SHSE:601688

Stock Analysis Report

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Executive Summary

Huatai Securities Co., Ltd., a security company, provides financial services in Mainland China and internationally.


Snowflake Analysis

Proven track record and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 601688 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.8%

601688

13.4%

CN Capital Markets

9.5%

CN Market


1 Year Return

10.5%

601688

36.7%

CN Capital Markets

33.2%

CN Market

Return vs Industry: 601688 underperformed the CN Capital Markets industry which returned 36.8% over the past year.

Return vs Market: 601688 underperformed the CN Market which returned 33.2% over the past year.


Shareholder returns

601688IndustryMarket
7 Day3.8%13.4%9.5%
30 Day27.6%43.7%19.5%
90 Day27.3%42.0%27.9%
1 Year12.3%10.5%39.0%36.7%35.3%33.2%
3 Year27.0%19.8%27.6%22.2%20.5%15.1%
5 Year11.8%2.7%-9.2%-16.4%3.2%-3.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

22.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 601688 (CN¥22.96) is trading above our estimate of fair value (CN¥10.17)

Significantly Below Fair Value: 601688 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 601688 is good value based on its PE Ratio (22.4x) compared to the CN Capital Markets industry average (44.3x).

PE vs Market: 601688 is good value based on its PE Ratio (22.4x) compared to the CN market (44.2x).


Price to Earnings Growth Ratio

PEG Ratio: 601688 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: 601688 is good value based on its PB Ratio (1.7x) compared to the CN Capital Markets industry average (2.2x).


Next Steps

Future Growth

How is Huatai Securities forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 601688's forecast earnings growth (10.5% per year) is above the savings rate (3.3%).

Earnings vs Market: 601688's earnings (10.5% per year) are forecast to grow slower than the CN market (23.1% per year).

High Growth Earnings: 601688's earnings are forecast to grow, but not significantly.

Revenue vs Market: 601688's revenue (9% per year) is forecast to grow slower than the CN market (16.7% per year).

High Growth Revenue: 601688's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 601688's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has Huatai Securities performed over the past 5 years?

-2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 601688 has high quality earnings.

Growing Profit Margin: 601688's current net profit margins (36.5%) are higher than last year (33.1%).


Past Earnings Growth Analysis

Earnings Trend: 601688's earnings have declined by -2.5% per year over the past 5 years.

Accelerating Growth: 601688's earnings growth over the past year (54.2%) exceeds its 5-year average (-2.5% per year).

Earnings vs Industry: 601688 earnings growth over the past year (54.2%) exceeded the Capital Markets industry 22.9%.


Return on Equity

High ROE: 601688's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Huatai Securities's financial position?


Financial Position Analysis

Short Term Liabilities: 601688's short term assets (CN¥534.6B) exceed its short term liabilities (CN¥385.0B).

Long Term Liabilities: 601688's short term assets (CN¥534.6B) exceed its long term liabilities (CN¥85.9B).


Debt to Equity History and Analysis

Debt Level: 601688's debt to equity ratio (189.9%) is considered high.

Reducing Debt: 601688's debt to equity ratio has reduced from 273.8% to 189.9% over the past 5 years.

Debt Coverage: 601688's debt is not well covered by operating cash flow (1.5%).

Interest Coverage: Insufficient data to determine if 601688's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

1.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 601688's dividend (1.31%) is higher than the bottom 25% of dividend payers in the CN market (0.35%).

High Dividend: 601688's dividend (1.31%) is low compared to the top 25% of dividend payers in the CN market (1.65%).


Stability and Growth of Payments

Stable Dividend: 601688 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 601688's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.3%), 601688's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 601688's dividends in 3 years are forecast to be well covered by earnings (27.5% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Yi Zhou (51yo)

9.58yrs

Tenure

CN¥1,538,000

Compensation

Mr. Yi Zhou serves as Chief Executive Officer of Huatai Securities Co., Ltd. since October 2019. He is a Director of AssetMark Financial Holdings, Inc. since 2016. Mr. Zhou serves as Director of Investment ...


CEO Compensation Analysis

Compensation vs Market: Yi's total compensation ($USD219.70K) is about average for companies of similar size in the CN market ($USD300.87K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Wei Zhang
Executive Chairman0.58yrCN¥441.00kno data
Yi Zhou
CEO & Director9.58yrsCN¥1.54mno data
Chong Wang
Chief Risk Officer3.58yrsCN¥2.96mno data
Xuebo Zhu
Executive Director1.75yrsCN¥1.12mno data
Hui Zhang
Joint Company Secretary3.25yrsCN¥2.81mno data
Xiaoning Jiao
Chief Financial Officer0.33yrno datano data
Lei Fei
Head of Accounting Departmentno datano datano data
Jun Zhai
Director of Administration & Chairman of Employee Representative Supervisor0.42yrno datano data
Kai Jiao
General Counsel & Compliance Director0.58yrno datano data
Chengzhong Gu
General Manager of Compliance & Legal Affairs Department and Employee Representative Supervisor1.25yrsno datano data

1.8yrs

Average Tenure

50yo

Average Age

Experienced Management: 601688's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Wei Zhang
Executive Chairman0.58yrCN¥441.00kno data
Yi Zhou
CEO & Director9.58yrsCN¥1.54mno data
Xuebo Zhu
Executive Director1.75yrsCN¥1.12mno data
Jun Zhai
Director of Administration & Chairman of Employee Representative Supervisor0.42yrno datano data
Chengzhong Gu
General Manager of Compliance & Legal Affairs Department and Employee Representative Supervisor1.25yrsno datano data
Chuanming Chen
Independent Non-Executive Director4.33yrsCN¥240.00kno data
Chi Ming Lee
Independent Non-Executive Director5.25yrsCN¥240.00kno data
Zhibin Chen
Independent Non-Executive Director2.08yrsCN¥240.00kno data
Qing Xu
Non-Executive Director4.08yrsno datano data
Yan Liu
Independent Non-Executive Director3.58yrsCN¥240.00kno data
Feng Ding
Non-Executive Director1.75yrsno datano data

2.1yrs

Average Tenure

55yo

Average Age

Experienced Board: 601688's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Huatai Securities Co., Ltd.
  • Ticker: 601688
  • Exchange: SHSE
  • Founded: 1990
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: CN¥191.312b
  • Shares outstanding: 9.00b
  • Website: https://www.htsc.com.cn

Number of Employees


Location

  • Huatai Securities Co., Ltd.
  • No. 228 Middle Jiangdong Road
  • Nanjing
  • Jiangsu Province
  • 210019
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
601688SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYFeb 2010
601688XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYFeb 2010
6886SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDJun 2015
6886SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDJun 2015
6886SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDJun 2015
206HDB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURJun 2015
HUAT.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDJun 2015
HTSCLSE (London Stock Exchange)GDR (EACH REPR 10 A SHS CNY1) (REG S)GBUSDJun 2019
206GDB (Deutsche Boerse AG)GDR (EACH REPR 10 A SHS CNY1) (REG S)DEEURJun 2019
HTSCLBATS-CHIXE (BATS 'Chi-X Europe')GDR (EACH REPR 10 A SHS CNY1) (REG S)GBUSDJun 2019

Biography

Huatai Securities Co., Ltd., a security company, provides financial services in Mainland China and internationally. It operates through Wealth Management, Institutional Services, Investment Management, International Business, and Other segments. The company trades in stocks, funds, bonds, futures, and options on behalf of clients; promotes and sells securities products and services; and provides various financial products and asset allocation, margin financing, securities lending, securities-backed lending, and stock pledged lending services. It also offers investment banking services consisting of equity underwriting services, which include IPO and equity refinancing services; debt underwriting services, such as bond financing services; mergers-oriented financial advisory services; and over-the-counter financial products and transactions, including national equities exchange and quotations listing, and follow-on financing services. In addition, the company provides asset custody and fund services, including settlement, liquidation, reporting, and valuation for private and public funds; margin trading; research services; equity securities investments and transactions; fixed income investments and transactions; asset management; private equity and alternative investment; commodities trading and arbitrage; investment portfolio and fund management; customer relation management; and leveraged buyout, strategic M&A, pre-listing financing, business expansion, and other related services. It offers its wealth management products through ZhangLe Fortune Path mobile application and PC platform. The company was founded in 1990 and is headquartered in Nanjing, 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 14:54
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.