Quanzhou Huixin Micro-credit Co., Ltd. Class H (1577) AI Stock Analysis

• Market Cap: HK$680.00M
• Dividend Yield: 5.46%
• Average Volume (3M): 52.67K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.62
• Revenue Growth: -24.04%
• EPS Growth: 60.24%
• Country: HK
• Employees: 51
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.07
• Shares Outstanding: 180,000,000
• 10 Day Avg. Volume: 6,000
• 30 Day Avg. Volume: 52,666
• PEG Ratio: 0.14
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 2.65
• P/FCF Ratio: 3.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: HK$1.00 ▲(0.00% Upside)

Quanzhou Huixin Micro-credit Co., Ltd. demonstrates strong financial performance with robust revenue and profit growth, efficient cost management, and a solid balance sheet. The stock is attractively valued with a low P/E ratio and high dividend yield, suggesting potential undervaluation. Technical indicators show moderate bullish momentum, supporting a positive outlook. The absence of earnings call and corporate events data does not impact the overall assessment.

Positive Factors

Balance Sheet Health

A low debt-to-equity ratio indicates minimal leverage, reducing financial risk and enhancing the company's stability and resilience.

Cash Generation

Strong cash generation supports growth initiatives and provides a buffer against economic downturns, ensuring long-term operational sustainability.

Profitability

Improved profitability reflects efficient operations and cost management, enhancing the company's ability to reinvest in growth and reward shareholders.

Negative Factors

Revenue Decline

A decline in revenue growth suggests potential challenges in market demand or competitive pressures, which could impact future earnings.

Return on Equity

Moderate ROE indicates that while the company is using its equity efficiently, there is room to enhance shareholder returns through better asset utilization.

Cash Conversion Efficiency

Improving cash conversion efficiency is crucial for maximizing cash available for reinvestment and reducing reliance on external financing.

Quanzhou Huixin Micro-credit Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Quanzhou Huixin Micro-credit Co., Ltd., a microfinance company, provides various short-term financing solutions in the People's Republic of China. It offers revolving credit facilities, joint-guaranteed loans, targeted payment loans, bridge loans, and collateralized quick-access loans. The company serves entrepreneurial individuals, small and medium-sized enterprises, and microenterprises. It also provides investment advisory and consulting, information technology advisory, financial leasing, and estate brokerage services; and wholesales building materials. The company was incorporated in 2010 and is headquartered in Quanzhou, the People's Republic of China.

How the Company Makes Money

The company generates revenue primarily through interest on the micro-loans it provides. These loans typically come with higher interest rates than traditional banking products, reflecting the higher risk associated with lending to individuals and small businesses that may not have established credit histories. In addition to interest income, Quanzhou Huixin Micro-credit may also charge fees for loan processing and other financial services. The company may benefit from partnerships with local businesses and government programs aimed at promoting economic development, which can enhance its client base and, consequently, its revenue streams. Moreover, effective risk management practices help minimize defaults, thereby stabilizing income.

Quanzhou Huixin Micro-credit Co., Ltd. Class H Financial Statement Overview

Summary

Quanzhou Huixin Micro-credit Co., Ltd. exhibits strong financial performance with impressive revenue and profit growth, efficient cost management, and a solid balance sheet with minimal leverage. The cash flow position is robust, supporting the company's growth trajectory. While the company is financially stable, there is potential for further improvement in return on equity and cash conversion efficiency.

Income Statement

The company demonstrates strong revenue growth with a 73.64% increase in the latest year, indicating robust business expansion. The gross profit margin remains exceptionally high at nearly 100%, showcasing efficient cost management. Net profit margin has improved significantly to 52.90%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while strong, show room for improvement compared to peers.

Balance Sheet

The balance sheet is solid with a very low debt-to-equity ratio of 0.00078, indicating minimal leverage and financial risk. Return on equity is moderate at 7.52%, suggesting efficient use of equity but with potential for improvement. The equity ratio is healthy, reflecting a strong capital structure.

Cash Flow

The company shows a positive free cash flow growth rate of 26%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is high at 45.97, suggesting robust cash flow relative to earnings. However, the free cash flow to net income ratio, while healthy, indicates some room for improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	153.29M	173.36M	113.18M	131.34M	133.56M	74.42M
Gross Profit	152.85M	172.93M	113.18M	128.43M	131.46M	74.42M
EBITDA	52.18M	130.49M	102.94M	99.08M	84.86M	0.00
Net Income	79.97M	91.71M	64.81M	60.70M	42.08M	41.10M
Balance Sheet
Total Assets	1.32B	1.24B	1.30B	1.33B	1.37B	1.31B
Cash, Cash Equivalents and Short-Term Investments	0.00	163.10M	111.48M	143.27M	43.50M	49.69M
Total Debt	0.00	951.57K	11.64M	40.11M	107.70M	50.22M
Total Liabilities	92.35M	17.93M	34.36M	86.64M	161.14M	80.30M
Stockholders Equity	1.23B	1.22B	1.16B	1.13B	1.10B	1.09B
Cash Flow
Free Cash Flow	27.32M	145.90M	67.35M	213.57M	38.92M	59.01M
Operating Cash Flow	28.65M	200.20M	67.61M	215.19M	43.48M	68.74M
Investing Cash Flow	-467.74K	-53.70M	-9.36M	-1.58M	-3.17M	-7.87M
Financing Cash Flow	-43.43M	-154.92M	-77.85M	-111.49M	-31.05M	-76.95M

Quanzhou Huixin Micro-credit Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1577, the sentiment is Positive. The current price of 1 is above the 20-day moving average (MA) of 1.00, above the 50-day MA of 0.98, and above the 200-day MA of 0.93, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 67.39 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1577.

Quanzhou Huixin Micro-credit Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1577	80 Outperform	HK$680.00M	6.20	8.46%	5.46%	-24.04%	60.24%
1669	71 Outperform	HK$368.00M	7.52	5.24%	5.43%	-1.47%	2.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6866	66 Neutral	HK$336.30M	5.57	2.75%	4.88%	-12.94%	-15.93%
1601	64 Neutral	HK$1.39B	3.83	9.89%	7.43%	1.11%	3.98%

Quanzhou Huixin Micro-credit Co., Ltd. Class H Corporate Events

Quanzhou Huixin Micro-credit Discloses Series of Settled High-Yield Loan Transactions

Quanzhou Huixin Micro-credit Co., Ltd. has disclosed a series of loan transactions entered into between July 2022 and December 2023, involving multiple borrowers and its non-wholly owned subsidiary JJHX, with individual loan principals ranging from RMB10 million to RMB26.5 million and annual interest rates between 13.2% and 18%. The company reported that all of these loans, categorized as provision of financial assistance under Hong Kong listing rules, have been fully settled as of the date of the announcement, underscoring active deployment and recovery of credit capital and demonstrating continued demand for its higher-yield micro-credit services.

The most recent analyst rating on (HK:1577) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Quanzhou Huixin Micro-credit Co., Ltd. Class H stock, see the HK:1577 Stock Forecast page.

Quanzhou Huixin Micro-credit Co., Ltd. Enters Loan Agreement

Quanzhou Huixin Micro-credit Co., Ltd., a company established in the People’s Republic of China, has entered into a Loan Agreement to provide financial assistance to a customer. The agreement involves a loan of RMB27.5 million at an interest rate of 15.6% per annum, with a term of 61 days. The loan is secured by a share charge of 10% interest in Fund A. The company will finance the loan using its internal resources. The transaction is considered discloseable under the Hong Kong Stock Exchange’s Listing Rules due to the aggregated percentage ratios exceeding 5% but being less than 25%. The company initially failed to disclose the transaction in a timely manner due to a misunderstanding of the Listing Rules.

The most recent analyst rating on (HK:1577) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Quanzhou Huixin Micro-credit Co., Ltd. Class H stock, see the HK:1577 Stock Forecast page.

Quanzhou Huixin Micro-credit Announces Discloseable Loan Transaction

Quanzhou Huixin Micro-credit Co., Ltd. announced a discloseable transaction involving the provision of financial assistance through a loan agreement with a customer. The loan, amounting to RMB30.2 million with an interest rate of 21.6% per annum, is secured by collateral valued at approximately RMB161.2 million. The transaction required disclosure under Hong Kong’s Listing Rules due to its size, and the company acknowledged a delay in disclosure due to a misunderstanding of the rules.

The most recent analyst rating on (HK:1577) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Quanzhou Huixin Micro-credit Co., Ltd. Class H stock, see the HK:1577 Stock Forecast page.

Quanzhou Huixin Micro-credit Co., Ltd. Announces Discloseable Loan Transaction

Quanzhou Huixin Micro-credit Co., Ltd. announced a discloseable transaction involving the provision of financial assistance through a loan agreement with a customer. The loan, amounting to RMB25.6 million with an interest rate of 15.6% per annum, is secured by a share charge and is funded by the company’s internal resources. The transaction was subject to reporting requirements due to the aggregated percentage ratios exceeding 5% but remaining below 25%, highlighting the company’s commitment to regulatory compliance despite a previous misunderstanding of transaction definitions under listing rules.

The most recent analyst rating on (HK:1577) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Quanzhou Huixin Micro-credit Co., Ltd. Class H stock, see the HK:1577 Stock Forecast page.