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Everbright Securities Company Limited Class H (HK:6178)
:6178

Everbright Securities Company Limited Class H (6178) AI Stock Analysis

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HK:6178

Everbright Securities Company Limited Class H

(6178)

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Neutral 60 (OpenAI - 5.2)
Rating:60Neutral
Price Target:
HK$9.50
â–²(6.50% Upside)
The score is primarily supported by strong cash generation and solid margins, but tempered by weaker 2024 revenue/earnings momentum and modest ROE. Technical indicators are bearish (below key moving averages with negative MACD), while valuation (P/E ~12.9 and ~2.7% yield) provides partial offset.
Positive Factors
Strong Cash Generation
The company's robust cash generation ability ensures financial stability and supports long-term investment and growth opportunities.
Profitability
Solid profitability margins indicate efficient operations and strong earnings power, crucial for sustaining competitive advantage in capital markets.
Enhanced Risk Management
Improved risk management framework strengthens corporate governance, enhancing operational resilience and stakeholder confidence.
Negative Factors
Revenue Decline
Declining revenue and net income suggest challenges in maintaining growth momentum, potentially impacting future profitability.
Modest ROE
Low ROE indicates limited efficiency in generating returns on shareholder equity, which could hinder long-term shareholder value creation.
Cash Flow Volatility
Volatile cash flows can affect financial planning and stability, posing risks to consistent capital allocation and investment strategies.

Everbright Securities Company Limited Class H (6178) vs. iShares MSCI Hong Kong ETF (EWH)

Everbright Securities Company Limited Class H Business Overview & Revenue Model

Company DescriptionEverbright Securities Company Limited, together with its subsidiaries, engages in the wealth management, corporate financing, institutional customer, investment trading, asset management, and equity investment businesses in China and internationally. It provides brokerage, investment consulting, and fund investment advisor services; margin financing and securities lending, and collateralized stock repurchase transaction services; equity and debt financing, merger and acquisition financing, structural financing, asset securitization, and financial advisory service; and investment research, prime brokerage, custody outsourcing, market making, bond underwriting/distribution, transaction advisor, and other financial products and services to institutional clients. The company also invests and trades in stocks, bonds, and derivatives. In addition, it offers asset management, fund asset management, and private equity investment management services, as well as is involved in the alternative investment activities. Further, the company provides securities proprietary trading, securities underwriting and sponsorship, and financial leasing services; fund raising and sales activities; and futures investment consultation services, as well as engages in the distribution of publicly offered securities investment funds. Everbright Securities Company Limited was incorporated in 1996 and is based in Wan Chai, Hong Kong.
How the Company Makes MoneyEverbright Securities generates revenue through several key streams. The primary source of income is its securities brokerage services, where the company earns commissions and fees from trading activities conducted by its clients. Investment banking also contributes significantly to its revenue, as the company offers advisory services for mergers and acquisitions, underwriting of securities, and other corporate finance activities. Additionally, Everbright Securities manages a variety of investment funds and earns management fees from asset management services. Wealth management services provide another revenue stream, catering to high-net-worth individuals and offering personalized financial planning and investment solutions. The company may also benefit from strategic partnerships and collaborations, which can enhance its service offerings and expand its client base.

Everbright Securities Company Limited Class H Financial Statement Overview

Summary
Strong cash generation (2024 FCF ~36.0bn; FCF roughly in line with net income) and solid profitability (net margin ~25%, EBIT margin ~29%) support the score. Offsetting this, 2024 revenue fell ~8% and net income declined versus 2023, and returns on equity are modest (~4.5% in 2024), reflecting cyclical/volatile earnings and only mid-level capital efficiency.
Income Statement
66
Positive
Profitability remains solid, with 2024 net margin at ~25% and EBIT margin near ~29%, indicating good earnings power for a capital markets business. However, momentum weakened year-over-year: revenue fell ~8% in 2024 and net income declined materially versus 2023, suggesting a softer operating environment and/or normalization from a stronger prior year. Over the longer arc, revenue is volatile (typical for the industry), which increases earnings variability despite generally healthy margins.
Balance Sheet
58
Neutral
Leverage looks manageable but not conservative: debt-to-equity is ~1.0 in 2024 (improved from ~1.5 in 2019–2020), showing balance-sheet risk has come down. Equity has grown over time, supporting the asset base, but returns on equity are modest (about 4%–6% in recent years, ~4.5% in 2024), implying the firm is not generating especially strong shareholder returns relative to its capital intensity.
Cash Flow
71
Positive
Cash generation is a key strength: 2024 operating cash flow (~36.4bn) and free cash flow (~36.0bn) are both very strong and free cash flow is roughly in line with net income (free cash flow to net income ~1.0). The main weakness is volatility—free cash flow declined ~32% in 2024 and the history includes a negative operating cash flow year (2021), highlighting that working-capital/market-driven swings can be significant even when reported profits are positive.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.17B12.19B13.20B13.92B20.38B19.51B
Gross Profit10.45B9.48B9.93B10.68B16.64B15.78B
EBITDA4.05B4.22B5.40B4.44B5.21B4.66B
Net Income3.35B3.06B4.27B3.19B3.48B2.33B
Balance Sheet
Total Assets295.12B292.96B259.60B258.35B239.11B228.74B
Cash, Cash Equivalents and Short-Term Investments139.59B137.12B116.55B123.60B133.46B124.21B
Total Debt64.66B66.34B68.34B69.70B77.23B77.90B
Total Liabilities225.13B223.74B191.71B193.57B180.51B175.54B
Stockholders Equity69.14B68.39B67.09B64.00B57.87B52.45B
Cash Flow
Free Cash Flow23.66B36.01B15.08B18.04B-5.13B25.35B
Operating Cash Flow23.96B36.38B15.58B18.33B-4.83B25.71B
Investing Cash Flow-11.30B-15.04B-14.81B-9.03B6.68B-5.15B
Financing Cash Flow11.26B-8.27B-4.11B-6.47B-462.36M-6.67B

Everbright Securities Company Limited Class H Technical Analysis

Technical Analysis Sentiment
Negative
Last Price8.92
Price Trends
50DMA
9.10
Negative
100DMA
9.78
Negative
200DMA
9.25
Negative
Market Momentum
MACD
-0.08
Positive
RSI
44.34
Neutral
STOCH
37.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6178, the sentiment is Negative. The current price of 8.92 is below the 20-day moving average (MA) of 9.10, below the 50-day MA of 9.10, and below the 200-day MA of 9.25, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 44.34 is Neutral, neither overbought nor oversold. The STOCH value of 37.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6178.

Everbright Securities Company Limited 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:6178
Everbright Securities Company Limited Class H
8.88
1.62
22.36%
HK:6099
China Merchants Securities Co., Ltd. Class H
14.62
0.93
6.81%
HK:3958
Orient Securities Co., Ltd. Class H
6.79
2.13
45.55%
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%

Everbright Securities Company Limited Class H Corporate Events

Everbright Securities Sets Out Board Composition and Committee Roles
Jan 7, 2026

Everbright Securities Company Limited has announced the current composition of its board of directors, which includes executive, non-executive, and independent non-executive directors led by Chairman Zhao Ling and President Liu Qiuming. The company also detailed the structure and membership of its four key board committees—Remuneration, Nomination and Credentials; Strategy and Sustainable Development; Audit and Related Party Transaction Control; and Risk Management—clarifying which directors chair and sit on each committee, underscoring its governance framework and oversight mechanisms for compensation, strategy, audit, related-party controls and risk management.

The most recent analyst rating on (HK:6178) stock is a Hold with a HK$9.50 price target. To see the full list of analyst forecasts on Everbright Securities Company Limited Class H stock, see the HK:6178 Stock Forecast page.

Everbright Securities Announces Board Resignation and New Director Nomination
Jan 7, 2026

Everbright Securities has announced the resignation of non-executive director Yin Yanwu, who has also stepped down from the Board’s Remuneration, Nomination and Credentials Committee and Risk Management Committee due to work-related adjustments, with the company confirming there are no disagreements with the Board or outstanding undertakings tied to his departure. The resignation, effective upon delivery of his letter on 6 January 2026, does not reduce the Board below statutory minimum levels, and China Everbright Limited, the firm’s second-largest shareholder, has nominated An Xuesong as a new non-executive director candidate, with Everbright Securities set to complete the required election procedures and disclose his biographical details following Board approval.

The most recent analyst rating on (HK:6178) stock is a Hold with a HK$9.50 price target. To see the full list of analyst forecasts on Everbright Securities Company Limited Class H stock, see the HK:6178 Stock Forecast page.

Everbright Securities Faces Uncertain Exposure as Court Orders Jin Tong Ling to Pay RMB775 Million to Investors
Dec 31, 2025

Everbright Securities has disclosed progress in a major investor lawsuit linked to its role as independent financial adviser for Jin Tong Ling Technology Group’s 2018 share issuance and asset acquisition deal, in which the brokerage is one of 26 named defendants. The Nanjing Intermediate People’s Court has ordered Jin Tong Ling to pay RMB774.8 million in compensation to more than 43,000 investors for investment losses, but the court has yet to rule on any civil liability claims against Everbright Securities and the other defendants, leaving the potential financial impact on the firm’s current and future profitability uncertain as the case continues.

The most recent analyst rating on (HK:6178) stock is a Hold with a HK$9.50 price target. To see the full list of analyst forecasts on Everbright Securities Company Limited Class H stock, see the HK:6178 Stock Forecast page.

Everbright Securities Enhances Risk Management Framework
Dec 5, 2025

Everbright Securities Company Limited has amended its Rules of Procedure for the Risk Management Committee to enhance corporate governance and improve risk management capabilities. The committee, composed of directors, is tasked with supervising risk management and ensuring compliance with applicable laws and regulations. This move is expected to strengthen the company’s operations by providing a structured approach to risk management, potentially impacting its market positioning positively.

Everbright Securities Enhances Strategy and Sustainable Development Committee Procedures
Dec 5, 2025

Everbright Securities Company Limited has amended the rules of procedure for its Strategy and Sustainable Development Committee, aiming to enhance corporate governance and decision-making processes. This committee is tasked with researching and advising on long-term development strategies, major investment decisions, and ESG targets, thereby playing a crucial role in shaping the company’s strategic direction and ensuring sustainable growth.

Everbright Securities Enhances Risk Management Committee
Dec 5, 2025

Everbright Securities Company Limited announced changes to its Risk Management Committee under the Board of Directors. Mr. Liang Yi has been appointed as a new member of the committee, joining other members to enhance the company’s risk management capabilities. This restructuring is part of the company’s ongoing efforts to strengthen its governance and oversight functions, potentially impacting its operational efficiency and stakeholder confidence.

Everbright Securities Announces Board Composition and Roles
Dec 5, 2025

Everbright Securities Company Limited 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 specific members serving on various committees such as the Remuneration, Nomination and Credentials Committee, Strategy and Sustainable Development Committee, Audit and Related Party Transaction Control Committee, and Risk Management Committee. This announcement is significant as it outlines the leadership structure and governance approach of the company, which is crucial for stakeholders to understand the strategic direction and oversight mechanisms in place.

Everbright Securities Updates Governance Rules for Key Committee
Dec 5, 2025

Everbright Securities Company Limited has amended the rules of procedure for its Remuneration, Nomination, and Credentials Committee, aiming to enhance corporate governance. The committee is tasked with setting selection standards for directors and officers, reviewing candidates, and formulating remuneration policies, thereby ensuring a structured and regulated approach to leadership appointments and compensation.

Everbright Securities Enhances Governance with Committee Rule Amendments
Dec 5, 2025

Everbright Securities Company Limited has amended the rules of procedure for its Remuneration, Nomination, and Credentials Committee to enhance corporate governance. The committee is tasked with setting standards for director and officer appointments, reviewing candidates, and formulating remuneration policies. This move aims to optimize the company’s leadership structure and ensure compliance with applicable laws and regulations, potentially impacting the company’s operational efficiency and stakeholder confidence.

Everbright Securities Elects New Employee Director
Nov 14, 2025

Everbright Securities Company Limited has announced the election of Mr. Liang Yi as the employee Director for the seventh session of the Board, effective from November 14, 2025. This appointment aligns with the Company’s compliance with relevant laws and regulations, ensuring that the number of Directors with senior management roles does not exceed half of the total Board. Mr. Liang Yi, who has a background in law and extensive experience within the China Everbright Group, will not receive director’s remuneration but will be compensated according to the Company’s remuneration management system.

Everbright Securities Announces Board of Directors and Committee Roles
Nov 14, 2025

Everbright Securities Company Limited 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. Zhao Ling serving as Chairman. The announcement outlines the membership of four key board committees, which include the Remuneration, Nomination and Credentials Committee, the Strategy and Sustainable Development Committee, the Audit and Related Party Transaction Control Committee, and the Risk Management Committee. This update is crucial for stakeholders as it highlights the governance structure and the strategic roles of the directors in steering the company’s future direction.

Everbright Securities Reports Strong Q3 2025 Financial Growth
Oct 30, 2025

Everbright Securities Company Limited has released its unaudited third quarterly report for 2025, showcasing significant financial growth. The company reported a 37.89% increase in operating income and a 71.89% rise in total profit compared to the same period last year. The net profit attributable to shareholders rose by 65.88%, indicating strong performance. However, the net cash flow from operating activities saw a significant decrease of 70.72% from the beginning of the year to the end of the reporting period. This financial performance reflects the company’s robust market positioning and potential positive implications for its stakeholders.

Everbright Securities Schedules Board Meeting for Q3 Results
Oct 16, 2025

Everbright Securities Company Limited has announced that its board of directors will meet on October 30, 2025, to consider and approve the unaudited financial results for the third quarter ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial health and performance, potentially impacting its market positioning and stakeholder confidence.

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