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

• Market Cap: HK$4.51B
• Dividend Yield: N/A
• Average Volume (3M): 188.27K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.02
• Revenue Growth: 58.09%
• EPS Growth: N/A
• Country: HK
• Employees: 2,491
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.10
• Shares Outstanding: 450,846,000
• 10 Day Avg. Volume: 74,700
• 30 Day Avg. Volume: 188,266
• PEG Ratio: 0.12
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 2.12
• P/FCF Ratio: -4.14
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: HK$2.00 ▲(9.29% Upside)

Hengtai Securities Co., Ltd. receives a moderate score of 64. The company's financial performance shows potential with revenue growth and improved profitability, but cash flow volatility is a concern. Technical analysis indicates a positive trend, while valuation suggests the stock is reasonably priced. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue growth momentum

Sustained high revenue growth indicates expanding client activity and successful fee generation across businesses. Over months this supports reinvestment in sales and technology, helps rebuild profitability after prior losses, and underpins scaling of capital-markets offerings.

Improving return on equity

An improving ROE shows management is generating higher returns from shareholders' capital, reflecting better profitability or asset use. Persistently higher ROE enhances capital efficiency, supports dividend/retained earnings growth and reduces need for dilutive capital over the medium term.

Diversified capital-markets model

Revenue sources span brokerage, underwriting, principal trading and asset management, lowering single-market dependence. This structural diversification smooths income through different capital-markets cycles and supports cross-selling, aiding durable revenue resilience over coming quarters.

Negative Factors

Cash flow volatility and recent negatives

Negative operating and free cash flows indicate difficulty converting accounting profits into cash, stressing liquidity. Over a multi-month horizon this raises reliance on external funding, limits reinvestment capacity, and increases refinancing or contingency risk during market slowdowns.

Low net profit margins and past loss

Persistently low margins and a prior large loss imply limited earnings resilience to revenue swings and thin buffers for credit or trading shocks. Structurally, this constrains retained earnings accumulation and weakens ability to absorb higher expenses or invest for growth over the medium term.

Declining equity ratio and leverage

A declining equity ratio alongside moderate leverage reduces financial flexibility and raises vulnerability to market stress. Over several months this can constrain underwriting capacity, increase funding costs, and limit ability to expand proprietary positions without raising capital or cutting risk.

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

Company Description

Hengtai Securities Co., Ltd provides a range of financial products and services in China. The company's Brokerage and Wealth Management segment trades in stocks, funds, bonds, and futures on behalf of the clients; and provides investment and financing solutions to high-end, professional, and institutional clients, including the sale of financial products, margin financing, and securities lending. Its Investment Banking segment offers corporate finance services comprising financial advisory, equity underwriting, and debt underwriting services, as well as over-the-counter services to institutional clients; and services to companies entering into National Equities Exchange and Quotations for share quotation and transfer. The company's Proprietary Trading segment engages in the trading of equities, bonds, funds, and derivatives. Its Investment Management segment is involved in asset management, private equity investment, and alternative investment activities. The company is also involved in securities investment and fund distribution, and securities sponsoring businesses; and venture capital and industrial investment businesses. In addition, it provides fund raising and management, and corporate management services, as well as investment and financial consulting services; and corporate asset reorganization, merger and acquisition, and marketing planning services, as well as equity and equity-related debt investment services. The company serves individuals, institutional investors, and financial institutions, as well as large, small, and medium enterprises. As of December 31, 2021, it operated 122 securities branches. The company was founded in 1988 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Hengtai Securities generates revenue through multiple key streams. The primary source of income comes from brokerage fees charged on securities trading for retail and institutional clients. Additionally, the company earns fees from investment banking activities, which include underwriting services for public offerings and advisory services for mergers and acquisitions. Asset management services also contribute to revenue, with management fees collected from managing client portfolios and investment funds. Hengtai Securities may engage in proprietary trading, generating profits from its own investments in various financial instruments. Significant partnerships with other financial institutions and technology providers can enhance its service capabilities and broaden its client base, thereby positively impacting its earnings.

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

Summary

Hengtai Securities Co., Ltd. shows mixed financial performance. Revenue growth and improved profitability metrics are positive, but cash flow volatility and past net losses present challenges. A stable balance sheet and improving equity returns provide a strong foundation, but effective cash flow management is crucial.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.16B	2.35B	1.97B	2.23B	3.21B	3.14B
Gross Profit	2.16B	2.17B	1.81B	2.23B	3.21B	932.21M
EBITDA	0.00	748.63M	671.73M	-1.32B	1.17B	1.24B
Net Income	301.94M	176.28M	64.14M	-1.29B	279.25M	474.09M
Balance Sheet
Total Assets	43.19B	39.98B	31.20B	31.02B	37.24B	33.60B
Cash, Cash Equivalents and Short-Term Investments	14.16B	14.21B	12.20B	11.31B	15.11B	14.24B
Total Debt	8.85B	10.03B	8.09B	8.28B	10.87B	9.82B
Total Liabilities	34.26B	31.27B	23.01B	22.84B	27.52B	24.16B
Stockholders Equity	8.54B	8.30B	8.05B	8.00B	9.32B	9.03B
Cash Flow
Free Cash Flow	-690.89M	-1.20B	-280.82M	2.00B	623.66M	1.10B
Operating Cash Flow	-605.86M	-1.12B	-201.80M	2.10B	779.93M	1.22B
Investing Cash Flow	399.82M	-315.01M	577.38M	-973.33M	-466.14M	-2.08B
Financing Cash Flow	183.04M	1.65B	-371.82M	-1.61B	-344.16M	617.22M

Hengtai Securities Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1476, the sentiment is Negative. The current price of 1.83 is below the 20-day moving average (MA) of 1.84, below the 50-day MA of 1.86, and below the 200-day MA of 1.88, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.98 is Neutral, neither overbought nor oversold. The STOCH value of 8.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1476	64 Neutral	HK$4.51B	11.51	4.33%	―	58.09%	―
6806	62 Neutral	HK$136.26B	7.72	8.79%	2.89%	61.94%	127.55%
6178	60 Neutral	HK$79.84B	12.81	5.22%	2.66%	30.38%	2.63%
1456	57 Neutral	HK$59.54B	15.27	4.95%	1.18%	365.12%	170.00%
1375	55 Neutral	HK$19.61B	20.11	3.28%	1.25%	-36.99%	181.79%
1788	53 Neutral	HK$25.40B	36.23	4.78%	2.75%	32.03%	154.14%

Hengtai Securities Co., Ltd. Class H Corporate Events

Financial Street Securities Forecasts Near-Doubling of 2025 Profit on Strong Brokerage and Investment Gains

Financial Street Securities Co., Limited has alerted investors that, based on preliminary unaudited figures, it expects profit attributable to shareholders for the year ended 31 December 2025 to rise to about RMB326.95 million, up sharply from approximately RMB176.28 million a year earlier. Management attributes this strong improvement mainly to higher revenues from its securities brokerage and proprietary investment businesses, while cautioning that the figures are derived from unaudited management accounts and may differ from the audited results to be released by the end of March 2026, prompting a recommendation that shareholders and potential investors exercise caution when dealing in the company’s shares.

The most recent analyst rating on (HK:1476) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Hengtai Securities Co., Ltd. Class H stock, see the HK:1476 Stock Forecast page.

Financial Street Securities Updates Website and Investor Contact Details Ahead of 2026

Financial Street Securities Co., Limited has announced a change to its corporate website and investor relations email, aligning its digital presence under the new domain jrjzq.com.cn from January 2026. From 1 January 2026, the company’s official website will move to www.jrjzq.com.cn, and from 16 January 2026 the investors’ email will change accordingly, while all other contact details remain the same and regulatory filings will continue to be accessible via both the Hong Kong Stock Exchange platform and the new site, signaling an effort to streamline its branding and investor communications infrastructure without disrupting existing stakeholder access.

The most recent analyst rating on (HK:1476) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Hengtai Securities Co., Ltd. Class H stock, see the HK:1476 Stock Forecast page.

Hengtai Securities Announces Major Governance Changes at EGM

Hengtai Securities Co., Ltd. held its fourth extraordinary general meeting (EGM) on November 25, 2025, where several significant changes were approved. The meeting resulted in the abolishment of the supervisory committee, amendments to the articles of association, changes in board membership, and the appointment of a new vice president and chief financial officer. These changes reflect a strategic shift in the company’s governance and operational structure, potentially impacting its market positioning and stakeholder engagement.

The most recent analyst rating on (HK:1476) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Hengtai Securities Co., Ltd. Class H stock, see the HK:1476 Stock Forecast page.

Hengtai Securities Announces Board Composition and Committee Roles

Hengtai Securities Co., Ltd., operating under the name Financial Street Securities Co., Limited in Hong Kong, has announced the composition of its board of directors and their respective roles within the company. The board consists of executive, non-executive, and independent non-executive directors, with Mr. Zhu Yanhui serving as the Chairman. The announcement also details the membership of four key board committees: Strategy and Investment, Risk Control and Supervisory, Audit, and Remuneration and Nomination, highlighting the leadership roles within each committee. This update provides stakeholders with clarity on the governance structure and leadership responsibilities within the company, which is crucial for maintaining transparency and effective oversight in its operations.

The most recent analyst rating on (HK:1476) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Hengtai Securities Co., Ltd. Class H stock, see the HK:1476 Stock Forecast page.

Financial Street Securities Enhances Governance with New Audit Committee

Financial Street Securities Co., Limited, a joint stock company incorporated in China, has established an audit committee to enhance its internal control capabilities and corporate governance structure. The audit committee, composed of non-executive directors, is tasked with reviewing internal controls, coordinating audits, and ensuring effective supervision by the board over management operations. This move is expected to strengthen the company’s governance and oversight, aligning with regulatory standards and potentially improving stakeholder confidence.

The most recent analyst rating on (HK:1476) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Hengtai Securities Co., Ltd. Class H stock, see the HK:1476 Stock Forecast page.

Hengtai Securities Announces Board Elections at Upcoming EGM

Hengtai Securities Co., Ltd. Class H, operating as Hengtou Securities, is holding its 2025 fourth extraordinary general meeting (EGM) in Beijing, China. The meeting will address the election of new board members, including Mr. Yin Guohong as an executive director, Mr. Xie Xin as a non-executive director, and Mr. Qi Liang as an independent non-executive director. This meeting is crucial for the company’s governance as it seeks to solidify its leadership structure moving forward.

The most recent analyst rating on (HK:1476) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Hengtai Securities Co., Ltd. Class H stock, see the HK:1476 Stock Forecast page.

Hengtai Securities Announces Board Restructuring

Hengtai Securities Co., Ltd. announced the resignation of two non-executive directors, Mr. Li Ye and Ms. Yang Qin, due to work arrangements. The company also proposed the election of Mr. Yin Guohong as an Executive Director, Mr. Xie Xin as a Non-executive Director, and Mr. Qi Liang as an Independent Non-executive Director for the fifth session of the Board. These changes are expected to influence the company’s strategic direction and governance structure.

The most recent analyst rating on (HK:1476) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Hengtai Securities Co., Ltd. Class H stock, see the HK:1476 Stock Forecast page.