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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

Huatai Securities Co

(OTC:6886)

Rating:64Neutral
Price Target:
Huatai Securities Co scores well overall due to its strong financial performance, characterized by revenue growth, profitability, and a stable, debt-free balance sheet. However, the technical analysis reveals bearish momentum, with the stock trading below major averages and indicators suggesting oversold conditions. Despite this, its low P/E ratio and attractive dividend yield offer potential upside, resulting in an overall mid-range score.

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

Huatai Securities Co Business Overview & Revenue Model

Company DescriptionHuatai Securities Co., Ltd., a security company, provides financial services in Mainland China and internationally. The company buys and sells stocks, funds, bonds, futures, and options on behalf of clients; and provides various financial products and asset allocation, margin financing, securities lending, securities-backed lending, and margin securities lending services. It also offers institutional investment banking services, such as equity and bond underwriting, financial consultancy, and over-the-counter business services for enterprises, institutions, and governments; cross-border proprietary and credit derivative products and services; custodian and fund services, including settlement, liquidation, reporting, and valuation services, as well as margin trading and other value-added services to various asset management institutions; and professional research and consulting services. In addition, the company provides private equity fund and asset management services for securities and futures companies, funds, etc. Huatai Securities Co., Ltd. was founded in 1990 and is headquartered in Nanjing, the People's Republic of China.
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
Huatai Securities Co exhibits strong financial health with impressive revenue growth, high profitability margins, and a stable balance sheet with zero debt in the latest year. The company's cash flow position is favorable, supporting its operational and strategic initiatives, despite some missing data.
Income Statement
85
Very Positive
Huatai Securities has shown strong revenue growth over the years, with a notable increase from 2023 to 2024. The gross profit margin is consistently high due to its business model in the capital markets industry. Additionally, the net profit margin improved from 2023 to 2024, indicating effective cost management and profitability growth. However, the absence of EBIT and EBITDA data limits deeper margin analysis.
Balance Sheet
75
Positive
The company maintains a strong equity base with an increasing stockholders' equity over the years. The debt-to-equity ratio is low, especially in 2024, as total debt was reported as zero, enhancing the company's financial stability. Although the equity ratio has shown improvement, the total assets have decreased from 2023, indicating some asset restructuring or divestment.
Cash Flow
80
Positive
Huatai Securities demonstrates a robust free cash flow, with significant growth from 2023 to 2024. The operating cash flow to net income ratio indicates efficient cash generation relative to profits. However, missing data for certain periods hinders a comprehensive analysis of cash flow trends.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue40.71B39.11B33.99B30.81B35.28B27.24B
Gross Profit40.71B39.11B33.99B30.81B35.28B27.24B
EBITDA0.00
Net Income16.70B15.35B12.75B11.05B13.35B10.82B
Balance Sheet
Total Assets823.25B814.27B905.51B846.57B806.65B716.75B
Cash, Cash Equivalents and Short-Term Investments381.44B387.54B345.52B337.71B334.03B308.61B
Total Debt0.000.00238.42B201.39B211.40B158.84B
Total Liabilities627.94B622.38B723.29B678.72B654.62B584.44B
Stockholders Equity195.27B191.67B179.11B165.09B148.42B129.07B
Cash Flow
Free Cash Flow62.36B66.36B65.73B25.06B
Operating Cash Flow52.50B68.17B67.16B26.06B
Investing Cash Flow21.17B20.50B
Financing Cash Flow21.35B17.96B44.21B26.85B

Huatai Securities Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.70
Price Trends
50DMA
13.36
Positive
100DMA
13.31
Positive
200DMA
13.01
Positive
Market Momentum
MACD
0.67
Negative
RSI
60.29
Neutral
STOCH
68.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6886, the sentiment is Positive. The current price of 15.7 is above the 20-day moving average (MA) of 14.97, above the 50-day MA of 13.36, and above the 200-day MA of 13.01, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 60.29 is Neutral, neither overbought nor oversold. The STOCH value of 68.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6886.

Huatai Securities Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$16.86B11.649.71%3.83%11.61%-9.60%
64
Neutral
$168.96B9.039.25%4.13%-25.29%17.94%
$17.30M-15.30%
$18.66B6.875.84%0.98%
€17.26B10.288.73%3.07%
DECS0
€19.81B8.5710.44%2.61%
72
Outperform
HK$340.82B8.378.14%4.85%7.73%38.15%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6886
Huatai Securities Co
15.70
7.78
98.26%
CFLSF
CASH Financial Services Group
0.01
0.00
0.00%
CNICF
China International Capital
1.28
0.08
6.67%
DE:195H
China Merchants Securities Co., Ltd. Class H
1.48
0.81
120.90%
DE:CS0
CSC Financial Co., Ltd. Class H
1.12
0.48
75.00%
HK:2611
Guotai Junan Securities Co., Ltd. Class H
12.72
5.16
68.25%

Huatai Securities Co Corporate Events

Huatai Securities Releases Q1 2025 Financial Report
Apr 29, 2025

Huatai Securities Co., Ltd. has released its unaudited financial information for the first quarter of 2025, prepared in accordance with Chinese accounting standards. This announcement, made under the Inside Information Provisions of Hong Kong’s Securities and Futures Ordinance, highlights the company’s ongoing compliance with regulatory requirements and provides stakeholders with insights into its financial performance.

Huatai Securities to Repurchase and Cancel Restricted A Shares
Apr 29, 2025

Huatai Securities Co., Ltd. announced the repurchase and cancellation of part of its restricted A shares under its Incentive Scheme. This decision was made due to certain Incentive Participants not meeting their performance conditions or having terminated their employment with the company. The repurchase will be conducted at the lower of the Grant Price or the stock market price, ensuring compliance with the company’s established provisions. This move is expected to impact the company’s share capital and could potentially influence market perceptions of its stock management practices.

Huatai Securities to Review Q1 2025 Financial Results
Apr 15, 2025

Huatai Securities Co., Ltd. has announced that its board of directors will meet on April 29, 2025, to review and approve the company’s first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders’ perceptions and the company’s market positioning.

Huatai Securities Projects Strong Q1 2025 Profit Growth
Apr 9, 2025

Huatai Securities Co., Ltd. has announced an estimated net profit increase of 50% to 60% for the first quarter of 2025, compared to the same period last year. This growth is attributed to significant year-on-year improvements across all major business lines, driven by the company’s strategic focus on technology empowerment and its commitment to serving the real economy. The company emphasizes the preliminary nature of these results, advising caution to shareholders and potential investors.

Huatai Securities Announces Board Changes and Committee Adjustments
Mar 28, 2025

Huatai Securities Co has announced a proposed change in its non-executive director position, with Mr. Jin Yongfu nominated to replace Mr. Liu Changchun due to the latter’s business commitments. This change is part of a broader adjustment to the composition of the special committees of the board, specifically affecting the Nomination Committee, while other committees remain unchanged. The appointment of Mr. Jin Yongfu, who has a strong background in finance and management, is expected to bring valuable expertise to the board, potentially impacting the company’s governance and strategic direction.

Huatai Securities Announces Final Dividend for 2024
Mar 28, 2025

Huatai Securities Co. has announced a final cash dividend of RMB 0.37 per share for the financial year ending December 31, 2024, with payment scheduled for August 31, 2025. The dividend will be available in both RMB and HKD, with specific exchange rates and other details to be announced. The announcement also outlines the withholding tax implications for various types of shareholders, including preferential tax treatments for overseas residents and exemptions for certain domestic enterprise investors.

Huatai Securities Reports Strong Progress in 2024 Action Plan
Mar 28, 2025

Huatai Securities Co has reported significant progress in its 2024 Action Plan aimed at enhancing corporate value and returns. The company achieved record-high operating results, with a 13.37% increase in revenue and a 20.40% rise in net profit. It has strengthened its core competitiveness by developing a comprehensive business chain system and expanding its global market presence, particularly in wealth management and institutional services. The company’s strategic initiatives have positioned it among industry leaders, with top rankings in equity and bond underwriting, as well as credit protection tools.

Huatai Securities Announces Upcoming Board Meeting to Review Annual Results
Mar 18, 2025

Huatai Securities Co., Ltd. has announced a board meeting scheduled for March 28, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend, reflecting the company’s ongoing financial strategies and potential returns for stakeholders.

Huatai Securities Announces Executive Director Resignation
Mar 14, 2025

Huatai Securities Co., Ltd. announced the resignation of Ms. Yin Lihong from her position as an executive director and member of the Nomination Committee due to work adjustments. The company expressed gratitude for her contributions and is actively seeking a suitable replacement to ensure board diversity in compliance with Hong Kong Stock Exchange regulations. This change is part of the company’s ongoing efforts to maintain robust governance and operational efficiency.

Huatai Securities Co Announces Board Composition and Roles
Mar 14, 2025

Huatai Securities Co has announced the composition of its Board of Directors and their respective roles and functions. The announcement details the executive, non-executive, and independent non-executive directors, along with their committee memberships, which include the Development Strategy, Compliance and Risk Management, Audit, Nomination, and Remuneration and Appraisal Committees. This organizational update is significant for stakeholders as it outlines the governance structure and leadership roles within the company, potentially impacting its strategic direction and compliance oversight.

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 21, 2025