Hengtai Securities Co., Ltd. Class H (1476) AI Stock Analysis

• Market Cap: HK$4.84B
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.80
• Revenue Growth: 12.89%
• EPS Growth: 141.45%
• Country: HK
• Employees: 2,491
• Sector: Financial
• Sector Strength: 77
• Industry: Financial - Capital Markets
• EPS (TTM): 0.07
• Shares Outstanding: 450,846,000
• 10 Day Avg. Volume: 15,800
• 30 Day Avg. Volume: 1,098,600
• PEG Ratio: <0.01
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: HK$2.00 ▲(7.53%Upside)

The overall stock score of 61.4 reflects strong technical momentum and a stable financial foundation. However, cash flow volatility and valuation concerns keep the score moderate. Absence of earnings and corporate event data limits further assessment.

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

Company Description

Hengtai Securities Co., Ltd. Class H (1476) is a comprehensive financial services company based in China, specializing in securities brokerage, investment banking, asset management, and other financial services. The company operates primarily in the capital markets sector, providing a wide range of services to individual and institutional clients. With a focus on delivering innovative financial solutions, Hengtai Securities is committed to facilitating investment activities and fostering financial growth in the regions it serves.

How the Company Makes Money

Hengtai Securities Co., Ltd. generates revenue through multiple streams. Primarily, it earns income from its securities brokerage services by charging commissions and fees on the trading of stocks, bonds, and other financial instruments. Additionally, the company derives revenue from its investment banking division by providing underwriting services, advisory services for mergers and acquisitions, and other corporate finance solutions. Hengtai Securities also manages investment funds, generating management fees and performance-based incentives. Moreover, the company's wealth management services, which include financial planning and asset allocation for clients, contribute to its revenue. Strategic partnerships with other financial institutions and a robust client base further support its earnings potential. The company’s diversified service offerings and regional expertise enable it to maintain a competitive position in the financial sector.

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

Summary

Hengtai Securities Co., Ltd. shows mixed financial performance with strong revenue growth and improved profitability metrics. However, significant volatility in cash flows and past net losses present challenges. A stable balance sheet and improving equity returns are positive, but cash flow management issues are a concern.

Income Statement

The company shows a fluctuating revenue trajectory with a notable revenue increase of 37% in 2024. However, the net profit margin remains low due to high expenses relative to revenue, and there was a significant net loss in 2022. Recent improvements in EBIT and gross profit margins are promising, but the absence of EBITDA data for 2024 limits a comprehensive assessment.

Balance Sheet

The company maintains a moderate debt-to-equity ratio indicating a balanced leverage, but the equity ratio has declined over time. The return on equity has improved in 2024, suggesting better utilization of equity. The consistent stockholders' equity indicates a stable financial base despite fluctuations in debt levels.

Cash Flow

The cash flow statement shows significant volatility, with negative operating and free cash flows in 2024, highlighting cash management issues. The company had positive free cash flow and operating cash flow in earlier years, but recent declines raise concerns about cash sustainability. The operating cash flow to net income ratio is unfavorable, indicating inefficiencies in converting income to cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.35B	1.72B	2.00B	2.62B	2.30B
	Gross Profit
2.17B	1.56B	1.70B	1.08B	932.21M
	EBIT
468.94M	556.99M	620.59M	728.41M	824.54M
	EBITDA
748.63M	671.73M	837.56M	1.17B	1.24B
	Net Income Common Stockholders
176.28M	64.14M	-1.50B	279.25M	474.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.21B	12.20B	11.31B	15.11B	14.24B
	Total Assets
39.98B	31.20B	31.02B	37.24B	33.60B
	Total Debt
10.03B	8.09B	8.28B	10.87B	9.82B
	Net Debt
8.12B	6.25B	6.48B	9.36B	8.11B
	Total Liabilities
31.27B	23.01B	22.84B	27.52B	24.16B
	Stockholders Equity
8.30B	8.05B	8.00B	9.32B	9.03B
Cash Flow		Free Cash Flow
-1.20B	-280.82M	2.00B	623.66M	1.10B
	Operating Cash Flow
-1.12B	-201.80M	2.10B	779.93M	1.22B
	Investing Cash Flow
-315.01M	577.38M	-973.33M	-466.14M	-2.08B
	Financing Cash Flow
1.65B	-371.82M	-1.61B	-344.16M	617.22M

Hengtai Securities Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1476, the sentiment is Positive. The current price of 1.86 is above the 20-day moving average (MA) of 1.79, above the 50-day MA of 1.69, and above the 200-day MA of 1.78, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 62.36 is Neutral, neither overbought nor oversold. The STOCH value of 84.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1476.

Hengtai Securities Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6806	70 Outperform	€123.34B	9.12	5.62%	3.26%	58.25%	42.96%
1456	67 Neutral	HK$57.99B	11.76	2.91%	1.61%	230.87%	227.96%
1476	61 Neutral	HK$4.84B	25.34	2.16%	―	12.89%	141.45%
6178	61 Neutral	€78.23B	12.70	4.53%	2.46%	0.05%	-32.78%
1375	60 Neutral	HK$16.47B	31.94	1.54%	1.74%	-36.60%	-21.50%
Sector *	57 Neutral	$12.39B	4.90	-2.71%	5.45%	5.90%	-55.74%
1788	53 Neutral	€10.75B	31.04	2.31%	3.54%	37.06%	72.51%

Hengtai Securities Co., Ltd. Class H Corporate Events

Hengtai Securities Updates on Property Leasing Agreement

Hengtai Securities has announced a supplemental update regarding its continuing connected transactions under a new framework agreement for property leasing and related services. The update provides additional details about the ultimate beneficial owners of Desheng Investment, a party involved in the agreement, highlighting their independence from the company and its connected persons.

Hengtai Securities AGM Approves 2024 Reports, No Profit Distribution Planned

Hengtai Securities Co., Ltd. held its annual general meeting on May 16, 2025, where several resolutions were voted on by shareholders. The meeting saw a high turnout with 85.64% of voting shares represented. All resolutions, including the approval of the board’s report, supervisory committee’s report, and the annual report for 2024, were passed with a majority vote. However, the company’s profit distribution plan for 2024 was notable as it stated that no profit would be distributed for the year, reflecting potential financial challenges or strategic reinvestment decisions.

Hengtai Securities Approves Subordinated Debt Borrowing at EGM

Hengtai Securities Co., Ltd. held its second extraordinary general meeting (EGM) on April 25, 2025, where shareholders voted on a special resolution concerning the borrowing of subordinated debt and related party transactions. The meeting was attended by shareholders representing approximately 52.07% of the company’s total issued voting shares. Certain related party shareholders were required to abstain from voting due to material interests in the transactions. The resolution was passed by a poll, with no shareholders indicating opposition or intention to abstain from voting.

Hengtai Securities Renews Property Leasing Agreement with Desheng Investment

Hengtai Securities Co., Ltd. has entered into a New Framework Agreement with Desheng Investment to lease properties in the PRC for two years starting January 2025. This agreement, which continues from the expired 2022 Framework Agreement, involves connected transactions under the Listing Rules, requiring reporting and annual review but exempt from independent shareholder approval.

Hengtai Securities Announces 2024 AGM and Key Resolutions

Hengtai Securities Co., Ltd. has announced its 2024 Annual General Meeting (AGM) scheduled for May 16, 2025, in Beijing, China. The meeting will address several resolutions, including the approval of various reports for the year ended December 31, 2024, a profit distribution plan with no profit to be distributed, and the re-appointment of Grant Thornton as the company’s domestic and international auditors for 2025. This AGM is significant for stakeholders as it outlines the company’s financial performance and strategic decisions for the upcoming year.

Hengtai Securities Plans RMB1 Billion Subordinated Debt Borrowing

Hengtai Securities Co., Ltd. has announced plans to borrow subordinated debt totaling up to RMB1 billion from related parties, Huarong Zonghe Investment and Huali Jiahe Industrial. This move, which involves significant related party transactions, aims to strengthen the company’s financial position. The borrowing is exempt from certain regulatory requirements due to its commercial terms and lack of asset security, indicating a strategic financial maneuver to enhance operational capabilities.

Hengtai Securities to Hold 2025 Extraordinary General Meeting

Hengtai Securities Co., Ltd. has announced the convening of its 2025 second extraordinary general meeting (EGM) to be held on April 25, 2025, in Beijing, China. The primary agenda for this meeting is to consider and approve the borrowing of subordinated debt and related party transactions, which could impact the company’s financial strategy and stakeholder interests.