JPMorgan Chase & Co: Giving Huifu an “Overweight” rating and a target price of RMB 9
Time: July 30, 2018
JPMorgan Chase & Co released a research report, in which it gives Huifu (01806.HK) an “Overweight” rating and a target price of RMB 9, which is equivalent to 22 times the forecast PER for 2020. JPMorgan Chase & Co forecasts that driven by the rapid growth of mobile payment, the company's revenue CAGR from 2019 to 2020 will reach 35%, bringing EPS CAGR during the period up to 47%.
As the market was concerned about the company’s P2P coverage and the policy risks it faced, the company's stock price has dropped by about 31% since it was listed and the Hang Seng Index of the same period by 7%. However, the company's actual P2P coverage is limited and its performance in the first half of the year is likely to build up investor confidence. Investors may shift focus to its future growth.