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

• Market Cap: HK$5.55B
• Dividend Yield: N/A
• Average Volume (3M): 104.13K
• Price to Earnings (P/E): 29.0
• Beta (1Y): 0.84
• Revenue Growth: 12.89%
• EPS Growth: 141.45%
• Country: HK
• Employees: 2,491
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Capital Markets
• EPS (TTM): 0.07
• Shares Outstanding: 450,846,000
• 10 Day Avg. Volume: 273,000
• 30 Day Avg. Volume: 104,133
• 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: HK$2.00
• Price Target Upside: -6.10% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: HK$2.50 ▲(17.37%Upside)

The overall stock score is driven by strong technical analysis, demonstrating positive momentum, which offsets challenges in financial performance, particularly cash flow volatility. Valuation suggests the stock is fairly valued, moderating the score. The absence of earnings call and corporate events data does not impact the evaluation.

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

Company Description

Hengtai Securities Co., Ltd. Class H (1476) is a China-based company primarily engaged in the provision of comprehensive financial services. The company operates in various sectors, including brokerage services, investment banking, asset management, and proprietary trading. Hengtai Securities offers a wide range of financial products and services to both individual and institutional clients, aiming to cater to diverse investment needs and enhance client wealth.

How the Company Makes Money

Hengtai Securities Co., Ltd. generates revenue through multiple streams within the financial services sector. The primary sources of income include brokerage fees from securities trading and commissions from facilitating trades for clients. Additionally, the company earns through its investment banking segment by providing advisory services for mergers and acquisitions, underwriting, and issuance of financial instruments. Its asset management services also contribute to revenue by charging management and performance fees for managing client assets. Proprietary trading, where the company invests its own capital in various financial markets, is another significant revenue stream. Strategic partnerships with other financial institutions and a focus on expanding its client base also play crucial roles in driving the company's earnings.

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
EBITDA	748.63M	671.73M	837.56M	1.17B	1.24B
Net Income	176.28M	64.14M	-1.50B	279.25M	474.09M
Balance Sheet
Total Assets	39.98B	31.20B	31.02B	37.24B	33.60B
Cash, Cash Equivalents and Short-Term Investments	14.21B	12.20B	11.31B	15.11B	14.24B
Total Debt	10.03B	8.09B	8.28B	10.87B	9.82B
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: 2.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2.13 is above the 20-day moving average (MA) of 1.88, above the 50-day MA of 1.81, and above the 200-day MA of 1.80, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 66.41 is Neutral, neither overbought nor oversold. The STOCH value of 59.67 is Neutral, 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	HK$137.89B	12.20	5.62%	3.30%	58.25%	42.96%
1456	67 Neutral	HK$65.71B	16.55	2.91%	1.15%	230.87%	227.96%
1476	64 Neutral	HK$5.55B	29.02	2.16%	―	12.89%	141.45%
6178	61 Neutral	HK$85.62B	15.49	4.53%	2.44%	0.05%	-32.78%
1375	60 Neutral	HK$21.04B	57.94	1.54%	0.96%	-36.60%	-21.50%
Sector *	58 Neutral	HK$91.33B	5.23	-3.21%	5.29%	7.36%	-55.21%
1788	50 Neutral	€61.09B	176.65	2.31%	0.62%	37.06%	72.51%

Hengtai Securities Co., Ltd. Class H Corporate Events

Hengtai Securities Announces 2025 Extraordinary General Meeting

Hengtai Securities Co., Ltd. has announced the convening of its 2025 third extraordinary general meeting (EGM) to be held on July 25, 2025, in Beijing. The meeting will address the proposed issuance of science and technology innovation corporate bonds and short-term corporate bonds in the PRC. This move is expected to enhance the company’s financial capabilities and strengthen its position in the market, potentially impacting its stakeholders positively by providing new investment opportunities.

Hengtai Securities to Issue Science and Technology Innovation Bonds

Hengtai Securities Co., Ltd. announced its plan to issue science and technology innovation corporate bonds and subordinated bonds in the PRC to broaden its financing channels and optimize its debt structure. The total proceeds from these bonds will not exceed RMB1,000 million, with at least 70% of the funds directed towards supporting technological innovation in business operations. This strategic move is expected to enhance the company’s financial flexibility and support its growth in the technology sector.

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.