SEHK:6881

Stock Analysis Report

Executive Summary

China Galaxy Securities Co., Ltd. provides various financial services in the People’s Republic of China.

Snowflake

Fundamentals

Good value second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-4.4%

6881

-1.1%

HK Capital Markets

0.9%

HK Market


1 Year Return

23.2%

6881

6.0%

HK Capital Markets

0.6%

HK Market

Return vs Industry: 6881 exceeded the Hong Kong Capital Markets industry which returned 6% over the past year.

Return vs Market: 6881 exceeded the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

6881IndustryMarket
7 Day-4.4%-1.1%0.9%
30 Day-5.8%-1.9%0.4%
90 Day-8.1%-9.6%-5.5%
1 Year26.2%23.2%9.7%6.0%4.2%0.6%
3 Year-39.4%-44.4%-26.4%-32.8%15.5%3.9%
5 Year-17.8%-29.7%-2.5%-18.1%19.9%-0.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

7.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 6881 (HK$4.09) is trading below our estimate of fair value (HK$4.41)

Significantly Undervalued: 6881 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 6881 is good value based on its PE Ratio (9x) compared to the Capital Markets industry average (11.8x).

PE vs Market: 6881 is good value based on its PE Ratio (9x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 6881 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 6881 is good value based on its PB Ratio (0.5x) compared to the HK Capital Markets industry average (0.6x).


Next Steps

Future Growth

How is China Galaxy Securities forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6881's forecast earnings growth (8.4% per year) is above the savings rate (2%).

Earnings vs Market: 6881's earnings (8.4% per year) are forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Earnings: 6881's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6881's revenue (3.5% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 6881's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 6881's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has China Galaxy Securities performed over the past 5 years?

-10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 6881's earnings have declined by -10.4% per year over the past 5 years.

Accelerating Growth: 6881's earnings growth over the past year (31.2%) exceeds its 5-year average (-10.4% per year).

Earnings vs Industry: 6881 earnings growth over the past year (31.2%) exceeded the Capital Markets industry -19.8%.


Return on Equity

High ROE: 6881's Return on Equity (6.1%) is considered low.


Return on Assets

ROA vs Industry: 6881'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 6881's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is China Galaxy 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: 6881 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 6881's debt is covered by short term assets (assets are 1.954590x debt).


Financial Institutions Analysis

Asset Level: 6881's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 6881 has a sufficient allowance for bad loans.

Low Risk Liabilities: 6881 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 6881 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 6881 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 6881 has an appropriate level of bad loans.


Next Steps

Dividend

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

2.43%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%2.3%markettop25%6.3%industryaverage3.1%forecastin3Years3.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 6881's dividend (2.43%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 6881's dividend (2.43%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 6881 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6881's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.9%), 6881's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6881's dividends in 3 years are forecast to be well covered by earnings (30.7% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Liang Chen (51yo)

0.3yrs

Tenure

0

Mr. Chen Liang has been the President of China Galaxy Securities Co., Ltd., since June 11, 2019. He have been the deputy secretary of the Party Committee of the Company since May 2019. From October 1994 to ...


Management Age and Tenure

0.8yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 6881's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.7yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 6881's board of directors are not considered experienced ( 1.7 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.


Recent Insider Transactions

SellCN¥60,221,67213 Aug 19
BlackRock, Inc.
EntityCompany
Shares15,924,500
Max PriceCN¥3.78

Ownership Breakdown


Management Team

  • Yanwu Yin (45yo)

    Chief Business Officer

    • Tenure: 6.8yrs
  • Chengming Wu (56yo)

    Interim CFO & Secretary to the Board

    • Tenure: 0.5yrs
    • Compensation: CN¥2.83m
  • Jianhui Wu (49yo)

    Chief Business Officer

    • Tenure: 0.8yrs
  • Gongyan Chen (57yo)

    Executive Chairman of the Board

    • Tenure: 3yrs
    • Compensation: CN¥2.97m
  • Liang Chen (51yo)

    President

    • Tenure: 0.3yrs
  • Liming Luo (43yo)

    Chief Business Officer

    • Tenure: 2.3yrs
  • Guofang Wu (48yo)

    Chief Business Officer

    • Tenure: 0.9yrs
  • Kenneth Lee

    Joint Company Secretary

    • Tenure: 1yrs
  • Shipeng Liang (50yo)

    Chief Compliance Officer

    • Tenure: 0.3yrs

Board Members

  • Zhiyi Liu (55yo)

    Employee Supervisor

    • Tenure: 6.4yrs
    • Compensation: CN¥1.55m
  • Jing Chen (56yo)

    Chairman of the Board of Supervisors

    • Tenure: 2.4yrs
  • Gongyan Chen (57yo)

    Executive Chairman of the Board

    • Tenure: 3yrs
    • Compensation: CN¥2.97m
  • Dingping Liu (57yo)

    Non-Executive Director

    • Tenure: 1.7yrs
  • Lihong Xiao (54yo)

    Non Executive Director

    • Tenure: 0.7yrs
  • Ruizhong Liu (66yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: CN¥253.00k
  • Zhenjun Wang (62yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥241.00k
  • Tianli Zhang (57yo)

    Non-Executive Director

    • Tenure: 0.7yrs
  • Chun Liu (56yo)

    Independent Non-Executive Director

    • Tenure: 0.7yrs
  • Zelan Wang (54yo)

    Non Executive Director

    • Tenure: 0.7yrs

Company Information

China Galaxy Securities Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Galaxy Securities Co., Ltd.
  • Ticker: 6881
  • Exchange: SEHK
  • Founded: 2007
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: HK$90.908b
  • Shares outstanding: 10.14b
  • Website: https://www.chinastock.com.cn

Number of Employees


Location

  • China Galaxy Securities Co., Ltd.
  • Tower C, Corporate Square
  • 2-6 Floors
  • Beijing
  • 100033
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6881SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDMay 2013
CGLDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURMay 2013
6881SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMay 2013
6881SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMay 2013
CGXY.YOTCPK (Pink Sheets LLC)ADRUSUSDAug 2013
601881SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJan 2017
601881XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJan 2017

Biography

China Galaxy Securities Co., Ltd. provides various financial services in the People’s Republic of China. Its Securities Brokerage segment offers securities dealing and broking; margin financing to margin c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:58
End of Day Share Price2019/10/18 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.