Haitong International Securities Group (SEHK:665) - Share price, News & Analysis

Q: What is the Fair Price of 665 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

665 (HK$0.93) is trading below our estimate of [[fair value]] (HK$1.55)

665 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	5/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

665 Stock Overview

Haitong International Securities Group Limited provides financial products and services to corporate, institutional, and high-net worth worldwide.

Rewards

Trading at 40% below our estimate of its fair value

Earnings are forecast to grow 90.47% per year

Risk Analysis

No risks detected for 665 from our risk checks.

Haitong International Securities Group Competitors

Hengtai Securities

SEHK:1476

HK$6.7b

Guotai Junan International Holdings

SEHK:1788

HK$7.5b

China Renaissance Holdings

SEHK:1911

HK$4.8b

Bright Smart Securities & Commodities Group

SEHK:1428

HK$2.3b

Price History & Performance

Summary of all time highs, changes and price drops for Haitong International Securities Group
Historical stock prices
Current Share Price	HK$0.93
52 Week High	HK$2.16
52 Week Low	HK$0.88
Beta	0.84
1 Month Change	-12.26%
3 Month Change	-11.81%
1 Year Change	-52.64%
3 Year Change	-51.75%
5 Year Change	-77.86%
Change since IPO	-29.45%

Recent News & Updates

Apr 14

These Analysts Think Haitong International Securities Group Limited's (HKG:665) Sales Are Under Threat

The latest analyst coverage could presage a bad day for Haitong International Securities Group Limited ( HKG:665...

Shareholder Returns

	665	HK Capital Markets	HK Market
7D	-1.1%	-0.4%	-0.7%
1Y	-52.6%	-24.9%	-20.5%

Return vs Industry: 665 underperformed the Hong Kong Capital Markets industry which returned -24.9% over the past year.

Return vs Market: 665 underperformed the Hong Kong Market which returned -20.5% over the past year.

Price Volatility

Is 665's price volatile compared to industry and market?
665 volatility
665 Average Weekly Movement	4.4%
Capital Markets Industry Average Movement	7.0%
Market Average Movement	6.6%
10% most volatile stocks in HK Market	12.9%
10% least volatile stocks in HK Market	3.1%

Stable Share Price: 665 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 665's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1973	1,225	Yong Lin	https://www.htisec.com

Haitong International Securities Group Limited provides financial products and services to corporate, institutional, and high-net worth worldwide. It operated through Wealth Management, Corporate Finance, Asset Management, Global Markets, and Investment segments. The Wealth Management segment offers financial services and investment solutions to high net-worth clients; securities, futures and options contracts, over-the-counter products, and funds; and discretionary account management, securities custodian, and securities margin financing services.

Haitong International Securities Group Fundamentals Summary

How do Haitong International Securities Group's earnings and revenue compare to its market cap?
665 fundamental statistics
Market Cap	HK$6.18b
Earnings (TTM)	-HK$897.05m
Revenue (TTM)	HK$1.45b

4.3x

P/S Ratio

-6.9x

P/E Ratio

Is 665 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
665 income statement (TTM)
Revenue	HK$1.45b
Cost of Revenue	HK$918.19m
Gross Profit	HK$530.47m
Other Expenses	HK$1.43b
Earnings	-HK$897.05m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.14
Gross Margin	36.62%
Net Profit Margin	-61.92%
Debt/Equity Ratio	181.7%

How did 665 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 665 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 665?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 665. This is calculated by dividing 665's market cap by their current preferred multiple.
What is 665's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$6.18b

665 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/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does 665's PB Ratio compare to its peers?

665 PB Ratio vs Peers

The above table shows the PB ratio for 665 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	0.7x
1476 Hengtai Securities	0.6x	n/a	HK$6.7b
1788 Guotai Junan International Holdings	0.5x	12.2%	HK$7.5b
1911 China Renaissance Holdings	0.6x	10.1%	HK$4.8b
1428 Bright Smart Securities & Commodities Group	0.9x	n/a	HK$2.3b
665 Haitong International Securities Group	0.2x	90.5%	HK$6.2b

Price-To-Book vs Peers: 665 is good value based on its Price-To-Book Ratio (0.2x) compared to the peer average (0.7x).

Price to Earnings Ratio vs Industry

How does 665's PE Ratio compare vs other companies in the HK Capital Markets Industry?

Price-To-Book vs Industry: 665 is good value based on its Price-To-Book Ratio (0.2x) compared to the Hong Kong Capital Markets industry average (0.5x)

Price to Book Ratio vs Fair Ratio

What is 665's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

665 PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	0.2x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate 665's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 665 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 665 (HK$0.93) is trading below our estimate of fair value (HK$1.55)

Significantly Below Fair Value: 665 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

How is Haitong International Securities Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

90.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 665 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 665 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 665 is expected to become profitable in the next 3 years.

Revenue vs Market: 665's revenue (33.9% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 665's revenue (33.9% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 665's Return on Equity is forecast to be low in 3 years time (6.4%).

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Past Performance

How has Haitong International Securities Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-17.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 665 is currently unprofitable.

Growing Profit Margin: 665 is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: 665 is unprofitable, and losses have increased over the past 5 years at a rate of 17% per year.

Accelerating Growth: Unable to compare 665's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 665 is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (8.8%).

Return on Equity

High ROE: 665 has a negative Return on Equity (-3.33%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Haitong International Securities Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 665's short term assets (HK$70.0B) do not cover its short term liabilities (HK$76.6B).

Long Term Liabilities: 665's short term assets (HK$70.0B) exceed its long term liabilities (HK$21.9M).

Debt to Equity History and Analysis

Debt Level: 665's net debt to equity ratio (5.2%) is considered satisfactory.

Reducing Debt: 665's debt to equity ratio has reduced from 237.2% to 181.7% over the past 5 years.

Debt Coverage: 665's debt is well covered by operating cash flow (31.7%).

Interest Coverage: Insufficient data to determine if 665's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

What is Haitong International Securities Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

13.24%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 665's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 665's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 665's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 665's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 665 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 665 has not reported any payouts.

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Management

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

4.9yrs

Average management tenure

CEO

Yong Lin (53 yo)

11.33yrs

Tenure

HK$9,596,000

Compensation

Dr. Yong Lin, JP, has been an Assistant to the General Manager at Haitong Securities Co., Ltd. since December 2014. Dr. Lin has been Chief Executive Officer of Haitong International Securities Group Limite...

CEO Compensation Analysis

Compensation vs Market: Yong's total compensation ($USD1.22M) is above average for companies of similar size in the Hong Kong market ($USD539.28K).

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

Leadership Team

Experienced Management: 665's management team is considered experienced (4.9 years average tenure).

Board Members

Experienced Board: 665's board of directors are considered experienced (4.4 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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/08 00:00
End of Day Share Price	2022/08/08 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31