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Guolian Securities Co., Ltd. Class H (HK:1456)
:1456
Hong Kong Market

Guolian Securities Co., Ltd. Class H (1456) AI Stock Analysis

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HK:1456

Guolian Securities Co., Ltd. Class H

(1456)

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Neutral 57 (OpenAI - 5.2)
Rating:57Neutral
Price Target:
HK$6.00
â–²(15.61% Upside)
The score is primarily held back by unstable cash flows (TTM swing to materially negative operating/free cash flow) alongside rising leverage, despite strong TTM revenue growth and healthy headline margins. Technical indicators are mixed with only modest bullish signals, while valuation is reasonable but not notably cheap and the dividend is small.
Positive Factors
Strong TTM revenue growth
Sustained top-line acceleration (+36.6% TTM) indicates improving core revenue generation and client activity. Over a multi-month horizon this strengthens fee and trading income baselines, supporting reinvestment in distribution and product capabilities that underpin durable growth.
Solid headline profitability
A ~23% TTM net margin shows the firm can convert revenue into profit at a healthy rate, providing internal cash buffer and capacity to fund operations, retain talent, and invest in technology. This margin level supports strategic flexibility across market cycles.
Scale and market access
A sizable workforce and meaningful trading volume reflect operational scale and market access, supporting diversified client coverage, underwriting and brokerage capabilities. Scale reinforces competitive positioning and the ability to capture fees across capital markets activities.
Negative Factors
Material cash flow deterioration
A swing to materially negative operating and free cash flow raises durable funding and liquidity risk. Persistent negative cash generation forces reliance on external financing or asset sales, constraining investments, dividend policy, and resilience in adverse market conditions.
Rising leverage
Leverage trending higher to ~1.58 increases fixed obligations and sensitivity to market shocks. With only modest ROE, higher debt elevates solvency and refinancing risks, limits strategic optionality, and can amplify earnings volatility during downturns, reducing long-term resilience.
Volatile margins and earnings
Wide swings in net margin reflect reliance on cyclical trading and market-driven revenues, undermining earnings predictability. This structural volatility complicates capital allocation, planning and investor confidence, and raises the chance of funding stress in weaker market periods.

Guolian Securities Co., Ltd. Class H (1456) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionGuolian Securities Co., Ltd., together with its subsidiaries, provides various financial products and services in the People's Republic of China. The company operates through Brokerage and Wealth Management; Credit Transaction; Investment Banking; Proprietary Trading; and Assets Management and Investment segments. It offers securities trading and brokering services; financial leverage services for brokerage clients, securities-backed lending, and securities repurchase; and corporate finance and financial advisory services to institutional clients and market maker business. The company also sells wealth management products; and engages in the direct investment and funds related businesses, as well as provision of management and maintenance, investment consultancy and advisory, transaction execution, and asset allocation services. In addition, it is involved in the securities and bonds underwriting and sponsorship, investment management, proprietary investment in venture capital, industrial investment, equity investment, asset management, introducing broker for futures companies, margin financing and securities lending, and agency sale of financial broker products. As of December 31, 2021, it owned 101 branches, which included 13 branch offices and 88 securities branches. The company was formerly known as Wuxi Securities Co., Ltd. and changed its name to Guolian Securities Co., Ltd. in May 2008. Guolian Securities Co., Ltd. was founded in 1992 and is headquartered in Wuxi, the People's Republic of China.
How the Company Makes MoneyGuolian Securities Co., Ltd. generates revenue through multiple streams within the financial services industry. The primary sources of income include brokerage commissions from trading securities on behalf of clients, underwriting fees from assisting companies in raising capital through public offerings, and advisory fees from financial consulting services. The company also earns income from asset management services, where it manages funds for clients and charges management and performance fees. Additionally, proprietary trading activities, where the company invests its own capital in various financial instruments, contribute to its earnings. Strategic partnerships with other financial institutions and a strong domestic market presence further bolster its revenue generation capabilities.

Guolian Securities Co., Ltd. Class H Financial Statement Overview

Summary
Guolian Securities demonstrates strong revenue growth and solid cash flow generation, supporting a healthy financial position. However, challenges in maintaining net income margins may affect overall profitability. The balance sheet reflects a stable financial structure with managed leverage, providing a balanced view of financial health.
Income Statement
Guolian Securities Co., Ltd. Class H has shown strong revenue growth, with a notable increase in total revenue from 2023 to 2024. The gross profit margin is solid, indicating efficient cost management. However, the net profit margin has decreased due to the drop in net income, suggesting potential challenges in maintaining profitability. The EBITDA margin remains robust, reflecting good operating performance.
Balance Sheet
The company maintains a stable equity position with a reasonable debt-to-equity ratio, highlighting a balanced financial structure. The equity ratio has slightly decreased, which may indicate increased reliance on liabilities. Return on equity remains moderate, suggesting average profitability on shareholder investments.
Cash Flow
Cash flow analysis shows strong free cash flow generation with substantial growth from the previous year, indicating effective cash management. The operating cash flow to net income ratio is unavailable, but the robust free cash flow to net income ratio suggests efficient cash conversion.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.81B4.51B4.00B4.00B3.28B2.09B
Gross Profit7.37B3.23B2.62B2.87B1.42B868.91M
EBITDA1.96B2.00B2.32B2.23B2.29B1.53B
Net Income1.82B397.42M674.55M767.28M888.64M587.87M
Balance Sheet
Total Assets206.93B97.21B87.13B74.38B65.94B46.22B
Cash, Cash Equivalents and Short-Term Investments10.62B59.34B49.67B40.22B34.95B26.53B
Total Debt89.59B25.04B25.55B21.25B18.44B13.96B
Total Liabilities149.52B78.26B69.01B57.62B49.56B35.63B
Stockholders Equity56.86B18.58B17.77B16.76B16.38B10.59B
Cash Flow
Free Cash Flow-15.60B8.02B581.25M1.84B-6.96B-5.46B
Operating Cash Flow-15.39B8.18B779.79M1.95B-6.85B-5.37B
Investing Cash Flow32.07B1.37B―-2.16B-6.32B-1.33B
Financing Cash Flow709.28M-2.26B3.72B1.53B9.18B9.14B

Guolian Securities Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.19
Price Trends
50DMA
5.51
Negative
100DMA
5.93
Negative
200DMA
5.11
Positive
Market Momentum
MACD
-0.04
Negative
RSI
47.90
Neutral
STOCH
47.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1456, the sentiment is Negative. The current price of 5.19 is below the 20-day moving average (MA) of 5.33, below the 50-day MA of 5.51, and above the 200-day MA of 5.11, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 47.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1456.

Guolian 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%
60
Neutral
HK$84.15B13.345.22%2.66%30.38%2.63%
57
Neutral
HK$60.49B15.214.95%1.18%365.12%170.00%
55
Neutral
HK$98.27B12.495.91%3.48%22.13%63.08%
55
Neutral
HK$19.60B20.293.28%1.25%-36.99%181.79%
54
Neutral
HK$14.65B23.1643.44%4.01%11.40%11.52%
53
Neutral
HK$27.11B38.674.78%2.75%32.03%154.14%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1456
Guolian Securities Co., Ltd. Class H
5.34
1.61
43.16%
HK:3958
Orient Securities Co., Ltd. Class H
7.10
2.71
61.88%
HK:1788
Guotai Junan International Holdings Limited
2.85
1.87
190.22%
HK:6178
Everbright Securities Company Limited Class H
9.25
2.28
32.64%
HK:1428
Bright Smart Securities & Commodities Group Limited
8.63
6.50
305.16%
HK:1375
Central China Securities Co., Ltd. Class H
2.23
0.73
48.67%

Guolian Securities Co., Ltd. Class H Corporate Events

Guolian Minsheng Securities to Change Official Website Domain and Investor Email in 2026
Dec 31, 2025

Guolian Minsheng Securities Company Limited, a PRC-based securities firm listed in Hong Kong, offers a range of securities and investment-related services to investors and clients across its core markets in China and Hong Kong.

The company has announced that it will change its official website domain from www.glsc.com.cn to www.glms.com.cn and its investor contact email from glsc-ir@glsc.com.cn to ir@glms.com.cn, with the old addresses to be discontinued from 1 January 2026. All regulatory disclosures and corporate documents released through the Hong Kong Stock Exchange will also be made available on the new website, while the existing investor contact telephone and fax numbers will remain unchanged, signaling a targeted upgrade of its digital and investor communication infrastructure rather than a broader operational shift.

The most recent analyst rating on (HK:1456) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Guolian Securities Co., Ltd. Class H stock, see the HK:1456 Stock Forecast page.

Guolian Minsheng Securities Tightens Audit Oversight With New Committee Rules
Dec 30, 2025

Guolian Minsheng Securities Company Limited has issued detailed rules of procedures for its Board Audit Committee, formalizing how the committee independently and effectively oversees financial reporting, information disclosure, auditing activities and internal control in line with PRC company and securities laws, domestic governance guidelines and the listing requirements of the Shanghai and Hong Kong stock exchanges. The rules define the Audit Committee’s composition—requiring at least three non-executive directors, a majority of whom are independent and one with substantial accounting or financial expertise—and set clear responsibilities for recommending the appointment and terms of external auditors, and for assessing their independence, professionalism and audit effectiveness, strengthening the firm’s governance framework and assurance to investors on the quality and integrity of its financial oversight.

Guolian Minsheng Securities Tightens Governance With New Risk Control Committee Rules
Dec 30, 2025

Guolian Minsheng Securities Company Limited has formalised detailed rules of procedure for its Board’s Risk Control Committee to strengthen corporate governance and standardise risk-related decision-making. The committee, composed of five directors including at least one independent director and chaired by the Board chairman, is tasked with overseeing the company’s overall risk and compliance management, reviewing risk management objectives and policies, evaluating the structure and duties of risk and compliance departments, and assessing major Board decisions from a risk perspective. Administrative support will be provided by the Board secretary and office, with relevant internal departments required to supply information and research, underscoring the company’s effort to maintain risk within reasonable limits and reinforce disciplined, systematic oversight of its operations.

Guolian Minsheng Securities Names Hui Yu Sole Company Secretary and Authorised Representative
Dec 30, 2025

Guolian Minsheng Securities has announced a change in its corporate governance structure, with the Hong Kong Stock Exchange confirming that Hui Yu now meets the qualifications to serve as the company secretary under the relevant listing rules. As a result, Zhang Xiao has resigned as joint company secretary and as an authorised representative, and Hui Yu will assume the roles of sole company secretary and authorised representative with effect from 30 December 2025, a move that streamlines the company’s compliance and representation functions without any reported board disagreement or shareholder concerns.

Guolian Minsheng Securities Sets Formal Rules for New Strategy and ESG Committee
Dec 30, 2025

Guolian Minsheng Securities Company Limited has formally established and codified the rules of procedures for its Strategy and ESG Committee under the board of directors, aiming to improve decision-making on business strategy, major investments and ESG governance. The five‑member committee, chaired by the board chairman, is tasked with monitoring the company’s operations, tracking domestic and international industry trends and policies, advising on strategic development planning, capital operations, major investment and financing decisions, and overseeing ESG vision, objectives, policies, risk management and key issues, reflecting a move to strengthen corporate governance and align with regulatory and stakeholder expectations on sustainable development.

Guolian Minsheng Securities Formalises Remuneration and Nomination Committee Rules
Dec 30, 2025

Guolian Minsheng Securities Company Limited has formalised detailed rules for its Board’s Remuneration and Nomination Committee, aiming to ensure that the body operates independently, efficiently and in compliance with PRC corporate and securities laws as well as dual-listing governance standards. The committee, comprised mainly of independent directors and supported by a dedicated working group, is tasked with designing and recommending remuneration structures, performance appraisal systems, and incentive mechanisms for directors and senior management, reinforcing transparent governance and board oversight of pay and appointments, which may enhance investor confidence and align management incentives with shareholder interests.

Guolian Minsheng Securities Formalizes Remuneration and Nomination Committee Rules
Dec 30, 2025

Guolian Minsheng Securities Company Limited has adopted detailed rules of procedures for its Board’s Remuneration and Nomination Committee to standardize how it sets and oversees pay and appointments for directors and senior management. The new framework, grounded in Chinese company and securities laws as well as mainland and Hong Kong listing governance requirements, defines the committee’s composition, mandates a majority of independent directors and an independent chair, and establishes a working group under the Board Office to handle daily coordination. By codifying responsibilities such as designing remuneration policies, formulating performance appraisal systems, setting evaluation criteria, and making recommendations on executive pay and nominations, the company aims to enhance transparency, independence and procedural rigor in its governance, which may strengthen oversight, align management incentives with corporate objectives, and improve confidence among investors and regulators.

Guolian Minsheng Securities Lifts Stake in Minsheng Securities to 99.98% After Court-Backed Share Transfer
Dec 29, 2025

Guolian Minsheng Securities has further consolidated its control over Minsheng Securities Co., Ltd. by acquiring an additional 81,543,019 shares, equivalent to 0.72% of Minsheng Securities’ total share capital, from Oceanwide Holdings via judicial auction. Following an enforcement ruling from the Beijing Second Intermediate People’s Court and the issuance of a new equity certificate, Guolian Minsheng’s stake in Minsheng Securities has risen from 99.26% to 99.98%, effectively giving it near-full ownership and reinforcing its strategic control and operational influence over the subsidiary for the benefit of its broader stakeholder base.

Guolian Securities Terminates Planned Investment Partnership
Dec 15, 2025

Guolian Securities Co., Ltd. has announced the termination of a connected transaction involving the establishment of the Wuxi Guolian Tongzhi Technology Industry Investment Partnership. Despite initial plans for a RMB1.22 billion fund, no capital contributions were made, and the fund was not formally established. The decision to dissolve the partnership was made unanimously by all partners, and Guolian Capital will oversee the liquidation process. The termination will not negatively impact Guolian Securities’ financial position or operations, nor will it affect shareholder interests.

Guolian Securities Restructures Governance and Leadership at 2025 EGM
Dec 15, 2025

Guolian Securities Co., Ltd. held its third extraordinary general meeting for 2025, where several key resolutions were passed. These included amendments to the Articles of Association, the abolishment of the Supervisory Committee, and the election of directors and a chairman for the sixth session of the board. The meeting also saw the appointment of a new CEO and changes to the company’s business scope. These decisions are expected to streamline the company’s governance structure and potentially enhance its operational efficiency, impacting its market positioning positively.

Guolian Minsheng Securities Announces Board Composition and Roles
Dec 15, 2025

Guolian Minsheng Securities Company Limited, a joint stock limited company in the People’s Republic of China, has announced the composition of its board of directors and their respective roles within the company. The board includes executive, non-executive, employee, and independent non-executive directors, each serving on various committees such as Strategy and ESG, Remuneration and Nomination, Audit, and Risk Control. This announcement provides clarity on the governance structure and delineates the responsibilities of each board member, which is crucial for stakeholders to understand the company’s strategic direction and oversight mechanisms.

Guolian Minsheng Securities Elects New Employee Director
Dec 12, 2025

Guolian Minsheng Securities Company Limited has announced the election of Mr. Chen Xingjun as an employee Director at the company’s recent employee representatives’ meeting. Mr. Chen, who holds several key positions within the company, will join the sixth session of the Board after approval at the upcoming general meeting. His appointment is part of the company’s strategic governance structure, although he will not receive director-specific remuneration, his compensation will align with his existing roles within the company.

Guolian Minsheng Securities Announces Key Resolutions for 2025 EGM
Nov 21, 2025

Guolian Minsheng Securities Company Limited has announced its third extraordinary general meeting for 2025, where several key resolutions will be discussed. These include amendments to the Articles of Association, changes to the company’s business scope, and the abolishment of the Supervisory Committee. Additionally, the meeting will address adjustments to the allowance standards for independent non-executive directors and the election of new directors for the sixth session of the board, indicating a significant restructuring of the company’s governance framework.

Guolian Minsheng Securities Reports Robust Q3 2025 Financial Growth
Oct 30, 2025

Guolian Minsheng Securities Company Limited reported a significant increase in its financial performance for the third quarter of 2025, with operating income rising by 120.55% and total profit increasing by 103.93% compared to the same period last year. The company’s net profit attributable to shareholders also saw a substantial rise of 106.24% year-on-year, indicating strong growth and improved profitability, although net cash flows from operating activities were negative.

Guolian Minsheng Securities Updates Articles and Abolishes Supervisory Committee
Oct 30, 2025

Guolian Minsheng Securities Company Limited has announced significant amendments to its Articles of Association and the abolishment of its Supervisory Committee. These changes are in response to the repeal of certain mandatory provisions and the implementation of the new Company Law in China. The responsibilities of the Supervisory Committee will now be assumed by the Audit Committee under the Board, pending approval at the upcoming shareholders’ general meeting.

Guolian Securities Announces New Board Appointments
Oct 30, 2025

Guolian Securities Co., Ltd. has announced the re-election and appointment of its Board of Directors for the sixth session, following the expiration of the fifth session’s term. The new board will include both non-independent and independent directors, with terms set for three years, subject to shareholder approval. The company has ensured that all proposed independent directors meet the necessary independence requirements, and it has outlined remuneration details for the appointed directors, which will be finalized upon shareholder approval.

Guolian Minsheng Securities to Review Q3 Financial Results
Oct 17, 2025

Guolian Minsheng Securities Company Limited has announced that its board of directors will meet on October 30, 2025, to review and approve the company’s third-quarter financial results for the period ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

Guolian Minsheng Securities Postpones Board Re-Election
Oct 17, 2025

Guolian Minsheng Securities Company Limited has announced the postponement of the re-election of its board of directors and supervisory committee, originally set to expire on October 19, 2025. This decision is made to ensure continuity as preparations for the re-election and committee reform are underway. The current board and committee members will continue their duties, and the postponement will not affect the company’s normal operations.

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: Jan 07, 2026