OTCPK:CIIH.F

Stock Analysis Report

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Executive Summary

CITIC Securities Company Limited provides various financial products and services in Mainland China and internationally.


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

CIIH.F

7.1%

US Capital Markets

3.8%

US Market


1 Year Return

n/a

CIIH.F

9.8%

US Capital Markets

9.7%

US Market

Return vs Industry: Insufficient data to determine how CIIH.F performed against the US Capital Markets industry.

Return vs Market: Insufficient data to determine how CIIH.F performed against the US Market.


Shareholder returns

CIIH.FIndustryMarket
7 Day0%7.1%3.8%
30 Day0%16.4%11.4%
90 Day-21.4%10.7%6.8%
1 Yearn/a12.0%9.8%12.1%9.7%
3 Yearn/a32.4%24.7%36.2%27.2%
5 Year-56.8%-56.8%59.9%44.8%63.7%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

23.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CIIH.F ($1.78) is trading above our estimate of fair value ($0.96)

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


Price To Earnings Ratio

PE vs Industry: CIIH.F is good value based on its PE Ratio (23.2x) compared to the Capital Markets industry average (32.9x).

PE vs Market: CIIH.F is poor value based on its PE Ratio (23.2x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: CIIH.F is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: CIIH.F is good value based on its PB Ratio (1.7x) compared to the US Capital Markets industry average (9.1x).


Next Steps

Future Growth

How is CITIC Securities forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIIH.F's forecast earnings growth (15.8% per year) is above the savings rate (2.2%).

Earnings vs Market: CIIH.F's earnings (15.8% per year) are forecast to grow slower than the US market (22.4% per year).

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

Revenue vs Market: CIIH.F's revenue (11.6% per year) is forecast to grow faster than the US market (8.7% per year).

High Growth Revenue: CIIH.F'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: CIIH.F's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has CITIC Securities performed over the past 5 years?

-10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIIH.F has high quality earnings.

Growing Profit Margin: CIIH.F's current net profit margins (29%) are lower than last year (31.5%).


Past Earnings Growth Analysis

Earnings Trend: CIIH.F's earnings have declined by -10.9% per year over the past 5 years.

Accelerating Growth: CIIH.F's earnings growth over the past year (10%) exceeds its 5-year average (-10.9% per year).

Earnings vs Industry: CIIH.F earnings growth over the past year (10%) underperformed the Capital Markets industry 16.6%.


Return on Equity

High ROE: CIIH.F's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is CITIC Securities's financial position?


Financial Position Analysis

Short Term Liabilities: CIIH.F's short term assets (CN¥839.2B) exceed its short term liabilities (CN¥573.1B).

Long Term Liabilities: CIIH.F's short term assets (CN¥839.2B) exceed its long term liabilities (CN¥168.0B).


Debt to Equity History and Analysis

Debt Level: CIIH.F's debt to equity ratio (218.2%) is considered high.

Reducing Debt: CIIH.F's debt to equity ratio has reduced from 230.1% to 218.2% over the past 5 years.

Debt Coverage: CIIH.F's debt is not well covered by operating cash flow (6.7%).

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


Balance Sheet


Next Steps

Dividend

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

2.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CIIH.F's dividend (2.19%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: CIIH.F's dividend (2.19%) is low compared to the top 25% of dividend payers in the US market (4.22%).


Stability and Growth of Payments

Stable Dividend: CIIH.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: CIIH.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.9%), CIIH.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CIIH.F's dividends in 3 years are forecast to be well covered by earnings (47.2% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Minghui Yang (55yo)

4yrs

Tenure

CN¥9,899,000

Compensation

Mr. Minghui Yang is President of CITIC Securities Company Limited since June 27, 2016 and is its Director since January 19, 2016. Mr. Yang joined CITIC Securities Company Limited in 1995. He is Managing Di ...


CEO Compensation Analysis

Compensation vs Market: Minghui's total compensation ($USD1.40M) is below average for companies of similar size in the US market ($USD11.49M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Youjun Zhang
Executive Chairman of the Board4.42yrsCN¥4.95mno data
Minghui Yang
President & Executive Director4yrsCN¥9.90mno data
Jiong Li
CFO, Treasurer & Chief Executive of Treasury Department1.17yrsCN¥8.17mno data
Yao Ma
Head of Investment Banking Management Committeeno dataCN¥9.92m0.00015% CN¥58.2k
Qunli Song
Chief Engineer & Chief Information Officer0.33yrCN¥3.79mno data
Guoming Zhang
Chief Compliance Officerno dataCN¥5.79mno data
Hao Zhang
Chief Marketing Officer2.67yrsCN¥8.95mno data
Yongjin Li
Director of Wealth Management Committee & GM of Zhejiang Branch Officeno dataCN¥7.92mno data
Xinjiang Ye
Head of Quality Control Group and M&A Business line under the IBMCno dataCN¥8.63mno data
Yi Sun
Head of the Financial Institutions Group1.83yrsCN¥9.92mno data

1.8yrs

Average Tenure

51yo

Average Age

Experienced Management: CIIH.F's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Youjun Zhang
Executive Chairman of the Board4.42yrsCN¥4.95mno data
Minghui Yang
President & Executive Director4yrsCN¥9.90mno data
Ning Li
Senior VP of Investment Banking & Employee Representative Supervisor0.50yrno datano data
Xuekun Niu
Senior VP of Planning & Finance Department and Employee Representative Supervisor0.50yrno datano data
Zhao Guo
Non Employee Representative Supervisor20.75yrsCN¥100.00kno data
Ke Liu
Independent Non-Executive Director4.42yrsCN¥156.00kno data
Zhonghui Zhou
Independent Non-Executive Director1.08yrsCN¥91.00kno data
Jia He
Independent Non-Executive Director4.42yrsCN¥156.00kno data
Jianhua Jin
Chairman of CITIC Private Equity Funds Management Company Limited0.33yrCN¥9.22m0.0027% CN¥1.1m
Shouying Liu
Independent Non Executive Director0.50yrno datano data

2.8yrs

Average Tenure

55yo

Average Age

Experienced Board: CIIH.F's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 6.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: CITIC Securities Company Limited
  • Ticker: CIIH.F
  • Exchange: OTCPK
  • Founded: 1995
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: CN¥274.694b
  • Listing Market Cap: CN¥38.782b
  • Shares outstanding: 12.93b
  • Website: https://www.cs.ecitic.com

Number of Employees


Location

  • CITIC Securities Company Limited
  • CITIC Securities Tower
  • 16th Floor
  • Shenzhen
  • Guangdong Province
  • 518048
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
600030SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYJan 2003
600030XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYJan 2003
6030SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDOct 2011
CI9DB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEUROct 2011
CIIH.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDOct 2011
6030SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDOct 2011
6030SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDOct 2011
CIIH.YOTCPK (Pink Sheets LLC)ADRUSUSDDec 2012

Biography

CITIC Securities Company Limited provides various financial products and services in Mainland China and internationally. It operates through Investment Banking, Brokerage, Trading, Asset Management, and Others segments. The company offers investment banking services, including equity and debt financing, and asset-backed securitization, as well as fund raising and financial advisory services to a range of enterprises and other institutional clients. It is also involved in broking of securities and futures; distribution of financial products; and trading and market-making of equity products, fixed income products and derivatives, foreign exchange, margin financing and securities lending, alternative investment, and commodities business. In addition, the company offers asset management services, such as CAM, SAM, SMA, fund management, and other investment accounts management; private equity investment and other services; and custody and research services. Further, it provides institutional brokerage, investment advisory and management, investment consultancy, fiduciary management, fund, real estate, business training, and financial products and securities investment services. Additionally, the company offers catering, accommodation, convention, and exhibition services; micro financing, finance outsourcing, bond issuance, offshore portfolio hedge and investment fund, fund distribution, leveraged foreign exchange and other transactions, investment with self-owned capital, cash transactions, property management and leasing, and other services. It also engages in the computer hardware and software technology development, technical consulting, technical service, system integration and sales, data processing, and research and development of financial products, portfolio design, and consulting activities. The company has strategic cooperation agreement with Singapore Exchange Limited. The company was founded in 1995 and is based in Shenzhen, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 05:09
End of Day Share Price2020/04/24 00:00
Earnings2020/03/31
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.