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Central China Securities Co., Ltd. Class H (HK:1375)
:1375
Hong Kong Market

Central China Securities Co., Ltd. Class H (1375) AI Stock Analysis

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HK:1375

Central China Securities Co., Ltd. Class H

(1375)

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Neutral 55 (OpenAI - 5.2)
Rating:55Neutral
Price Target:
HK$2.00
▼(-8.26% Downside)
The score is driven mainly by improving fundamentals and solid cash conversion, but is held back by sharply higher leverage and weak technical momentum (price below key moving averages with negative MACD). Valuation and dividend yield provide only moderate support.
Positive Factors
Revenue Growth
The significant revenue growth and improved margins indicate a strong recovery in business operations, enhancing the company's market position and potential for future profitability.
Cash Generation
Strong cash generation closely tracking net income suggests efficient operations and provides the company with flexibility to invest in growth opportunities or manage debt.
Governance Improvements
The appointment of new independent directors enhances governance, potentially improving strategic oversight and investor confidence, which can positively impact long-term business stability.
Negative Factors
Rising Leverage
Increased leverage reduces financial flexibility and could strain resources, posing risks to the company's ability to manage economic downturns or invest in growth.
Volatile Performance
Volatility in financial performance over recent years limits confidence in the sustainability of current growth trends, potentially impacting long-term planning and investor trust.
Modest ROE
A modest return on equity indicates that the company is not generating strong returns relative to its capital base, which could affect its attractiveness to investors seeking higher returns.

Central China Securities Co., Ltd. Class H (1375) vs. iShares MSCI Hong Kong ETF (EWH)

Central China Securities Co., Ltd. Class H Business Overview & Revenue Model

Company DescriptionCentral China Securities Co., Ltd., a securities company, engages in the securities brokerage, proprietary trading, investment banking and management, credit, and other businesses. It trades in stocks, funds, bonds, and commodity and financial futures on behalf of its clients. The company also provides investment advisory, financial planning, risk management, and other services; financing services, such as margin trading and securities lending, securities repurchase, and securities-backed lending; and futures brokering, asset management, investment consultation, and fund management services. In addition, it is involved in the underwriting and sponsorship of equity securities; and bond underwriting business, as well as financial advisory services for mergers, acquisitions and restructuring, and new businesses. Further, the company offers stocks, bonds, funds, derivatives, and other financial products; and capital market services, including securities brokerage, margin financing, futures brokerage, investment banking, securities research, and proprietary investment, etc. As of December 31, 2021, it operated 30 branch offices and 83 security branches. Central China Securities Co., Ltd. was incorporated in 2002 and is headquartered in Zhengzhou, China.
How the Company Makes MoneyCentral China Securities Co., Ltd. generates revenue through several key streams. Its brokerage division earns commissions and fees from facilitating securities trading for retail and institutional clients. The investment banking segment contributes by providing underwriting services for equity and debt offerings, as well as offering financial advisory services for mergers and acquisitions. The asset management division generates income through management fees from mutual funds and other investment products. Additionally, the company engages in proprietary trading, where it utilizes its own capital to trade securities and financial instruments, aiming to profit from market movements. Strategic partnerships with other financial institutions and robust regional market expertise further bolster the company's earnings potential.

Central China Securities Co., Ltd. Class H Financial Statement Overview

Summary
Profitability and revenue rebounded in TTM (revenue +28%, net margin ~22%), and free cash flow is strong and closely tracks earnings (FCF/NI ~0.97). Offsetting this, leverage rose sharply (debt-to-equity ~1.31 vs ~0.43 in 2024), ROE remains modest (~3.3%), and multi-year results have been volatile.
Income Statement
66
Positive
TTM (Trailing-Twelve-Months) shows a clear rebound with revenue up 28% and profitability improving meaningfully (net margin ~22% vs ~11% in 2024). However, results have been volatile over the last several years (notably weaker revenue in 2022 and a down year in 2024), which limits confidence in the durability of the upswing.
Balance Sheet
52
Neutral
Leverage has increased sharply in TTM (Trailing-Twelve-Months), with debt-to-equity rising to ~1.31 from ~0.43 in 2024, reducing balance-sheet flexibility. Return on equity remains modest (~3.3% TTM), suggesting the company is not generating strong returns relative to its capital base despite the earnings recovery.
Cash Flow
71
Positive
Cash generation is a relative strength: TTM (Trailing-Twelve-Months) free cash flow grew ~25% and is closely in line with net income (free cash flow to net income ~0.97), indicating earnings are translating into cash. The main watch-out is variability in cash flow coverage across years (including periods of weak/negative coverage), pointing to potentially uneven cash conversion over the cycle.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.21B2.21B2.68B2.55B5.25B3.91B
Gross Profit1.75B1.63B1.99B1.83B4.37B3.05B
EBITDA518.80M399.03M381.36M268.35M862.11M284.26M
Net Income472.09M245.85M211.60M106.58M513.21M104.30M
Balance Sheet
Total Assets57.38B51.61B51.70B50.18B53.75B52.38B
Cash, Cash Equivalents and Short-Term Investments1.33B29.48B1.82B21.28B23.84B21.48B
Total Debt18.80B6.11B12.25B11.26B14.03B5.39B
Total Liabilities42.83B37.33B37.55B35.98B39.60B38.19B
Stockholders Equity14.32B14.06B13.90B13.76B13.68B13.37B
Cash Flow
Free Cash Flow4.32B4.05B-616.69M1.78B-1.18B1.25B
Operating Cash Flow4.45B4.17B-467.30M2.00B-956.41M1.37B
Investing Cash Flow472.83M586.68M1.89B-1.45B1.40B-1.34B
Financing Cash Flow-1.74B738.15M-1.33B-2.13B1.12B1.47B

Central China Securities Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.18
Price Trends
50DMA
2.24
Negative
100DMA
2.44
Negative
200DMA
2.25
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
46.53
Neutral
STOCH
36.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1375, the sentiment is Negative. The current price of 2.18 is below the 20-day moving average (MA) of 2.24, below the 50-day MA of 2.24, and below the 200-day MA of 2.25, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 36.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1375.

Central China Securities Co., Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
63
Neutral
HK$15.02B23.7543.44%4.01%11.40%11.52%
55
Neutral
HK$19.61B20.113.28%1.25%-36.99%181.79%
53
Neutral
HK$25.40B36.234.78%2.75%32.03%154.14%
53
Neutral
HK$2.14B-33.83-2.44%-45.13%60.10%
45
Neutral
HK$860.42M-10.53-4.03%173.24%-515.63%
39
Underperform
HK$1.08B-1.00-78.40%-196.19%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1375
Central China Securities Co., Ltd. Class H
2.21
0.67
43.51%
HK:0993
Huarong International Financial Holdings Limited
0.12
-0.01
-8.82%
HK:1788
Guotai Junan International Holdings Limited
2.67
1.58
145.18%
HK:1428
Bright Smart Securities & Commodities Group Limited
8.85
6.52
279.83%
HK:0952
China Tonghai International Financial Limited
0.14
-0.05
-25.53%
HK:0218
Shenwan Hongyuan (H.K.) Limited
1.37
-0.06
-4.20%

Central China Securities Co., Ltd. Class H Corporate Events

Central China Securities Tightens Governance With New Remuneration and Nomination Committee Rules
Dec 31, 2025

Central China Securities Co., Ltd. has formalised detailed work regulations for its Board’s Remuneration and Nomination Committee to strengthen its corporate governance framework. The committee, composed mainly of independent non-executive directors and including at least one director of a different gender, is tasked with setting performance appraisal standards, designing competitive and transparent remuneration policies for directors and senior management, and overseeing nomination procedures and qualification reviews, thereby tightening oversight of management incentives and alignment with industry norms and regulatory requirements.

The most recent analyst rating on (HK:1375) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Central China Securities Co., Ltd. Class H stock, see the HK:1375 Stock Forecast page.

Central China Securities Tightens Governance With New Remuneration and Nomination Rules
Dec 31, 2025

Central China Securities Co., Ltd. has formalised detailed work regulations for its Board’s Remuneration and Nomination Committee to strengthen corporate governance and standardise the nomination, remuneration and appraisal mechanisms for directors and senior management. The committee, composed of at least three directors with a majority of independent non-executive directors and at least one director of a different gender, is tasked with designing and supervising a market-aligned performance appraisal system, competitive and transparent remuneration policies, and clear election and qualification standards for key executives, reflecting regulatory demands on Chinese securities firms for more robust, transparent oversight of senior leadership incentives and appointments.

The most recent analyst rating on (HK:1375) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Central China Securities Co., Ltd. Class H stock, see the HK:1375 Stock Forecast page.

Central China Securities Announces Director Resignation and Board Committee Reshuffle
Dec 31, 2025

Central China Securities has announced the resignation of independent non-executive director Tsang Sung, who stepped down from the board and its special committees due to work arrangements, with both the company and Tsang emphasizing that the departure involves no disagreement and will not affect normal operations. Concurrently, the board has reshuffled the membership of its Strategy and Sustainability, Audit, Remuneration and Nomination, and Risk Control committees, appointing several independent non-executive directors to key oversight roles, a move that signals continued attention to corporate governance and risk management as the firm enters a new phase of board composition.

The most recent analyst rating on (HK:1375) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Central China Securities Co., Ltd. Class H stock, see the HK:1375 Stock Forecast page.

Central China Securities Updates Board and Committee Structure
Dec 31, 2025

Central China Securities Co., Ltd. has announced the current composition of its board of directors, led by executive director and chairlady Zhang Qiuyun, alongside a slate of non-executive and independent non-executive directors, including an employee director, reflecting a mix of internal and external oversight. The company also detailed the structure and membership of its four key board committees—Strategy and Sustainability, Remuneration and Nomination, Audit, and Risk Control—clarifying which directors convene and serve on each, a move that enhances governance transparency and signals continued emphasis on risk management, sustainability, and regulatory compliance for shareholders and other stakeholders.

The most recent analyst rating on (HK:1375) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Central China Securities Co., Ltd. Class H stock, see the HK:1375 Stock Forecast page.

Central China Securities Confirms EGM Poll Results and Board Changes
Dec 22, 2025

Central China Securities Co., Ltd. reported the poll results of its first extraordinary shareholders’ meeting of 2025, confirming that the meeting was duly convened in both physical and electronic formats in Zhengzhou and that all procedural requirements under PRC company law and the firm’s articles of association were met. The EGM, attended in person and online by 417 shareholders and representatives holding approximately 29.24% of the company’s voting share capital, approved resolutions relating to the appointment and resignation of independent non-executive directors and the election of an employee director, underscoring active shareholder participation and resulting in governance changes that may influence the firm’s board oversight and strategic direction.

Central China Securities Sets Out Board Line-up and Committee Roles
Dec 22, 2025

Central China Securities Co., Ltd. has disclosed the current composition of its board of directors, which includes one executive director serving as chairlady, five non-executive directors (including an employee director), and five independent non-executive directors, underscoring a governance structure that combines internal management, shareholder representation and independent oversight. The company also detailed the membership and leadership of its four key board committees—Strategy and Sustainability, Remuneration and Nomination, Audit, and Risk Control—clarifying which directors convene and serve on each, a move that enhances transparency around corporate governance, risk management and strategic supervision for investors and other stakeholders.

Central China Securities Updates Proxy Voting for 2025 Shareholders’ Meeting
Dec 3, 2025

Central China Securities Co., Ltd. has issued a supplemental announcement regarding the 2025 first extraordinary shareholders’ meeting. The company has clarified that voting on certain resolutions will be conducted through cumulative voting, necessitating a revised form of proxy for H shareholders. This adjustment is crucial for the election of independent non-executive directors and ensures proper shareholder representation. Stakeholders are advised to use the revised form of proxy to participate in the meeting effectively.

Central China Securities Announces 2025 Extraordinary Shareholders’ Meeting
Dec 2, 2025

Central China Securities Co., Ltd. has announced its 2025 first extraordinary shareholders’ meeting, scheduled for December 22, 2025, in Zhengzhou. The meeting will address the election of three independent non-executive directors to the board, which could influence the company’s governance and strategic direction. Shareholders are encouraged to participate in the meeting, with arrangements made for proxy voting.

Central China Securities Proposes New Independent Directors
Dec 1, 2025

Central China Securities Co., Ltd. has announced the proposed appointment of Mr. Wang Huixuan and Mr. Du Xiaotang as independent non-executive directors, subject to shareholder approval. This move is part of the company’s strategic efforts to enhance its board’s expertise and governance, potentially impacting its market positioning and stakeholder confidence positively.

Central China Securities Releases Q3 2025 Financial Results
Oct 30, 2025

Central China Securities Co., Ltd. has released its unaudited financial results for the third quarter of 2025, prepared in accordance with Chinese accounting standards. The announcement, made under the Hong Kong Listing Rules, provides insights into the company’s financial performance and is available in both Chinese and English versions. The report is crucial for stakeholders as it reflects the company’s operational status and market positioning during the reporting period.

Central China Securities Proposes New Independent Director Appointment
Oct 20, 2025

Central China Securities Co., Ltd. has proposed the appointment of Mr. Wang Hui as an independent non-executive director, pending approval at the upcoming Shareholders’ Meeting. Mr. Wang Hui, who has extensive experience in finance and investment management, will receive a fixed allowance and additional compensation if he serves as chairman of a special committee. This appointment is part of the company’s ongoing efforts to strengthen its board with experienced professionals, potentially enhancing its strategic direction and governance.

Central China Securities Announces Director Resignation and Succession Plans
Oct 20, 2025

Central China Securities Co., Ltd. announced the resignation of Mr. He Jun, an independent non-executive director, due to career reasons. Although his departure reduces the number of independent directors below the required threshold, Mr. He Jun will continue his duties until a new director is elected. The company has initiated the process to nominate and elect a successor to maintain compliance with corporate governance regulations.

Central China Securities Announces Board Meeting for Q3 Results
Oct 17, 2025

Central China Securities Co., Ltd. has announced a board meeting scheduled for 30 October 2025 to discuss and approve the company’s third-quarter results for the period ending 30 September 2025. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the remainder of the fiscal year.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 30, 2025