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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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Neutral 67 (OpenAI - 5.2)
Rating:67Neutral
Price Target:
HK$18.50
▲(1.20% Upside)
Action:ReiteratedDate:02/04/26
The score is driven primarily by solid financial performance (strong profitability and improved leverage) and attractive valuation (low P/E with a meaningful dividend). These positives are tempered by weak technicals (below key moving averages with negative MACD) and uneven operating stability reflected in choppy revenue and historically volatile cash flow.
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
Solid profitability (2024 net margin ~31%) and improving leverage (debt-to-equity down to ~0.93) support the score. Offsetting factors are choppy revenue (2024 down ~1.75%), margin compression versus prior peaks, and volatile cash flow history (including negative OCF/FCF in 2023) despite a strong 2024 rebound.
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
17.79
Negative
100DMA
18.49
Negative
200DMA
18.10
Negative
Market Momentum
MACD
-0.49
Negative
RSI
35.88
Neutral
STOCH
57.04
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 16.54, above the 50-day MA of 17.79, and above the 200-day MA of 18.10, indicating a bearish trend. The MACD of -0.49 indicates Negative momentum. The RSI at 35.88 is Neutral, neither overbought nor oversold. The STOCH value of 57.04 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
69
Neutral
HK$329.19B8.689.07%2.75%52.67%121.43%
68
Neutral
HK$147.62B10.568.83%0.97%64.00%112.84%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
67
Neutral
HK$185.82B8.908.20%2.92%10.82%55.25%
65
Neutral
HK$150.72B10.379.55%3.83%51.04%24.56%
60
Neutral
HK$183.85B9.7210.64%2.80%36.57%77.14%
46
Neutral
HK$297.51M-2.34-14.47%51.58%69.53%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6886
Huatai Securities Co
16.02
2.49
18.39%
HK:0510
CASH Financial Services Group
0.69
0.41
150.91%
HK:3908
China International Capital
18.22
3.14
20.80%
HK:6099
China Merchants Securities Co., Ltd. Class H
13.22
-0.64
-4.63%
HK:6066
CSC Financial Co., Ltd. Class H
11.31
1.59
16.41%
HK:2611
Guotai Junan Securities Co., Ltd. Class H
14.32
2.87
25.07%

Huatai Securities Co Corporate Events

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 bonds, which will be offered to at least six independent professional investors and listed on the Vienna MTF, are convertible into H shares at an initial price of HK$19.70 per share, representing a premium to recent market prices and potentially adding roughly 507.6 million H shares, or about 5.32% of total enlarged share capital, upon full conversion. Net proceeds of approximately HK$9.92 billion are earmarked to support Huatai’s international business development and supplement working capital, strengthening its capital base and enhancing its capacity to expand overseas while the conversion structure may lead to future equity dilution for existing shareholders. The conversion shares will be issued under the company’s existing general mandate without further shareholder approval, and an application will be made for their listing on the Hong Kong Stock Exchange, with the company also required to complete relevant CSRC filings for the bond issuance.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$21.50 price target. To see the full list of analyst forecasts on Huatai Securities Co stock, see the HK:6886 Stock Forecast page.

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 board, as well as the appointments of the chairman of the board and the chief executive officer. The EGM, convened and chaired by executive director Zhou Yi, complied with PRC company law and the company’s articles of association, featured both on-site and online voting for A-share and H-share holders, and recorded participation representing about 58.1% of the company’s total issued share capital, underscoring robust shareholder engagement in the company’s governance decisions.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$21.50 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 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 directors, and assigns chairmanships and memberships for the Development Strategy, Compliance and Risk Management, Audit, Nomination, and Remuneration and Appraisal Committees, underscoring the company’s focus on corporate governance, risk oversight, and strategic execution in its securities business.

The most recent analyst rating on (HK:6886) stock is a Buy with a HK$21.50 price target. To see the full list of analyst forecasts on Huatai Securities Co stock, see the HK:6886 Stock Forecast page.

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.

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: Feb 04, 2026