SEHK:6066

Stock Analysis Report

Executive Summary

CSC Financial Co., Ltd., together with its subsidiaries, provides investment banking services in Mainland China and internationally.

Snowflake

Fundamentals

Moderate growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has CSC Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

6066

2.0%

HK Capital Markets

3.3%

HK Market


1 Year Return

39.3%

6066

8.7%

HK Capital Markets

1.6%

HK Market

Return vs Industry: 6066 exceeded the Hong Kong Capital Markets industry which returned 8.7% over the past year.

Return vs Market: 6066 exceeded the Hong Kong Market which returned 1.6% over the past year.


Shareholder returns

6066IndustryMarket
7 Day1.2%2.0%3.3%
30 Day-5.6%-1.5%-0.009%
90 Day-0.9%-8.7%-5.1%
1 Year50.9%39.3%12.6%8.7%5.3%1.6%
3 Yearn/a-25.6%-32.1%16.1%4.4%
5 Yearn/a-2.1%-17.8%20.4%0.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CSC Financial undervalued compared to its fair value and its price relative to the market?

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 6066 (HK$5.74) is trading below our estimate of fair value (HK$8.67)

Significantly Undervalued: 6066 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 6066 is good value based on its PE Ratio (11.6x) compared to the Capital Markets industry average (12x).

PE vs Market: 6066 is poor value based on its PE Ratio (11.6x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 6066 is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 6066 is overvalued based on its PB Ratio (0.8x) compared to the HK Capital Markets industry average (0.6x).


Next Steps

Future Growth

How is CSC Financial forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6066's forecast earnings growth (11.3% per year) is above the savings rate (2%).

Earnings vs Market: 6066's earnings (11.3% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

High Growth Earnings: 6066's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6066's revenue (12.7% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 6066's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 6066's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has CSC Financial performed over the past 5 years?

-19.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 6066's earnings have declined by -19.2% per year over the past 5 years.

Accelerating Growth: 6066's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6066 had negative earnings growth (-3.6%) over the past year, making it difficult to compare to the Capital Markets industry average (-19.8%).


Return on Equity

High ROE: 6066's Return on Equity (7.6%) is considered low.


Return on Assets

ROA vs Industry: 6066's Return on Assets is below or equal to the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 6066's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is CSC Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 6066 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 6066's debt is covered by short term assets (assets are 1.860080x debt).


Financial Institutions Analysis

Asset Level: 6066's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 6066 has a sufficient allowance for bad loans.

Low Risk Liabilities: 6066 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 6066 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 6066 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 6066 has an appropriate level of bad loans.


Next Steps

Dividend

What is CSC Financial's current dividend yield, its reliability and sustainability?

3.47%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%2.3%markettop25%6.3%industryaverage3.1%forecastin3Years3.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 6066's dividend (3.47%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 6066's dividend (3.47%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 6066 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6066 has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.1%), 6066's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6066's dividends in 3 years are forecast to be well covered by earnings (30.5% payout ratio).


Next Steps

Management

What is the CEO of CSC Financial's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Guangxue Wang (47yo)

5.8yrs

Tenure

CN¥5,851,200

Compensation

Mr. Guangxue Wang has been Chief Executive Officer and Secretary of the Board of Directors at CSC Financial Co., Ltd since January 2014. Mr. Wang was Administrative Head of Executive Office and Secretary a ...


Management Age and Tenure

6.8yrs

Average Tenure

48yo

Average Age

Experienced Management: 6066's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

1.6yrs

Average Tenure

53yo

Average Age

Experienced Board: 6066's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Changqing Wang (56yo)

    Chairman

    • Tenure: 1.5yrs
    • Compensation: CN¥7.94m
  • Ya Lu (53yo)

    Chief Risk Officer

    • Tenure: 0yrs
  • Guangxue Wang (47yo)

    CEO & Secretary

    • Tenure: 5.8yrs
    • Compensation: CN¥5.85m
  • Xiaoyu Zhou (55yo)

    Administrative Head of Human Resources Department

    • Tenure: 7.9yrs
  • Naisheng Liu (48yo)

    Administrative Head of Investment Banking Department

    • Tenure: 8.5yrs
  • Ling Huang (43yo)

    Administrative Head of Debt Underwriting Department

    • Tenure: 11.4yrs
  • Geping Li (52yo)

    CFO, GM & Executive Director

    • Tenure: 1.5yrs
    • Compensation: CN¥1.84m
  • Xuan Lin (47yo)

    Employee Representative Supervisor & Administrative Head of Internal Audit Department

    • Tenure: 1.5yrs
  • Ming Zhao (48yo)

    Administrative Head of Financial Planning Department & Employee Representative Supervisor

    • Tenure: 0.6yrs
  • Jianqiang Ding

    Chief Compliance Officer

    • Tenure: 0.6yrs

Board Members

  • Shi Dong (54yo)

    Vice Chairman

    • Tenure: 1.5yrs
  • Zhongfu Yu (49yo)

    Vice Chairman

    • Tenure: 3.2yrs
  • Jianjun Bai (64yo)

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: CN¥230.00k
  • Changqing Wang (56yo)

    Chairman

    • Tenure: 1.5yrs
    • Compensation: CN¥7.94m
  • Deming Dai (57yo)

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: CN¥230.00k
  • Shihua Li (60yo)

    Chairman of Supervisory Board

    • Tenure: 5.5yrs
  • Hao Wang (51yo)

    Non-Executive Director

    • Tenure: 1.8yrs
  • Geping Li (52yo)

    CFO, GM & Executive Director

    • Tenure: 1.5yrs
    • Compensation: CN¥1.84m
  • Xuan Lin (47yo)

    Employee Representative Supervisor & Administrative Head of Internal Audit Department

    • Tenure: 1.5yrs
  • Ming Zhao (48yo)

    Administrative Head of Financial Planning Department & Employee Representative Supervisor

    • Tenure: 0.6yrs

Company Information

CSC Financial Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CSC Financial Co., Ltd.
  • Ticker: 6066
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: HK$172.842b
  • Shares outstanding: 7.65b
  • Website: https://www.csc108.com

Number of Employees


Location

  • CSC Financial Co., Ltd.
  • No. 188 Chaonei Avenue
  • Dongcheng District
  • Beijing
  • 100010
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6066SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2016
CS0DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2016
6066SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2016
6066SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2016
601066SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJun 2018
601066XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJun 2018

Biography

CSC Financial Co., Ltd., together with its subsidiaries, provides investment banking services in Mainland China and internationally. The company operates through four segments: Investment Banking, Wealth M ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 13:06
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.