# Orient Sec (600958.SHG)

Canonical: https://gigainvestors.com/s/600958.SHG

Analysis as of: 2026-10-16T07:35:42.770Z. Financial observations: FY2005–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 8.81 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.80×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.44×

- FY2017: 0.27×

- FY2018: 0.09×

- FY2019: 0.12×

- FY2020: 0.10×

- FY2021: 0.23×

- FY2022: 0.15×

- FY2023: 0.14×

- FY2024: 0.16×

- FY2025: 0.76×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 3.2%

- ROIC, second-lowest year: 1.7%

- Typical minus recent gross margin: 0.1 pp

- Typical gross margin (annual median): 81.6%

- Recent gross margin (lower of latest and 3-year median): 81.6%

- Years with nonpositive capital: 2

- Capital spending / revenue: 1.9%

- ROIC including acquisitions, ten-year median: 3.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 2.6%

- FY2017: 3.3%

- FY2018: 1.7%

- FY2019: 3.6%

- FY2020: 6.9%

- FY2021: >100%

- FY2022: 2.0%

- FY2023: 1.2%

- FY2024: 3.1%

- FY2025: 5.2%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.06×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 21B

- Net income, five-year total: CNY 20B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 288.8 pp

- Working capital / revenue, change between three-year averages: 2072.2 pp

- Working capital / revenue, final three-year average: 0.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.04×

- FY2022: 1.14×

- FY2023: 0.88×

- FY2024: 1.13×

- FY2025: 1.07×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 2.6% vs 3.1%

- Per-share earnings: 0.57 to 0.40 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 9.8%

- Ordinary dilution, 5-year annual growth: 3.0%

- Market cap gain: CNY -55M

- Cumulative retained earnings: CNY 3.5B

- Diluted shares, 10-year annual growth: 9.8%

- Diluted shares, 5-year annual growth: 3.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -4.4%

- Per-share value change: CNY -0.17

- Per-share value, starting three-year median: CNY 0.57

- Per-share value, ending three-year median: CNY 0.40

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 0.2%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 195M

- Cumulative net income, 10 years: CNY 32B

- ROIC, first three-year median: 2.6%

- ROIC, last three-year median: 3.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.39

- FY2017: CNY 0.57

- FY2018: CNY 0.20

- FY2019: CNY 0.37

- FY2020: CNY 0.38

- FY2021: CNY 0.73

- FY2022: CNY 0.35

- FY2023: CNY 0.33

- FY2024: CNY 0.40

- FY2025: CNY 0.67

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: 1.1%

- Receivables to sales index (DSRI): 3.80×

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.03×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 3.3%

- FY2017: 7.8%

- FY2018: -2.0%

- FY2019: -3.0%

- FY2020: -8.7%

- FY2021: 4.9%

- FY2022: -5.1%

- FY2023: -4.9%

- FY2024: 0.2%

- FY2025: 1.1%

## Holders

## Price story

Down 40% since Dec 2021 · sales -33.1%

Story as of 2026-10-16T10:00:05.870Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -33.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 6.4B 

- FY2017: CNY 16B 

- FY2018: CNY 15B 

- FY2019: CNY 24B 

- FY2020: CNY 27B 

- FY2021: CNY 27B 

- FY2022: CNY 22B 

- FY2023: CNY 21B 

- FY2024: CNY 23B 

- FY2025: CNY 15B 

### Gross margin · FY2024

gross margin 81.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 62.9% 

- FY2018: 63.7% 

- FY2019: 78.0% 

- FY2020: 82.2% 

- FY2021: 83.5% 

- FY2022: 81.7% 

- FY2023: 79.3% 

- FY2024: 81.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in capital markets; annual sales are CNY 15.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); FY2025: revenue 15358190000; grossProfit 15358190000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600958.SHG: Orient Securities Company Limited operates as an integrated securities company in the People's Republic of China. It operates through Wealth and Asset Management; Investment Banking and Alternative Investment; Institutional and Sales Trading; and International and Other Operations segments. The company provides securities brokerage, financial products, investment advisory, margin financing and securities lending, asset management, and futures services. It also offers stock underwriting and sponsoring, bond underwriting, financial advisory, and diversified corporate solutions, as well as alternative investment. In addition, the company is involved in the market making, research services, and custodian business; provision of proprietary investment, including investment transactions such as in equity, fixed income, commodities and foreign exchange; and client-oriented services comprfising OTC derivatives and FICC agency services. Further, it engages in commodity and financial futures brokerage; investment advisory; equity, asset, investment, securities asset, and fund management; investment consultancy; private equity, bond, industrial, financial asset, and securities investment; securities underwriting; and provision of corporate finance advisory services. Additionally, the company acts as a foreign exchange brokers and dealers; and offers software development services. The company was incorporated in 1997 and is headquartered in Shanghai, the People's Republic of China.

### Why customers stay

Margins ranged from 79.3% to 100% during 2023–25; it earns 3.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); FY2023: grossProfit / revenue = 79.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); FY2024: grossProfit / revenue = 81.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); 10-year return on capital observations [[2016,0.025771161659477553],[2017,0.03266954890572896],[2018,0.01675488051788473],[2019,0.03627389840284877],[2020,0.06927950952977556],[2021,1.0503958421588995],[2022,0.019740329893270427],[2023,0.012067514904405056],[2024,0.03122831956965031],[2025,0.052098466669431825]]; median 0.03194893423768963. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CNY 274.7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); FY2016: growth capex 0; upkeep 353574039.02; owner earnings 2083958593.98. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); FY2017: growth capex 246647826.76; upkeep 142916591; owner earnings 3553626384. Growth capex / owner earnings = 0.06940736028709088.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); FY2018: growth capex 0; upkeep 417550684.86; owner earnings 983217991.14. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); FY2019: growth capex 0; upkeep 298154341.97; owner earnings 2651763618.0299997. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); FY2020: growth capex 0; upkeep 449311000; owner earnings 2877330939. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); FY2021: growth capex 0; upkeep 443308581; owner earnings 5593039673. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); FY2022: growth capex 0; upkeep 306671000; owner earnings 3423097137. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); FY2023: growth capex 0; upkeep 1096310498; owner earnings 2411927253. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); FY2024: growth capex 0; upkeep 299709415; owner earnings 3785085849. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); FY2025: growth capex 0; upkeep 326037310.72; owner earnings 6013837700.76. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); Dividend observations: [[2016,4740223280.94],[2017,4281428600.89],[2018,4824891321.87],[2019,4246541844.62],[2020,4379867000],[2021,4745554974],[2022,5251594000],[2023,3920091648],[2024,4489236363],[2025,4387765072.41]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); FY2025: cash repurchases 274729365 CNY.

### Are managers owners

Insiders own 47.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600958.SHG SharesStats.PercentInsiders = 47.204 percentage points; cache date 2026-10-16.

### What the price says

The price is 4.8 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.770Z); Closing price 8.81 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 1.8207480433839602; price multiple 4.83867058488012. FY2025 cash earnings/share 0.7129540152119139. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 15.96 per share

- 2016-11: CNY 17.01 per share

- 2016-12: CNY 15.53 per share

- 2017-01: CNY 15.21 per share

- 2017-02: CNY 15.28 per share

- 2017-03: CNY 14.68 per share

- 2017-04: CNY 14.55 per share

- 2017-05: CNY 13.88 per share

- 2017-06: CNY 13.91 per share

- 2017-07: CNY 16.38 per share

- 2017-08: CNY 16.81 per share

- 2017-09: CNY 16.06 per share

- 2017-10: CNY 15.23 per share

- 2017-11: CNY 15.60 per share

- 2017-12: CNY 13.86 per share

- 2018-01: CNY 14.51 per share

- 2018-02: CNY 13.42 per share

- 2018-03: CNY 12.41 per share

- 2018-04: CNY 12.16 per share

- 2018-05: CNY 10.77 per share

- 2018-06: CNY 9.13 per share

- 2018-07: CNY 9.13 per share

- 2018-08: CNY 8.78 per share

- 2018-09: CNY 8.93 per share

- 2018-10: CNY 9.22 per share

- 2018-11: CNY 9.23 per share

- 2018-12: CNY 7.97 per share

- 2019-01: CNY 8.01 per share

- 2019-02: CNY 12.27 per share

- 2019-03: CNY 11.92 per share

- 2019-04: CNY 11.17 per share

- 2019-05: CNY 10.25 per share

- 2019-06: CNY 10.68 per share

- 2019-07: CNY 10.42 per share

- 2019-08: CNY 9.95 per share

- 2019-09: CNY 10.20 per share

- 2019-10: CNY 10.00 per share

- 2019-11: CNY 9.72 per share

- 2019-12: CNY 10.76 per share

- 2020-01: CNY 10.29 per share

- 2020-02: CNY 9.97 per share

- 2020-03: CNY 9.12 per share

- 2020-04: CNY 9.40 per share

- 2020-05: CNY 9.17 per share

- 2020-06: CNY 9.49 per share

- 2020-07: CNY 11.71 per share

- 2020-08: CNY 11.81 per share

- 2020-09: CNY 11.03 per share

- 2020-10: CNY 10.74 per share

- 2020-11: CNY 11.61 per share

- 2020-12: CNY 11.63 per share

- 2021-01: CNY 10.16 per share

- 2021-02: CNY 9.59 per share

- 2021-03: CNY 8.86 per share

- 2021-04: CNY 8.81 per share

- 2021-05: CNY 10.62 per share

- 2021-06: CNY 9.99 per share

- 2021-07: CNY 10.92 per share

- 2021-08: CNY 14.97 per share

- 2021-09: CNY 15.13 per share

- 2021-10: CNY 13.76 per share

- 2021-11: CNY 14.06 per share

- 2021-12: CNY 14.74 per share

- 2022-01: CNY 12.27 per share

- 2022-02: CNY 12.26 per share

- 2022-03: CNY 10.98 per share

- 2022-04: CNY 9.16 per share

- 2022-05: CNY 9.34 per share

- 2022-06: CNY 10.21 per share

- 2022-07: CNY 8.65 per share

- 2022-08: CNY 8.66 per share

- 2022-09: CNY 7.69 per share

- 2022-10: CNY 7.76 per share

- 2022-11: CNY 8.93 per share

- 2022-12: CNY 8.94 per share

- 2023-01: CNY 10.82 per share

- 2023-02: CNY 10.20 per share

- 2023-03: CNY 9.79 per share

- 2023-04: CNY 10.71 per share

- 2023-05: CNY 9.89 per share

- 2023-06: CNY 9.70 per share

- 2023-07: CNY 10.80 per share

- 2023-08: CNY 9.96 per share

- 2023-09: CNY 9.58 per share

- 2023-10: CNY 8.67 per share

- 2023-11: CNY 8.71 per share

- 2023-12: CNY 8.70 per share

- 2024-01: CNY 8.27 per share

- 2024-02: CNY 8.81 per share

- 2024-03: CNY 8.25 per share

- 2024-04: CNY 8.35 per share

- 2024-05: CNY 8.09 per share

- 2024-06: CNY 7.60 per share

- 2024-07: CNY 8.50 per share

- 2024-08: CNY 8.42 per share

- 2024-09: CNY 11.11 per share

- 2024-10: CNY 10.54 per share

- 2024-11: CNY 10.91 per share

- 2024-12: CNY 10.56 per share

- 2025-01: CNY 9.74 per share

- 2025-02: CNY 9.72 per share

- 2025-03: CNY 9.44 per share

- 2025-04: CNY 9.16 per share

- 2025-05: CNY 9.33 per share

- 2025-06: CNY 9.68 per share

- 2025-07: CNY 11.25 per share

- 2025-08: CNY 11.50 per share

- 2025-09: CNY 11.44 per share

- 2025-10: CNY 10.89 per share

- 2025-11: CNY 10.41 per share

- 2025-12: CNY 10.90 per share

- 2026-01: CNY 10.23 per share

- 2026-02: CNY 10.11 per share

- 2026-03: CNY 9.04 per share

- 2026-04: CNY 9.34 per share

- 2026-05: CNY 9.31 per share

- 2026-06: CNY 9.44 per share

- 2026-07: CNY 9.19 per share

- 2026-08: CNY 9.19 per share

- 2026-09: CNY 8.65 per share

- 2026-10: CNY 8.74 per share

## Annual estimated value (CNY per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations