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Guotai Junan International Holdings Limited (HK:1788)
:1788
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Guotai Junan International Holdings Limited (1788) AI Stock Analysis

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HK:1788

Guotai Junan International Holdings Limited

(Frankfurt:1788)

Rating:50Neutral
Price Target:
HK$6.50
▲(13.84%Upside)
The overall stock score reflects concerns due to high volatility and overvaluation. While operational efficiency has improved, challenges with profitability and cash flow management weigh heavily on the score. The high P/E ratio and low dividend yield further suggest caution for investors.

Guotai Junan International Holdings Limited (1788) vs. iShares MSCI Hong Kong ETF (EWH)

Guotai Junan International Holdings Limited Business Overview & Revenue Model

Company DescriptionGuotai Junan International Holdings Limited (1788) is a leading financial services provider based in Hong Kong, offering a comprehensive range of investment and financial solutions. The company operates across various sectors, including securities trading, asset management, investment banking, and wealth management. As a key player in the financial services industry, Guotai Junan International is committed to delivering high-quality services to institutional and individual clients, leveraging its extensive expertise and robust market presence.
How the Company Makes MoneyGuotai 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
65
Positive
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
70
Positive
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.17B3.22B2.32B3.97B4.88B
Gross Profit3.47B2.33B2.11B3.67B4.62B
EBITDA2.89B1.77B615.02M2.14B2.71B
Net Income347.78M201.26M80.38M1.09B1.56B
Balance Sheet
Total Assets130.17B107.54B94.46B106.29B121.72B
Cash, Cash Equivalents and Short-Term Investments80.91B59.27B40.02B28.13B37.06B
Total Debt89.43B69.73B58.53B60.12B75.06B
Total Liabilities115.15B92.57B79.52B90.85B106.48B
Stockholders Equity14.91B14.84B14.81B15.31B15.12B
Cash Flow
Free Cash Flow1.74B-4.94B-1.92B38.97M23.06M
Operating Cash Flow1.78B-4.91B-1.88B82.03M59.20M
Investing Cash Flow-50.75M-32.67M-39.30M-43.06M-36.15M
Financing Cash Flow-2.23B4.58B801.87M-5.98B13.41B

Guotai Junan International Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.71
Price Trends
50DMA
3.50
Positive
100DMA
2.27
Positive
200DMA
1.69
Positive
Market Momentum
MACD
0.77
Positive
RSI
56.02
Neutral
STOCH
47.24
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 5.71 is below the 20-day moving average (MA) of 6.15, above the 50-day MA of 3.50, and above the 200-day MA of 1.69, indicating a neutral trend. The MACD of 0.77 indicates Positive momentum. The RSI at 56.02 is Neutral, neither overbought nor oversold. The STOCH value of 47.24 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
€25.05B40.5642.24%2.24%-5.88%-18.17%
60
Neutral
HK$5.10B26.702.16%12.89%141.45%
60
Neutral
HK$19.79B54.371.54%0.89%-36.60%-21.50%
59
Neutral
€3.29B-5.86%-90.83%16.46%
58
Neutral
HK$92.20B5.61-3.20%4.95%5.50%-56.25%
50
Neutral
€60.81B175.822.31%0.50%37.06%72.51%
46
Neutral
HK$2.06B
-74.76%33.57%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1788
Guotai Junan International Holdings Limited
5.71
5.10
840.69%
HK:1476
Hengtai Securities Co., Ltd. Class H
1.96
0.18
10.11%
HK:1375
Central China Securities Co., Ltd. Class H
2.64
1.60
153.85%
HK:0218
Shenwan Hongyuan (H.K.) Limited
2.11
1.79
549.23%
HK:1428
Bright Smart Securities & Commodities Group Limited
11.84
10.27
652.70%
HK:0993
Huarong International Financial Holdings Limited
0.24
0.18
347.17%

Guotai Junan International Holdings Limited Corporate Events

Guotai Junan International Projects Significant Profit Surge in 2025
Jul 10, 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
Jun 25, 2025

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
May 22, 2025

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
May 22, 2025

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.

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: Jul 11, 2025