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Luzheng Futures Co Ltd (1461) Fair Value & Analysis

Financial Services · HK · Market cap HK$551M

LF Luzheng Futures Co Ltd 1461 · HK
PriceHK$0.6750
Fair ValueHK$1.35
Upside+100.0%
Quality37/100
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Expensive Growth
Solidly profitable · 12.3% net margin
Low debt · negative free cash flow
1.37% dividend yield
Mixed vs. peers (7/13)
Narrow moat 42/100
Evidence: High Range HK$1.01 – HK$1.69 Share as image

Fair value as of: Aug 17, 2026

From 2 valuation models · updated today

Fair value updated Aug 17, 2026, revised from HK$1.34 to HK$1.35 (+0.7%) since Aug 13, 2026. Share price +25.0% over the past month.

Below-average quality, screening 100% undervalued on our models.

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What matters now

  • The large discount to fair value meets weak quality (37/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (HK$1.01). The market is more pessimistic than our downside scenario.
  • 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$1.05 HK$0.4042 Fair Value HK$1.35 Aug 2020 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 17, 2026.

How to read this chart

60‑month range HK$0.4042 – HK$1.05 · fair‑value band HK$1.01 – HK$1.69 · the HK$0.6750 price screens below the HK$1.35 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 17, 2026.

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Analysis

Luzheng Futures Co Ltd (1461) currently trades at HK$0.6750, while our model-based Fair Value estimate is HK$1.35, implying the stock looks roughly 100.0% undervalued today. The Quality Score stands at 37/100 (below-average 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: high), always confirm before acting.

Over the trailing twelve months, Luzheng Futures Co Ltd generated revenue of HK$693M at a net margin of 12.3%. Revenue declined 50.2% year over year. It earns a return on equity of 3.3%. The balance sheet holds a net cash position of HK$389M. Fundamentals as of Aug 17, 2026

Our scenario range runs from HK$1.01 (bear case) to HK$1.69 (bull case); at HK$0.6750, 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 27% below its 52-week high and 43% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -22% fair-value upside, at 100%, 1461 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
P/B Multiple HK$2.06 HK$2.75 HK$3.43 55
NCAV (Graham) HK$1.62 HK$2.16 HK$3.23 50
All 2 models by family
Multiples
P/B Multiple HK$2.06 HK$2.75 HK$3.43 55
Asset-Based
NCAV (Graham) HK$1.62 HK$2.16 HK$3.23 50

Widest divergence: Multiples (HK$2.75) versus Asset-Based (HK$2.16). Highest evidence: P/B Multiple (55).

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Key figures & financial health

Revenue (TTM) HK$693M
Revenue growth (YoY) -50.2%
Net margin 12.3%
Return on equity 3.3%
Free cash flow −HK$2.2B FY2025
P/E ratio 5.5 as of Jul 2, 2026
More key figures
Operating margin 26.6%
EPS (TTM) HK$0.0300
Dividend yield 1.4%
EPS growth (YoY) +1,246%
Net cash HK$389M FY2025

Figures from reported company fundamentals · as of Aug 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 37/100

Of which business quality 28 · Market factors (momentum, volatility) 43

Profitability 19
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 4
Balance sheet, leverage, solvency risk
Investment 68
Disciplined investing over empire-building
Low Volatility 59
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 32
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

Zhongtai Futures Company Limited provides brokerage services for commodity futures brokerage, financial futures brokerage. The company operates through Brokerage Business, Risk Management Business, Asset Management, and Other Businesses segments.

Full company description

Zhongtai Futures Company Limited provides brokerage services for commodity futures brokerage, financial futures brokerage. The company operates through Brokerage Business, Risk Management Business, Asset Management, and Other Businesses segments. The company provides consulting services in futures investments, asset management, basis trading, warehouse receipt service, cooperative hedging, and information technology consulting services, as well as engages in the market making business, over-the-counter derivatives business, and other business activities. The company was formerly known as LUZHENG FUTURES Company Limited and changed its name to Zhongtai Futures Company Limited in March 2022. The company was incorporated in 1995 and is headquartered in Jinan, the People's Republic of China. Zhongtai Futures Company Limited operates as a subsidiary of Zhongtai Securities Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Luzheng Futures Co Ltd reported revenue of HK$890M in FY2025 versus HK$2.3B in FY2021, a compound −20.7%/yr. Reported net income was HK$83.3M in FY2025, compounding −18.5%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$890M
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.
−6.4%
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.
+31.3%
Avg. growth/yr (11Y) 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.
+9.5%
Revenue −20.7%/yr
FY21 HK$2.3B
FY22 HK$2.4B
FY23 HK$2.2B
FY24 HK$1.8B
FY25 HK$890M
Net income −18.5%/yr
FY21 HK$189M
FY22 HK$166M
FY23 HK$134M
FY24 HK$4.5M
FY25 HK$83.3M
Character of growth · EPS growth decomposed (2014-2025) −4.4 % p.a.
Revenue per share +11.4 pp

of which total revenue +13.1 pp · buybacks/dilution −1.8 pp

EBIT margin −12.7 pp
Tax rate −0.4 pp
Residual (interest, one-offs) −2.6 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). "Luzheng Futures Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/1461

Peer Group

Capital Markets · 423 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 34 · Bottom 25%
Fair Value upside +100% · Top 25%
Return on equity (TTM) 3% · Below median
Return on assets 0% · Below median
Net margin (TTM) 12% · Below median
Operating margin (TTM) 27% · Above median
Revenue growth -50% · Bottom 25%
Dividend yield (TTM) 1.4% · Below median
Debt / equity 0.05× · Lower than median

Valuation Multiples vs Capital Markets median · lower = cheaper

P/E (TTM) 5.5× · Cheaper than 75% of peers
P/B 0.21× · Cheaper than 75% of peers
P/S (TTM) 0.80× · Cheaper than median
EV/EBITDA 1.4× · Cheaper than 75% of peers

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 100 · sector 14
FUTURE 0 · sector 96
PAST 13 · sector 30
HEALTH 97 · sector 93
DIVIDEND 27 · sector 42

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.

Similar stocks

10 more Capital Markets stocks, each showing price versus our Fair Value estimate (as of Aug 17, 2026).

Stock Price Fair Value vs Fair Value
Mirae Asset Securities Co 006800 38,050 KRW 18,009 KRW -53%
Meritz Financial Group 138040 118,600 KRW 52,717 KRW -56%
Korea Investment Holdings 071050 200,500 KRW 189,335 KRW -6%
NH Investment & Securities Co 005940 28,550 KRW 22,396 KRW -22%
Samsung Securities Co 016360 93,100 KRW 75,573 KRW -19%
Kiwoom Securities Co 039490 299,000 KRW 214,812 KRW -28%
SSI Securities Corporation SSI 25,300 VND 17,375 VND -31%
Bolsas y Mercados Argentinos S.A BYMA 313.75 ARS 294.30 ARS -6%
Daishin Securities Co 003540 26,950 KRW 48,790 KRW +81%
SK Securities Co 001515 4,285 KRW 1,395 KRW -67%

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Frequently asked questions

Is Luzheng Futures Co Ltd (1461) overvalued or undervalued?
As of Aug 17, 2026, our model estimates a fair value of HK$1.35 versus a price of HK$0.6750, about +100% (undervalued).
What is the fair value of 1461?
Our model-based fair value for Luzheng Futures Co Ltd is HK$1.35 (as of Aug 17, 2026), built from audited fundamentals. The current price is HK$0.6750.
What is the quality score of 1461?
Luzheng Futures Co Ltd has a Quality Score of 37/100. 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 Luzheng Futures Co Ltd (1461)?
Luzheng Futures Co Ltd reported trailing-twelve-month revenue of about HK$693M (latest available figure, as of Aug 17, 2026).
What is the net profit margin of 1461?
The net profit margin of Luzheng Futures Co Ltd is about 12.3%, meaning it keeps roughly 12.3% of revenue as net income. Based on the latest reported figures.
Does Luzheng Futures Co Ltd pay a dividend?
Luzheng Futures Co Ltd currently shows a dividend yield of about 1.37% relative to its recent price (as of Aug 17, 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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