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Orient Securities Co., Ltd. Class H (HK:3958)
:3958

Orient Securities Co., Ltd. Class H (3958) AI Stock Analysis

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HK:3958

Orient Securities Co., Ltd. Class H

(3958)

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Neutral 55 (OpenAI - 5.2)
Rating:55Neutral
Price Target:
HK$7.00
â–²(1.45% Upside)
The score is driven primarily by mixed financial performance: improving profitability and a healthier (de-levered) balance sheet are offset by notably unstable cash-flow conversion. Technicals also weigh on the score due to weak momentum below key moving averages, while valuation is a supportive factor given the moderate P/E and ~3.48% dividend yield.
Positive Factors
Improved Profitability
The increase in revenue and net margin indicates stronger operational performance, suggesting a more robust business model and enhanced market position.
Decreased Leverage
Lower leverage enhances financial flexibility and reduces risk, supporting long-term stability and potential for strategic investments.
Enhanced Governance
Strengthened governance structures can improve strategic oversight and compliance, aligning the company with industry standards and boosting stakeholder confidence.
Negative Factors
Unstable Cash Flow
Volatile cash flow undermines financial predictability and may constrain the company's ability to reinvest in growth or manage debt effectively.
Leadership Change
Leadership changes can create strategic uncertainty and may disrupt ongoing initiatives, potentially affecting long-term strategic execution.
Cyclical Profitability
Cyclical profitability suggests vulnerability to market fluctuations, which could impact consistent earnings growth and investor confidence.

Orient Securities Co., Ltd. Class H (3958) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionOrient Securities Company Limited operates as an integrated securities company in the People's Republic of China. It operates through Securities Sales and Trading, Investment Management, Brokerage and Securities Financing, and Investment Banking segments. The company engages in the securities and futures brokerage, margin financing and securities lending, securities investment advisory, securities proprietary trading, asset management, agency sale of financial products, securities underwriting and sponsorship, and other business activities. It also provides cross-border financial, fund management, fixed income, margin trading and short selling, stock pledging, over-the-counter-market, agency sale, stock options, equity innovation, and asset securitization services, as well as research, PB, and foreign institutional investor services. In addition, the company offers futures investment advisory, provision of corporate finance advisory services, equity and securities investment, investment management, private equity, bond and industrial investment, project investment, equity trading, and credit operation services. Orient Securities Company Limited was incorporated in 1997 and is based in Shanghai, the People's Republic of China.
How the Company Makes MoneyOrient Securities Co., Ltd. generates revenue through several key streams. The brokerage segment earns income from commission fees on securities trading executed on behalf of individual and institutional clients. The investment banking division provides services such as underwriting, sponsorship, and advisory services for mergers and acquisitions, contributing to their revenue through fees and commissions. The asset management segment manages collective investment schemes and private funds, earning management and performance fees. Additionally, the company engages in proprietary trading, which can yield trading gains. Strategic partnerships with financial institutions and market expansions also play a role in the company's revenue growth. Overall, the company's earnings are influenced by market conditions, regulatory environments, and their ability to attract and retain clients.

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

Summary
Profitability improved with 2024 revenue up (+7.7% YoY) and a positive net margin (~14.6%), and leverage declined meaningfully (debt-to-equity ~0.57). However, cash-flow quality is the key weakness: free cash flow fell sharply versus 2023 and operating cash flow relative to net income was very low, indicating unstable cash conversion.
Income Statement
62
Positive
Revenue rebounded in 2024 (+7.7% YoY) after a soft 2023, indicating improving top-line momentum. Profitability is positive with a ~14.6% net margin in 2024, but margins are below the stronger 2021 level (net margin ~23.4%), showing earnings power can swing meaningfully with market conditions. Overall, the company is profitable and improving, but results look cyclical rather than steadily compounding.
Balance Sheet
68
Positive
Leverage improved materially in 2024, with debt-to-equity dropping to ~0.57 from elevated levels in prior years (often above 1.0), which strengthens financial flexibility. Equity has also grown versus earlier years, supporting the capital base. Returns on equity remain modest (~4.1% in 2024, below the ~8.4% peak in 2021), suggesting the balance sheet is healthier than the current return profile.
Cash Flow
38
Negative
Cash generation is volatile: 2024 operating and free cash flow were positive (free cash flow about 88% of net income), but free cash flow collapsed versus 2023 (down ~92%), and operating cash flow relative to net income was very low in 2024. History shows large swings, including negative operating/free cash flow in 2021, which reduces confidence in consistency and cash earnings quality year-to-year.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue22.50B22.97B20.81B22.11B27.44B26.68B
Gross Profit18.05B18.73B16.51B18.06B22.93B21.92B
EBITDA5.74B4.39B3.67B4.10B6.97B3.39B
Net Income4.70B3.35B2.75B3.01B5.37B2.72B
Balance Sheet
Total Assets437.36B417.74B383.69B368.07B326.60B291.12B
Cash, Cash Equivalents and Short-Term Investments175.57B173.97B163.72B174.81B143.41B110.51B
Total Debt95.36B46.46B90.87B75.11B84.43B58.25B
Total Liabilities352.52B336.34B304.93B290.67B262.46B230.89B
Stockholders Equity84.83B81.40B78.75B77.39B64.13B60.20B
Cash Flow
Free Cash Flow11.73B2.18B20.37B21.31B-11.02B27.75B
Operating Cash Flow12.04B2.48B21.46B21.62B-10.58B28.20B
Investing Cash Flow-12.16B-24.47B-13.07B-16.02B18.49B3.46B
Financing Cash Flow5.58B-1.71B-4.14B160.68M-6.90B-6.37B

Orient Securities Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.90
Price Trends
50DMA
6.94
Negative
100DMA
7.19
Negative
200DMA
6.54
Positive
Market Momentum
MACD
-0.05
Positive
RSI
44.07
Neutral
STOCH
35.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3958, the sentiment is Negative. The current price of 6.9 is below the 20-day moving average (MA) of 6.99, below the 50-day MA of 6.94, and above the 200-day MA of 6.54, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 35.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3958.

Orient Securities Co., Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
65
Neutral
HK$161.36B11.499.41%3.83%51.04%24.56%
62
Neutral
HK$136.26B7.728.79%2.89%61.94%127.55%
60
Neutral
HK$79.84B12.815.22%2.66%30.38%2.63%
57
Neutral
HK$59.54B15.274.95%1.18%365.12%170.00%
55
Neutral
HK$92.15B11.945.91%3.48%22.13%63.08%
55
Neutral
HK$19.61B20.113.28%1.25%-36.99%181.79%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3958
Orient Securities Co., Ltd. Class H
6.79
2.13
45.55%
HK:6099
China Merchants Securities Co., Ltd. Class H
14.62
0.93
6.81%
HK:6178
Everbright Securities Company Limited Class H
8.88
1.62
22.36%
HK:6806
Shenwan Hongyuan Group Co., Ltd. Class H
3.13
1.09
53.66%
HK:1375
Central China Securities Co., Ltd. Class H
2.21
0.67
43.51%
HK:1456
Guolian Securities Co., Ltd. Class H
5.36
1.58
41.80%

Orient Securities Co., Ltd. Class H Corporate Events

Orient Securities Announces Chairman Resignation and Interim Leadership
Dec 8, 2025

Orient Securities Co., Ltd. announced the resignation of Mr. GONG Dexiong as Chairman of the Board due to work adjustment. During his tenure, Mr. GONG led significant strategic initiatives, including a medium and long-term roadmap focusing on digitalization and internationalization, which strengthened the company’s industry position and operational performance. Mr. LU Weiming, the Vice Chairman, will temporarily assume the duties of the chairman until a new appointment is made.

Orient Securities Updates Board Roles and Functions
Dec 8, 2025

Orient Securities Co., Ltd. Class H has announced an updated 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. LU Weiming set to perform the duties of the chairman from December 8, 2025. The announcement provides details on the membership of four board committees, highlighting the company’s governance structure and strategic oversight.

Orient Securities to Hold Online Briefing on Q3 2025 Results
Oct 31, 2025

Orient Securities Co., Ltd. Class H has announced a briefing on its third quarterly results for 2025, which will be held online via SSE Roadshow. The briefing aims to provide investors with a comprehensive understanding of the company’s operating results and financial condition. Scheduled for November 10, 2025, the event will feature key company executives who will address investor questions and discuss the company’s performance. This initiative reflects the company’s commitment to transparency and investor engagement, potentially impacting stakeholder confidence and market perception.

Orient Securities Releases Q3 2025 Financial Results
Oct 30, 2025

Orient Securities Co., Ltd. Class H has released its unaudited financial results for the third quarter ending September 30, 2025. The announcement, prepared in accordance with China Accounting Standards for Business Enterprises, is made under the regulatory framework of the Hong Kong Stock Exchange. This release is significant as it provides stakeholders with insights into the company’s financial performance and operational standing for the specified period, potentially impacting investor decisions and market perceptions.

Orient Securities Enhances Governance with New Committee
Oct 24, 2025

Orient Securities Co., Ltd. has established a Remuneration and Nomination Committee to improve its corporate governance structure and enhance its remuneration assessment and management system. This move is aimed at ensuring a balanced and diverse board composition, evaluating board performance, and formulating criteria for the selection and remuneration of directors and senior management, which is expected to strengthen the company’s strategic alignment and regulatory compliance.

Orient Securities Enhances Governance with New Committee
Oct 24, 2025

Orient Securities Co., Ltd. has established a Remuneration and Nomination Committee to enhance its corporate governance structure and improve the remuneration assessment and management system for its directors and senior management. This move is in compliance with various legal and regulatory frameworks, including the Company Law of the People’s Republic of China and the Hong Kong Listing Rules. The committee’s responsibilities include evaluating the board’s composition, formulating criteria for selecting directors and senior management, and advising on appointments and remuneration policies. This initiative is expected to support the company’s strategic goals by ensuring a balanced and diverse board, enhancing performance assessments, and aligning remuneration with industry standards.

Orient Securities Enhances Governance with New Risk Management Committee
Oct 24, 2025

Orient Securities Co., Ltd. has established a Compliance and Risk Management Committee to enhance its corporate governance and risk management capabilities. This committee, composed of three to five directors, is tasked with overseeing the company’s compliance and risk management policies, evaluating risks associated with significant matters, and ensuring adherence to legal and regulatory requirements. The establishment of this committee is expected to strengthen the company’s operational framework and align its practices with industry standards, potentially impacting its market positioning and stakeholder confidence.

Orient Securities Forms Strategy and Sustainable Development Committee
Oct 24, 2025

Orient Securities Co., Ltd. has established a Strategy and Sustainable Development Committee to strengthen its strategic development and sustainability efforts. This committee will focus on long-term strategic planning, major investment proposals, and sustainable development policies, aiming to improve decision-making processes and corporate governance. The move is expected to enhance the company’s operational effectiveness and industry positioning, benefiting stakeholders by aligning with regulatory requirements and market expectations.

Orient Securities Announces Board Composition and Roles
Oct 24, 2025

Orient Securities Co., Ltd. Class H, operating under the name DFZQ in Hong Kong, has announced the composition of its board of directors and their respective roles within the company. The board includes executive, non-executive, and independent non-executive directors, with Mr. Gong Dexiong serving as the Chairman. The announcement also details the membership of four board committees, highlighting the leadership and participation of various directors in these committees. This organizational update is crucial for stakeholders as it outlines the governance structure and leadership roles that will influence the company’s strategic direction and compliance efforts.

Orient Securities Approves Amendments to Articles of Association
Oct 24, 2025

Orient Securities Co., Ltd. Class H held an Extraordinary General Meeting (EGM) on October 24, 2025, where shareholders voted on a special resolution to amend the Articles of Association and its annexes. The meeting was attended by all directors and supervisors of the company, and voting was conducted both online and on-site. The resolution was passed with a significant majority, indicating strong shareholder support for the proposed changes.

Orient Securities Enhances Governance with New Audit Committee
Oct 24, 2025

Orient Securities Co., Ltd. has established an Audit Committee to enhance its corporate governance structure, in compliance with relevant Chinese and Hong Kong laws and regulations. The committee, composed mainly of independent non-executive directors, is tasked with overseeing the company’s financial affairs and ensuring accurate financial reporting, which is expected to strengthen internal controls and accountability within the company.

Orient Securities to Review Q3 Financial Results on October 30, 2025
Oct 16, 2025

Orient Securities Co., Ltd. Class H has announced that its board of directors will convene on October 30, 2025, to review and approve the company’s third-quarter financial results for the period ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

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: Dec 30, 2025