China Financial Services Holdings (HKSE:00605) GF Value Rank : 0 (As of Jan. 19, 2025)

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What is China Financial Services Holdings GF Value Rank?

China Financial Services Holdings has the GF Value Rank of 0.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

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China Financial Services Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » China Financial Services Holdings Ltd (HKSE:00605) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 18 Harbour Road, Suite 5606, 56th Floor, Central Plaza, Wanchai, Hong Kong, HKG

Website

https://www.cfsh.com.hk

China Financial Services Holdings Ltd is a non-bank financial service provider. The company is involved in providing customized financial services and solutions to small and medium-sized enterprises (SMEs). It is primarily engaged in the direct loan, financial guarantee and financial advisory businesses. The company finances its direct loan services using its own capital. In view of helping SMEs to obtain a loan from financial institutions, the company provides financial guarantee services through its financial guarantee company. Geographically, it has operations in Hong Kong, China, and the United Kingdom. Most of the group's revenue is generated from China.

Executives

Cheung Siu Lam	2101 Beneficial owner
Lo Wan	2101 Beneficial owner
China United Sme Guarantee Corporation	2101 Beneficial owner

China Financial Services Holdings Headlines

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