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Cnfinance Holdings (CNF)
:CNF
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CNFinance Holdings
(NYSE:CNF)
Rating:62Neutral
Price Target:―
CNFinance Holdings (CNF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.77M
Dividend YieldN/A
Average Volume (3M)268.21K
Price to Earnings (P/E)1.9
Beta (1Y)1.28
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees691
SectorFinancial
Sector Strength73
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)N/A
Shares Outstanding68,582,160
10 Day Avg. Volume199,377
30 Day Avg. Volume268,210
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
CNFinance Holdings Business Overview & Revenue Model
Company DescriptionCNFinance Holdings Limited is a leading home equity loan service provider in China, primarily serving small and micro-enterprise owners. The company operates in the financial services sector, focusing on assisting borrowers in securing loans by offering their residential properties as collateral. CNFinance's core services include facilitating loan applications and providing post-loan management services, leveraging its extensive network of branches and a robust technology platform.
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:May 22, 2025
(Q4-2023)
| % Change Since: 31.58%|
Next Earnings Date:Sep 02, 2025
Earnings Call Sentiment Positive
The overall sentiment of the call is cautiously optimistic. Despite challenges in the real estate market and a decline in quarterly net income, CNFinance has demonstrated solid annual growth in loan facilitation and net income, along with decreased interest expenses and improved asset quality. The company's strategic partnerships and technology investments have contributed to its resilience.Q4-2023 Updates
Positive Updates
Loan Facilitation Growth
CNFinance facilitated loans of RMB 17.3 billion in 2023, representing a year-on-year growth of 18%.
Decrease in Interest Expenses
Interest expenses were 8% lower compared to 2022, contributing to improved financial performance.
Strong Net Income Growth
Net income for 2023 reached RMB 165 million, a year-on-year increase of 21%.
Commercial Bank Partnership Success
Loans originated under the commercial bank partnership totaled RMB 5 billion, with net revenue of RMB 88 million.
Improved Asset Quality
The delinquency ratio dropped from 19.2% in 2022 to 15.6% in 2023.
Negative Updates
Decline in Net Income for Q4
Net income for Q4 decreased by 33% to RMB 19 million from RMB 28 million in the previous year.
Increased Operating Expenses
Total operating expenses increased by 15% in Q4 2023 compared to the previous year.
Challenges in Loan Demand
Loan demand from MSE owners was lower than expected due to uncertainties in the real estate market.
Company Guidance
During the CNFinance Q4 2023 earnings call, the company provided guidance indicating strong year-end results despite challenges in China's macroeconomic and real estate environment. CNFinance facilitated RMB 17.3 billion in loans, marking an 18% year-over-year increase, while net income rose by 21% to RMB 165 million. The company achieved a notable 23% reduction in provisions for credit losses and a decrease in interest expenses by 8% compared to 2022. Additionally, the delinquency ratio improved significantly, dropping from 19.2% at the end of 2022 to 15.6% by the end of 2023. CNFinance's strategy moving forward includes diversifying product offerings, prioritizing asset quality, and enhancing compliance measures, with a target of originating RMB 20 billion in loans for 2024.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
Positive
0.75
Price Trends
0.61
Positive
0.72
Positive
0.95
Negative
Market Momentum
0.06
Negative
62.32
Neutral
70.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNF, the sentiment is Positive. The current price of 0.75 is above the 20-day moving average (MA) of 0.69, above the 50-day MA of 0.61, and below the 200-day MA of 0.95, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 62.32 is Neutral, neither overbought nor oversold. The STOCH value of 70.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $644.81M | 9.32 | 13.62% | ― | 32.62% | 16.91% | |
67 Neutral | $16.64B | 11.61 | 9.79% | 3.78% | 11.89% | -8.13% | |
63 Neutral | $5.09B | 15.13 | 9.32% | 1.22% | 23.79% | 121.61% | |
62 Neutral | $51.77M | 1.87 | 4.11% | ― | ― | ― | |
61 Neutral | $897.78M | ― | -13.05% | ― | 13.17% | 43.16% | |
57 Neutral | $1.23B | 28.54 | 3.71% | 2.52% | 42.92% | 64.72% | |
48 Neutral | $501.46M | ― | -29.48% | ― | 3.76% | 16.19% |
* Financial Sector Average
Performance Comparison
CNF
CNFinance Holdings
0.78
-0.42
-35.00%
ECPG
Encore Capital
38.23
-11.23
-22.71%
PFSI
PennyMac Financial
99.53
-1.72
-1.70%
LDI
loanDepot
1.68
-0.40
-19.23%
VEL
Velocity Financial
17.85
-1.26
-6.59%
GHLD
Guild Holdings
19.84
6.04
43.77%
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.