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Guotai Junan Securities Co., Ltd. Class H (HK:2611)
:2611
Hong Kong Market

Guotai Junan Securities Co., Ltd. Class H (2611) AI Stock Analysis

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HK

Guotai Junan Securities Co., Ltd. Class H

(2611)

Rating:72Outperform
Price Target:
Guotai Junan Securities shows strong financial performance with significant revenue and profitability improvements, a debt-free balance sheet, and robust cash flow generation, contributing to a favorable stock outlook. Despite short-term technical indicators suggesting caution, the long-term trend remains positive. Valuation metrics, including a low P/E ratio and high dividend yield, enhance its attractiveness. The stock's overall score reflects these strengths balanced by limited short-term technical momentum.

Guotai Junan Securities Co., Ltd. Class H (2611) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionGuotai Junan Securities Co., Ltd. provides various financial services for individuals and institutional clients in Mainland China, Hong Kong, and internationally. It operates through Wealth Management Business, Investment Banking Business, Institutional and Trading Business, Investment Management Business, and International Business segments. The company offers securities and futures brokerage, financial products, investment advisory, margin financing and securities lending, securities repurchase, and stock pledging and other services; listing sponsorship, equity underwriting, debt underwriting, structured debt financing, M&A financial advisory, and diversified corporate solutions to corporate and governmental clients; institutional brokerage, trading, investment and equity investment, seat leasing, custody and outsourcing, QFII, and other services; and investment transactions in stocks, fixed income, foreign exchange, and commodities and their derivative financial instruments, as well as integrated financial solutions for clients' investment, financing, and risk management. It also provides asset management and fund management services; and brokerage, corporate finance, asset management, and loans and financing services, as well as financial products, and market making and investment services. In addition, the company offers real estate and property management, warehouse service, corporate management consulting, venture capital investment and management, investment management, industrial investment, and investment consulting services. The company was founded in 1992 and is based in Shanghai, China.
How the Company Makes MoneyGuotai Junan Securities Co., Ltd. generates revenue through multiple streams within the financial services sector. The company's primary revenue sources include brokerage fees from facilitating trades for clients in equity, debt, and derivative markets. In wealth management, it earns through advisory fees and commissions on products sold to high-net-worth individuals and retail clients. The investment banking division contributes to revenue through underwriting fees, advisory services for mergers and acquisitions, and capital raising activities. Additionally, the asset management arm earns management and performance fees from managing investment funds and portfolios. Strategic partnerships and collaborations with financial institutions and corporations further augment their earnings by expanding their service reach and client base.

Guotai Junan Securities Co., Ltd. Class H Financial Statement Overview

Summary
Guotai Junan Securities demonstrates strong financial health, with impressive revenue growth, a solid balance sheet free of debt, and robust cash flow generation. The company's profitability has improved, as evidenced by the increasing net profit margin and ROE. However, the lack of detailed EBIT and EBITDA data limits deeper profitability analysis. The company's substantial liquidity position and strong cash flow metrics suggest it is well-positioned to capitalize on opportunities and weather financial uncertainties.
Income Statement
75
Positive
Guotai Junan Securities has shown a strong revenue growth trend with revenues increasing from 35.13 billion CNY in 2023 to 43.10 billion CNY in 2024, a growth rate of 22.67%. The Gross Profit Margin remains robust as gross profit consistently matches total revenue due to the nature of the industry. The net profit margin improved slightly from 26.68% in 2023 to 30.22% in 2024, indicating improved profitability. However, the absence of EBIT and EBITDA margins in the latest report limits the depth of profitability analysis.
Balance Sheet
80
Positive
The company maintains a strong balance sheet with zero debt reported in 2024, resulting in an excellent debt-to-equity ratio. The equity ratio is stable at approximately 16.30% in 2024, suggesting a solid capital structure. Return on Equity (ROE) improved significantly to 7.63% in 2024 from 5.61% in 2023, reflecting enhanced efficiency in generating profits from shareholders' equity. The substantial increase in cash and short-term investments to 414.37 billion CNY bolsters liquidity.
Cash Flow
78
Positive
The cash flow statement shows a robust operating cash flow of 56.11 billion CNY in 2024, significantly up from 7.20 billion CNY in 2023. Free cash flow also grew substantially to 54.95 billion CNY. The Operating Cash Flow to Net Income ratio is exceptionally high at 4.31, indicating strong cash generation relative to net income. The Free Cash Flow to Net Income ratio is also strong at 4.22, showcasing efficient cash management despite the lack of year-on-year free cash flow growth rate data.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue46.82B43.10B35.13B34.72B42.25B35.02B
Gross Profit46.82B43.10B35.76B34.72B42.25B35.02B
EBITDA3.02B0.000.000.000.000.00
Net Income22.78B13.02B9.37B11.51B15.01B11.12B
Balance Sheet
Total Assets1.69T1.05T925.40B860.69B791.27B702.90B
Cash, Cash Equivalents and Short-Term Investments1.31T883.49B326.54B343.07B339.64B299.49B
Total Debt434.97B198.28B179.18B166.79B191.18B165.95B
Total Liabilities1.36T870.27B752.02B696.86B640.64B556.66B
Stockholders Equity321.70B170.78B166.97B157.70B147.12B137.35B
Cash Flow
Free Cash Flow17.99B54.95B6.04B48.95B9.51B21.43B
Operating Cash Flow19.33B56.11B7.20B50.73B10.37B22.23B
Investing Cash Flow138.49B-22.66B-26.26B-11.52B-33.72B-22.38B
Financing Cash Flow26.84B7.51B5.94B-34.64B28.44B38.08B

Guotai Junan Securities Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.70
Price Trends
50DMA
11.18
Positive
100DMA
11.26
Positive
200DMA
10.78
Positive
Market Momentum
MACD
0.44
Negative
RSI
60.93
Neutral
STOCH
57.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2611, the sentiment is Positive. The current price of 12.7 is above the 20-day moving average (MA) of 11.88, above the 50-day MA of 11.18, and above the 200-day MA of 10.78, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 60.93 is Neutral, neither overbought nor oversold. The STOCH value of 57.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2611.

Guotai Junan Securities Co., Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
HK$340.12B8.448.14%4.80%7.73%38.15%
67
Neutral
$16.67B11.469.71%3.91%11.61%-9.60%
$54.29B8.44%4.45%
$18.78B6.875.84%1.97%
$21.62B7.539.25%38.63%
€17.58B10.558.73%2.99%
DECS0
€20.03B8.4210.44%2.59%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2611
Guotai Junan Securities Co., Ltd. Class H
12.60
5.20
70.27%
CIIHF
CITIC Securities Co
3.02
1.65
120.44%
CNICF
China International Capital
1.28
0.09
7.56%
HUATF
Huatai Securities Co
1.70
0.53
45.30%
DE:195H
China Merchants Securities Co., Ltd. Class H
1.56
0.89
132.84%
DE:CS0
CSC Financial Co., Ltd. Class H
1.10
0.47
74.60%

Guotai Junan Securities Co., Ltd. Class H Corporate Events

Guotai Haitong Securities Releases 2025 Q1 Report
Apr 29, 2025

Guotai Haitong Securities Co., Ltd. has released its unaudited first quarterly report for 2025, prepared according to China Accounting Standards for Business Enterprises. The report emphasizes the commitment of the company’s board and directors to the accuracy and completeness of the financial information provided, indicating a focus on transparency and accountability in its operations.

Guotai Junan Securities Proposes Amendments to Enhance Corporate Governance
Apr 29, 2025

Guotai Junan Securities Co., Ltd. has announced proposed amendments to its Articles of Association in response to recent changes in the Company Law and regulatory requirements by the China Securities Regulatory Commission. These amendments aim to enhance corporate governance by revising the Rules of Procedure for General Meetings and the Board of Directors, while abolishing the Rules of Procedure for the Supervisory Committee. The proposed changes are subject to shareholder approval at the upcoming General Meeting.

Guotai Haitong Securities Implements Successful 2024 Action Plan
Apr 29, 2025

Guotai Haitong Securities Co., Ltd. has announced the successful implementation of its 2024 Action Plan aimed at improving quality, increasing efficiency, and achieving returns. The company has completed a merger with Haitong Securities, enhancing its capital strength and service capabilities. The company has also excelled in various financial sectors, including technology and green finance, and has been recognized for its ESG efforts. The merger and strategic initiatives are expected to bolster the company’s position as a leading investment bank with international competitiveness, benefiting stakeholders and contributing to the development of Shanghai as a financial center.

Guotai Haitong Securities Announces Name and Stock Short Name Change
Apr 25, 2025

Guotai Haitong Securities Co., Ltd. has announced a change in its company name and stock short name, effective April 30, 2025. The English name has been changed from Guotai Junan Securities Co., Ltd. to Guotai Haitong Securities Co., Ltd., and the stock short name for trading H Shares will change from GTJA to GTHT. This rebranding does not affect shareholder rights or the validity of existing share certificates, which remain valid for trading and settlement.

Guotai Haitong Securities Announces Upcoming Board Meeting for Q1 Results
Apr 15, 2025

Guotai Haitong Securities Co., Ltd. has announced a board meeting scheduled for April 29, 2025, to review and approve the unaudited financial results for the first quarter ending March 31, 2025. This meeting is a crucial step for the company as it assesses its financial performance and strategizes for future operations, potentially impacting its market positioning and stakeholder interests.

Guotai Haitong Securities Announces A Share Repurchase Plan
Apr 9, 2025

Guotai Haitong Securities Co., Ltd. announced a plan to repurchase A shares through centralized price bidding, with a budget ranging from RMB1 billion to RMB2 billion. The purpose of this repurchase is to safeguard the company’s value and protect shareholder interests, with the repurchase price capped at RMB26.35 per share. The company has assured that no major shareholders or senior management plan to reduce their shareholdings in the near future, indicating a stable outlook for stakeholders.

Guotai Haitong Securities Projects Strong Q1 2025 Profit Growth
Apr 8, 2025

Guotai Haitong Securities Co., Ltd. has announced a significant projected growth in its net profit for the first quarter of 2025. The company expects a year-on-year increase in net profit attributable to owners of the parent company by 350% to 400%, reaching between RMB11.201 billion and RMB12.445 billion. Additionally, when excluding non-recurring profit or loss, the net profit is anticipated to rise by 45% to 65%, amounting to RMB2.973 billion to RMB3.383 billion. These projections, although preliminary and unaudited, suggest a strong financial performance and potential positive impact on the company’s market positioning and stakeholder confidence.

Guotai Haitong Securities Announces Board and Leadership Changes
Apr 3, 2025

Guotai Haitong Securities Co., Ltd. announced the election of both non-independent and independent directors for the seventh session of its board, along with the appointment of key leadership roles including chairman, vice chairman, and president. The company also disclosed changes in its name and registered capital, as well as amendments to its articles of association. These changes are expected to influence the company’s governance structure and strategic direction, potentially impacting its market positioning and stakeholder relations.

Guotai Haitong Securities Announces Board of Directors and Committee Roles
Apr 3, 2025

Guotai Haitong Securities Co., Ltd., a joint-stock company incorporated in the People’s Republic of China, has announced the list of its board of directors and their respective roles and functions. The board comprises executive, non-executive, and independent non-executive directors, with Mr. Zhu Jian serving as the Chairman. The announcement also details the membership of four board committees, including the Strategy and ESG Committee, Remuneration Appraisal and Nomination Committee, Audit Committee, and Risk Control Committee. This organizational update reflects the company’s commitment to structured governance and strategic oversight, which could influence its operational efficiency and stakeholder confidence.

Guotai Junan Securities Conducts 2025 First Extraordinary General Meeting
Apr 3, 2025

Guotai Junan Securities Co., Ltd. held its first extraordinary general meeting (EGM) for 2025, which was conducted in compliance with relevant PRC laws and regulations. The meeting, presided over by the chairman of the board, Mr. Zhu Jian, involved voting on resolutions by shareholders through both onsite and online methods. The meeting saw participation from a significant number of shareholders and proxies, with a total of 8,449,619,922 voting shares represented, accounting for 48.0586% of the company’s total voting shares. The event underscores the company’s adherence to regulatory standards and its commitment to engaging shareholders in corporate governance processes.

Guotai Junan Securities Announces 2024 Annual Results and Profit Distribution
Mar 28, 2025

Guotai Junan Securities Co., Ltd. announced its audited annual results for the year ended December 31, 2024. The company reported a profit distribution plan that includes cash dividends of RMB2.8 per 10 shares for both A and H shareholders, totaling RMB6.26 billion, which represents 48.05% of the net profit attributable to equity holders. The company also completed a merger with Haitong Securities through a share-for-share exchange. The annual report has been audited by KPMG and is available on the company’s and Hong Kong Stock Exchange’s websites.

Guotai Junan Securities Announces Proposed Final Dividend for 2024
Mar 28, 2025

Guotai Junan Securities Co., Ltd. has announced a proposed final cash dividend of RMB 2.8 per 10 shares for the financial year ending December 31, 2024. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders, although specific dates for shareholder approval and payment details are yet to be disclosed.

Guotai Junan Completes H Share Exchange with Haitong Securities
Mar 16, 2025

Guotai Junan Securities Co., Ltd. has completed the H share share exchange with Haitong Securities Co., Ltd. on March 14, 2025. This exchange resulted in the conversion of 3,409,568,820 Haitong H Shares into 2,113,932,668 Guotai Junan H Shares, leading to the merger of the two companies. As a result, Guotai Junan Securities will assume all assets and liabilities of Haitong Securities, which will be deregistered. The completion of this share exchange and the proposed placement has altered the shareholding structure of the post-merger company, with a total of 17,629,708,696 shares issued, indicating a significant expansion of Guotai Junan’s market presence.

Guotai Junan Securities Announces Governance and Structural Changes
Mar 16, 2025

Guotai Junan Securities Co., Ltd. has announced several significant changes, including proposed amendments to its Articles of Association, the election of a new board session, a proposed change of company name and stock short name, and a change in registered capital. These changes are aimed at improving the company’s governance and aligning with regulatory requirements. The election of a new board session involves nominating candidates for both executive and non-executive director positions, with the proposed candidates subject to approval at an extraordinary general meeting (EGM). These developments are expected to impact the company’s governance structure and potentially influence its market positioning.

Guotai Junan Securities Announces 2025 Extraordinary General Meeting
Mar 16, 2025

Guotai Junan Securities Co., Ltd. has announced the convening of its 2025 First Extraordinary General Meeting to be held on April 3, 2025, in Shanghai, PRC. The meeting will address several key resolutions including the election of directors for the seventh session of the Board, approval of director remuneration, a proposed change of company name, and amendments to the Articles of Association. These resolutions are crucial for the company’s governance and strategic direction, potentially impacting its operational and market positioning.

Guotai Junan Securities Schedules Board Meeting for Annual Results and Dividend Discussion
Mar 14, 2025

Guotai Junan Securities Co., Ltd. has announced a board meeting scheduled for March 28, 2025, to consider and approve the company’s annual results for the year ending December 31, 2024, and to discuss the recommendation of a final dividend. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.

Guotai Junan Securities Completes Share Exchange and Placement
Mar 13, 2025

Guotai Junan Securities has completed a significant A share share exchange with Haitong Securities, resulting in the conversion of Haitong A Shares into Guotai Junan A Shares. Additionally, the company has successfully completed a proposed placement, raising approximately RMB9,984.8 million. These developments are expected to strengthen Guotai Junan’s market position and enhance its financial capabilities.

Guotai Junan and Haitong Securities Announce Share Exchange Implementation
Feb 28, 2025

Guotai Junan Securities Co., Ltd. and Haitong Securities Co., Ltd. have announced the implementation of a share exchange and a revised timeline for this process. This development includes the withdrawal of Haitong H Shares from the Hong Kong Stock Exchange and Haitong A Shares from the SSE, with key dates outlined for the completion of the share exchange and the proposed placement. This move is significant for the company’s operations and may impact its market positioning and stakeholders.

Guotai Junan and Haitong Securities Announce Withdrawal of Haitong Shares
Feb 25, 2025

Guotai Junan Securities Co., Ltd. and Haitong Securities Co., Ltd. announced the withdrawal of Haitong H Shares and A Shares from the Hong Kong Stock Exchange and the Shanghai Stock Exchange, respectively, effective March 4, 2025. This move is part of a proposed merger between the two companies, with Haitong Securities maintaining the listing status of certain bonds and notes on the Hong Kong Stock Exchange. Stakeholders are advised to look out for further announcements regarding the share exchange and the post-merger company’s trading activities.

Guotai Junan Securities Announces Results of H Share Put Option Exercises Amid Merger Plans
Feb 7, 2025

Guotai Junan Securities Co., Ltd. announced the results of the put option exercises for its H shares and Haitong H shares, noting that no dissenting shareholders elected to exercise their options. This development is part of a broader merger and share exchange strategy with Haitong Securities, aimed at consolidating their market positions and potentially enhancing value for stakeholders. The timeline for the cessation of dealings and the closure of registers for Haitong H Shares has been detailed, with further announcements expected as the process progresses.

Guotai Junan and Haitong Securities Announce Put Option Exercise Details
Feb 5, 2025

Guotai Junan Securities Co., Ltd. and Haitong Securities Co., Ltd. have issued a joint announcement reminding shareholders about the exercise of put options for their respective H shares. The announcement specifies that shareholders who choose to exercise these options may incur losses due to the discrepancy between the exercise price and the current trading price, thus urging them to proceed with caution. This exercise period is slated to begin on February 6, 2025, and will involve a temporary cessation of trading for Haitong H shares on the Hong Kong Stock Exchange.

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: Apr 07, 2025