China Galaxy Securities Co., Ltd.

SEHK:6881 Stock Report

Market Cap: HK$152.1b

China Galaxy Securities Valuation

Is 6881 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 6881 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6881 (HK$7.45) is trading below our estimate of fair value (HK$8.58)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6881?

Key metric: As 6881 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6881. This is calculated by dividing 6881's market cap by their current earnings.
What is 6881's PE Ratio?
PE Ratio10.4x
EarningsCN¥7.32b
Market CapCN¥141.56b

Price to Earnings Ratio vs Peers

How does 6881's PE Ratio compare to its peers?

The above table shows the PE ratio for 6881 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.3x
3908 China International Capital
16.9x25.8%HK$141.1b
6066 CSC Financial
16.5x38.6%HK$211.9b
1456 Guolian Securities
33.8x44.8%HK$33.6b
1375 Central China Securities
45.8xn/aHK$19.2b
6881 China Galaxy Securities
10.4x9.8%HK$152.1b

Price-To-Earnings vs Peers: 6881 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the peer average (28.3x).

Price to Earnings Ratio vs Industry

How does 6881's PE Ratio compare vs other companies in the HK Capital Markets Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
2799 China CITIC Financial Asset Management
4.2x-29.2%US$6.70b
8098 CL Group (Holdings)
3.7xn/aUS$11.02m
No more companies available in this PE range
6881 10.4xIndustry Avg. 19.1xNo. of Companies8PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6881 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the Hong Kong Capital Markets industry average (19.1x).

Price to Earnings Ratio vs Fair Ratio

What is 6881's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6881 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.4x
Fair PE Ratio12.4x

Price-To-Earnings vs Fair Ratio: 6881 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the estimated Fair Price-To-Earnings Ratio (12.4x).

Analyst Price Targets

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

The above table shows the analyst 6881 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$7.45
HK$6.92
-7.1%
39.8%HK$12.26HK$2.83n/a10
Nov ’25HK$7.05
HK$6.91
-2.0%
39.6%HK$12.45HK$2.87n/a10
Oct ’25HK$7.26
HK$4.75
-34.6%
19.0%HK$6.37HK$2.92n/a10
Sep ’25HK$4.13
HK$4.62
+11.9%
17.6%HK$6.05HK$2.89n/a10
Aug ’25HK$4.04
HK$4.93
+22.1%
23.4%HK$7.44HK$2.82n/a10
Jul ’25HK$4.09
HK$4.96
+21.2%
23.4%HK$7.47HK$2.83n/a10
Jun ’25HK$4.21
HK$4.97
+18.0%
23.4%HK$7.49HK$2.84n/a10
May ’25HK$4.27
HK$4.96
+16.2%
23.1%HK$7.40HK$2.84n/a10
Apr ’25HK$3.84
HK$4.96
+29.1%
24.4%HK$7.41HK$2.86n/a9
Mar ’25HK$4.18
HK$5.01
+19.8%
24.5%HK$7.49HK$2.89n/a9
Feb ’25HK$3.82
HK$5.01
+31.1%
24.5%HK$7.49HK$2.89n/a9
Jan ’25HK$4.13
HK$5.07
+22.7%
20.3%HK$6.46HK$2.90n/a9
Dec ’24HK$4.16
HK$5.08
+22.1%
20.0%HK$6.41HK$2.89n/a9
Nov ’24HK$4.00
HK$4.82
+20.6%
20.2%HK$6.25HK$2.82HK$7.0510
Oct ’24HK$4.04
HK$4.83
+19.4%
20.2%HK$6.27HK$2.83HK$7.2610
Sep ’24HK$4.22
HK$4.80
+13.8%
20.9%HK$6.41HK$2.85HK$4.1311
Aug ’24HK$4.52
HK$4.74
+4.8%
20.1%HK$6.38HK$2.88HK$4.0411
Jul ’24HK$4.18
HK$4.80
+14.9%
20.9%HK$6.68HK$2.92HK$4.0911
Jun ’24HK$4.26
HK$4.80
+12.7%
20.9%HK$6.68HK$2.92HK$4.2111
May ’24HK$4.25
HK$4.80
+13.0%
20.5%HK$6.87HK$3.01HK$4.2711
Apr ’24HK$3.95
HK$5.08
+28.6%
22.8%HK$7.05HK$3.02HK$3.8411
Mar ’24HK$4.02
HK$4.99
+24.1%
26.2%HK$6.96HK$2.50HK$4.1811
Feb ’24HK$4.32
HK$4.98
+15.3%
26.1%HK$7.05HK$2.53HK$3.8212
Jan ’24HK$3.81
HK$4.94
+29.5%
25.6%HK$6.90HK$2.48HK$4.1312
Dec ’23HK$3.83
HK$4.90
+27.9%
25.6%HK$6.84HK$2.46HK$4.1612
Nov ’23HK$3.01
HK$5.05
+67.8%
22.2%HK$6.66HK$2.40HK$4.0012

Analyst Forecast: Target price is lower than the current share price.

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