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China Huirong Financials Hldgs (1290) Fair Value & Analysis

Financial Services · HK · Market cap HK$578M

CH China Huirong Financials Hldgs 1290 · HK
PriceHK$0.5200
Fair ValueHK$0.7100
Upside+36.5%
Quality54/100
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Healthy Growth
Thin margins · 7.6% net margin
Low debt · generates free cash flow
5.09% dividend yield
Ranks above peers (10/14)
Narrow moat 35/100
Evidence: Medium Range HK$0.5300 – HK$0.9300 Share as image

Fair value as of: Aug 13, 2026

From 11 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$0.9300 to HK$0.7100 (−23.7%) since Aug 5, 2026. Share price −13.3% over the past month.

A solid business, screening 37% undervalued on our models.

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What matters now

  • Solid quality (54/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

HK$1.02 HK$0.4900 Fair Value HK$0.7100 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.4900 – HK$1.02 · fair‑value band HK$0.5300 – HK$0.9300 · the HK$0.5200 price screens below the HK$0.7100 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

China Huirong Financials Hldgs (1290) currently trades at HK$0.5200, while our model-based Fair Value estimate is HK$0.7100, implying the stock looks roughly 36.5% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, China Huirong Financials Hldgs generated revenue of HK$692M at a net margin of 7.6%. Revenue grew 15.1% year over year. It earns a return on equity of 3.2%. Net debt stands at HK$1.0B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.5300 (bear case) to HK$0.9300 (bull case); at HK$0.5200, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 25% below its 52-week high and 14% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -27% fair-value upside, at 37%, 1290 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$0.3400 HK$0.6600 HK$1.12 80
Residual Income HK$1.20 HK$1.12 HK$0.8500 76
Rev-Margin DCF HK$0.5900 HK$1.22 HK$2.04 74
All 11 models by family
DCF Models
Owner Earnings HK$0.3300 HK$0.6800 HK$1.23 31
5Y P/E Exit HK$0.2800 HK$0.6100 HK$0.9700 38
10Y P/E Exit HK$0.3000 HK$0.5900 HK$0.9900 35
Earnings-Based
Graham-Dodd HK$0.3200 HK$1.54 HK$2.11 54
Lynch FV HK$0.4100 HK$0.5900 HK$0.7600 50
Multiples
P/E Multiple HK$0.4600 HK$0.6100 HK$0.7600 63
P/B Multiple HK$0.6000 HK$0.8000 HK$1.00 55
Asset-Based
NCAV (Graham) HK$0.8900 HK$1.19 HK$1.78 50
Growth DCF
Growth DCF HK$0.3400 HK$0.6600 HK$1.12 80
Rev-Margin DCF HK$0.5900 HK$1.22 HK$2.04 74
Economic Profit
Residual Income HK$1.20 HK$1.12 HK$0.8500 76

Widest divergence: Asset-Based (HK$1.19) versus Earnings-Based (HK$0.5900). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$692M
Revenue growth (YoY) +15.1%
Net margin 7.6%
Return on equity 3.2%
Free cash flow HK$53.3M FY2025
P/E ratio 8.8 as of Jul 2, 2026
More key figures
Operating margin 13.1%
EPS (TTM) HK$0.0300
Dividend yield 5.1%
Net debt HK$1.0B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 53 · Market factors (momentum, volatility) 43

Profitability 22
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 44
Balance sheet, leverage, solvency risk
Investment 92
Disciplined investing over empire-building
Low Volatility 67
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 24
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

China Huirong Financial Holdings Limited, an investment holding company, provides secured and unsecured loans in the People's Republic of China. The company operates in two segments, Inclusive Finance Business and Ecology Finance Business.

Full company description

China Huirong Financial Holdings Limited, an investment holding company, provides secured and unsecured loans in the People's Republic of China. The company operates in two segments, Inclusive Finance Business and Ecology Finance Business. The company offers real estate-backed loans, such as personal or corporate financing services; fast-movable property-backed financing services to individuals for purchasing artwork, gold, jewelry, vehicles, watches, and luxury goods; turnover loan fund; art investment; overseas finance; equity and special asset investment; and insurance brokerage. It also provides supply chain, loan facilitation technology, factoring, insurance agency, financial leasing, and special asset investment. In addition, the company offers pawnshop, technology microfinance, commercial factoring, scientific and technical services, and supply chain management services, as well as purchases and disposes non-performing assets. China Huirong Financial Holdings Limited was founded in 1999 and is headquartered in Suzhou, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Huirong Financials Hldgs reported revenue of HK$719M in FY2025 versus HK$486M in FY2021, a compound +10.3%/yr. Reported net income was HK$51.2M in FY2025, compounding −12.4%/yr from FY2021.

Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$719M
Latest YoY
+10.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+23.1%
Avg. growth/yr (15Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.5%
Revenue +10.3%/yr
FY21 HK$486M
FY22 HK$621M
FY23 HK$655M
FY24 HK$653M
FY25 HK$719M
Net income −12.4%/yr
FY21 HK$87.2M
FY22 HK$41.1M
FY23 HK$46.5M
FY24 HK$50.5M
FY25 HK$51.2M
Character of growth · EPS growth decomposed (2014-2025) −8.4 % p.a.
Revenue per share +7.3 pp

of which total revenue +8.0 pp · buybacks/dilution −0.7 pp

EBIT margin −9.7 pp
Tax rate −1.1 pp
Residual (interest, one-offs) −4.8 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "China Huirong Financials Hldgs Fair Value". https://www.fairvalue-calculator.com/stock/1290

Peer Group

Financial Conglomerates · 55 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 56 · Above median
Fair Value upside +37% · Above median
Return on equity (TTM) 3% · Below median
Return on assets 2% · Above median
Net margin (TTM) 8% · Below median
Operating margin (TTM) 13% · Below median
Revenue growth 15% · Above median
Dividend yield (TTM) 5.1% · Top 25%
Debt / equity 0.10× · Lower than median

Valuation Multiples vs Financial Conglomerates median · lower = cheaper

P/E (TTM) 8.8× · Cheaper than 75% of peers
P/B 0.30× · Cheaper than 75% of peers
P/S (TTM) 0.84× · Cheaper than 75% of peers
P/FCF 1.4× · Pricier than median
EV/EBITDA 6.4× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 82 · sector 9
FUTURE 76 · sector 38
PAST 13 · sector 30
HEALTH 95 · sector 84
DIVIDEND 100 · sector 53

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is China Huirong Financials Hldgs (1290) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.7100 versus a price of HK$0.5200, about +37% (undervalued).
What is the fair value of 1290?
Our model-based fair value for China Huirong Financials Hldgs is HK$0.7100 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.5200.
What is the quality score of 1290?
China Huirong Financials Hldgs has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of China Huirong Financials Hldgs (1290)?
China Huirong Financials Hldgs reported trailing-twelve-month revenue of about HK$692M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1290?
The net profit margin of China Huirong Financials Hldgs is about 7.6%, meaning it keeps roughly 7.6% of revenue as net income. Based on the latest reported figures.
Does China Huirong Financials Hldgs pay a dividend?
China Huirong Financials Hldgs currently shows a dividend yield of about 5.09% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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