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Huatai Securities Co Ltd Class H (HK:6886)
:6886

Huatai Securities Co (6886) AI Stock Analysis

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HK:6886

Huatai Securities Co

(6886)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
HK$21.00
▲(14.88% Upside)
The score is driven primarily by solid profitability and an improving leverage profile, supported by attractive valuation (low P/E and a ~2.93% dividend yield). The main constraints are uneven revenue momentum and historically volatile cash flow, while technical indicators are broadly neutral with elevated volatility risk (high beta).
Positive Factors
Improved Leverage
The improved leverage profile enhances financial stability and flexibility, allowing Huatai Securities to better manage its capital structure and invest in growth opportunities.
Governance Enhancement
Strengthened governance through specialized committees can improve decision-making and operational efficiency, aligning with regulatory standards and boosting stakeholder confidence.
Profitability Strength
Strong profitability indicates effective cost management and pricing power, supporting sustainable earnings and competitive positioning in the financial markets.
Negative Factors
Revenue Decline
A decline in revenue suggests potential challenges in market conditions or competitive pressures, which could impact long-term growth prospects and market share.
Cash Flow Volatility
Volatile cash flows can hinder consistent reinvestment in business operations and strategic initiatives, affecting the company's ability to sustain growth and financial health.
Margin Compression
Margin compression indicates increased cost pressures or reduced pricing power, which could erode profitability and weaken competitive advantage over time.

Huatai Securities Co (6886) vs. iShares MSCI Hong Kong ETF (EWH)

Huatai Securities Co Business Overview & Revenue Model

Company DescriptionHuatai Securities Co., Ltd. (6886) is a leading comprehensive securities group in China, providing a wide range of financial services including brokerage, wealth management, investment banking, asset management, and trading. The company operates across various sectors, catering to both individual and institutional clients, with a strong emphasis on leveraging technology to enhance service delivery and operational efficiency.
How the Company Makes MoneyHuatai Securities generates revenue through multiple streams, primarily from brokerage fees, commissions, and interest income from margin financing. The company's wealth management division earns fees by offering investment advisory services and financial planning to clients. Investment banking services, such as underwriting and advisory for mergers and acquisitions, also contribute significantly to earnings. Additionally, Huatai's asset management arm manages various investment products, earning management and performance fees. Trading activities, including proprietary trading, add to the revenue mix, along with income from strategic partnerships and collaborations with financial institutions that enhance service offerings and expand market reach.

Huatai Securities Co Financial Statement Overview

Summary
Profitability is a clear strength (2024 net margin ~31% with solid operating margins) and leverage improved in 2024 (debt-to-equity down to ~0.93). Offsetting this, revenue was slightly down in 2024 (-1.75%), margins are lower than the 2019–2021 peak, and cash flow has been volatile (negative in 2023 despite a strong rebound in 2024).
Income Statement
74
Positive
Revenue has been choppy: after growth in 2023, 2024 revenue declined (-1.75%). Profitability remains a clear strength, with 2024 net margin around 31% and solid operating profitability (EBIT margin ~31%, EBITDA margin ~34%), and net income improved versus 2023. However, margins have compressed versus prior years (net margin was ~38–41% in 2019–2021), indicating a less favorable earnings environment than the peak period.
Balance Sheet
71
Positive
Leverage looks manageable and improved in 2024: debt-to-equity fell to ~0.93 from ~1.33 in 2023, alongside higher equity. Returns on equity are steady but not exceptional for the period (about 8.0% in 2024 vs ~7.1% in 2023), suggesting decent profitability but not standout capital efficiency. Overall balance sheet trend is constructive, though the absolute debt level remains significant.
Cash Flow
63
Positive
Cash generation rebounded strongly in 2024 with operating cash flow of ~68.2B and free cash flow of ~66.4B, and free cash flow closely matched net income (about 0.97x), which is supportive of earnings quality. The key weakness is volatility: 2023 showed negative operating and free cash flow, and 2024 free cash flow declined sharply versus 2023 (about -29% growth), pointing to less consistent cash conversion year-to-year.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue45.91B49.96B47.65B41.92B46.27B35.60B
Gross Profit45.58B39.11B33.99B30.81B35.28B27.24B
EBITDA18.30B16.99B15.91B13.65B17.62B14.76B
Net Income17.59B15.35B12.75B11.05B13.35B10.82B
Balance Sheet
Total Assets900.70B814.27B905.51B846.57B806.65B716.75B
Cash, Cash Equivalents and Short-Term Investments394.56B387.54B345.52B337.71B334.03B308.61B
Total Debt193.33B178.80B238.42B201.39B211.40B158.84B
Total Liabilities700.48B622.38B723.29B678.71B654.62B584.44B
Stockholders Equity200.13B191.67B179.11B165.10B148.42B129.07B
Cash Flow
Free Cash Flow37.84B66.36B-33.13B65.73B-47.60B25.06B
Operating Cash Flow39.06B68.17B-31.46B67.16B-44.64B26.06B
Investing Cash Flow-251.79M20.50B-6.26B-16.71B-262.04M-13.45B
Financing Cash Flow-4.89B-59.67B17.96B-26.70B44.21B26.85B

Huatai Securities Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price18.28
Price Trends
50DMA
18.95
Negative
100DMA
19.28
Negative
200DMA
17.28
Positive
Market Momentum
MACD
-0.17
Positive
RSI
45.05
Neutral
STOCH
68.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6886, the sentiment is Negative. The current price of 18.28 is below the 20-day moving average (MA) of 19.22, below the 50-day MA of 18.95, and above the 200-day MA of 17.28, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 45.05 is Neutral, neither overbought nor oversold. The STOCH value of 68.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6886.

Huatai Securities Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
HK$219.46B9.2210.50%2.92%10.82%55.25%
69
Neutral
HK$371.28B7.809.99%2.75%52.67%121.43%
68
Neutral
HK$153.86B10.088.93%0.97%64.00%112.84%
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%
60
Neutral
HK$191.48B11.5113.03%2.80%36.57%77.14%
46
Neutral
HK$314.76M-10.66-13.85%51.58%69.53%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6886
Huatai Securities Co
18.64
5.69
43.92%
HK:0510
CASH Financial Services Group
0.73
0.43
139.34%
HK:3908
China International Capital
21.22
8.53
67.24%
HK:6099
China Merchants Securities Co., Ltd. Class H
14.62
0.93
6.81%
HK:6066
CSC Financial Co., Ltd. Class H
12.61
3.38
36.59%
HK:2611
Guotai Junan Securities Co., Ltd. Class H
16.62
5.74
52.76%

Huatai Securities Co Corporate Events

Huatai Securities Reschedules 2026 EGM to Vote on Share Mandate and New Board
Dec 31, 2025

Huatai Securities has rescheduled its 2026 first extraordinary general meeting to 23 January 2026 in Nanjing, adjusting the closure period of the H-share register accordingly to accommodate the new timetable. At the meeting, shareholders will vote on granting the board a general mandate to issue shares and on a comprehensive reshuffle of the company’s governance structure through the election of a new seventh-session board, including both executive, non-executive and independent non-executive directors, a process that could influence the firm’s strategic direction and capital-raising flexibility.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$21.00 price target. To see the full list of analyst forecasts on Huatai Securities Co stock, see the HK:6886 Stock Forecast page.

Huatai Securities Sets Slate for Seventh-Session Board as Current Term Ends
Dec 31, 2025

Huatai Securities has launched the process to form its seventh-session board of directors as the term of the current sixth-session board expires, proposing a 13-member structure that continues to meet Chinese and Hong Kong corporate governance and regulatory requirements, including maintaining at least one-third independent directors and one independent non-executive director resident in Hong Kong. Several long-serving directors, including executive director Zhang Wei and non-executive directors Chen Zhongyang and Zhang Jinxin, will retire without disagreement with the board, while major shareholders have nominated four new non-executive directors and the chairman has proposed additional executive and non-executive directors, alongside five independent non-executive director candidates whose qualifications have been cleared by the Shanghai Stock Exchange; an employee representative director will be elected separately by staff, and, subject to shareholder approval at an upcoming extraordinary general meeting, the new board will serve a three-year term, shaping the company’s governance and strategic oversight for the next cycle.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$21.00 price target. To see the full list of analyst forecasts on Huatai Securities Co stock, see the HK:6886 Stock Forecast page.

Huatai Securities Sets January 2026 Date and Record Period for First Extraordinary General Meeting
Dec 23, 2025

Huatai Securities has announced that it will hold its first extraordinary general meeting of 2026 on 16 January 2026, and will close the register of members of its H shares from 13 to 16 January, during which no transfers of H shares will be processed. Only H shareholders whose names appear on the company’s register on 16 January will be eligible to attend and vote at the meeting, and investors must lodge any share transfer documents and certificates with the company’s Hong Kong share registrar by 4:30 p.m. on 12 January to qualify, with detailed EGM documentation to be published in due course.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$23.44 price target. To see the full list of analyst forecasts on Huatai Securities Co stock, see the HK:6886 Stock Forecast page.

Huatai Securities Co Enhances Governance with Revised Board Committees
Oct 30, 2025

Huatai Securities Co has revised the terms of reference for its Board of Directors’ committees to enhance corporate governance and decision-making. The changes include the establishment of specialized committees such as Compliance and Risk Management, Audit, Development Strategy, Nomination, and Remuneration and Appraisal, with a focus on independent non-executive directors. This move is expected to strengthen the company’s governance structure and align with regulatory requirements, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$23.44 price target. To see the full list of analyst forecasts on Huatai Securities Co stock, see the HK:6886 Stock Forecast page.

Huatai Securities Co Enhances Governance with Revised Board Committees
Oct 30, 2025

Huatai Securities Co has revised the terms of reference for its Board of Directors’ committees to enhance corporate governance and decision-making. The update involves the establishment of several specialized committees, including Compliance and Risk Management, Audit, Development Strategy, Nomination, and Remuneration and Appraisal Committees. These committees are designed to improve accountability and efficiency in governance, with a focus on independent oversight and professional expertise. The changes are expected to strengthen the company’s operational framework and align with regulatory requirements, potentially impacting stakeholders by ensuring more robust governance practices.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$23.44 price target. To see the full list of analyst forecasts on Huatai Securities Co stock, see the HK:6886 Stock Forecast page.

Huatai Securities Co Enhances Board Governance with Revised Committee Terms
Oct 30, 2025

Huatai Securities Co has revised the terms of reference for its Board of Directors’ committees to enhance corporate governance and decision-making processes. The revisions include the establishment of several specialized committees, such as Compliance and Risk Management, Audit, Development Strategy, Nomination, and Remuneration and Appraisal. These committees are designed to strengthen the company’s governance framework by ensuring accountability and structured decision-making, with a focus on independent oversight and professional expertise.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$23.44 price target. To see the full list of analyst forecasts on Huatai Securities Co stock, see the HK:6886 Stock Forecast page.

Huatai Securities Releases Q3 2025 Financial Results
Oct 30, 2025

Huatai Securities Co., Ltd. has released its unaudited financial results for the third quarter of 2025, showcasing its performance in accordance with the China Accounting Standards for Business Enterprises. The announcement, made under the Inside Information Provisions of the Securities and Futures Ordinance, provides stakeholders with insights into the company’s financial health and market positioning, reflecting its ongoing commitment to transparency and regulatory compliance.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$23.44 price target. To see the full list of analyst forecasts on Huatai Securities Co stock, see the HK:6886 Stock Forecast page.

Huatai Securities Enhances Governance with Revised Board Committees
Oct 30, 2025

Huatai Securities Co has revised the terms of reference for its Board of Directors’ committees to enhance corporate governance and decision-making. The company has established several specialized committees, including Compliance and Risk Management, Audit, Development Strategy, Nomination, and Remuneration and Appraisal Committees. These committees are tasked with improving governance and are primarily composed of independent non-executive directors. This move is expected to strengthen the company’s operational framework and ensure adherence to regulatory standards, potentially impacting its market positioning positively.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$23.44 price target. To see the full list of analyst forecasts on Huatai Securities Co stock, see the HK:6886 Stock Forecast page.

Huatai Securities Co Reports Successful 2025 H Share Class Meeting
Oct 28, 2025

Huatai Securities Co announced the results of its 2025 Second H Share Class Meeting, which was held on October 28, 2025. The meeting, chaired by Mr. Zhang Wei, was conducted in compliance with relevant laws and regulations, and involved voting on various resolutions by H Shareholders. The meeting saw participation from shareholders holding a significant percentage of voting rights, with no restrictions or abstentions required under the Listing Rules. The successful execution of this meeting reflects the company’s adherence to regulatory standards and its commitment to transparent shareholder engagement.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$23.44 price target. To see the full list of analyst forecasts on Huatai Securities Co stock, see the HK:6886 Stock Forecast page.

Huatai Securities Updates Interim Dividend Details for 2025
Oct 17, 2025

Huatai Securities Co. has announced an update to its interim dividend for the six months ending June 30, 2025. The update includes details on the default currency and amount, exchange rate, ex-dividend date, and withholding tax implications. The dividend will be paid in Hong Kong dollars at a rate of HKD 0.1642997 per share, with a record date set for November 9, 2025, and a payment date on December 12, 2025. This announcement is significant for shareholders as it provides clarity on the financial returns and tax obligations associated with their investments.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$23.44 price target. To see the full list of analyst forecasts on Huatai Securities Co stock, see the HK:6886 Stock Forecast page.

Huatai Securities Announces Meeting Results and Governance Changes
Oct 17, 2025

Huatai Securities Co announced the results of its 2025 First Extraordinary General Meeting and the 2025 Second A Share Class Meeting, where key resolutions were voted on by shareholders. The meetings, chaired by Mr. Zhang Wei, saw significant participation from shareholders, with a total of 4,971,232,035 shares represented. The company also announced the payment of an interim dividend and the dissolution of its Supervisory Committee, marking a significant restructuring in its governance framework. These developments could potentially impact the company’s operational strategies and stakeholder relations.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$23.44 price target. To see the full list of analyst forecasts on Huatai Securities Co stock, see the HK:6886 Stock Forecast page.

Huatai Securities Postpones 2025 H Share Class Meeting
Oct 16, 2025

Huatai Securities Co has announced the postponement of its 2025 Second H Share Class Meeting originally scheduled for October 17, 2025, to October 28, 2025, due to feedback from H Shareholders about insufficient voting time caused by public holidays in Mainland China and Hong Kong. The company aims to protect shareholder rights by allowing more time for participation. The proxy forms distributed for the meeting remain valid, and shareholders are advised to exercise caution when dealing in the company’s securities.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$23.44 price target. To see the full list of analyst forecasts on Huatai Securities Co stock, see the HK:6886 Stock Forecast page.

Huatai Securities Announces Upcoming Board Meeting for Q3 Results
Oct 16, 2025

Huatai Securities Co., Ltd. has announced that its Board of Directors will meet 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 stakeholders and influencing the company’s standing in the financial services industry.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$23.44 price target. To see the full list of analyst forecasts on Huatai Securities Co stock, see the HK:6886 Stock Forecast page.

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