Guotai Junan International Holdings Limited (1788) AI Stock Analysis

• Market Cap: €54.73B
• Dividend Yield: 0.69%
• Average Volume (3M): 959.28M
• Price to Earnings (P/E): 174.4
• Beta (1Y): 2.63
• Revenue Growth: 37.06%
• EPS Growth: 72.51%
• Country: HK
• Employees: 623
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Capital Markets
• EPS (TTM): 0.04
• Shares Outstanding: 9,518,995,000
• 10 Day Avg. Volume: -2,147,483,648
• 30 Day Avg. Volume: 959,276,148
• PEG Ratio: 1.15
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.72
• 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: 50 Neutral
• Price Target: HK$6.50 ▲(1.09%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 Business Overview & Revenue Model

Company Description

Guotai Junan International Holdings Limited (1788) is a leading integrated financial services provider in Hong Kong. It is a subsidiary of Guotai Junan Securities Co. Ltd., one of the largest securities firms in China. The company offers a broad range of financial services including brokerage, corporate finance, asset management, loans and financing, and financial products. Guotai Junan International is committed to delivering comprehensive solutions to individual and institutional clients, leveraging its strong market position and extensive experience in the financial industry.

How the Company Makes Money

Guotai Junan International Holdings Limited makes money through multiple revenue streams. The primary source of income comes from its brokerage services, which include securities trading and wealth management. The company earns commissions and fees from facilitating trades and managing client portfolios. Additionally, Guotai Junan International generates revenue from its corporate finance services, such as underwriting and advisory services for mergers and acquisitions, equity and debt issuance. Another key revenue stream is its asset management business, which includes management fees and performance fees earned from managing investment funds. The company also offers loans and margin financing, generating interest income from these lending activities. Significant partnerships with banks, financial institutions, and corporate clients further contribute to its earnings, enhancing its ability to offer diverse financial products and services.

Guotai Junan International Holdings Limited Financial Statement Overview

Summary

Guotai Junan International Holdings Limited exhibits strong operational efficiency gains but struggles with profitability and cash flow management. While the balance sheet indicates stability, the company faces risks related to high liabilities and negative cash flow trends, impacting future financial flexibility. The income statement, balance sheet, and cash flow scores reflect these mixed results.

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	927.24M	2.35B	3.07B
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	7.41B	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	0.00	-4.94B	-1.92B	38.97M	23.06M
Operating Cash Flow	0.00	-4.91B	-1.88B	82.03M	59.20M
Investing Cash Flow	0.00	-32.67M	8.21B	-8.44B	-5.10B
Financing Cash Flow	0.00	4.58B	801.87M	-5.98B	13.41B

Guotai Junan International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 6.43 is above the 20-day moving average (MA) of 2.95, above the 50-day MA of 1.84, and above the 200-day MA of 1.28, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 85.36 is Negative, neither overbought nor oversold. The STOCH value of 81.48 is Negative, 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
1428	68 Neutral	HK$23.59B	38.20	42.24%	2.37%	-5.88%	-18.17%
1476	64 Neutral	HK$4.79B	26.16	2.16%	―	12.89%	141.45%
0218	63 Neutral	HK$2.89B	―	-5.86%	―	-90.83%	16.46%
1375	60 Neutral	HK$17.97B	39.29	1.54%	1.46%	-36.60%	-21.50%
Sector *	58 Neutral	HK$90.99B	5.20	-3.21%	5.31%	7.36%	-55.21%
1788	50 Neutral	€54.73B	174.45	2.31%	0.69%	37.06%	72.51%
0993	50 Neutral	HK$2.14B	―		―	-74.76%	33.57%

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.

Guotai Junan International Announces AGM and Key Resolutions

Guotai Junan International Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for May 22, 2025. Key agenda items include the approval of the audited financial statements for 2024, the declaration of a final dividend, and the re-election and appointment of directors. The company also seeks authorization for the board to fix directors’ remuneration and re-appoint KPMG as auditors. Additionally, resolutions to grant a general mandate for issuing new shares will be considered, potentially impacting the company’s capital structure and market operations.

Guotai Junan International Proposes New Articles of Association

Guotai Junan International Holdings Limited announced a proposal to adopt new articles of association, which will be discussed at their upcoming annual general meeting. The proposed changes aim to align with the amended Companies Ordinance and Listing Rules, introduce hybrid and virtual general meetings, and allow electronic methods for dividend distribution, enhancing shareholder engagement and communication.