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China Galaxy Securities

SEHK:6881
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
6881
SEHK
HK$92B
Market Cap
  1. Home
  2. HK
  3. Diversified Financials
Company description

China Galaxy Securities Co., Ltd. provides various financial services in the People’s Republic of China. The last earnings update was 38 days ago. More info.


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6881 Share Price and Events
7 Day Returns
0.2%
SEHK:6881
-2.2%
HK Capital Markets
-2.7%
HK Market
1 Year Returns
-1.7%
SEHK:6881
-10.1%
HK Capital Markets
-5.6%
HK Market
6881 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Galaxy Securities (6881) 0.2% -7.3% -5.4% -1.7% -47.6% -58.9%
HK Capital Markets -2.2% -5.6% -5.6% -10.1% -32.4% -38.2%
HK Market -2.7% -4.6% -1% -5.6% 4.1% -4%
1 Year Return vs Industry and Market
  • 6881 outperformed the Capital Markets industry which returned -10.1% over the past year.
  • 6881 outperformed the Market in Hong Kong which returned -5.6% over the past year.
Price Volatility
6881
Industry
5yr Volatility vs Market

Value

 Is China Galaxy Securities undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China Galaxy Securities to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China Galaxy Securities.

SEHK:6881 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 10 analysts.
= Stable Book Value * Return on Equity
= CN¥7.41 * 7.1%
CN¥0.52
Book Value of Equity per Share Weighted future Book Value estimates from 8 analysts. CN¥7.41
Discount Rate (Cost of Equity) See below 10.9%
Perpetual Growth Rate 10-Year HK Government Bond Rate 1.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:6881
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 1.6%
Equity Risk Premium S&P Global 6.3%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.76
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.763 (1 + (1- 25%) (167.31%))
1.483
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.48
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.55% + (1.483 * 6.33%)
10.94%

Discounted Cash Flow Calculation for SEHK:6881 using Excess Returns Model Model

The calculations below outline how an intrinsic value for China Galaxy Securities is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SEHK:6881 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (7.1% – 10.94%) * CN¥7.41)
CN¥-0.29
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥-0.29 / (10.94% - 1.55%)
CN¥-3.05
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥7.41 + CN¥-3.05
CN¥4.36
SEHK:6881 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:6881)
1.111
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥4.36 x 1.111
HK$4.84
Value per share (HKD) From above. HK$4.84
Current discount Discount to share price of HK$4.06
= -1 x (HK$4.06 - HK$4.84) / HK$4.84
16.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price China Galaxy Securities is available for.
Intrinsic value
16%
Share price is HK$4.06 vs Future cash flow value of HK$4.84
Current Discount Checks
For China Galaxy Securities to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Galaxy Securities's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • China Galaxy Securities's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China Galaxy Securities's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Galaxy Securities's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:6881 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in CNY CN¥0.49
SEHK:6881 Share Price ** SEHK (2019-12-05) in HKD HK$4.06
SEHK:6881 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.9 CN¥3.66
Hong Kong Capital Markets Industry PE Ratio Median Figure of 41 Publicly-Listed Capital Markets Companies 11.32x
Hong Kong Market PE Ratio Median Figure of 1,469 Publicly-Listed Companies 10.13x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China Galaxy Securities.

SEHK:6881 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:6881 Share Price ÷ EPS (both in CNY)

= 3.66 ÷ 0.49

7.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Galaxy Securities is good value based on earnings compared to the HK Capital Markets industry average.
  • China Galaxy Securities is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China Galaxy Securities's expected growth come at a high price?
Raw Data
SEHK:6881 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
16.7%per year
Hong Kong Capital Markets Industry PEG Ratio Median Figure of 8 Publicly-Listed Capital Markets Companies 0.5x
Hong Kong Market PEG Ratio Median Figure of 480 Publicly-Listed Companies 0.72x

*Line of best fit is calculated by linear regression .

SEHK:6881 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.47x ÷ 16.7%

0.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Galaxy Securities is good value based on expected growth next year.
Price based on value of assets
What value do investors place on China Galaxy Securities's assets?
Raw Data
SEHK:6881 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in CNY CN¥6.86
SEHK:6881 Share Price * SEHK (2019-12-05) in HKD HK$4.06
SEHK:6881 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.9 CN¥3.66
Hong Kong Capital Markets Industry PB Ratio Median Figure of 70 Publicly-Listed Capital Markets Companies 0.52x
Hong Kong Market PB Ratio Median Figure of 2,202 Publicly-Listed Companies 0.81x
SEHK:6881 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:6881 Share Price ÷ Book Value per Share (both in CNY)

= 3.66 ÷ 6.86

0.53x

* Primary Listing of China Galaxy Securities.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Galaxy Securities is overvalued based on assets compared to the HK Capital Markets industry average.
X
Value checks
We assess China Galaxy Securities's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. China Galaxy Securities has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is China Galaxy Securities expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Galaxy Securities expected to grow at an attractive rate?
  • China Galaxy Securities's earnings growth is expected to exceed the low risk savings rate of 1.6%.
Growth vs Market Checks
  • China Galaxy Securities's earnings growth is expected to exceed the Hong Kong market average.
  • China Galaxy Securities's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:6881 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:6881 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 16.7%
SEHK:6881 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 2.8%
Hong Kong Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 13.5%
Hong Kong Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 11.2%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:6881 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:6881 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 15,896 7,634 5
2020-12-31 14,626 5,449 5
2019-12-31 14,835 5,357 3
2019-12-05
SEHK:6881 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-09-30 15,574 32,180 4,878
2019-06-30 12,956 17,286 4,171
2019-03-31 11,442 14,044 3,529
2018-12-31 9,889 10,802 2,887
2018-09-30 9,243 -2,642 2,804
2018-06-30 10,111 -21,793 3,180
2018-03-31 10,923 -26,167 3,580
2017-12-31 11,611 -30,540 3,981
2017-09-30 12,182 -22,440 4,496
2017-06-30 12,753 -14,339 5,010
2017-03-31 13,145 1,001 5,082
2016-12-31 13,538 16,342 5,154

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China Galaxy Securities's earnings are expected to grow by 16.7% yearly, however this is not considered high growth (20% yearly).
  • China Galaxy Securities's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:6881 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from China Galaxy Securities Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:6881 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.52 0.58 0.48 9.00
2020-12-31 0.49 0.55 0.44 11.00
2019-12-31 0.46 0.49 0.45 8.00
2019-12-05
SEHK:6881 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-09-30 0.49
2019-06-30 0.43
2019-03-31 0.35
2018-12-31 0.28
2018-09-30 0.27
2018-06-30 0.30
2018-03-31 0.35
2017-12-31 0.39
2017-09-30 0.45
2017-06-30 0.51
2017-03-31 0.53
2016-12-31 0.54

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • China Galaxy Securities is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China Galaxy Securities's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China Galaxy Securities has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has China Galaxy Securities performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China Galaxy Securities's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China Galaxy Securities's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • China Galaxy Securities's 1-year earnings growth exceeds its 5-year average (74% vs -13.3%)
  • China Galaxy Securities's earnings growth has exceeded the HK Capital Markets industry average in the past year (74% vs -30.7%).
Earnings and Revenue History
China Galaxy Securities's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China Galaxy Securities Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:6881 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 15,573.53 4,877.63 5,535.80
2019-06-30 12,956.02 4,171.08 4,930.25
2019-03-31 11,442.30 3,529.11 4,375.18
2018-12-31 9,889.47 2,887.13 4,099.20
2018-09-30 9,242.74 2,804.00 5,027.79
2018-06-30 10,110.85 3,179.56 4,920.98
2018-03-31 10,922.98 3,580.15 4,483.11
2017-12-31 11,611.18 3,980.73 4,625.56
2017-09-30 12,182.15 4,495.51 4,582.56
2017-06-30 12,753.11 5,010.30 4,539.57
2017-03-31 13,145.40 5,081.92 4,726.76
2016-12-31 13,537.68 5,153.55 4,913.95
2016-09-30 16,097.85 5,800.86 6,206.55
2016-06-30 18,658.01 6,448.17 7,499.15
2016-03-31 22,561.89 8,141.84 8,760.15
2015-12-31 26,465.78 9,835.51 10,021.14
2015-09-30 24,056.02 8,951.24 9,027.12
2015-06-30 21,646.27 8,066.97 8,033.11
2015-03-31 16,619.34 5,918.85 6,331.69
2014-12-31 11,592.41 3,770.73 4,630.28
2014-09-30 10,057.86 3,142.43 3,988.09
2014-06-30 8,523.30 2,514.12 3,345.89
2014-03-31 8,015.17 2,186.15 3,105.41
2013-12-31 7,718.74 2,135.25 2,890.10
2013-09-30 6,966.54 1,828.48 2,647.04
2013-06-30 6,214.33 1,521.72 2,403.99
2013-03-31 6,057.28 1,611.52 2,348.95
2012-12-31 5,646.46 1,419.78 2,242.74

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China Galaxy Securities has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Galaxy Securities used its assets less efficiently than the HK Capital Markets industry average last year based on Return on Assets.
  • Unable to establish if China Galaxy Securities improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess China Galaxy Securities's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China Galaxy Securities has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is China Galaxy Securities's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up China Galaxy Securities's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China Galaxy Securities is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • China Galaxy Securities's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China Galaxy Securities's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China Galaxy Securities Company Filings, last reported 2 months ago.

SEHK:6881 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 70,525.93 136,712.53 177,071.25
2019-06-30 69,159.23 147,663.15 202,197.47
2019-03-31 69,159.23 147,663.15 202,197.47
2018-12-31 66,337.86 124,946.89 163,450.07
2018-09-30
2018-06-30 64,922.55 124,806.71 156,855.74
2018-03-31 64,922.55 124,806.71 156,855.74
2017-12-31 64,886.43 118,909.50 127,031.06
2017-09-30 64,886.43 118,909.50 127,031.06
2017-06-30 63,025.46 85,592.87 112,880.71
2017-03-31 63,025.46 85,592.87 112,880.71
2016-12-31 58,353.90 91,851.57 110,542.03
2016-09-30 58,353.90 91,851.57 110,542.03
2016-06-30 55,080.65 85,650.78 135,210.69
2016-03-31 55,080.65 85,650.78 135,210.69
2015-12-31 57,249.42 125,150.67 163,319.65
2015-09-30 57,249.42 125,150.67 163,319.65
2015-06-30 53,100.19 164,914.70 211,799.88
2015-03-31 53,100.19 164,914.70 211,799.88
2014-12-31 29,335.92 72,899.55 66,185.24
2014-09-30 29,335.92 72,899.55 66,185.24
2014-06-30 26,592.63 19,131.42 45,068.83
2014-03-31 26,592.63 19,131.42 45,068.83
2013-12-31 25,421.67 14,860.60 40,231.98
2013-09-30 25,421.67 14,860.60 40,231.98
2013-06-30 25,038.65 17,909.80 55,194.49
2013-03-31 18,263.31 11,772.92 44,698.86
2012-12-31 17,558.85 6,287.37 42,699.83
  • China Galaxy Securities's level of debt (193.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (248.5% vs 193.2% today).
  • Debt is well covered by operating cash flow (23.6%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on China Galaxy Securities's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess China Galaxy Securities's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China Galaxy Securities has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is China Galaxy Securities's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.46%
Current annual income from China Galaxy Securities dividends. Estimated to be 4.02% next year.
If you bought HK$2,000 of China Galaxy Securities shares you are expected to receive HK$49 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • China Galaxy Securities's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.26%).
  • China Galaxy Securities's dividend is below the markets top 25% of dividend payers in Hong Kong (6.35%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:6881 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Hong Kong Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 3.2%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 963 Stocks 3.8%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.3%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.3%
Hong Kong Top 25% Dividend Yield 75th Percentile 6.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:6881 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.16 10.00
2020-12-31 0.15 13.00
2019-12-31 0.14 11.00
2019-12-05
SEHK:6881 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-05-28 0.090 2.458
2019-03-28 0.090 2.088
2018-06-26 0.122 3.604
2018-03-28 0.120 3.012
2017-06-22 0.142 2.787
2017-03-30 0.155 2.485
2016-05-26 0.328 5.177
2015-03-30 0.160 2.692
2014-05-29 0.062 1.171

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Galaxy Securities has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but China Galaxy Securities only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of China Galaxy Securities's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess China Galaxy Securities's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China Galaxy Securities afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Galaxy Securities has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of China Galaxy Securities's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Liang Chen
AGE 51
TENURE AS CEO 0.5 years
CEO Bio

Mr. Liang Chen has been the President of China Galaxy Securities Co., Ltd., since June 11, 2019 and serves as its Chief Risk Officer since 2019. He has been the deputy secretary of the Party Committee of the Company since May 2019. From October 1994 to February 2001, Mr. Chen served as the director of the Computer Division, deputy general manager of the Securities Division, manager of the Securities Branch in Wenyi Road, and deputy general manager of the Securities Business Headquarters of Xinjiang Hongyuan Trust Investment Co., Ltd. From February 2001 to September 2009, he served as the general manager of the Urumqi Business Headquarters of Hong Yuan Securities Co., Ltd. (“Hong Yuan Securities”), assistant to the general manager of Hong Yuan Securities, general manager of the Xinjiang Sales and Marketing Center, and general manager of the Brokerage Business Headquarters of Hong Yuan Securities. From September 2009 to January 2015, he was the deputy general manager of Hong Yuan Securities and the chairman of the board of directors of Hongyuan Futures Co., Ltd. From December 2014 to May 2019, he served as a member of the Party Committee of each of Shenwan Hongyuan Group Co., Ltd. and Shenwan Hongyuan Securities Co., Ltd., the general manager of Shenwan Hongyuan Group Co., Ltd., and an executive director of Shenwan Hongyuan Securities (Western) Co., Ltd. From August 2015 to May 2019, he served as the secretary of the Party Committee of Shenwan Hongyuan Securities (Western) Co., Ltd. Mr. Chen Liang graduated from Xinjiang University majoring in mathematics and obtained a bachelor’s degree in July 1989, and obtained an EMBA degree from Fudan University in January 2016.

CEO Compensation
  • Insufficient data for Liang to compare compensation growth.
  • Insufficient data for Liang to establish whether their remuneration is reasonable compared to companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the China Galaxy Securities management team in years:

0.9
Average Tenure
49.5
Average Age
  • The average tenure for the China Galaxy Securities management team is less than 2 years, this suggests a new team.
Management Team

Gongyan Chen

TITLE
Executive Chairman of the Board
COMPENSATION
CN¥3M
AGE
57
TENURE
0.8 yrs

Chengming Wu

TITLE
Interim CFO & Secretary to the Board
COMPENSATION
CN¥3M
AGE
56
TENURE
0.7 yrs

Jianhui Wu

TITLE
Chief Business Officer
AGE
49
TENURE
0.9 yrs

Yanwu Yin

TITLE
Chief Business Officer
AGE
45
TENURE
7 yrs

Liming Luo

TITLE
Chief Business Officer
AGE
43
TENURE
2.5 yrs

Guofang Wu

TITLE
Chief Business Officer
AGE
48
TENURE
1.1 yrs

Liang Chen

TITLE
President & Chief Risk Officer
AGE
51
TENURE
0.5 yrs

Shipeng Liang

TITLE
Chief Compliance Officer
AGE
50
TENURE
0.4 yrs

Kenneth Lee

TITLE
Joint Company Secretary
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the China Galaxy Securities board of directors in years:

1.8
Average Tenure
56.5
Average Age
  • The average tenure for the China Galaxy Securities board of directors is less than 3 years, this suggests a new board.
Board of Directors

Gongyan Chen

TITLE
Executive Chairman of the Board
COMPENSATION
CN¥3M
AGE
57
TENURE
3.2 yrs

Jing Chen

TITLE
Chairman of the Board of Supervisors
AGE
56
TENURE
2.6 yrs

Ruizhong Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥253K
AGE
66
TENURE
2.3 yrs

Dingping Liu

TITLE
Non-Executive Director
AGE
57
TENURE
1.8 yrs

Chun Liu

TITLE
Independent Non-Executive Director
AGE
56
TENURE
0.8 yrs

Zhenjun Wang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥241K
AGE
62
TENURE
1.8 yrs

Lihong Xiao

TITLE
Non Executive Director
AGE
54
TENURE
0.8 yrs

Tianli Zhang

TITLE
Non-Executive Director
AGE
57
TENURE
0.8 yrs

Zelan Wang

TITLE
Non Executive Director
AGE
54
TENURE
0.8 yrs

Zhiyi Liu

TITLE
Employee Supervisor
COMPENSATION
CN¥2M
AGE
55
TENURE
6.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
01. Nov 19 Sell BlackRock, Inc. Company 29. Oct 19 29. Oct 19 -1,063,000 HK$4.10 HK$-4,353,623
13. Aug 19 Sell BlackRock, Inc. Company 08. Aug 19 08. Aug 19 -15,924,500 HK$3.78 HK$-60,221,672
X
Management checks
We assess China Galaxy Securities's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China Galaxy Securities has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Should We Expect From China Galaxy Securities Co., Ltd.'s (HKG:6881) Earnings Over The Next Few Years?

Below, I've laid out key growth figures on how market analysts perceive China Galaxy Securities's earnings growth trajectory over the next couple of years and whether the future looks brighter. … View our latest analysis for China Galaxy Securities Market analysts' consensus outlook for the coming year seems optimistic, with earnings expanding by a significant 53%. … The benefit of this approach is that we can get a bigger picture of the direction of China Galaxy Securities's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors.

Simply Wall St -

What Should We Expect From China Galaxy Securities Co., Ltd.'s (HKG:6881) Earnings In The Year Ahead?

Below is a brief commentary around China Galaxy Securities's earnings outlook going forward, which may give you a sense of market sentiment for the company. … See our latest analysis for China Galaxy Securities Exciting times ahead? … SEHK:6881 Past and Future Earnings, August 4th 2019 From the current net income level of CN¥2.9b and the final forecast of CN¥5.1b by 2022, the annual rate of growth for 6881’s earnings is 14%.

Simply Wall St -

What Kind Of Investor Owns Most Of China Galaxy Securities Co., Ltd. (HKG:6881)?

See our latest analysis for China Galaxy Securities SEHK:6881 Ownership Summary, July 22nd 2019 What Does The Institutional Ownership Tell Us About China Galaxy Securities? … We can see that China Galaxy Securities does have institutional investors; and they hold 12% of the stock. … Insider Ownership Of China Galaxy Securities The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Do You Like China Galaxy Securities Co., Ltd. (HKG:6881) At This P/E Ratio?

We'll apply a basic P/E ratio analysis to China Galaxy Securities Co., Ltd.'s (HKG:6881), to help you decide if the stock is worth further research. … See our latest analysis for China Galaxy Securities How Do I Calculate China Galaxy Securities's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) Or for China Galaxy Securities: P/E of 14.28 = CN¥4.07 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.28 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Is China Galaxy Securities Co., Ltd.'s (HKG:6881) Growth Strong Enough To Justify Its June Share Price?

But, seeing as China Galaxy Securities is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio. … A PE ratio of 13.86x and expected year-on-year earnings growth of 16% give China Galaxy Securities a low PEG ratio of 0.87x. … So, when we include the growth factor in our analysis, China Galaxy Securities appears fairly valued , based on fundamental analysis.

Simply Wall St -

Is Now The Time To Look At Buying China Galaxy Securities Co., Ltd. (HKG:6881)?

A question to answer is whether China Galaxy Securities's current trading price of HK$4.07 reflective of the actual value of the large-cap? … It’s trading around 6.1% below my intrinsic value, which means if you buy China Galaxy Securities today, you’d be paying a fair price for it. … This is because China Galaxy Securities’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market.

Simply Wall St -

China Galaxy Securities Co., Ltd. (HKG:6881): 2 Days To Buy Before The Ex-Dividend Date

View our latest analysis for China Galaxy Securities Here's how I find good dividend stocks If you are a dividend investor, you should always assess these five key metrics: Is it the top 25% annual dividend yield payer? … SEHK:6881 Historical Dividend Yield, May 27th 2019 Does China Galaxy Securities pass our checks? … The reality is that it is too early to consider China Galaxy Securities as a dividend investment.

Simply Wall St -

Read This Before Buying China Galaxy Securities Co., Ltd. (HKG:6881) For Its Dividend

(HKG:6881) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. Investors might not know much about China Galaxy Securities's dividend prospects, even though it has been paying dividends for the last five years and offers a 2.2% yield. While the yield may not look too great, the relatively long payment history is interesting. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … While the above analysis focuses on dividends relative to a company's earnings, we do note China Galaxy Securities's strong net cash position, which will let it pay larger dividends for a time, should it choose. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. Why take the risk of a dividend getting cut, unless there's a good chance of bigger dividends in future? While there may be fluctuations in the past , China Galaxy Securities's earnings per share have basically not grown from where they were five years ago. Over the long term, steady earnings per share is a risk as the value of the dividends can be reduced by inflation. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

China Galaxy Securities Co., Ltd. (HKG:6881): What Does The Future Look Like?

Looking at China Galaxy Securities Co., Ltd.'s (HKG:6881) earnings update in December 2018,. … analyst consensus outlook appear cautiously optimistic, … the past 5-year average growth rate of -1.9%

Simply Wall St -

China Galaxy Securities Co., Ltd. (HKG:6881): What Can We Expect From This High Growth Stock?

The most recent earnings release China Galaxy Securities Co., Ltd.'s (HKG:6881) announced in December 2018a

Simply Wall St -

Company Info

Description

China Galaxy Securities Co., Ltd. provides various financial services in the People’s Republic of China. Its Securities Brokerage segment offers securities dealing and broking; margin financing to margin clients; and securities lending services. The Company’s Futures Brokerage segment is involved in futures dealing and broking, futures information consulting, and training activities. Its Proprietary Trading and Other Securities Trading Services segment engages in the trading of equities, bonds, funds, derivatives, and other financial products. The Company’s Investment Banking segment provides corporate financial services, including equity and debt securities underwriting, and financial advisory services to institutional clients. Its Asset Management segment offers portfolio management, investment advisory, and transaction execution services. The Company’s Private Equity and Alternative Investment segment makes equity investments in private companies. Its Hong Kong Business segment provides securities brokerage, futures brokerage, securities research, investment banking, margin financing, money lending, asset management, and insurance brokerage services in Hong Kong. The company serves various individual and institutional clients comprising multinational corporations, medium and small-sized enterprises, high-net-worth clients, and retail clients. It operates through a network of 36 branch offices and 493 securities branches. The company was founded in 2007 and is headquartered in Beijing, the People’s Republic of China. China Galaxy Securities Co., Ltd. is a subsidiary of China Galaxy Financial Holdings Company Limited.

Details
Name: China Galaxy Securities Co., Ltd.
6881
Exchange: SEHK
Founded: 2007
HK$91,647,513,530
10,137,258,757
Website: http://www.chinastock.com.cn
Address: China Galaxy Securities Co., Ltd.
Tower C, Corporate Square,
2-6 Floors,
Beijing,
100033,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 6881 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 22. May 2013
OTCPK CGXY.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 22. May 2013
DB CGL Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 22. May 2013
SHSC 6881 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 22. May 2013
SZSC 6881 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 22. May 2013
OTCPK CGXY.Y ADR Pink Sheets LLC US USD 16. Aug 2013
SHSE 601881 Domestic Shares Shanghai Stock Exchange CN CNY 23. Jan 2017
XSSC 601881 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 23. Jan 2017
Number of employees
Current staff
Staff numbers
9,614
China Galaxy Securities employees.
Industry
Investment Banking and Brokerage
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/05 12:57
End of day share price update: 2019/12/05 00:00
Last estimates confirmation: 2019/11/25
Last earnings filing: 2019/10/28
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.