SHSE:601211

Stock Analysis Report

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Executive Summary

Guotai Junan Securities Co., Ltd. operates as a securities company in the People’s Republic of China.


Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has Guotai Junan Securities's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 601211 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.3%

601211

13.4%

CN Capital Markets

9.5%

CN Market


1 Year Return

14.1%

601211

36.7%

CN Capital Markets

33.2%

CN Market

Return vs Industry: 601211 underperformed the CN Capital Markets industry which returned 36.8% over the past year.

Return vs Market: 601211 underperformed the CN Market which returned 33.2% over the past year.


Shareholder returns

601211IndustryMarket
7 Day5.3%13.4%9.5%
30 Day26.8%43.7%19.5%
90 Day25.1%42.0%27.9%
1 Year16.0%14.1%39.0%36.7%35.3%33.2%
3 Year1.7%-2.7%27.6%22.2%20.5%15.1%
5 Year-22.5%-29.8%-9.2%-16.4%3.2%-3.3%

Price Volatility Vs. Market

How volatile is Guotai Junan Securities's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Guotai Junan Securities undervalued compared to its fair value and its price relative to the market?

27.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 601211 (CN¥20.62) is trading above our estimate of fair value (CN¥7.68)

Significantly Below Fair Value: 601211 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 601211 is good value based on its PE Ratio (27.2x) compared to the CN Capital Markets industry average (44.3x).

PE vs Market: 601211 is good value based on its PE Ratio (27.2x) compared to the CN market (44.2x).


Price to Earnings Growth Ratio

PEG Ratio: 601211 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 601211 is good value based on its PB Ratio (1.3x) compared to the CN Capital Markets industry average (2.2x).


Next Steps

Future Growth

How is Guotai Junan Securities forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 601211's forecast earnings growth (15.8% per year) is above the savings rate (3.3%).

Earnings vs Market: 601211's earnings (15.8% per year) are forecast to grow slower than the CN market (23.1% per year).

High Growth Earnings: 601211's earnings are forecast to grow, but not significantly.

Revenue vs Market: 601211's revenue (8.1% per year) is forecast to grow slower than the CN market (16.7% per year).

High Growth Revenue: 601211's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 601211's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has Guotai Junan Securities performed over the past 5 years?

-15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 601211 has high quality earnings.

Growing Profit Margin: 601211's current net profit margins (24.5%) are lower than last year (30.3%).


Past Earnings Growth Analysis

Earnings Trend: 601211's earnings have declined by -15% per year over the past 5 years.

Accelerating Growth: 601211's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 601211 had negative earnings growth (-0.8%) over the past year, making it difficult to compare to the Capital Markets industry average (22.9%).


Return on Equity

High ROE: 601211's Return on Equity (5.2%) is considered low.


Next Steps

Financial Health

How is Guotai Junan Securities's financial position?


Financial Position Analysis

Short Term Liabilities: 601211's short term assets (CN¥510.1B) exceed its short term liabilities (CN¥368.3B).

Long Term Liabilities: 601211's short term assets (CN¥510.1B) exceed its long term liabilities (CN¥84.5B).


Debt to Equity History and Analysis

Debt Level: 601211's debt to equity ratio (167.4%) is considered high.

Reducing Debt: 601211's debt to equity ratio has reduced from 274.8% to 167.4% over the past 5 years.

Debt Coverage: 601211's debt is not well covered by operating cash flow (14.8%).

Interest Coverage: Insufficient data to determine if 601211's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Guotai Junan Securities's current dividend yield, its reliability and sustainability?

1.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 601211's dividend (1.89%) is higher than the bottom 25% of dividend payers in the CN market (0.35%).

High Dividend: 601211's dividend (1.89%) is in the top 25% of dividend payers in the CN market (1.65%)


Stability and Growth of Payments

Stable Dividend: 601211 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 601211's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.4%), 601211's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 601211's dividends in 3 years are forecast to be well covered by earnings (28% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Wang Song (56yo)

4.92yrs

Tenure

CN¥1,427,800

Compensation

Mr. Song Wang has been President at Guotai Junan Securities Co.,Ltd. since August 21, 2015. Mr. Wang has been Vice Chairman at Guotai Junan Securities Co.,Ltd. since November 2016 and has been its Executiv ...


CEO Compensation Analysis

Compensation vs Market: Wang's total compensation ($USD203.96K) is below average for companies of similar size in the CN market ($USD300.87K).

Compensation vs Earnings: Wang's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Qing He
Executive Chairman of the Board0.42yrno datano data
Wang Song
Vice Chairman of the Board & President4.92yrsCN¥1.43mno data
Lebin Xie
CFO, Chief Risk Officer & Head of Accounting3.67yrsCN¥4.33mno data
Zhihong Zhang
Chief Compliance Officer1.75yrsCN¥4.02mno data
Jian Yu
Secretary of the Board & Executive Director4.17yrsCN¥4.96mno data
Yin Ping Kwong
Joint Company Secretary3.25yrsno datano data

3.7yrs

Average Tenure

53.5yo

Average Age

Experienced Management: 601211's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Qing He
Executive Chairman of the Board0.42yrno datano data
Wang Song
Vice Chairman of the Board & President4.92yrsCN¥1.43mno data
Jian Yu
Secretary of the Board & Executive Director4.17yrsCN¥4.96mno data
Dawei Xia
Independent Non-Executive Director4.17yrsCN¥250.00kno data
Guogang Chen
Independent Non-Executive Director7.5yrsCN¥250.00kno data
Derong Shi
Independent Non-Executive Director7.5yrsno datano data
Maojun Zhong
Non-Executive Director5.17yrsno datano data
Lei Zhou
Non-Executive Director5.17yrsno datano data
Tao Ling
Independent Non-Executive Director5.42yrsCN¥250.00kno data
Lei Wang
Vice Chairman of Supervisory Committee1.08yrsno datano data

4.7yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 601211's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Guotai Junan Securities Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Guotai Junan Securities Co., Ltd.
  • Ticker: 601211
  • Exchange: SHSE
  • Founded: 1992
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: CN¥170.828b
  • Shares outstanding: 8.82b
  • Website: https://www.gtja.com

Number of Employees


Location

  • Guotai Junan Securities Co., Ltd.
  • No. 618 Shangcheng Road
  • China (Shanghai) Pilot Free-Trade Zone
  • Shanghai
  • Shanghai Province
  • 200120
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
601211SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYJun 2015
601211XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYJun 2015
2611SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDApr 2017
2611SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDApr 2017

Biography

Guotai Junan Securities Co., Ltd. operates as a securities company in the People’s Republic of China. It operates through six segments: Institutional Finance-Institutional Investor Services, Institutional Finance-Investment Banking, Personal Finance, Investment Management, International Business, and Other. The company offers brokerage, stock-pledged financing, and securities repurchase services; and market-making and proprietary trading services, as well as research services for institutional clients. It also provides listing sponsorship, equity underwriting, debt underwriting, structured debt financing, and mergers and acquisitions financial advisory services, as well as various corporate solutions to corporate and government clients; and securities and futures brokerage, margin financing, securities lending, wealth management, and financial planning services to retail clients through online and offline channels. In addition, the company offers asset management, fund management, and direct investment management services to institutions and individuals. Further, it is involved in the brokerage, corporate finance, and investment businesses; and provision of alternative investment, securities investment consultation, futures investment consultation, equity investment, venture capital, investment consultation, and other services. Additionally, the company engages in the financial advisory business related to securities trading and investment; and agency sale of securities investment funds, as well as financial products. Guotai Junan Securities Co., Ltd. was founded in 1992 and is based in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 14:51
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.