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Zuoli Kechuang Micro-finance Co. Ltd. Class H (HK:6866)
:6866
Hong Kong Market
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Zuoli Kechuang Micro-finance Co. Ltd. Class H (6866) AI Stock Analysis

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HK:6866

Zuoli Kechuang Micro-finance Co. Ltd. Class H

(6866)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
HK$0.32
▲(15.00% Upside)
Action:Reiterated
Date:06/24/26
The score is driven primarily by solid overall financial fundamentals (strong reported profitability and controlled leverage) but tempered by uneven cash-flow consistency and softer 2025 net income. Valuation is a major positive (low P/E and solid dividend yield), while technical indicators remain mildly weak with negative MACD and sub-50 RSI.
Positive Factors
Strong Profitability
Sustained high gross and operating margins indicate structural pricing power and efficient cost control in core credit services. Over a multi-quarter horizon this margin profile supports durable cash earnings, ability to cover provisions and operating costs, and funds for reinvestment or distributions.
Negative Factors
Volatile Operating Cash Flow
Material swings in operating cash flow and instances of negative OCF reduce predictability of cash conversion and strain liquidity planning. For a credit services firm, inconsistent collections or timing mismatches can impair funding for operations, limit reinvestment, and raise execution risk over months to years.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
Sustained high gross and operating margins indicate structural pricing power and efficient cost control in core credit services. Over a multi-quarter horizon this margin profile supports durable cash earnings, ability to cover provisions and operating costs, and funds for reinvestment or distributions.
Read all positive factors

Zuoli Kechuang Micro-finance Co. Ltd. Class H (6866) vs. iShares MSCI Hong Kong ETF (EWH)

Zuoli Kechuang Micro-finance Co. Ltd. Class H Business Overview & Revenue Model

Company Description
Zuoli Kechuang Micro-finance Company Limited functions as a micro-lender throughout the People's Republic of China. The company provides a comprehensive suite of credit products, encompassing unsecured, guaranteed, collateralized, and pledged loan...
How the Company Makes Money
null...

Zuoli Kechuang Micro-finance Co. Ltd. Class H Financial Statement Overview

Summary
Profitability is strong with very high gross/operating margins and solid net margins, and 2025 revenue re-accelerated (+20.3%). Offsetting this, net income declined in 2025 versus 2024 and operating cash flow has been volatile (including a negative year and a sharp drop in 2025), reducing confidence in earnings durability despite controlled leverage (debt-to-equity ~0.21).
Income Statement
73
Positive
Balance Sheet
66
Positive
Cash Flow
57
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue170.31M139.83M123.77M195.08M180.61M199.13M
Gross Profit168.92M148.54M123.77M195.08M208.27M251.94M
EBITDA118.01M118.71M96.77M137.37M140.73M181.41M
Net Income58.95M60.44M62.44M92.65M93.34M116.49M
Balance Sheet
Total Assets2.59B2.56B2.58B2.66B2.79B2.65B
Cash, Cash Equivalents and Short-Term Investments64.30M23.51M10.52M17.48M16.59M42.68M
Total Debt470.86M435.14M463.26M596.46M761.88M649.97M
Total Liabilities545.31M516.72M537.41M654.60M826.12M722.59M
Stockholders Equity2.04B2.03B1.98B1.94B1.90B1.86B
Cash Flow
Free Cash Flow0.0086.82M160.85M284.92M-5.50M69.12M
Operating Cash Flow0.0086.89M160.85M284.95M-5.46M70.28M
Investing Cash Flow0.0014.30M58.00K96.00K-26.00K118.00K
Financing Cash Flow0.00-88.52M-167.85M-284.04M-19.51M-104.22M

Zuoli Kechuang Micro-finance Co. Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.28
Price Trends
50DMA
0.32
Negative
100DMA
0.33
Negative
200DMA
0.32
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
40.76
Neutral
STOCH
46.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6866, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.32, and below the 200-day MA of 0.32, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.76 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6866.

Zuoli Kechuang Micro-finance Co. Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
HK$700.40M7.836.16%5.46%32.46%9.09%
68
Neutral
HK$348.10M5.122.91%4.88%-7.97%53.91%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
51
Neutral
HK$1.88B-42.89-118.33%111.22%2.04%
47
Neutral
HK$427.77M-0.66-12.87%9.77%9.41%-219.96%
44
Neutral
HK$627.54M-3.28-8.70%0.02%-107.29%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6866
Zuoli Kechuang Micro-finance Co. Ltd. Class H
0.30
>-0.01
-1.67%
HK:2051
51 Credit Card Inc.
0.39
-0.01
-2.53%
HK:1577
Quanzhou Huixin Micro-credit Co., Ltd. Class H
1.03
0.14
15.86%
HK:1915
Yangzhou Guangling District Taihe Rural Micro-finance Company Limited Class H
0.27
0.00
0.00%
HK:2003
VCREDIT Holdings Limited
0.88
-2.83
-76.28%
HK:8239
Capital Finance Holdings Limited
20.02
18.69
1405.26%

Zuoli Kechuang Micro-finance Co. Ltd. Class H Corporate Events

Zuoli Kechuang Secures Related-Party Leases Worth RMB3.24 Million
Jul 6, 2026
Zuoli Kechuang Company Limited has entered into new three-year lease agreements with connected party Zuoli Holdings for properties used by the parent company and its non-wholly owned subsidiary Jinhui Micro-finance, effective from 7 July 2026 to 6...
Zuoli Kechuang Shareholders Approve All 2025 AGM Resolutions and Reappoint KPMG
Jun 18, 2026
Zuoli Kechuang Company Limited reported that all resolutions at its annual general meeting held on June 18, 2026, were approved by shareholders via poll, with 70.73% of issued shares represented in person or by proxy. The meeting confirmed the com...
Zuoli Kechuang Sets Out Board Line-Up and Committee Roles
Jun 18, 2026
Zuoli Kechuang Company Limited has released an updated list of its board of directors and clarified their respective roles, including the designation of executive, non-executive and independent non-executive directors. The board is led by Chairman...
Zuoli Kechuang Sets Formal Audit Committee Mandate to Strengthen Governance
Jun 18, 2026
Zuoli Kechuang Company Limited has formalized the terms of reference for its Board Audit Committee to strengthen oversight of financial reporting, internal controls and risk management. The committee is tasked with reviewing the company’s fi...
Zuoli Kechuang Sets Formal Mandate for Remuneration and Appraisal Committee
Jun 18, 2026
Zuoli Kechuang Company Limited has formalized terms of reference for its Remuneration and Appraisal Committee, a specialized body under the board responsible for setting performance appraisal standards and remuneration policies for directors, supe...
Zuoli Kechuang Sets Up Nomination Committee to Strengthen Corporate Governance
Jun 18, 2026
Zuoli Kechuang Company Limited has established a Nomination Committee under its Board of Directors to regulate the appointment of directors and senior management, optimize board composition, and enhance its corporate governance structure in line w...
Zuoli Kechuang Sets 2025 AGM to Overhaul Governance and Risk Framework
May 26, 2026
Zuoli Kechuang Company Limited has called its 2025 annual general meeting for 18 June 2026 in Deqing County, Zhejiang, where shareholders will review the board and supervisory reports, annual report, audited financial statements and profit distrib...
Zuoli Kechuang Announces Connected Acquisition of Minority Stake in Micro-Finance Subsidiary
May 6, 2026
Zuoli Kechuang Company Limited disclosed that its controlling shareholder, Deqing Puhua Energy Company Limited, has agreed to acquire a 0.2443% equity stake in Deqing Jinhui Micro-finance Company Limited from minority shareholder Shen Weiwen for R...
Zuoli Kechuang Rebrands With New Name, Ticker Short Name and Website
May 5, 2026
Zuoli Kechuang Company Limited has officially changed its Chinese and English company names, dropping the “Micro-finance” reference, after completing registration with the Zhejiang market regulator and obtaining updated documentation f...
Zuoli Kechuang Micro-finance refreshes board with new independent directors and governance changes
Apr 27, 2026
Zuoli Kechuang Micro-finance Company Limited announced that independent non-executive directors Chan Kin Man and Yang Jie will retire at the conclusion of the 18 June 2026 annual general meeting upon expiry of their terms, triggering changes to th...
Zuoli Kechuang Micro-finance Sees Lower Q1 2026 Profit on Weaker Interest Income
Apr 27, 2026
Zuoli Kechuang Micro-finance Company Limited reported unaudited consolidated results for the three months ended 31 March 2026, showing a decline in interest income to RMB36.82 million from RMB44.10 million a year earlier, with net interest income ...
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: Jun 24, 2026