VCREDIT Holdings Limited (2003) AI Stock Analysis

• Market Cap: HK$1.26B
• Dividend Yield: 9.77%
• Average Volume (3M): 112.03K
• Price to Earnings (P/E): 2.0
• Beta (1Y): 0.18
• Revenue Growth: 16.56%
• EPS Growth: 110.71%
• Country: HK
• Employees: 870
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.48
• Shares Outstanding: 489,459,780
• 10 Day Avg. Volume: 67,879
• 30 Day Avg. Volume: 112,026
• PEG Ratio: 0.35
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 0.63
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: HK$2.50 ▼(-1.57% Downside)

The score is driven primarily by improving but still inconsistent financial performance (stronger 2024 growth, materially lower leverage, but volatile cash flow), offset by weak technical momentum and downtrend signals. Valuation is a major positive due to the very low P/E and high dividend yield.

Positive Factors

Revenue Growth

The re-acceleration of revenue growth in 2024 indicates a strengthening market position and potential for sustained business expansion.

Leverage Reduction

Significant reduction in leverage enhances financial stability and reduces balance-sheet risk, supporting long-term operational resilience.

Employee Retention

Effective management of equity compensation plans can improve employee retention and motivation, positively impacting long-term performance.

Negative Factors

Cash Flow Volatility

Volatile cash flow indicates inconsistent cash conversion, which can challenge financial planning and limit growth opportunities.

Earnings Power

Current profitability, while positive, is below historical peaks, suggesting reduced earnings power and potential margin pressure.

Acquisition Uncertainty

The extended deadline for acquisition completion introduces uncertainty, potentially delaying strategic benefits and integration synergies.

VCREDIT Holdings Limited Business Overview & Revenue Model

Company Description

VCREDIT Holdings Limited, an investment holding company, provides consumer finance services to prime and near-prime borrowers in China. The company offers credit cards balance transfer and consumption credit products. It also provides loan facilitation, guarantee, micro credit, and financial leasing services, as well as technology services. The company was formerly known as Vision Capital Group Limited and changed its name to VCREDIT Holdings Limited. VCREDIT Holdings Limited was founded in 2006 and is headquartered in Admiralty, Hong Kong.

How the Company Makes Money

VCREDIT 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.45B	2.73B	2.84B	1.77B	2.98B	-96.09M
Gross Profit	3.45B	2.73B	1.47B	1.24B	1.97B	-96.09M
EBITDA	0.00	0.00	0.00	748.90M	1.56B	0.00
Net Income	573.81M	478.17M	453.91M	532.47M	1.18B	-869.56M
Balance Sheet
Total Assets	14.51B	11.71B	11.93B	10.10B	11.28B	8.34B
Cash, Cash Equivalents and Short-Term Investments	0.00	1.69B	1.64B	2.13B	2.45B	2.00B
Total Debt	4.46B	2.27B	5.62B	4.54B	7.01B	4.77B
Total Liabilities	9.75B	7.10B	7.77B	6.28B	7.88B	6.05B
Stockholders Equity	4.75B	4.61B	4.17B	3.82B	3.39B	2.28B
Cash Flow
Free Cash Flow	-1.05B	1.42B	-1.37B	3.01B	-1.04B	5.24B
Operating Cash Flow	-1.01B	1.46B	-1.34B	3.04B	-1.02B	5.27B
Investing Cash Flow	9.56M	45.83M	70.36M	-176.11M	-122.74M	-27.36M
Financing Cash Flow	1.23B	-714.17M	580.52M	-3.18B	1.55B	-5.91B

VCREDIT Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2003, the sentiment is Neutral. The current price of 2.54 is below the 20-day moving average (MA) of 2.57, below the 50-day MA of 2.71, and below the 200-day MA of 3.33, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 54.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2003.

VCREDIT Holdings Limited 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%
0900	71 Outperform	HK$3.04B	6.35	10.90%	6.92%	4.78%	24.02%
6866	69 Neutral	HK$336.30M	5.57	2.75%	4.88%	-12.94%	-15.93%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1601	64 Neutral	HK$1.39B	3.83	9.89%	7.43%	1.11%	3.98%
2003	58 Neutral	HK$1.26B	2.04	12.71%	9.77%	16.56%	110.71%
3848	49 Neutral	HK$1.75B	215.16	1.28%	0.27%	-7.88%	-28.43%

VCREDIT Holdings Limited Corporate Events

VCREDIT Holdings Updates on Share Option and Award Schemes

VCREDIT Holdings Limited announced supplemental information to its 2024 Annual Report, detailing the status of its Post-IPO Share Option Scheme and Share Award Schemes. No new share options were granted under the Post-IPO Share Option Scheme, with a significant portion of shares still available for future grants. The Share Award Scheme No. 1 saw some shares vesting during the year, while Share Award Scheme No. 2 had no awards granted, leaving a substantial number of shares available for future awards. These developments indicate the company’s ongoing efforts to manage its equity compensation plans effectively, which could impact employee retention and shareholder value.

VCREDIT Extends Deadline for Banco Português de Gestão Acquisition

VCREDIT Holdings Limited has announced an extension of the Long Stop Date for its acquisition of up to 100% of Banco Português de Gestão, S.A. The new deadline is set for 4 March 2026, allowing additional time to satisfy regulatory conditions. This extension indicates the company’s commitment to completing the acquisition, although it remains subject to certain conditions. Stakeholders are advised to exercise caution as the acquisition may not proceed if these conditions are not met.

VCREDIT Holdings Approves Interim Dividend at EGM

VCREDIT Holdings Limited announced the successful passing of an ordinary resolution at its extraordinary general meeting held on October 9, 2025. The resolution, which received unanimous support, approved the payment of an interim dividend of HK5 cents per share from the company’s share premium account. This decision reflects the company’s strong financial position and commitment to delivering shareholder value. The meeting saw participation from key directors, and the voting process was overseen by Tricor Investor Services Limited.