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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$0.37
▲(30.36% 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
High Profitability
Consistently high gross and operating margins signal durable core profitability and pricing power in microfinance operations. This margin strength supports ability to absorb credit losses, fund operating costs, and sustain investment or distributions without relying excessively on external capital, improving long-term resilience.
Negative Factors
Volatile Operating Cash Flow
Marked swings in operating cash flow, including negative years and a sharp drop, indicate inconsistent cash conversion and collection timing risk. This undermines confidence in internally funding lending growth or dividends, may necessitate external financing in down cycles, and raises execution risk for multi‑period planning.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Consistently high gross and operating margins signal durable core profitability and pricing power in microfinance operations. This margin strength supports ability to absorb credit losses, fund operating costs, and sustain investment or distributions without relying excessively on external capital, improving long-term resilience.
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
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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 Revenue131.12M139.83M123.77M195.08M180.61M199.13M
Gross Profit129.74M148.54M123.77M195.08M208.27M251.94M
EBITDA122.95M118.71M96.77M137.37M140.73M181.41M
Net Income49.40M60.44M62.44M92.65M93.34M116.49M
Balance Sheet
Total Assets2.52B2.56B2.58B2.66B2.79B2.65B
Cash, Cash Equivalents and Short-Term Investments10.28M23.51M10.52M17.48M16.59M42.68M
Total Debt446.97M435.14M463.26M596.46M761.88M649.97M
Total Liabilities459.56M516.72M537.41M654.60M826.12M722.59M
Stockholders Equity2.00B2.03B1.98B1.94B1.90B1.86B
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
Neutral
Last Price0.28
Price Trends
50DMA
0.32
Negative
100DMA
0.34
Negative
200DMA
0.32
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
50.35
Neutral
STOCH
79.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6866, the sentiment is Neutral. The current price of 0.28 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.32, and below the 200-day MA of 0.32, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.35 is Neutral, neither overbought nor oversold. The STOCH value of 79.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$748.00M8.356.16%5.46%32.46%9.09%
68
Neutral
HK$383.50M5.632.91%4.88%-7.97%53.91%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
51
Neutral
HK$1.77B-53.23-118.33%111.22%2.04%
47
Neutral
HK$437.49M-0.68-12.87%9.77%9.41%-219.96%
44
Neutral
HK$717.19M-3.75-8.70%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
0.33
0.04
16.07%
HK:2051
51 Credit Card Inc.
0.44
0.03
8.64%
HK:1577
Quanzhou Huixin Micro-credit Co., Ltd. Class H
1.10
0.21
23.04%
HK:1915
Yangzhou Guangling District Taihe Rural Micro-finance Company Limited Class H
0.27
0.00
0.00%
HK:2003
VCREDIT Holdings Limited
0.90
-2.81
-75.74%
HK:8239
Capital Finance Holdings Limited
18.85
18.02
2171.08%

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

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 ...
Zuoli Kechuang Micro-finance Sets April Board Meeting to Review Q1 2026 Results
Apr 15, 2026
Zuoli Kechuang Micro-finance Company Limited, a PRC-based small-loan provider listed in Hong Kong, offers microfinance and related credit products through its group subsidiaries, focusing on serving borrowers that require smaller-scale funding. Th...
Zuoli Kechuang Micro-finance Clarifies Ownership of Buyer in Connected Property Disposal
Mar 25, 2026
Zuoli Kechuang Micro-finance Company Limited issued a supplemental announcement to its earlier disclosure on a connected transaction involving the disposal of properties to Zuoli Holdings. The update clarifies the detailed ownership structure of Z...
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