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VCREDIT Holdings Limited (HK:2003)
:2003
Hong Kong Market
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VCREDIT Holdings Limited (2003) AI Stock Analysis

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HK

VCREDIT Holdings Limited

(2003)

Rating:69Neutral
Price Target:
VCREDIT Holdings Limited demonstrates a strong valuation position due to its low P/E ratio and high dividend yield, supporting its attractiveness to investors. However, the overall score is moderated by financial performance concerns, including revenue decline and weak cash flows, which highlight operational challenges. The technical analysis is positive, indicating good market momentum, further supporting the stock's potential upside.

VCREDIT Holdings Limited (2003) vs. iShares MSCI Hong Kong ETF (EWH)

VCREDIT Holdings Limited Business Overview & Revenue Model

Company DescriptionVCREDIT Holdings Limited, founded in 2003, is a leading fintech company in China that specializes in providing consumer finance services. The company primarily operates in the online consumer finance sector, offering a range of credit products, including credit card balance transfer products and online consumption credit products. VCREDIT leverages advanced technologies to offer personalized financial solutions and prides itself on its robust risk management systems.
How the Company Makes MoneyVCREDIT Holdings Limited generates revenue primarily through the interest and fees charged on its consumer finance products. The company offers credit card balance transfer services, where it earns interest from the outstanding balances transferred to their platform. Additionally, VCREDIT provides online consumption credit products, where it collects service fees and interest. The company employs sophisticated data analytics and risk management tools to minimize defaults and ensure a steady revenue stream. Strategic partnerships with financial institutions and technology companies also play a crucial role in expanding its customer base and enhancing its service offerings, contributing to its overall earnings.

VCREDIT Holdings Limited Financial Statement Overview

Summary
VCREDIT Holdings Limited displays mixed financial health. Profitability metrics are improving with better net profit and ROE, but significant revenue decline and weak cash flow raise concerns about operational challenges. The balance sheet shows reduced leverage, yet historical volatility suggests caution.
Income Statement
60
Neutral
The company has shown a volatile revenue pattern with a sharp decline in 2024 compared to 2023. Gross profit margin remains steady, as gross profit equals total revenue, indicating no cost of goods sold. Net profit margin improved in 2024 to 17.5% from 16% in 2023. However, revenue growth is negative, with a significant drop from 2023 to 2024, indicating potential market challenges.
Balance Sheet
70
Positive
The debt-to-equity ratio improved significantly in 2024, reflecting reduced leverage. Equity ratio increased slightly, indicating a stronger equity base. Return on equity (ROE) increased to 10.38% in 2024, showing improved profitability. The balance sheet is strengthening, but historical volatility in equity and debt levels suggest caution.
Cash Flow
40
Negative
The cash flow position is weak, with zero operating and free cash flow reported in 2024. Previous periods show large fluctuations in cash flows, highlighting inconsistency in cash generation. The lack of cash flow data in 2024 raises concerns about liquidity and cash management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.73B2.84B1.24B1.97B-764.77M
Gross Profit2.73B2.84B1.24B1.97B-764.77M
EBITDA0.000.000.000.000.00
Net Income478.17M453.91M532.47M1.18B-869.56M
Balance Sheet
Total Assets11.71B11.93B10.10B11.28B8.34B
Cash, Cash Equivalents and Short-Term Investments1.69B1.64B2.13B2.45B2.00B
Total Debt2.27B5.62B4.54B7.01B4.77B
Total Liabilities7.10B7.77B4.54B7.01B4.77B
Stockholders Equity4.61B4.17B3.82B3.39B2.28B
Cash Flow
Free Cash Flow1.42B-1.37B3.01B-1.04B5.24B
Operating Cash Flow1.46B-1.34B3.04B-1.02B5.27B
Investing Cash Flow0.0070.36M-176.11M-122.74M-27.36M
Financing Cash Flow-714.17M580.52M-3.18B1.55B-5.91B

VCREDIT Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.70
Price Trends
50DMA
3.82
Negative
100DMA
3.58
Positive
200DMA
2.82
Positive
Market Momentum
MACD
-0.03
Negative
RSI
48.95
Neutral
STOCH
57.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2003, the sentiment is Positive. The current price of 3.7 is below the 20-day moving average (MA) of 3.74, below the 50-day MA of 3.82, and above the 200-day MA of 2.82, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 48.95 is Neutral, neither overbought nor oversold. The STOCH value of 57.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2003.

VCREDIT Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$12.29B28.859.53%3.10%-6.00%39.70%
70
Outperform
HK$6.63B5.1812.21%5.38%2.88%27.89%
69
Neutral
HK$1.82B3.5310.93%5.33%6.36%2.42%
58
Neutral
HK$91.33B5.23-3.21%5.29%7.36%-55.21%
48
Neutral
HK$262.50M-44.69%-13.27%14.98%
46
Neutral
HK$4.32B-29.17%16.88%-11.94%-756.32%
41
Neutral
$1.14B-95.62%-31.29%57.76%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2003
VCREDIT Holdings Limited
3.75
1.59
73.61%
HK:1983
Luzhou Bank Co., Ltd. Class H
2.44
0.62
34.07%
HK:1813
KWG Group Holdings
0.34
0.02
4.69%
HK:6069
SY Holdings Group Limited
12.18
7.50
160.26%
HK:1393
Hidili Industry International Development Limited
0.06
-0.05
-46.73%
HK:3319
A-Living Smart City Services Co., Ltd. Class H
3.04
0.26
9.47%

VCREDIT Holdings Limited Corporate Events

VCREDIT Holdings Restores Public Float to Comply with HKEX Rules
May 2, 2025

VCREDIT Holdings Limited announced the restoration of its public float, complying with the Hong Kong Stock Exchange’s listing rules. This change was achieved after High Loyal Management Limited and its controllers, Mr. and Mrs. Kwok, reduced their shareholding, allowing the company’s public float to reach 33.34%, thereby meeting the minimum requirement.

VCREDIT Holdings Announces AGM and Key Resolutions for 2025
Apr 24, 2025

VCREDIT Holdings Limited has announced its upcoming Annual General Meeting (AGM) to be held electronically on June 13, 2025. Key agenda items include the approval of a final dividend of HK20 cents per share for the year ending December 31, 2024, the re-election of four directors, and the re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, shareholders will consider resolutions related to the repurchase of shares and the issuance of additional shares. These decisions could impact the company’s financial strategy and shareholder value.

VCREDIT Extends Deadline for Banco Português de Gestão Acquisition
Apr 1, 2025

VCREDIT Holdings Limited has announced an extension of the Long Stop Date for its acquisition of Banco Português de Gestão, S.A. due to additional time needed to satisfy regulatory conditions. The new deadline is set for November 4, 2025, but the acquisition’s completion remains uncertain as it is contingent on meeting certain conditions.

VCREDIT Holdings Reports 2024 Financial Growth Amid Strategic Innovations
Mar 25, 2025

VCREDIT Holdings Limited announced its annual results for the year ending December 31, 2024, showing a 10.1% increase in total income to RMB 3,929.7 million and a 5.3% rise in net profit to RMB 478.2 million. Despite challenges from a complex external environment and ongoing trade frictions, the company adapted its strategies to enhance operational efficiency and risk management, leveraging AI technology to improve customer segmentation and risk identification. The company also launched the ‘Sunbird AI Hub’ to enhance customer service and data security, demonstrating resilience and flexibility in its business model and operations.

VCREDIT Holdings Announces Final Dividend for 2024
Mar 25, 2025

VCREDIT Holdings Limited, a company listed on the Hong Kong Stock Exchange, has announced a final ordinary cash dividend of HKD 0.2 per share for the financial year ending December 31, 2024. This dividend reflects the company’s financial performance and commitment to returning value to its shareholders, with the payment scheduled for July 9, 2025, following shareholder approval on June 13, 2025.

VCREDIT Holdings to Review Annual Financials and Dividend Declaration
Mar 13, 2025

VCREDIT Holdings Limited has announced that its board of directors will hold a meeting on March 25, 2025, to approve the company’s financial statements and annual results for the year ending December 31, 2024. The meeting will also consider the declaration of a final dividend, which could impact the company’s financial distribution to its stakeholders.

VCREDIT Holdings Granted Waiver to Restore Public Float
Feb 27, 2025

VCREDIT Holdings Limited has been granted a temporary waiver from the Hong Kong Stock Exchange to comply with the minimum public float requirement. This follows the close of an offer that left the company with a public float below the required threshold. The company is taking steps to restore the required public float and will make further announcements as necessary.

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.Date of analysis: Apr 20, 2025