HTT
High Templar Tech Limited
$3.00
Banks, Insurers & Asset Managers
80%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 49.7% below fair value
You pay
$3.00
Bear
$4.18
Fair
$5.97
Bull
$7.76
Bear
$4.18
+39.2%
ROTCE 4.6% → 0.30x TBV
Fair
$5.97
+98.9%
ROTCE 6.1% → 0.30x TBV
Bull
$7.76
+158.6%
ROTCE 7.0% → 0.43x TBV
Key Value Driver
ROTCE (6.1%) vs. cost of equity (11.0%)
Implied Market Multiple
0.28x
Summary
With ROTCE of 6.1% vs. 11.0% cost of equity, fair P/TBV is 0.30x on $10.63 tangible book, implying $5.97 per share.
Warnings
Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.
Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.
Return on equity (6.1%) is below the minimum investors require (11.0%). This means the bank is worth less than the net assets on its books.
Financial statements were converted from CNY into USD using USDCNY at 0.1479 USD per CNY.
Key Risks
- Book value quality matters as much as level — check loan loss reserves
- Interest rate sensitivity creates non-linear earnings surprises
- Insurance reserving is actuarial, not financial — errors emerge slowly