Live News • Jul 05
China Galaxy Securities Raises 5.8 Billion Yuan in New Tranche of 2026 Bonds China Galaxy Securities completed the fifth tranche of its 2026 corporate bond program, raising RMB5.8b from professional investors under a CSRC-approved RMB30b issuance plan.
The bonds carry two and three-year terms with low coupon rates and are earmarked for working capital, while participation from related CITIC group institutions adds depth to the company’s institutional funding base without increasing insider concentration.
China Galaxy Securities’ stock trades at HK$7.59, with the share price down 27.2% year to date.
This latest bond issue expands China Galaxy Securities’ debt financing options and supports short to medium-term liquidity, while the low coupon structure helps contain funding costs. For investors, the key point to monitor is how efficiently the new capital is used in core operations relative to the added leverage on the balance sheet. Announcement • Jun 30
China Galaxy Securities Co., Ltd. to Report First Half, 2026 Results on Aug 29, 2026 China Galaxy Securities Co., Ltd. announced that they will report first half, 2026 results on Aug 29, 2026 Upcoming Dividend • Jun 29
Upcoming dividend of CN¥0.23 per share Eligible shareholders must have bought the stock before 06 July 2026. Payment date: 21 August 2026. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 5.5%. Lower than top quartile of Hong Kong dividend payers (7.6%). Higher than average of industry peers (3.5%). Live News • Jun 12
China Galaxy Securities Issues RMB5 Billion Perpetual Bonds With 2% Coupon and Flexible Redemption China Galaxy Securities has completed the issuance of RMB5b in 2026 perpetual subordinated bonds as part of its capital management plans.
The bonds carry a 2% coupon with a five-year reset feature and call options that give the company flexibility on future redemption.
Subscriptions came mainly from lead underwriters and related parties, and the instrument qualifies as subordinated capital on the balance sheet.
This refinancing move supports the company’s capital structure by replacing maturing obligations with longer-term, subordinated funding that can count toward regulatory capital.
For you, the key consideration is how the 2% coupon and perpetual structure may influence the company’s funding costs and capital flexibility over time, especially if interest rates or regulatory requirements change by the first reset date. Declared Dividend • Jun 08
Dividend of CN¥0.23 announced Shareholders will receive a dividend of CN¥0.23. Ex-date: 6th July 2026 Payment date: 21st August 2026 Dividend yield will be 4.8%, which is higher than the industry average of 4.2%. Sustainability & Growth Dividend is well covered by both earnings (33% earnings payout ratio) and cash flows (19% cash payout ratio). The dividend has increased over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 39% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 05
China Galaxy Securities Co., Ltd., Annual General Meeting, Jun 29, 2026 China Galaxy Securities Co., Ltd., Annual General Meeting, Jun 29, 2026, at 10:00 China Standard Time. Location: conference room m1919, qinghai finance building, building no. 1, no. 8 xiying street, fengtai district, beijing China Buy Or Sell Opportunity • May 14
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 21% to HK$8.14. The fair value is estimated to be HK$10.33, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.9% over the last 3 years. Earnings per share has grown by 19%. Revenue is forecast to grow by 29% in 2 years. Earnings are forecast to grow by 33% in the next 2 years. New Risk • May 05
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 30% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (30% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Buy Or Sell Opportunity • Apr 15
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 20% to HK$8.66. The fair value is estimated to be HK$10.90, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 17%. For the next 3 years, revenue is forecast to grow by 16% per annum. Earnings are also forecast to grow by 14% per annum over the same time period. Major Estimate Revision • Apr 07
Consensus EPS estimates fall by 15% The consensus outlook for fiscal year 2026 has been updated. 2026 consensus EPS estimate fell from CN¥1.36 to CN¥1.15. Revenue forecast reaffirmed at CN¥41.2b. Net income forecast to grow 26% next year vs 19% growth forecast for Capital Markets industry in Hong Kong. Consensus price target broadly unchanged at HK$12.55. Share price rose 2.3% to HK$8.08 over the past week. Announcement • Apr 02
China Galaxy Securities Co., Ltd. Proposes Final Dividend in Respect of the Year Ended 31 December 2025 on March 30, 2026, China Galaxy Securities Co., Ltd. announced that a final dividend in respect of the year ended 31 December 2025 of RMB 2.25 per 10 shares (inclusive of tax), in an aggregate amount of RMB 2,460.24 million, based on a total of 10,934,402,256 shares in issue, has been proposed by the Board of Directors of the Company at its 12th Meeting of the 5th Session and is subject to approval by the shareholders in the forthcoming annual general meeting. New Risk • Apr 01
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 6.7% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (6.7% operating cash flow to total debt). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Announcement • Mar 30
China Galaxy Securities Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 China Galaxy Securities Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Announcement • Feb 12
China Galaxy Securities Co., Ltd. Approve Election of Qu Yanping as Executive Director China Galaxy Securities Co., Ltd. at its EGM held on February 12, 2026, approved the election of Ms. QU Yanping as an executive Director of the fifth session of the Board of Directors of the Company. Announcement • Dec 26
China Galaxy Securities Co., Ltd. to Report Fiscal Year 2025 Results on Mar 31, 2026 China Galaxy Securities Co., Ltd. announced that they will report fiscal year 2025 results on Mar 31, 2026 Announcement • Nov 01
China Galaxy Securities Co., Ltd. Approves Interim Dividend for the Six Months Ended 30 June 2025, Payable on 24 December 2025 China Galaxy Securities Co., Ltd. will distribute a cash dividend of RMB 1,366,800,282.00 (tax inclusive) for the six months ended 30 June 2025. Based on the Company's total number of issued shares of 10,934,402,256 shares as at 30 June 2025, a cash dividend of RMB 1.25 (tax inclusive, the actual amount distributed may be slightly different due to rounding) for every 10 shares will be distributed. In the event of any change in the total number of issued shares of the Company prior to the record date for the 2025 Interim Dividend (that is 14 November 2025), the Company will maintain the above total amount of cash dividend unchanged and adjust the amount of cash distribution per share accordingly. The 2025 Interim Dividend is denominated and declared in RMB, and payable in RMB to holders of A Shares and investors via the Hong Kong Stock Connect Program, and in HK dollars to holders of H Shares (excluding investors via the Hong Kong Stock Connect Program). The actual amount distributed in HK dollars will be calculated based on the average benchmark exchange rate of RMB against HK dollars announced by the People's Bank of China for the five business days prior to the date of the EGM (i.e. RMB 0.91227 against HKD 1.00). Accordingly, the 2025 Interim Dividend is HKD 0.137021 per H Share (tax inclusive). For the purpose of determining the entitlement of holders of H Shares to the 2025 Interim Dividend, the H Share register of members of the Company will be closed from 11 November 2025 to 14 November 2025 (both days inclusive), during which period no transfer of H Shares will be registered. Holders of H Shares whose names appear on the H Share register of members of the Company on 14 November 2025 are entitled to the 2025 Interim Dividend. In order to be entitled to receive the 2025 Interim Dividend, all share certificates, together with the instruments of transfers, must be lodged for registration with the Company's H Share registrar, Computershare Hong Kong Investor Services Limited (for holders of H Shares) at Shops 1712-1716, 17/F, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong, not later than 4:30 p.m. on 10 November 2025. The last trading day for H Shares of the Company before ex-dividend will be 6 November 2025, and trading of ex-dividend H Shares will commence on 7 November 2025. The Company has appointed Bank of China (Hong Kong) Limited as its receiving agent (the "Receiving Agent") in Hong Kong and will pay the declared 2025 Interim Dividend to the Receiving Agent for payment to holders of H Shares. It is expected that the Receiving Agent will pay the 2025 Interim Dividend on Wednesday, 24 December 2025 to holders of H Shares whose names appear on the H Share register of members of the Company on 14 November 2025. As for the distribution of the 2025 Interim Dividend to the holders of A Shares, the record date is 14 November 2025, and the ex-dividend date and the dividend distribution date are 17 November 2025. The Company will announce separately on the Shanghai Stock Exchange details of the arrangements regarding the distribution of the 2025 Interim Dividend to the holders of A Shares. Announcement • Oct 31
China Galaxy Securities Co., Ltd. Approves Abolishment of the Supervisory Committee, Effective 31 October 2025 The Board of China Galaxy Securities Co., Ltd. at its EGM held on 31 October 2025, approved the abolishment of the Supervisory Committee of the Company. With the approval of the EGM, the Company no longer has the supervisory committee (the " Supervisory Committee "). All existing Supervisors (including Ms. QU Yanping, Mr. FAN Wenbo, Mr. TAO Libin, Mr. CHEN Jijiang, and Mr. WANG Dansen) retired upon the conclusion of the EGM. Each Supervisor has confirmed that he/she has no disagreement with the Supervisory Committee and there are no other matters relating to his/her retirement that need to be brought to the attention of the shareholders of the Company. Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: CN¥0.37 (vs CN¥0.20 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.37 (up from CN¥0.20 in 3Q 2024). Revenue: CN¥8.60b (down 9.3% from 3Q 2024). Net income: CN¥5.08b (up 60% from 3Q 2024). Profit margin: 59% (up from 34% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 1.0% p.a. on average during the next 3 years, compared to a 8.9% growth forecast for the Capital Markets industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 52% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Oct 31
Upcoming dividend of CN¥0.13 per share Eligible shareholders must have bought the stock before 07 November 2025. Payment date: 24 December 2025. Payout ratio is a comfortable 32% but the company is not cash flow positive. Trailing yield: 3.8%. Lower than top quartile of Hong Kong dividend payers (6.7%). Higher than average of industry peers (2.4%). Announcement • Sep 30
China Galaxy Securities Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 China Galaxy Securities Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 Major Estimate Revision • Sep 04
Consensus EPS estimates increase by 24% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from CN¥0.989 to CN¥1.23. Revenue forecast unchanged at CN¥37.8b. Net income forecast to grow 17% next year vs 17% growth forecast for Capital Markets industry in Hong Kong. Consensus price target up from HK$9.94 to HK$11.12. Share price fell 6.6% to HK$10.71 over the past week. Reported Earnings • Aug 29
Second quarter 2025 earnings released: EPS: CN¥0.29 (vs CN¥0.26 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.29 (up from CN¥0.26 in 2Q 2024). Revenue: CN¥6.19b (down 41% from 2Q 2024). Net income: CN¥3.47b (up 62% from 2Q 2024). Profit margin: 56% (up from 21% in 2Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 10.0% growth forecast for the Capital Markets industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 38% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 22
China Galaxy Securities Co., Ltd. Receives Approval for RMB 20 Billion Perpetual Subordinated Corporate Bonds Issuance China Galaxy Securities Co., Ltd. recently received the approval issued by the China Securities Regulatory Commission with respect to the Company 's application for the registration of perpetual subordinated corporate bonds (the " Perpetual Subordinated Corporate Bonds") with a total nominal value of up to RMB 20 billion to be publicly issued by the Company to professional investors. The Approval will be valid for a period of 24 months. The Company may issue the Perpetual Subordinated Corporate Bonds in tranches during the valid period of the Approval. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$12.76, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 14x in the Capital Markets industry in Hong Kong. Total returns to shareholders of 262% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$10.18 per share. Buy Or Sell Opportunity • Aug 15
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 64% to HK$12.47. The fair value is estimated to be HK$10.19, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 6.5%. Revenue is forecast to grow by 12% in 2 years. Earnings are forecast to grow by 18% in the next 2 years. Valuation Update With 7 Day Price Move • Jul 24
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$11.32, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 16x in the Capital Markets industry in Hong Kong. Total returns to shareholders of 237% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$9.83 per share. Announcement • Jun 30
China Galaxy Securities Co., Ltd. to Report First Half, 2025 Results on Aug 29, 2025 China Galaxy Securities Co., Ltd. announced that they will report first half, 2025 results on Aug 29, 2025 Upcoming Dividend • Jun 27
Upcoming dividend of CN¥0.20 per share Eligible shareholders must have bought the stock before 04 July 2025. Payment date: 21 August 2025. Payout ratio is a comfortable 29% but the company is not cash flow positive. Trailing yield: 4.8%. Lower than top quartile of Hong Kong dividend payers (7.3%). Higher than average of industry peers (2.5%). Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$8.93, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 16x in the Capital Markets industry in Hong Kong. Total returns to shareholders of 146% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$9.75 per share. Announcement • Jun 24
China Galaxy Securities Co., Ltd.(SHSE:601881) dropped from Shanghai Stock Exchange 180 Value Index China Galaxy Securities Co., Ltd.has been removed from Shanghai Stock Exchange 180 Value Index. Buy Or Sell Opportunity • Jun 19
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.4% to HK$7.76. The fair value is estimated to be HK$9.81, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 6.5%. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 12% in the next 2 years. Declared Dividend • Jun 06
Dividend of CN¥0.20 announced Shareholders will receive a dividend of CN¥0.20. Ex-date: 4th July 2025 Payment date: 21st August 2025 Dividend yield will be 3.6%, which is lower than the industry average of 4.2%. Sustainability & Growth Dividend is covered by earnings (29% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 9.4% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 14% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 04
China Galaxy Securities Co., Ltd., Annual General Meeting, Jun 27, 2025 China Galaxy Securities Co., Ltd., Annual General Meeting, Jun 27, 2025, at 10:00 China Standard Time. Location: conference room m1919, qinghai finance building, building no. 1, no. 8 xiying street, fengtai district, beijing China Buy Or Sell Opportunity • Jun 02
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.1% to HK$7.42. The fair value is estimated to be HK$9.47, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 6.5%. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 12% in the next 2 years. Reported Earnings • Apr 30
First quarter 2025 earnings released: EPS: CN¥0.25 (vs CN¥0.12 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.25 (up from CN¥0.12 in 1Q 2024). Revenue: CN¥7.55b (up 4.7% from 1Q 2024). Net income: CN¥3.02b (up 85% from 1Q 2024). Profit margin: 40% (up from 23% in 1Q 2024). The increase in margin was primarily driven by lower expenses. Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Capital Markets industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to HK$6.21, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 12x in the Capital Markets industry in Hong Kong. Total returns to shareholders of 69% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$10.43 per share. New Risk • Mar 30
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 5.3% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Announcement • Mar 29
China Galaxy Securities Co., Ltd. Proposes Final Dividend for the Year Ended 31 December 2024 China Galaxy Securities Co., Ltd. proposed final dividend RMB 1.96 per 10 share for the year ended 31 December 2024. Announcement • Mar 28
China Galaxy Securities Co., Ltd. to Report Q1, 2025 Results on Apr 30, 2025 China Galaxy Securities Co., Ltd. announced that they will report Q1, 2025 results on Apr 30, 2025 Buy Or Sell Opportunity • Feb 28
Now 25% undervalued Over the last 90 days, the stock has risen 11% to HK$7.85. The fair value is estimated to be HK$10.51, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 14%. Revenue is forecast to grow by 29% in 2 years. Earnings are forecast to grow by 10% in the next 2 years. Announcement • Feb 27
China Galaxy Securities Co., Ltd. Announces Liu Chun Resignation of Independent Non-Executive Director, the Chairperson of the Audit Committee, and A Member of Each of the Compliance and Risk Management Committee and the Nomination and Remuneration Committee The board of directors of China Galaxy Securities Co., Ltd. announced that Ms. LIU Chun has resigned as an independent non-executive director of the Company, the Chairperson of the Audit Committee, and a member of each of the Compliance and Risk Management Committee and the Nomination and Remuneration Committee of the Board with effect from 26 February 2025 as she has served as an independent non-executive director of the Company for six years. After resignation from the above positions, Ms. LIU Chun ceased to hold any position in the Company or its subsidiaries. Announcement • Dec 30
China Galaxy Securities Co., Ltd. Announces Board and Committee Changes China Galaxy Securities Co., Ltd. at the EGM held on 30 December 2024 appointed Mr. WANG Sheng and Mr. XUE Jun have been elected as executive directors of the fifth session of the Board, Mr. YANG Tijun, Ms. LI Hui, Ms. HUANG Yan and Mr. SONG Weigang have been elected as non-executive directors of the fifth session of the Board, and Ms. LIU Chun, Mr. LAW Cheuk Kin Stephen, Mr. LIU Li and Mr. MA Zhiming have been elected as independent non-executive directors of the fifth session of the Board. The biographical details of the directors are set out in the announcement of the Company dated 6 December 2024 and the Circular. As the term of office of Ms. LIU Chang ended on the expiry of the term of the fourth session of the Board, she retired as a non-executive director of the Company and a member of each of the Strategy and Development Committee and the Nomination and Remuneration Committee at the conclusion of the EGM. As the term of office of Mr. LIU Zhihong ended on the expiry of the term of the fourth session of the Board, he retired as a non-executive director of the Company and a member of the Strategy and Development Committee at the conclusion of the EGM. Each of Ms. LIU Chang and Mr. LIU Zhihong has confirmed that she/he has no disagreement with the Board and that there is no other matter relating to her/his retirement that needs to be brought to the attention of the shareholders of the Company. Strategy and Development Committee includes Mr. WANG Sheng (Chairman), Mr. XUE Jun, Mr. YANG Tijun, Ms. HUANG Yan, Mr. SONG Weigang, Mr. LIU Li and Mr. MA Zhiming. Compliance and Risk Management Committee includes Ms. LI Hui (Chairman), Mr. XUE Jun, Mr. YANG Tijun, Ms. LIU Chun and Mr. MA Zhiming. Nomination and Remuneration Committee includes Mr. LIU Li (Chairman), Ms. LIU Chun, Mr. LAW Cheuk Kin Stephen, Mr. MA Zhiming, Ms. LI Hui and Ms. HUANG Yan. Audit Committee includes Ms. LIU Chun (Chairman), Mr. LAW Cheuk Kin Stephen, Mr. LIU Li, Mr. MA Zhiming, Mr. YANG Tijun and Ms. LI Hui. Announcement • Dec 27
China Galaxy Securities Co., Ltd. to Report Fiscal Year 2024 Results on Mar 29, 2025 China Galaxy Securities Co., Ltd. announced that they will report fiscal year 2024 results on Mar 29, 2025 Upcoming Dividend • Nov 27
Upcoming dividend of CN¥0.084 per share Eligible shareholders must have bought the stock before 04 December 2024. Payment date: 21 January 2025. Payout ratio is a comfortable 48% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Hong Kong dividend payers (8.1%). In line with average of industry peers (2.7%). Buy Or Sell Opportunity • Nov 25
Now 21% undervalued Over the last 90 days, the stock has risen 77% to HK$6.77. The fair value is estimated to be HK$8.58, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 17%. Revenue is forecast to grow by 14% in 2 years. Earnings are forecast to grow by 29% in the next 2 years. Valuation Update With 7 Day Price Move • Nov 06
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$7.81, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 10x in the Capital Markets industry in Hong Kong. Total returns to shareholders of 121% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$9.21 per share. Reported Earnings • Oct 31
Third quarter 2024 earnings released: EPS: CN¥0.20 (vs CN¥0.16 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.20 (up from CN¥0.16 in 3Q 2023). Revenue: CN¥9.49b (up 26% from 3Q 2023). Net income: CN¥3.18b (up 56% from 3Q 2023). Profit margin: 34% (up from 27% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Capital Markets industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Oct 21
Now 20% undervalued Over the last 90 days, the stock has risen 76% to HK$6.56. The fair value is estimated to be HK$8.24, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 13%. Revenue is forecast to grow by 12% in 2 years. Earnings are forecast to grow by 33% in the next 2 years. Valuation Update With 7 Day Price Move • Oct 10
Investor sentiment deteriorates as stock falls 27% After last week's 27% share price decline to HK$6.84, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 10x in the Capital Markets industry in Hong Kong. Total returns to shareholders of 92% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$8.17 per share. New Risk • Oct 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 12% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (38% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (12% average weekly change). Shareholders have been diluted in the past year (3.6% increase in shares outstanding). Buy Or Sell Opportunity • Oct 02
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 115% to HK$9.05. The fair value is estimated to be HK$7.28, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 13%. Revenue is forecast to grow by 7.1% in 2 years. Earnings are forecast to grow by 26% in the next 2 years. Announcement • Sep 30
China Galaxy Securities Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 China Galaxy Securities Co., Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 Valuation Update With 7 Day Price Move • Sep 26
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to HK$5.08, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 8x in the Capital Markets industry in Hong Kong. Total returns to shareholders of 38% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$7.36 per share. New Risk • Aug 30
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 54% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (54% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (3.6% increase in shares outstanding). Announcement • Aug 30
China Galaxy Securities Co., Ltd. Announces Interim Dividend for the Six Months Ended 30 June 2024 China Galaxy Securities Co., Ltd. announced interim dividend of RMB 0.84 per 10 share for the six months ended 30 June 2024. Announcement • Aug 20
China Galaxy Securities Co., Ltd. Announces Change of Composition of Board Committees The board of directors of China Galaxy Securities Co., Ltd. held a meeting on 20 August 2024 to adjust the composition of the Board committees as follows: Mr. Yang Tijun, a non-executive Director, was re-designated from the chairman to a member of the Compliance and Risk Management Committee, and Ms. Li Hui, a non-executive Director, was re- designated from a member to the chairman of the Compliance and Risk Management Committee; and Mr. Ma Zhiming, an independent non-executive Director, was appointed as a member of each of the Strategy and Development Committee, the Compliance and Risk Management Committee, the Nomination and Remuneration Committee and the Audit Committee. The above change of composition of the Board committees took effect from 20 August 2024. Upcoming Dividend • Jul 02
Upcoming dividend of HK$0.24 per share Eligible shareholders must have bought the stock before 08 July 2024. Payment date: 20 August 2024. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 5.7%. Lower than top quartile of Hong Kong dividend payers (8.0%). Higher than average of industry peers (4.0%). Announcement • Jun 29
China Galaxy Securities Co., Ltd. to Report First Half, 2024 Results on Aug 30, 2024 China Galaxy Securities Co., Ltd. announced that they will report first half, 2024 results on Aug 30, 2024 Announcement • Jun 28
China Galaxy Securities Co., Ltd. Approves Final Dividend for the Year Ended December 31, 2023, Payable on August 20, 2024 China Galaxy Securities Co., Ltd. approved final dividend of RMB 2.2 per 10 share for the year ended December 31, 2023. Ex-dividend date: July 08, 2024. Record date: July 15, 2024 Payment date: August 20, 2024. Date of shareholders' approval is 28 June 2024. Announcement • Jun 13
China Galaxy Securities Co., Ltd. Announces Resignation of Wang Zhenjun as an Independent Non-Executive Director and a Member of Each of the Strategy and Development Committee, the Audit Committee, the Nomination and Remuneration Committee and the Compliance and Risk Management Committee of the Board The board of directors of China Galaxy Securities Co., Ltd. announced that Mr. WANG Zhenjun has resigned as an independent non-executive director of the Company and a member of each of the Strategy and Development Committee, the Audit Committee, the Nomination and Remuneration Committee and the Compliance and Risk Management Committee of the Board with effect from 7 June 2024 as he has served as an independent non-executive director of the Company for six years. After resignation of the above positions, Mr. WANG Zhenjun ceased to hold any position in the Company or its subsidiaries. Declared Dividend • Jun 10
Dividend of CN¥0.22 announced Shareholders will receive a dividend of CN¥0.22. Ex-date: 8th July 2024 Payment date: 27th August 2024 Dividend yield will be 5.2%, which is higher than the industry average of 4.2%. Sustainability & Growth Dividend is well covered by both earnings (38% earnings payout ratio) and cash flows (5% cash payout ratio). The dividend has increased by an average of 14% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 30% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 08
China Galaxy Securities Co., Ltd., Annual General Meeting, Jun 28, 2024 China Galaxy Securities Co., Ltd., Annual General Meeting, Jun 28, 2024, at 10:00 China Standard Time. Location: conference room m1919, qinghai finance building, building no. 1, no. 8 xiying street, fengtai district, beijing China Reported Earnings • Apr 30
First quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2024 results: EPS: CN¥0.12 (down from CN¥0.21 in 1Q 2023). Revenue: CN¥7.21b (down 17% from 1Q 2023). Net income: CN¥1.63b (down 28% from 1Q 2023). Profit margin: 23% (down from 26% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 16%. Earnings per share (EPS) missed analyst estimates by 37%. Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the Capital Markets industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Apr 30
China Galaxy Securities Co., Ltd. Announces Board Appointments The board of directors (the "Board") of China Galaxy Securities Co., Ltd. announces that with effect from 29 April 2024, each of Mr. ZHANG Ruibing and Mr. WU Peng has been appointed as the Business Director and a member of the Executive Committee of the Company. ZHANG Ruibing, male, born in June 1983, holds a doctoral degree, and is a Certified Public Accountant (non-practicing member) and a Chartered Financial Analyst (CFA). Mr. Zhang Ruibing started his career in July 2006 and has worked in the Equity Management Department, Capital Market Department, Strategic Investment Department, Open Market Investment Department and StrategicDevelopment Department of China Jianyin Investment Ltd. He served as the deputy general manager of the Strategic Development Department of China Jianyin Investment Ltd. from June 2020 to August 2020, the general manager of the Strategic Development Department of China Jianyin Investment Ltd. from August 2020 to September 2021, a member of the Party Committee and the deputy general manager of Guotai Asset Management Co., Ltd. from September 2021 to July 2022, and the general manager of the Strategic Development Department of China Jianyin Investment Ltd. from July 2022 to December 2023. He joined the Company in December 2023. WU Peng, male, born in February 1982, holds a doctoral degree. Mr. Wu Peng started his career in July 2006 and has worked in Morningstar (Shenzhen) Co., Ltd., UBS SDIC Fund Management Co., Ltd. and China Investment Corporation. He served as a senior manager of the Bond and Absolute Yield Investment Department of China Investment Corporation from November 2018 to October 2021, and served as a team leader of the Multi-Asset Strategy Group under the Bond and Absolute Yield Investment Department of China Investment Corporation from October 2021 to December 2023. He joined the Company in December 2023. Announcement • Mar 30
China Galaxy Securities Co., Ltd. to Report Q1, 2024 Results on Apr 30, 2024 China Galaxy Securities Co., Ltd. announced that they will report Q1, 2024 results on Apr 30, 2024 Announcement • Jan 24
China Galaxy Securities Co., Ltd. Approves Election of Directors and Change of Composition of Board Committees China Galaxy Securities Co., Ltd. announced at first extraordinary general meeting of 2024 held on January 23, 2024, Mr. XUE Jun has been elected as an executive director of the fourth session of the board of directors of the Company (the "Board"), and Mr. LIU Li has been elected as an independent non-executive director of the fourth session of the Board. The biographical details of Mr. XUE Jun and Mr. LIU Li are set out in the circular of the Company dated 28 December 2023. At the extraordinary meeting of the Board held on 23 January 2024, Mr. XUE Jun was elected as the Vice Chairman of the Board, and the Board has made the following adjustments to the composition of its committees: (i) Mr. XUE Jun has been appointed as a member of each of the Strategy and Development Committee and the Compliance and Risk Management Committee; (ii) Mr. LIU Li has been appointed as the Chairman of the Nomination and Remuneration Committee, and a member of each of the Strategy and Development Committee and the Audit Committee; and (iii) Mr. WANG Sheng has ceased to be a member of the Compliance and Risk Management Committee, all with effect from 23 January 2024. Announcement • Jan 16
China Galaxy Securities Co., Ltd. Announces Resignation of Jiang Yuesheng as Non-Executive Director, Employee Director, Member of the Compliance and Risk Management Committee of the Board The board of directors of China Galaxy Securities Co., Ltd. has received the written resignation letter from Mr. Jiang Yuesheng on 15 January 2024. As Mr. Jiang Yuesheng has attained statutory retirement age, he tendered his resignation as a non-executive director, employee director, member of the Compliance and Risk Management Committee of the Board of the Company, with effect from 15 January 2024. Upon the resignation from the aforesaid positions, Mr. Jiang Yuesheng will not hold any position in the Company and its controlled subsidiaries. Mr. Jiang Yuesheng has confirmed that he has no disagreement with the Board and there are no other matters relating to his resignation that need to be brought to the attention of the shareholders and creditors of the Company. Announcement • Dec 30
China Galaxy Securities Co., Ltd. to Report Fiscal Year 2023 Results on Mar 29, 2024 China Galaxy Securities Co., Ltd. announced that they will report fiscal year 2023 results on Mar 29, 2024 Announcement • Dec 14
China Galaxy Securities Co., Ltd. Announces Resignation of Liu Ruizhong as Independent Non-Executive Director China Galaxy Securities Co., Ltd. has received the written resignation report from Mr. LIU Ruizhong on 13 December 2023. Mr. LIU Ruizhong has tendered his resignation from the position of independent non-executive director of the Company, chairman of the Nomination and Remuneration Committee of the Board (the "Nomination and Remuneration Committee"), member of the Strategy and Development Committee of the Board and member of the Audit Committee of the Board, with effect from 13 December 2023, as the term of office of Mr. LIU Ruizhong as an independent non-executive director has expired for reaching six years. Upon the resignation from the aforesaid positions, Mr. LIU Ruizhong will not hold any position in the Company and its controlled subsidiaries. New Risk • Dec 07
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 12% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (25% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (12% increase in shares outstanding). New Risk • Nov 01
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 25% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (25% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (4.1% increase in shares outstanding). Announcement • Oct 28
China Galaxy Securities Co., Ltd. Announces Executive Changes The board of directors of the Company announced that on 26 October 2023, the Board considered and approved the "resolution to propose and consider the appointment of Mr. Wang Sheng as the Chairman of the Company". According to the work arrangement, the Board agreed that Mr. Wang Sheng shall serve as the Chairman of the Board, the legal representative of the Company, the Chairman of the Executive Committee of the Company and the Chairman of the Strategy and Development Committee of the Board in accordance with the provisions of the articles of association of the Company and other regulations, and shall no longer serve as the Vice Chairman of the Board and the Vice Chairman of the Executive Committee of the Company; and at the same time, he shall act as the acting secretary of the Board in accordance with the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange. The above appointment shall be effective from 26 October 2023. Wang Sheng, male, born in June 1977, has been serving as President and Vice Chairman of the Executive Committee of the Company since July 2022; an Executive Director and Vice Chairman of the Board of the Company since August 2022; and the secretary of the Party Committee of the Company since October 2023. Mr. Wang Sheng has served as the deputy secretary of the Party Committee of the Company from July 2022 to October 2023. Mr. Wang Sheng graduated from the School of Economics and Management of Tsinghua University and obtained a bachelor's degree in management information system and a master's degree in management science and engineering in 2000 and 2002, respectively. Mr. Wang Sheng joined China International Capital Corporation Limited ("CICC") in 2002. He successively participated in the reform and restructuring of companies in various industries, including telecommunications, finance, energy, and pharmaceuticals, served many leading domestic and foreign enterprises and led numerous landmark capital market transactions. Since 2010, Mr. Wang Sheng has held managerial positions in the Investment Banking Department of CICC. He served as the executive head of the Investment Banking Department of CICC from June 2016 to March 2018; the assistant to the president and the executive head of the Investment Banking Department of CICC from March 2018 to March 2020; a member of the Management Committee and the head of the Investment Banking Department of CICC from March 2020 to January 2021; and a member of the Party Committee, a member of the Management Committee and the head of the Investment Banking Department of CICC from January 2021 to July 2022. Announcement • Oct 24
China Galaxy Securities Co., Ltd. Announces Board Changes The board of directors of China Galaxy Securities Co., Ltd. announced that on 20 October 2023, Mr. Chen Liang, the chairman of the Board of the Company, tendered his resignation from his positions as an executive director, the chairman of the Board, the chairman of the Strategy and Development Committee of the Board, the chairman of the Executive Committee of the Company, and other relevant positions due to his work arrangements. Major Estimate Revision • Oct 12
Consensus EPS estimates fall by 14% The consensus outlook for fiscal year 2023 has been updated. 2023 consensus EPS estimate fell from CN¥0.878 to CN¥0.753. Revenue forecast reaffirmed at CN¥32.3b. Net income forecast to grow 20% next year vs 29% growth forecast for Capital Markets industry in Hong Kong. Consensus price target broadly unchanged at HK$4.82. Share price rose 5.2% to HK$4.03 over the past week. Major Estimate Revision • Sep 06
Consensus revenue estimates fall by 11% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥38.6b to CN¥34.5b. EPS estimate fell from CN¥0.903 to CN¥0.844 per share. Net income forecast to grow 26% next year vs 52% growth forecast for Capital Markets industry in Hong Kong. Consensus price target up from HK$4.72 to HK$4.83. Share price was steady at HK$4.25 over the past week. Announcement • Aug 12
China Galaxy Securities Co., Ltd. Appoints Liu Bing as Business Director and A Member of the Executive Committee The board of directors of China Galaxy Securities Co., Ltd. announced that with effect from 10 August 2023, Mr. LIU Bing has been appointed as the Business Director and a member of the Executive Committee of the Company. The biographical details of Mr. LIU Bing are set out below: LIU Bing, male, born in January 1972, holds a master's degree in business administration. He worked in Trust and Investment Company of Yancheng Branch of China Construction Bank, the Securities Department of Nanchang Kerui Group Co., Ltd., and Bohai Securities Co., Ltd. from August 1992. He served as the executive deputy general manager of the head office of Minmetals Securities Co., Ltd. from August 2010 to February 2013. He joined Hongyuan Securities Co., Ltd. (now Shenwan Hongyuan Securities Co., Ltd.) in March 2013, and served as the managing director of the Asset Management Branch and the deputy general manager of the Asset Management Business Department. Mr. LIU joined the Company in September 2017, serving as the general manager of the Beijing Branch from October 2017 to April 2019, and the secretary to the Party Committee and the general manager of the Beijing Branch from April 2019 to May 2020. He has been serving as the general manager of the Wealth Management Headquarters of the Company since May 2020, and the chairman of the board of directors of Galaxy Jinhui Securities Assets Management Co., Ltd. since June 2023. Upcoming Dividend • Jul 04
Upcoming dividend of HK$0.25 per share at 5.9% yield Eligible shareholders must have bought the stock before 11 July 2023. Payment date: 28 August 2023. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 5.9%. Lower than top quartile of Hong Kong dividend payers (7.6%). Higher than average of industry peers (3.2%). Announcement • Jun 30
China Galaxy Securities Co., Ltd. Approves Final Dividend for the Year Ended 31 December 2022, Payable on August 28, 2023 China Galaxy Securities Co., Ltd. approved Final dividend of RMB 2.3 per 10 share for the year ended 31 December 2022. Ex-dividend date is 11 July 2023. Record date is 14 July 2023. Payment date is 28 August 2023. Announcement • Jun 29
China Galaxy Securities Co., Ltd. Proposes Final Dividend for the Year Ended December 31, 2022, Payable on August 28, 2023 China Galaxy Securities Co., Ltd. proposed final dividend of RMB 2.3 per 10 share for the year ended December 31, 2022 (Updated). Ex-dividend date: July 11, 2023. Record date: July 14, 2023. Payment date: August 28, 2023. Date of shareholders' approval: 29 June 2023. Upcoming Dividend • Jun 29
Upcoming dividend of CN¥0.23 per share at 6.1% yield Eligible shareholders must have bought the stock before 06 July 2023. Payment date: 28 August 2023. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 6.1%. Lower than top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (3.2%). 
