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CNFinance Holdings Ltd (CNF)
NYSE:CNF
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CNFinance Holdings
(NYSE:CNF)
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Rating:62Neutral
Price Target:―
CNFinance Holdings exhibits strong technical performance and attractive valuation, which are positive indicators for potential growth. However, the significant revenue decline and high financial leverage are concerning. Improvements in cash flow and profitability offset some risks, but the mixed financial performance tempers the overall score.
CNFinance Holdings (CNF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.16M
Dividend YieldN/A
Average Volume (3M)77.06K
Price to Earnings (P/E)1.9
Beta (1Y)1.18
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees691
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)-0.04
Shares Outstanding6,858,216
10 Day Avg. Volume78,614
30 Day Avg. Volume77,057
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap33.39
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit0.82
Enterprise Value/Ebitda0.96
Forecast
1Y Price Target
$20.00Price Target Upside580.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
CNFinance Holdings Business Overview & Revenue Model
Company DescriptionCNFinance Holdings Limited, through its subsidiaries, provides home equity loan services in the People's Republic of China. It offers micro credit loan services for micro and small-enterprise owners; and loan lending agency services for financial institutions. The company also provides bridge loan products, which are unsecured short-term loans to pay off borrowers' existing loans secured by real property. It operates a network of 63 branches and sub-branches, which included 14 branches and sub-branches in the Pearl River Delta region, 7 branches and sub-branches in the Yangtze River Delta region, and 42 branches and sub-branches in other areas in approximately 50 cities in China. CNFinance Holdings Limited was founded in 1999 and is headquartered in Guangzhou, the People's Republic of China.
How the Company Makes MoneyCNFinance Holdings generates revenue primarily through the facilitation of home equity loans. The company's revenue model is based on charging fees for its services, which include loan facilitation, risk management, and post-loan services. CNFinance earns interest income from the loans it facilitates, taking advantage of the spread between the interest rates charged to borrowers and the costs of securing funding from its financial partners. Additionally, CNFinance may benefit from strategic partnerships with banks and financial institutions that provide the capital for the loans, further enhancing its capacity to serve a broad client base.
CNFinance Holdings Earnings Call Summary
Earnings Call Date:Aug 28, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted the company's strategic focus on cost control, NPL recovery, and expansion into new business areas. However, these positives were countered by significant declines in loan transactions, loan balance, and interest income, alongside a net loss and increased nonperforming loan ratio.Q2-2025 Updates
Positive Updates
Increase in Sales Partners
The company has signed a total of 2,184 sales partners, marking a year-on-year increase of 2%. Additionally, 1,485 sales partners introduced borrowers, representing a 3.3% growth.
Cost Control Success
Operating expenses fell by 74%, and financing costs decreased by 32%, demonstrating strong cost control capabilities.
NPL Recovery Rate
The company achieved a 103% nonperforming loan recovery rate in the first half.
Organizational Optimization
The company optimized its organizational structure and streamlined personnel, resulting in a significant reduction in operating costs.
Expansion into New Business Areas
The company expanded into new business areas, refined existing products, and launched new products that meet market demands.
Negative Updates
Decrease in Loan Transactions
The number of loan transactions decreased by 78.1% year-on-year, and total loan origination dropped by 85.4% due to proactive efforts to control loan issuance and focus on reducing nonperforming loans.
Decline in Loan Balance
The loan balance stood at RMB 11.2 billion, a decrease of 29.6% compared to last year.
Interest Income Decline
Interest income was RMB 416 million, a decline of 55% year-on-year.
Net Loss and Impairment Loss Provision
The company reported a net loss of RMB 40.4 million, primarily due to an impairment loss provision of RMB 31.3 million.
Rise in Nonperforming Loan Ratio
The nonperforming loan ratio rose to 16.9%.
Company Guidance
In the first half of 2025, CNFinance Holdings Limited focused on strategic adjustments and business optimizations amid challenging market conditions, emphasizing a "survival first, victory first" principle. The company signed a total of 2,184 sales partners, a year-on-year increase of 2%, with 1,485 partners introducing borrowers, growing by 3.3%. However, proactive efforts to control loan issuance led to a 78.1% year-on-year decrease in loan transactions and an 85.4% drop in total loan origination. By June 30, 2025, the loan balance was RMB 11.2 billion, down 29.6% from the previous year. Despite a 55% decline in interest income to RMB 416 million, financing costs decreased by 32%, and operating expenses fell by 74%, demonstrating effective cost control. The net loss was RMB 40.4 million, largely due to an RMB 31.3 million impairment loss provision, with a nonperforming loan (NPL) ratio of 16.9%. The company achieved a 103% NPL recovery rate through diversified reduction measures, streamlined its organizational structure, and stabilized funding by engaging new institutional investors. Key priorities included reducing NPLs, ensuring stable funding, and expanding into new business areas by refining existing products and launching new ones.CNFinance Holdings Financial Statement Overview
Summary
CNFinance Holdings shows mixed financial performance. Revenue has declined significantly, raising concerns. However, improvements in EBIT and net profit margins, along with increased free cash flow, indicate operational efficiencies and positive cash generation. The high leverage on the balance sheet poses risks, but strategic management could improve financial health.Income Statement
The company has shown a significant decline in total revenue over the years, with a revenue drop from $1,302 million in 2020 to $845 million in 2023. Gross profit margins are negative, indicating potential inefficiencies or high costs. However, the EBIT margin is relatively strong, suggesting operational efficiency in certain areas. Net income has increased from 2022 to 2023, improving the net profit margin, but overall revenue contraction is a concern.45
Neutral
Balance Sheet
The balance sheet reflects high leverage with a debt-to-equity ratio consistently above 2.0, indicating reliance on debt financing. However, the equity ratio suggests a moderate level of asset financing through equity. Return on Equity (ROE) is positive but not particularly strong, reflecting limited return generation on equity capital. Despite these concerns, the company has maintained a reasonable level of stockholders' equity.55
Neutral
Cash Flow
The company has demonstrated a healthy increase in free cash flow from 2022 to 2023, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong, suggesting adequate cash earnings. However, the free cash flow to net income ratio reflects potential areas of improvement in converting profits to cash. Cash flow stability is crucial, given the balance sheet's leverage.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 870.96M | 1.62B | 1.84B | 1.89B | 1.36B | 1.88B |
| Gross Profit | 818.20M | 1.36B | 1.50B | 1.56B | 934.93M | 1.48B |
| EBITDA | 699.17M | 0.00 | 0.00 | 174.83M | 97.59M | 0.00 |
| Net Income | 119.44M | 37.78M | 164.62M | 135.35M | 65.21M | 114.85M |
Balance Sheet | ||||||
| Total Assets | 17.28B | 15.03B | 16.36B | 14.48B | 14.41B | 12.20B |
| Cash, Cash Equivalents and Short-Term Investments | 1.61B | 1.79B | 2.00B | 16.40T | 3.48B | 2.49B |
| Total Debt | 8.34B | 5.95B | 8.27B | 7.76B | 8.06B | 5.67B |
| Total Liabilities | 13.22B | 10.97B | 12.36B | 7.87B | 8.30B | 5.87B |
| Stockholders Equity | 4.06B | 4.06B | 4.01B | 3.89B | 3.82B | 3.74B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 749.28M | 1.59B | 829.36M | 685.89M | 1.12B |
| Operating Cash Flow | 0.00 | 757.23M | 1.71B | 919.25M | 689.69M | 1.12B |
| Investing Cash Flow | 0.00 | -263.67M | -2.48B | -1.10B | -2.35B | 524.05M |
| Financing Cash Flow | 0.00 | -1.33B | 1.01B | -288.16M | 1.93B | -1.37B |
CNFinance Holdings Technical Analysis
Negative
2.94
Price Trends
5.61
Negative
5.86
Negative
7.76
Negative
Market Momentum
-0.75
Negative
36.66
Neutral
21.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNF, the sentiment is Negative. The current price of 2.94 is below the 20-day moving average (MA) of 3.65, below the 50-day MA of 5.61, and below the 200-day MA of 7.76, indicating a bearish trend. The MACD of -0.75 indicates Negative momentum. The RSI at 36.66 is Neutral, neither overbought nor oversold. The STOCH value of 21.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNF.
CNFinance Holdings Risk Analysis
CNFinance Holdings disclosed 87 risk factors in its most recent earnings report. CNFinance Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CNFinance Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | 710.34M | 8.46 | 0.00% | ― | 35.12% | 25.28% | |
64 Neutral | 6.46B | 17.33 | 8.13% | 0.96% | 20.77% | 96.22% | |
62 Neutral | $20.16M | 1.87 | 4.11% | ― | ― | ― | |
58 Neutral | 1.23B | -11.00 | -15.29% | ― | 6.60% | 44.77% | |
58 Neutral | 1.24B | 51.03 | 2.12% | ― | 34.62% | -7.94% | |
56 Neutral | 1.04B | -12.05 | -18.15% | ― | 17.57% | 55.46% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
CNF
CNFinance Holdings
2.94
-6.86
-70.00%
ECPG
Encore Capital
45.15
-1.90
-4.04%
PFSI
PennyMac Financial
125.02
13.94
12.55%
LDI
loanDepot
3.72
1.01
37.27%
VEL
Velocity Financial
18.48
-1.42
-7.14%
GHLD
Guild Holdings
19.90
3.75
23.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.