SEHK:6066

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Good value with acceptable track record.


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

Stable Share Price: 6066's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.2%

6066

-1.9%

HK Capital Markets

-3.9%

HK Market


1 Year Return

77.4%

6066

31.5%

HK Capital Markets

-1.5%

HK Market

Return vs Industry: 6066 exceeded the Hong Kong Capital Markets industry which returned 32.8% over the past year.

Return vs Market: 6066 exceeded the Hong Kong Market which returned -0.3% over the past year.


Shareholder returns

6066IndustryMarket
7 Day-3.2%-1.9%-3.9%
30 Day-14.2%-8.6%-7.1%
90 Day14.4%10.1%-0.7%
1 Year83.1%77.4%35.0%31.5%2.4%-1.5%
3 Year59.1%42.4%-3.6%-11.8%-7.2%-17.2%
5 Yearn/a2.6%-12.1%20.1%-0.1%

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?

24.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6066 (HK$10.48) is trading below our estimate of fair value (HK$13.53)

Significantly Below Fair Value: 6066 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6066 is good value based on its PE Ratio (9.8x) compared to the HK Capital Markets industry average (13.6x).

PE vs Market: 6066 is good value based on its PE Ratio (9.8x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 6066 is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: 6066 is overvalued based on its PB Ratio (1.2x) compared to the HK Capital Markets industry average (0.5x).


Next Steps

Future Growth

How is CSC Financial forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6066's forecast earnings growth (6.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 6066's earnings (6.9% per year) are forecast to grow slower than the Hong Kong market (22.4% per year).

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

Revenue vs Market: 6066's revenue (11.6% per year) is forecast to grow slower than the Hong Kong market (13.2% per year).

High Growth Revenue: 6066's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6066's Return on Equity is forecast to be low in 3 years time (12.3%).


Next Steps

Past Performance

How has CSC Financial performed over the past 5 years?

-9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6066 has a high level of non-cash earnings.

Growing Profit Margin: 6066's current net profit margins (38.8%) are higher than last year (29.9%).


Past Earnings Growth Analysis

Earnings Trend: 6066's earnings have declined by 9.6% per year over the past 5 years.

Accelerating Growth: 6066's earnings growth over the past year (109.8%) exceeds its 5-year average (-9.6% per year).

Earnings vs Industry: 6066 earnings growth over the past year (109.8%) exceeded the Capital Markets industry 6%.


Return on Equity

High ROE: 6066's Return on Equity (13.1%) is considered low.


Next Steps

Financial Health

How is CSC Financial's financial position?


Financial Position Analysis

Short Term Liabilities: 6066's short term assets (CN¥269.5B) exceed its short term liabilities (CN¥200.6B).

Long Term Liabilities: 6066's short term assets (CN¥269.5B) exceed its long term liabilities (CN¥51.5B).


Debt to Equity History and Analysis

Debt Level: 6066's debt to equity ratio (269%) is considered high.

Reducing Debt: 6066's debt to equity ratio has increased from 261.2% to 269% over the past 5 years.

Debt Coverage: 6066's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 6066's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

2.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6066's dividend (2.55%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 6066's dividend (2.55%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.9%).


Stability and Growth of Payments

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

Growing Dividend: 6066's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.9%), 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 (31.3% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Geping Li (53 yo)

2.42yrs

Tenure

CN¥3,382,000

Compensation

Mr. Li Geping has been Chief Financial Officer at CSC Financial Co., Ltd. since May 2018 and has been the General Manager and Director of CSC Financial Co., Ltd. since April 16, 2018. Mr. Li joined CSC Fin ...


CEO Compensation Analysis

Compensation vs Market: Geping's total compensation ($USD496.64K) is below average for companies of similar size in the Hong Kong market ($USD803.20K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Changqing Wang
Executive Chairman of the Board2.42yrsCN¥10.04mno data
Geping Li
CFO, GM & Executive Director2.42yrsCN¥3.38mno data
Naisheng Liu
Administrative Head of Investment Banking Department9.42yrsno datano data
Gang Xiao
Chief Information Officer & Administrative Head of the IT Department2.08yrsno datano data
Jianqiang Ding
Chief Compliance Officer & Administrative Head of the Legal and Compliance Department1.33yrsno datano data
Xiaoyu Zhou
Administrative Head of Human Resources Department8.83yrsno datano data
Ya Lu
Chief Risk Officer & Administrative Head of the Risk Management Departmentno datano datano data
Ming Zhao
Administrative Head of Financial Planning Department & Employee Representative Supervisor1.5yrsno datano data
Xuan Lin
Employee Representative Supervisor & Administrative Head of Internal Audit Department2.42yrsno datano data
Guangxue Wang
Administrative Head of Executive Office & Secretary6.67yrsCN¥5.85mno data
Wai Ling Wong
Joint Company Secretaryno datano datano data
Huiling Huang
Joint Company Secretaryno datano datano data

2.4yrs

Average Tenure

49yo

Average Age

Experienced Management: 6066's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Changqing Wang
Executive Chairman of the Board2.42yrsCN¥10.04mno data
Geping Li
CFO, GM & Executive Director2.42yrsCN¥3.38mno data
Ming Zhao
Administrative Head of Financial Planning Department & Employee Representative Supervisor1.5yrsno datano data
Xuan Lin
Employee Representative Supervisor & Administrative Head of Internal Audit Department2.42yrsno datano data
Shengqin Zhu
Independent Non-Executive Director5.42yrsCN¥210.00kno data
Genfu Feng
Independent Non-Executive Director5.42yrsCN¥210.00kno data
Zhongfu Yu
Non-Executive Vice Chairman of the Board4.08yrsno datano data
Jianjun Bai
Independent Non-Executive Director4.08yrsCN¥210.00kno data
Qiao Liu
Independent Non-Executive Director4.08yrsCN¥210.00kno data
Deming Dai
Independent Non-Executive Director4.08yrsCN¥210.00kno data
Shihua Li
Chairman of Supervisory Board6.42yrsno datano data
Hao Sheng Wang
Non-Executive Director2.67yrsno datano data

4.1yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 6066's board of directors are considered experienced (4.1 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

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$375.053b
  • Shares outstanding: 7.65b
  • Website: https://www.csc108.com

Number of Employees


Location

  • CSC Financial Co., Ltd.
  • No. 188 Chaonei Avenue
  • Dongcheng District
  • Beijing
  • Beijing Province
  • 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 Analysis2020/09/24 19:25
End of Day Share Price2020/09/24 00:00
Earnings2020/06/30
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.