Guotai Junan International Holdings Limited (1788) AI Stock Analysis

• Market Cap: €50.11B
• Dividend Yield: 0.61%
• Average Volume (3M): 405.14M
• Price to Earnings (P/E): 144.8
• Beta (1Y): 2.73
• Revenue Growth: 37.06%
• EPS Growth: 72.51%
• Country: HK
• Employees: 623
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 9,526,944,000
• 10 Day Avg. Volume: 239,100,566
• 30 Day Avg. Volume: 405,137,134
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €5.99
• Price Target Upside: 13.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: HK$6.00 ▲(13.85% Upside)

The overall stock score reflects the strong operational efficiency gains and positive technical momentum. However, significant concerns arise from the company's high P/E ratio, indicating overvaluation, and challenges in profitability and cash flow management. These factors pose risks to the company's financial flexibility and long-term growth prospects.

Guotai Junan International Holdings Limited Business Overview & Revenue Model

Company Description

Guotai Junan International Holdings Limited, an investment holding company, provides brokerage, corporate finance, asset management, loans and financing, financial products, and market making and investment services in Hong Kong and internationally. The company's Wealth Management segment provides a range financial services and solutions to individual investors and small to medium-sized businesses and family office, including brokerage, loans and financing, and other wealth management services. Its Institutional Investor Services segment offers market making, investments, structured product solutions, lending, and other services to corporations, governments, and financial institutions. The company's Corporate Finance segment provides advisory services; and placing and underwriting services of debt and equity securities. Its Investment Management segment offers asset management and fund management services to institutions and individuals; and invests in funds, debts, and equity securities. The company's Other segment provides information channel services. It also provides securities, futures, and leveraged foreign exchange dealing and broking services; money lending and trading services; and consultancy and financial services. The company was founded in 1995 and is based in Central, Hong Kong. Guotai Junan International Holdings Limited is a subsidiary of Guotai Junan Financial Holdings Limited.

How the Company Makes Money

Guotai Junan International Holdings Limited generates revenue through multiple channels within the financial services sector. Its primary revenue streams include securities brokerage, where the company earns commissions and fees from facilitating trades for its clients in equities, bonds, and derivatives. Additionally, the asset management division contributes to earnings by charging management and performance fees on the investment portfolios managed on behalf of clients. The investment banking segment also plays a significant role, generating income from advisory fees related to mergers and acquisitions, underwriting services, and capital market transactions. Wealth management services further enhance revenue by offering tailored financial solutions and products to high-net-worth individuals, with the company earning fees for these services. Strategic partnerships and collaborations with other financial institutions and corporate clients also contribute to the company's revenue, enhancing its service offerings and market reach.

Guotai Junan International Holdings Limited Financial Statement Overview

Summary

Guotai Junan International Holdings Limited shows improved operational efficiency with an increased EBIT margin but faces challenges with profitability (net profit margin at 1.6%) and cash flow management, reflected in a poor cash flow score. The balance sheet is stable with a reasonable debt-to-equity ratio, despite high liabilities.

Income Statement

The company has shown a mixed performance with declining revenue over the years, but an improvement in EBIT margin from 5.2% in 2023 to 12.9% in 2024 indicates better operational efficiency. However, the net profit margin remains low at 1.6% in 2024, reflecting challenges in achieving profitability.

Balance Sheet

The company maintains a stable equity position and a reasonable debt-to-equity ratio of 0.50 in 2024. However, the high total liabilities pose a potential risk. The equity ratio improved slightly over the year, indicating a stable asset financing structure.

Cash Flow

The cash flow performance is concerning with consistent negative free cash flow, indicating cash management challenges. The lack of operating cash flow and capital expenditure data in 2024 makes it difficult to assess the company's cash utilization effectively.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.17B	3.22B	2.32B	3.97B	4.88B
Gross Profit	3.47B	2.33B	2.11B	3.67B	4.62B
EBITDA	2.89B	1.77B	615.02M	2.14B	2.71B
Net Income	347.78M	201.26M	80.38M	1.09B	1.56B
Balance Sheet
Total Assets	130.17B	107.54B	94.46B	106.29B	121.72B
Cash, Cash Equivalents and Short-Term Investments	80.91B	59.27B	40.02B	28.13B	37.06B
Total Debt	89.43B	69.73B	58.53B	60.12B	75.06B
Total Liabilities	115.15B	92.57B	79.52B	90.85B	106.48B
Stockholders Equity	14.91B	14.84B	14.81B	15.31B	15.12B
Cash Flow
Free Cash Flow	1.74B	-4.94B	-1.92B	38.97M	23.06M
Operating Cash Flow	1.78B	-4.91B	-1.88B	82.03M	59.20M
Investing Cash Flow	-50.75M	-32.67M	-39.30M	-43.06M	-36.15M
Financing Cash Flow	-2.23B	4.58B	801.87M	-5.98B	13.41B

Guotai Junan International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1788, the sentiment is Positive. The current price of 5.27 is below the 20-day moving average (MA) of 5.56, above the 50-day MA of 4.74, and above the 200-day MA of 2.00, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 49.84 is Neutral, neither overbought nor oversold. The STOCH value of 40.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1788.

Guotai Junan International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	AU$10.72B	11.46	12.99%	5.01%	32.06%	59.28%
1788	56 Neutral	€50.11B	144.78	2.31%	0.61%	37.06%	72.51%
93W	―	€190.17M	―		―	―	―
0BX	―	€2.22B	30.34	42.24%	―	―	―
WAY	―	€359.61M	―	-2.44%	―	―	―
1375	60 Neutral	HK$21.41B	58.33	1.54%	0.87%	-36.60%	-21.50%
1476	60 Neutral	HK$5.21B	27.25	2.16%	―	12.89%	141.45%

Guotai Junan International Holdings Limited Corporate Events

Guotai Junan International Projects Significant Profit Surge in 2025

Guotai Junan International Holdings Limited has announced a significant increase in net profit for the first half of 2025, expecting a rise between 161% and 202% compared to the same period in 2024. This growth is attributed to a substantial increase in income from its core business areas, highlighting the company’s strong performance and potential positive impact on its market position.

Guotai Junan Expands into Virtual Asset Services with Regulatory Approval

Guotai Junan International Holdings Limited announced that its subsidiary, Guotai Junan Securities (Hong Kong) Limited, has received approval from the Hong Kong Securities and Futures Commission to enhance its Type 1 regulated activity license. This approval allows the company to provide virtual asset dealing services through an omnibus account arrangement with SFC-licensed platforms, marking a significant step in its strategic expansion into the virtual asset market.

Guotai Junan International Successfully Concludes AGM with Key Resolutions Approved

Guotai Junan International Holdings Limited held its Annual General Meeting on May 22, 2025, where all proposed resolutions were passed with overwhelming support. Key resolutions included the approval of a final dividend, re-election of directors, and granting of mandates to the board for share issuance and buybacks. The successful passing of these resolutions reflects strong shareholder confidence and positions the company for continued strategic growth.

Guotai Junan International Updates Board Composition and Committee Roles

Guotai Junan International Holdings Limited, a company incorporated in Hong Kong, has announced the composition of its board of directors and the roles and functions of each member. The board includes executive, non-executive, and independent non-executive directors, with Dr. YIM Fung serving as the chairman. The announcement also details the membership of various board committees, highlighting the involvement of directors in committees such as audit, remuneration, nomination, and risk. This update provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership and decision-making framework guiding the company’s operations.