VCREDIT Holdings Limited (2003) AI Stock Analysis

• Market Cap: HK$1.82B
• Dividend Yield: 5.33%
• Average Volume (3M): 65.99K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.18
• Revenue Growth: 6.36%
• EPS Growth: 2.42%
• Country: HK
• Employees: 870
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Credit Services
• EPS (TTM): 0.79
• Shares Outstanding: 489,459,780
• 10 Day Avg. Volume: 109,300
• 30 Day Avg. Volume: 65,993
• PEG Ratio: -0.04
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.42
• 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

• Rating: 69 Neutral
• 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 Business Overview & Revenue Model

Company Description

VCREDIT 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 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.73B	2.84B	1.24B	1.97B	-764.77M
Gross Profit	2.73B	2.84B	1.24B	1.97B	-764.77M
EBITDA	0.00	0.00	0.00	0.00	0.00
Net Income	478.17M	453.91M	532.47M	1.18B	-869.56M
Balance Sheet
Total Assets	11.71B	11.93B	10.10B	11.28B	8.34B
Cash, Cash Equivalents and Short-Term Investments	1.69B	1.64B	2.13B	2.45B	2.00B
Total Debt	2.27B	5.62B	4.54B	7.01B	4.77B
Total Liabilities	7.10B	7.77B	4.54B	7.01B	4.77B
Stockholders Equity	4.61B	4.17B	3.82B	3.39B	2.28B
Cash Flow
Free Cash Flow	1.42B	-1.37B	3.01B	-1.04B	5.24B
Operating Cash Flow	1.46B	-1.34B	3.04B	-1.02B	5.27B
Investing Cash Flow	0.00	70.36M	-176.11M	-122.74M	-27.36M
Financing Cash Flow	-714.17M	580.52M	-3.18B	1.55B	-5.91B

VCREDIT Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.70
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6069	71 Outperform	HK$12.29B	28.85	9.53%	3.10%	-6.00%	39.70%
1983	70 Outperform	HK$6.63B	5.18	12.21%	5.38%	2.88%	27.89%
2003	69 Neutral	HK$1.82B	3.53	10.93%	5.33%	6.36%	2.42%
Sector *	58 Neutral	HK$91.33B	5.23	-3.21%	5.29%	7.36%	-55.21%
1393	48 Neutral	HK$262.50M	―	-44.69%	―	-13.27%	14.98%
3319	46 Neutral	HK$4.32B	―	-29.17%	16.88%	-11.94%	-756.32%
1813	41 Neutral	$1.14B	―	-95.62%	―	-31.29%	57.76%

VCREDIT Holdings Limited Corporate Events

VCREDIT Holdings Restores Public Float to Comply with HKEX Rules

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

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

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

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

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

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

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.