0.9%

HK Market

Return vs Industry: 1806 underperformed the Hong Kong IT industry which returned 8.6% over the past year.

Return vs Market: 1806 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

1806IndustryMarket
7 Day-8.4%-5.0%-0.6%
30 Day-9.6%-1.7%0.02%
90 Day-36.6%8.3%-1.7%
1 Year-27.8%-27.8%9.9%7.5%5.1%0.9%
3 Yearn/a-10.5%-15.0%-6.1%-16.3%
5 Yearn/a13.8%1.3%14.1%-5.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Huifu Payment 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: 1806 (HK$2.08) is trading below our estimate of fair value (HK$11.45)

Significantly Below Fair Value: 1806 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1806 is unprofitable, so we can't compare its PE Ratio to the HK IT industry average.

PE vs Market: 1806 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 1806's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1806's PB Ratio (1.1x) is in line with the HK IT industry average.


Next Steps

Future Growth

How is Huifu Payment forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

65.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1806 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 1806 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1806's is expected to become profitable in the next 3 years.

Revenue vs Market: 1806's revenue (20% per year) is forecast to grow faster than the Hong Kong market (13.3% per year).

High Growth Revenue: 1806's revenue (20% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1806's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has Huifu Payment performed over the past 5 years?

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1806 is currently unprofitable.

Growing Profit Margin: 1806 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1806 is unprofitable, but has reduced losses over the past 5 years at a rate of 16.1% per year.

Accelerating Growth: Unable to compare 1806's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1806 is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (-18.3%).


Return on Equity

High ROE: 1806 has a negative Return on Equity (-0.54%), as it is currently unprofitable.


Next Steps

Financial Health

How is Huifu Payment's financial position?


Financial Position Analysis

Short Term Liabilities: 1806's short term assets (CN¥9.6B) exceed its short term liabilities (CN¥8.2B).

Long Term Liabilities: 1806's short term assets (CN¥9.6B) exceed its long term liabilities (CN¥105.9M).


Debt to Equity History and Analysis

Debt Level: 1806's debt to equity ratio (11.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1806's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1806's debt is well covered by operating cash flow (158.1%).

Interest Coverage: Insufficient data to determine if 1806's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Huifu Payment current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1806's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1806'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 1806's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1806'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 1806'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?

2.6yrs

Average management tenure


CEO

Jerry Zhou (53 yo)

2.58yrs

Tenure

CN¥8,286,000

Compensation

Mr. Ye Zhou, also known as Jerry, has been Chairman and Chief Executive Officer of Huifu Payment Limited since March 2018 and has been its Executive Director since December 21, 2017. Mr. Zhou is also the C ...


CEO Compensation Analysis

Compensation vs Market: Jerry's total compensation ($USD1.24M) is above average for companies of similar size in the Hong Kong market ($USD346.00K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ye Zhou
Chairman & CEO2.58yrsCN¥8.29m2.24%
CN¥ 61.2m
Haijie Mu
President & Executive Director2.58yrsCN¥4.72m0.54%
CN¥ 14.8m
Yuan Jin
CFO, Executive Director & Joint Company Secretary2.58yrsCN¥2.83m0.077%
CN¥ 2.1m
Shuk Yi So
Joint Company Secretary2.42yrsno datano data

2.6yrs

Average Tenure

48yo

Average Age

Experienced Management: 1806's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ye Zhou
Chairman & CEO2.58yrsCN¥8.29m2.24%
CN¥ 61.2m
Haijie Mu
President & Executive Director2.58yrsCN¥4.72m0.54%
CN¥ 14.8m
Yuan Jin
CFO, Executive Director & Joint Company Secretary2.58yrsCN¥2.83m0.077%
CN¥ 2.1m
Zhixiong Zhou
Non Executive Director2.58yrsno datano data
Lihong Wang
Non-Executive Director0.92yrno datano data
Hengzhong Wang
Independent Non-Executive Director2.58yrsCN¥266.00kno data
Chia Chow Chye
Non-Executive Director2.58yrsno datano data
Jun Liu
Independent Non-Executive Director2.58yrsCN¥266.00kno data
Hong Jiang
Independent Non-Executive Director0.17yrno datano data

2.6yrs

Average Tenure

52yo

Average Age

Experienced Board: 1806's board of directors are not considered experienced ( 2.6 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.4%.


Top Shareholders

Company Information

Huifu Payment Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Huifu Payment Limited
  • Ticker: 1806
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: HK$2.735b
  • Shares outstanding: 1.30b
  • Website: https://www.huifu.com

Number of Employees


Location

  • Huifu Payment Limited
  • Putian Industrial Park Phase II
  • Block C5
  • Shanghai
  • Shanghai Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1806SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2018
1806SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2018

Biography

Huifu Payment Limited provides third-party payment services in Mainland China. The company offers merchant payment services, such as POS, Internet payment, mobile payment, mobile POS, and cross-border paym ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 12:56
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.