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6016

Huatai Securities SHSE:601688 Stock Report

Last Price

CN¥13.96

Market Cap

CN¥117.5b

7D

-3.5%

1Y

-10.0%

Updated

05 Jul, 2022

Data

Company Financials +
601688 fundamental analysis
Snowflake Score
Valuation6/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends4/6

601688 Stock Overview

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

Huatai Securities Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Huatai Securities
Historical stock prices
Current Share PriceCN¥13.96
52 Week HighCN¥19.60
52 Week LowCN¥12.66
Beta0.84
1 Month Change4.81%
3 Month Change-7.00%
1 Year Change-9.99%
3 Year Change-34.18%
5 Year Change-24.62%
Change since IPO-33.71%

Recent News & Updates

Shareholder Returns

601688CN Capital MarketsCN Market
7D-3.5%-3.4%0.1%
1Y-10.0%-11.2%-7.1%

Return vs Industry: 601688 matched the CN Capital Markets industry which returned -9.6% over the past year.

Return vs Market: 601688 underperformed the CN Market which returned -6.5% over the past year.

Price Volatility

Is 601688's price volatile compared to industry and market?
601688 volatility
601688 Average Weekly Movement4.0%
Capital Markets Industry Average Movement5.8%
Market Average Movement7.2%
10% most volatile stocks in CN Market10.1%
10% least volatile stocks in CN Market5.0%

Stable Share Price: 601688 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 601688's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199014,372Yi Zhouhttps://www.htsc.com.cn

Huatai Securities Co., Ltd., a security company, provides financial services in Mainland China and internationally. The company buys and sells stocks, funds, bonds, futures, and options on behalf of clients; and provides various financial products and asset allocation, margin financing, securities lending, securities-backed lending, and margin securities lending services. It also offers institutional investment banking services, such as equity and bond underwriting, financial consultancy, and over-the-counter business services for enterprises, institutions, and governments; cross-border proprietary and credit derivative products and services; custodian and fund services, including settlement, liquidation, reporting, and valuation services, as well as margin trading and other value-added services to various asset management institutions; and professional research and consulting services.

Huatai Securities Fundamentals Summary

How do Huatai Securities's earnings and revenue compare to its market cap?
601688 fundamental statistics
Market CapCN¥117.51b
Earnings (TTM)CN¥12.15b
Revenue (TTM)CN¥39.39b

10.3x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
601688 income statement (TTM)
RevenueCN¥39.39b
Cost of RevenueCN¥5.39b
Gross ProfitCN¥34.00b
Other ExpensesCN¥21.85b
EarningsCN¥12.15b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.35
Gross Margin86.31%
Net Profit Margin30.85%
Debt/Equity Ratio244.5%

How did 601688 perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

34%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 601688 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 601688?

Other financial metrics that can be useful for relative valuation.

601688 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does 601688's PE Ratio compare to its peers?

601688 PE Ratio vs Peers
The above table shows the PE ratio for 601688 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.7x
600999 China Merchants Securities
12.6x13.0%CN¥113.3b
000776 GF Securities
14.1x19.1%CN¥119.8b
601211 Guotai Junan Securities
10.5x18.2%CN¥123.4b
002736 Guosen Securities
9.8x10.9%CN¥90.5b
601688 Huatai Securities
10.3x17.4%CN¥117.5b

Price-To-Earnings vs Peers: 601688 is good value based on its Price-To-Earnings Ratio (10.3x) compared to the peer average (11.7x).


Price to Earnings Ratio vs Industry

How does 601688's PE Ratio compare vs other companies in the CN Capital Markets Industry?

Price-To-Earnings vs Industry: 601688 is good value based on its Price-To-Earnings Ratio (10.3x) compared to the CN Capital Markets industry average (20.3x)


Price to Earnings Ratio vs Fair Ratio

What is 601688's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

601688 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.3x
Fair PE Ratio20.7x

Price-To-Earnings vs Fair Ratio: 601688 is good value based on its Price-To-Earnings Ratio (10.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.7x).


Share Price vs Fair Value

What is the Fair Price of 601688 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 601688 (CN¥13.96) is trading below our estimate of fair value (CN¥18.43)

Significantly Below Fair Value: 601688 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 601688 is good value based on its PEG Ratio (0.6x)


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Future Growth

How is Huatai Securities forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 601688's forecast earnings growth (17.4% per year) is above the savings rate (3.2%).

Earnings vs Market: 601688's earnings (17.4% per year) are forecast to grow slower than the CN market (23.9% per year).

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

Revenue vs Market: 601688's revenue (12.7% per year) is forecast to grow slower than the CN market (17.5% per year).

High Growth Revenue: 601688's revenue (12.7% 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 (8.2%).


Discover growth companies

Past Performance

How has Huatai Securities performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


13.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 601688 has high quality earnings.

Growing Profit Margin: 601688's current net profit margins (30.9%) are lower than last year (32.4%).


Past Earnings Growth Analysis

Earnings Trend: 601688's earnings have grown by 13.9% per year over the past 5 years.

Accelerating Growth: 601688's earnings growth over the past year (8.1%) is below its 5-year average (13.9% per year).

Earnings vs Industry: 601688 earnings growth over the past year (8.1%) exceeded the Capital Markets industry 2.4%.


Return on Equity

High ROE: 601688's Return on Equity (8%) is considered low.


Discover strong past performing companies

Financial Health

How is Huatai Securities's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 601688's short term assets (CN¥755.1B) exceed its short term liabilities (CN¥518.3B).

Long Term Liabilities: 601688's short term assets (CN¥755.1B) exceed its long term liabilities (CN¥158.2B).


Debt to Equity History and Analysis

Debt Level: 601688 has more cash than its total debt.

Reducing Debt: 601688's debt to equity ratio has increased from 123.1% to 244.5% over the past 5 years.

Debt Coverage: 601688's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.22%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 601688's dividend (3.22%) is higher than the bottom 25% of dividend payers in the CN market (0.48%).

High Dividend: 601688's dividend (3.22%) is in the top 25% of dividend payers in the CN market (1.9%)


Stability and Growth of Payments

Stable Dividend: 601688's dividend payments have been volatile in the past 10 years.

Growing Dividend: 601688's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.5%), 601688's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 601688 is paying a dividend but the company has no free cash flows.


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Management

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

3.0yrs

Average management tenure


CEO

Yi Zhou (53 yo)

11.58yrs

Tenure

CN¥6,368,000

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 served as Chairman of Huatai Sec...


CEO Compensation Analysis

Compensation vs Market: Yi's total compensation ($USD950.41K) is above average for companies of similar size in the CN market ($USD375.03K).

Compensation vs Earnings: Yi's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 601688's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: 601688's board of directors are not considered experienced ( 2.9 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 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
  • Implied Market Cap: CN¥117.506b
  • Shares outstanding: 8.99b
  • Website: https://www.htsc.com.cn

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.