Huatai Securities Co Ltd Class H (HK:6886)
:6886
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Huatai Securities Co
(6886)
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Rating:57Neutral
Price Target:
HK$15.50
â–¼(-15.21% Downside)
Action:ReiteratedDate:04/04/26
The score is driven primarily by mixed financial quality: strong profitability but elevated risk from cash flow volatility and higher 2025 leverage. Technicals are bearish with the stock trading below major moving averages and weak momentum, while valuation is a positive offset due to the low P/E and attractive dividend yield.
Positive Factors
Profitability
Sustained high gross and net margins and rising net income through 2020–2025 show the firm can convert revenue into profits across cycles. Durable profitability supports reinvestment in distribution and tech, funds dividends or reserves, and provides a buffer versus cyclical revenue swings.
Negative Factors
Cash Flow Volatility
Operating and free cash flow have swung strongly positive in some years and materially negative in others (notably 2021, 2023, 2025). Persistent cash volatility undermines predictability, increases reliance on capital markets for funding, and complicates long‑term capital allocation decisions.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability
Sustained high gross and net margins and rising net income through 2020–2025 show the firm can convert revenue into profits across cycles. Durable profitability supports reinvestment in distribution and tech, funds dividends or reserves, and provides a buffer versus cyclical revenue swings.
Read all positive factors
Huatai Securities Co (6886) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$175.79B
Dividend Yield2.92%
Average Volume (3M)8.41M
Price to Earnings (P/E)9.8
Beta (1Y)2.07
Revenue Growth10.82%
EPS Growth55.25%
CountryHK
Employees16,964
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.54
Shares Outstanding1,719,045,700
10 Day Avg. Volume10,729,087
30 Day Avg. Volume8,406,753
Financial Highlights & Ratios
PEG Ratio1.44
Price to Book (P/B)0.77
Price to Sales (P/S)3.81
P/FCF Ratio-11.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$20.79Price Target Upside13.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.05
Revenue Forecast (FY)HK$41.04B
Huatai Securities Co Business Overview & Revenue Model
Company Description
Huatai 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 a...
How the Company Makes Money
Huatai Securities primarily makes money by earning fees, commissions, interest income, and investment/trading gains across its major business lines:
1) Brokerage and wealth management (fees and commissions)
- Trading commissions: It earns commiss...
Huatai Securities Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
60
Neutral
Cash Flow
42
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 41.96B | 49.96B | 47.65B | 41.92B | 46.27B |
| Gross Profit | 32.45B | 39.11B | 33.99B | 30.81B | 35.28B |
| EBITDA | 19.75B | 16.99B | 15.91B | 13.65B | 17.62B |
| Net Income | 16.38B | 15.35B | 12.75B | 11.05B | 13.35B |
Balance Sheet | |||||
| Total Assets | 1.08T | 814.27B | 905.51B | 846.57B | 806.65B |
| Cash, Cash Equivalents and Short-Term Investments | 892.42B | 387.54B | 345.52B | 337.71B | 334.03B |
| Total Debt | 303.39B | 178.80B | 238.42B | 201.39B | 211.40B |
| Total Liabilities | 870.35B | 622.38B | 723.29B | 678.71B | 654.62B |
| Stockholders Equity | 206.94B | 191.67B | 179.11B | 165.10B | 148.42B |
Cash Flow | |||||
| Free Cash Flow | -13.82B | 66.36B | -33.13B | 65.73B | -47.60B |
| Operating Cash Flow | -12.60B | 68.17B | -31.46B | 67.16B | -44.64B |
| Investing Cash Flow | -42.10B | 20.50B | -6.26B | -16.71B | -262.04M |
| Financing Cash Flow | 110.79B | -59.67B | 17.96B | -26.70B | 44.21B |
Huatai Securities Co Technical Analysis
Negative
18.28
Price Trends
16.82
Negative
17.94
Negative
18.21
Negative
Market Momentum
-0.44
Negative
44.11
Neutral
51.24
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 above the 20-day moving average (MA) of 15.70, above the 50-day MA of 16.82, and above the 200-day MA of 18.21, indicating a bearish trend. The MACD of -0.44 indicates Negative momentum. The RSI at 44.11 is Neutral, neither overbought nor oversold. The STOCH value of 51.24 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | HK$143.08B | 6.68 | 9.03% | 0.97% | 64.00% | 112.84% | |
59 Neutral | HK$422.55B | 12.45 | 10.28% | 2.05% | 62.72% | 29.18% | |
59 Neutral | HK$149.28B | 9.05 | 9.55% | 3.83% | 51.04% | 24.56% | |
58 Neutral | HK$312.52B | 8.69 | 8.71% | 2.75% | 52.67% | 121.43% | |
57 Neutral | HK$175.79B | 9.77 | 8.46% | 2.92% | 10.82% | 55.25% | |
53 Neutral | HK$172.24B | 9.66 | 10.70% | 2.80% | 36.57% | 77.14% |
* Financial Sector Average
HK:6886
Huatai Securities Co
15.51
4.74
44.05%
HK:6030
CITIC Securities Co
24.84
6.59
36.15%
HK:3908
China International Capital
18.07
4.77
35.85%
HK:6099
China Merchants Securities Co., Ltd. Class H
13.29
1.49
12.64%
HK:6066
CSC Financial Co., Ltd. Class H
10.64
2.37
28.60%
HK:2611
Guotai Junan Securities Co., Ltd. Class H
13.77
3.72
37.01%
Huatai Securities Co Corporate Events
Huatai Securities Publishes Audited 2025 Results and Sets Timeline for Annual Report
Mar 30, 2026
Huatai Securities has released its audited annual results for the year ended December 31, 2025, fulfilling disclosure requirements of the Hong Kong Listing Rules. The full 2025 results announcement is being made available on both the Hong Kong Sto...
Huatai Securities Proposes 2025 Final Dividend of RMB 0.4 Per Share With Detailed Tax Rules
Mar 30, 2026
Huatai Securities has proposed a final ordinary dividend of RMB 0.4 per share for the financial year ended 31 December 2025, with payment scheduled for 31 August 2026 to holders of its H shares. The dividend will be payable in Hong Kong dollars by...
Huatai Securities Sets Board Meeting to Approve 2025 Annual Results and Final Dividend Plan
Mar 18, 2026
Huatai Securities has scheduled a board meeting for March 30, 2026 to review and approve the annual results of the company and its subsidiaries for the financial year ended December 31, 2025, and to authorize their publication. The board will also...
Huatai Securities Completes HK$10 Billion Zero-Coupon Convertible Bond Issue
Feb 10, 2026
Huatai Securities has completed the issuance of zero-coupon convertible bonds due 2027 under its general mandate, raising HK$10 billion in aggregate principal amount. The bonds carry an initial conversion price of HK$19.70 per H share, implying po...
Huatai Securities to Raise HK$10 Billion via Zero Coupon Convertible Bonds for Global Expansion
Feb 2, 2026
Huatai Securities Co. has entered into a subscription agreement with a syndicate of managers for the proposed issuance of zero coupon convertible bonds due 2027 with an aggregate principal amount of HK$10 billion under its general mandate. The bon...
Huatai Securities Reports Poll Results of 2026 First Extraordinary General Meeting
Jan 23, 2026
Huatai Securities has announced the poll results of its 2026 First Extraordinary General Meeting held in Nanjing on 23 January 2026, where shareholders voted on resolutions related to the election and roles of members of the seventh session of the...
Huatai Securities Updates Board and Committee Structure
Jan 23, 2026
Huatai Securities has released an updated list of its board of directors and clarified their respective roles across five key board committees. The announcement details the composition of executive, non-executive, and independent non-executive dir...
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.