SEHK:6178

Stock Analysis Report

Executive Summary

Everbright Securities Company Limited, together with its subsidiaries, engages in brokerage and wealth management, institutional securities service, investment management, and credit businesses in China and internationally.

Snowflake

Fundamentals

Concerning outlook with worrying balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6178 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

6178

-0.08%

HK Capital Markets

-4.2%

HK Market


1 Year Return

-23.9%

6178

-5.7%

HK Capital Markets

-1.9%

HK Market

Return vs Industry: 6178 underperformed the Hong Kong Capital Markets industry which returned -5.7% over the past year.

Return vs Market: 6178 underperformed the Hong Kong Market which returned -1.9% over the past year.


Shareholder returns

6178IndustryMarket
7 Day-1.0%-0.08%-4.2%
30 Day-1.4%-1.8%-2.9%
90 Day-1.7%-0.5%-0.08%
1 Year-22.5%-23.9%-3.0%-5.7%1.6%-1.9%
3 Year-51.0%-54.2%-27.9%-34.1%17.9%6.1%
5 Yearn/a-11.9%-26.3%15.0%-4.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

43.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6178 (HK$5.69) is trading above our estimate of fair value (HK$2.09)

Significantly Below Fair Value: 6178 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6178 is poor value based on its PE Ratio (43.6x) compared to the Capital Markets industry average (11.6x).

PE vs Market: 6178 is poor value based on its PE Ratio (43.6x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 6178 is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: 6178 is overvalued based on its PB Ratio (1x) compared to the HK Capital Markets industry average (0.5x).


Next Steps

Future Growth

How is Everbright Securities forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6178's forecast earnings growth (10.8% per year) is above the savings rate (2%).

Earnings vs Market: 6178's earnings (10.8% per year) are forecast to grow slower than the Hong Kong market (11.5% per year).

High Growth Earnings: 6178's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6178's revenue is expected to decline over the next 3 years (-4.2% per year).

High Growth Revenue: 6178's revenue is forecast to decline over the next 3 years (-4.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6178's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Everbright Securities performed over the past 5 years?

-24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6178 has large one-off items impacting its financial results.

Growing Profit Margin: 6178's current net profit margins (11.8%) are lower than last year (22.3%).


Past Earnings Growth Analysis

Earnings Trend: 6178's earnings have declined by -24% per year over the past 5 years.

Accelerating Growth: 6178's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6178 had negative earnings growth (-37.9%) over the past year, making it difficult to compare to the Capital Markets industry average (-30.7%).


Return on Equity

High ROE: 6178's Return on Equity (2.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Everbright Securities'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: 6178 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 6178's debt is covered by short term assets (assets are 1.8x debt).


Financial Institutions Analysis

Asset Level: 6178's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 6178 has a sufficient allowance for bad loans.

Low Risk Liabilities: 6178 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 6178 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 6178 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 6178 has an appropriate level of bad loans.


Next Steps

Dividend

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

0.90%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%2.3%markettop25%6.3%industryaverage3.2%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: 6178's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 6178's dividend (0.9%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.32%).


Stability and Growth of Payments

Stable Dividend: 6178 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 6178 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 6178 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6178's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Jun Yan (49yo)

0.08yrs

Tenure

0

Mr. Jun Yan has been Executive Director of Everbright Securities Company Ltd. since January 25, 2019 and serves as its Chairman since July 03, 2019 and Chief Compliance Officer since October 2019. He is a  ...


Management Age and Tenure

3.2yrs

Average Tenure

49yo

Average Age

Experienced Management: 6178's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 6178's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellCN¥40,234,68220 Feb 19
China Life Insurance Assets Management Co. Ltd.
EntityCompany
Shares5,500,000
Max PriceCN¥7.32
SellCN¥65,896,40820 Feb 19
China Life Insurance Assets Management Co. Ltd.
EntityCompany
Shares8,956,600
Max PriceCN¥7.36

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


Management Team

  • Maurice Ngai (57yo)

    Company Secretary

    • Tenure: 4.3yrs
  • Shiming Hu

    Assistant President

    • Tenure: 13.5yrs
    • Compensation: CN¥2.61m
  • Haisong Li

    General Manager of Risk Management Department

    • Tenure: 0yrs
    • Compensation: CN¥1.26m
  • Li Xin

    Chief Investment Officer

    • Tenure: 3.2yrs
  • Qin Zhu (49yo)

    Secretary to the Board

    • Tenure: 2.8yrs
  • Jun Yan (49yo)

    Executive Chairman

    • Tenure: 0.08yrs
  • Mannian He

    Head of Accounting Department

    • Tenure: 0yrs

Board Members

  • Zheping Li (54yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
  • Desmond Chan (50yo)

    Non-Executive Director

    • Tenure: 5.8yrs
  • Jiping Liu (55yo)

    Chairman of the Supervisory Committee

    • Tenure: 14.4yrs
  • Sing Kun Au (67yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
  • Lianchen Yin (53yo)

    Non-Executive Director

    • Tenure: 5.2yrs
  • Jingchang Xu (54yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
  • Yan Xiong (63yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
  • Hao Ju (60yo)

    Non-Executive Director

    • Tenure: 2.1yrs
  • Keqing Xue (56yo)

    Non-Executive Director

    • Tenure: 2yrs
  • Jun Yan (49yo)

    Executive Chairman

    • Tenure: 0.08yrs

Company Information

Everbright Securities Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Everbright Securities Company Limited
  • Ticker: 6178
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: CN¥47.043b
  • Listing Market Cap: CN¥52.334b
  • Shares outstanding: 4.61b
  • Website: https://www.ebscn.com

Number of Employees


Location

  • Everbright Securities Company Limited
  • Jingan International Plaza
  • 1508 Xinzha Road
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
601788SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYAug 2009
601788XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYAug 2009
0ECDB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURAug 2016
6178SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDAug 2016
6178SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDAug 2016
6178SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDAug 2016

Biography

Everbright Securities Company Limited, together with its subsidiaries, engages in brokerage and wealth management, institutional securities service, investment management, and credit businesses in China an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 13:01
End of Day Share Price2019/11/21 00:00
Earnings2019/09/30
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.