# China Securities (601066.SHG)

Canonical: https://gigainvestors.com/s/601066.SHG

Analysis as of: 2026-10-01T09:06:02.334Z. Financial observations: FY2005–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed. Published buy qualification: no.

Share price: CNY 23.30 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

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

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.20×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.53×

- FY2017: 0.35×

- FY2018: 0.38×

- FY2019: 0.39×

- FY2020: 0.49×

- FY2021: 0.35×

- FY2022: 0.27×

- FY2023: 0.41×

- FY2024: 0.42×

- FY2025: 0.55×

### moat: fail

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

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

- ROIC, median of available years: 16.4%

- ROIC, second-lowest year: 2.2%

- Typical minus recent gross margin: -12.7 pp

- Years with nonpositive capital: 1

- Capital spending / revenue: 1.7%

- ROIC including acquisitions, ten-year median: 29.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 6.7%

- FY2017: 23.5%

- FY2018: 9.2%

- FY2019: 47.4%

- FY2020: 29.9%

- FY2021: 47.8%

- FY2022: 38.0%

- FY2023: 2.2%

- FY2024: 1.9%

- FY2025: 3.8%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

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

- Owner earnings / net income, 5-yr: -0.12×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY -4.8B

- Net income, five-year total: CNY 41B

- Return on incremental invested capital: 6.5%

- Working capital / revenue, annual change: 70.7 pp

- Working capital / revenue, change between three-year averages: 733.9 pp

- Working capital / revenue, final three-year average: 216.1%

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

- FY2021: 1.01×

- FY2022: 1.06×

- FY2023: 1.01×

- FY2024: 1.08×

- FY2025: -4.02×

### management: pass

- $1 retained earnings test: 2018 to 2025 (7 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 9.2% vs 2.2%

- Market cap gain: CNY 136B

- Cumulative retained earnings: CNY 18B

- Diluted shares, 10-year annual growth: 2.4%

- Diluted shares, 5-year annual growth: -0.8%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 3.0%

- Per-share value change: CNY 0.20

- Per-share value, starting three-year median: CNY 0.73

- Per-share value, ending three-year median: CNY 0.93

- Average buyback yield: 2.5%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 746M

- Cumulative net income, 10 years: CNY 69B

- ROIC, first three-year median: 9.2%

- ROIC, last three-year median: 2.2%

### accounting: pass

- Sloan accruals: -8.0%

- Receivables to sales index (DSRI): 0.79×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 6.73×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.2%

- FY2017: 24.2%

- FY2018: -0.7%

- FY2019: -10.9%

- FY2020: 8.2%

- FY2021: -0.2%

- FY2022: -6.4%

- FY2023: 5.2%

- FY2024: -3.9%

- FY2025: -8.0%

## Holders

## Price story

Down 21% since Dec 2021 · sales +66.1%

Story as of 2026-10-03T17:10:00Z; price observation 2026-09-30.

### Sales · FY2024–2025

sales +66.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-01.

- FY2016: CNY 13B 

- FY2017: CNY 15B 

- FY2018: CNY 11B 

- FY2019: CNY 18B 

- FY2020: CNY 25B 

- FY2021: CNY 37B 

- FY2022: CNY 35B 

- FY2023: CNY 23B 

- FY2024: CNY 21B 

- FY2025: CNY 34B 

### Gross margin · FY2025

gross margin 80.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-01.

- FY2017: 74.2% 

- FY2019: 74.5% 

- FY2021: 80.5% 

- FY2022: 79.4% 

- FY2025: 80.2% 

## Owner memo

Memo as of 2026-10-02T06:52:09.009Z.

### How it makes money

Operates in capital markets; annual sales are CNY 34.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); FY2025: revenue 34477781000; grossProfit 27665186000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); 601066.SHG: CSC Financial Co., Ltd., together with its subsidiaries, provides investment banking services in Mainland China and internationally. The company operates through four segments: Investment Banking, Wealth Management, Trading and Institutional Client Services, and Asset Management. The company offers securities brokerage, securities investment consultancy, financial advisory services, securities underwriting and sponsoring, trading and investment of securities, securities asset management, agency sale of securities investment funds, margin financing and securities lending services, agency sale of financial products, and market-making of stock options. It also provides custodian services for securities investment funds, market-making trading business of listed securities, sale of precious metal products, commodity futures brokerage, financial futures brokerage and asset management, equity investment and corporate management services, investment management, raising and management of investment funds, investment management of equity investment, investment consulting, and project consulting services. In addition, it offers equity and debt financing; brokerage agency services for corporate and personal clients in the trading of equity stocks, funds, bonds, and futures; specialized research and advisory services; and private placement offerings and related services. The company was formerly known as China Securities Finance Co., Ltd. CSC Financial Co., Ltd. was founded in 2005 and is based in Beijing, China.

### Why customers stay

Margins ranged from 80.2% to 100% during 2023–25; it earns 16.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); FY2023: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); FY2024: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); FY2025: grossProfit / revenue = 80.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); 10-year return on capital observations [[2016,0.06673664458935276],[2017,0.2347696347715068],[2018,0.09227176184644843],[2019,0.4736803832142012],[2020,0.2987827707568115],[2021,0.4779007411338332],[2022,0.3799337331728709],[2023,0.02177017008031772],[2024,0.019107969758379403],[2025,0.03788764801836542]]; median 0.1635206983089776. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); FY2016: growth capex 0; upkeep 262091900; owner earnings 5103090472. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); FY2017: growth capex 86931487.44110703; upkeep 171300841.05889297; owner earnings 4014560922.941107. Growth capex / owner earnings = 0.02165404613598943.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); FY2018: growth capex 0; upkeep 172865021.74; owner earnings 9960307443.26. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); FY2019: growth capex 0; upkeep 290266264.73; owner earnings 5720583204.27. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); FY2020: growth capex 0; upkeep 432773708.74; owner earnings 20296513594.260002. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); FY2021: growth capex 0; upkeep 620360763.14; owner earnings 10318446605.86. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); FY2022: growth capex 0; upkeep 546948755.77; owner earnings 7948176748.23. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); FY2023: growth capex 0; upkeep 1077767770.01; owner earnings 7092667517.99. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); FY2024: growth capex 0; upkeep 538839000; owner earnings 7809624000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); Dividend observations: [[2016,2015341600],[2017,3381921679.32],[2018,4727807981.33],[2019,4644180254.1],[2020,5850317931.46],[2021,6467464923.07],[2022,7533596557.16],[2023,7139784386.82],[2024,7901459000],[2025,2559709000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 79% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); 601066.SHG SharesStats.PercentInsiders = 79.02799999999999 percentage points; cache date 2026-10-02.

### What the price says

The price is 5.2 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:02.334Z); Closing price 23.03 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 4.444906110140981; price multiple 5.18121180275494. FY2025 cash earnings/share -4.895477287977975. Closing-price date 2026-09-30.

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

- 2018-07: CNY 9.89 per share

- 2018-08: CNY 8.16 per share

- 2018-09: CNY 7.91 per share

- 2018-10: CNY 8.69 per share

- 2018-11: CNY 10.44 per share

- 2018-12: CNY 8.71 per share

- 2019-01: CNY 11.68 per share

- 2019-02: CNY 20.12 per share

- 2019-03: CNY 25.55 per share

- 2019-04: CNY 23.36 per share

- 2019-05: CNY 23.00 per share

- 2019-06: CNY 21.08 per share

- 2019-07: CNY 19.38 per share

- 2019-08: CNY 19.22 per share

- 2019-09: CNY 22.32 per share

- 2019-10: CNY 22.20 per share

- 2019-11: CNY 22.39 per share

- 2019-12: CNY 30.40 per share

- 2020-01: CNY 33.90 per share

- 2020-02: CNY 32.21 per share

- 2020-03: CNY 31.03 per share

- 2020-04: CNY 34.99 per share

- 2020-05: CNY 31.98 per share

- 2020-06: CNY 39.38 per share

- 2020-07: CNY 48.63 per share

- 2020-08: CNY 52.27 per share

- 2020-09: CNY 49.82 per share

- 2020-10: CNY 42.79 per share

- 2020-11: CNY 43.71 per share

- 2020-12: CNY 42.00 per share

- 2021-01: CNY 40.06 per share

- 2021-02: CNY 35.32 per share

- 2021-03: CNY 31.81 per share

- 2021-04: CNY 28.61 per share

- 2021-05: CNY 34.01 per share

- 2021-06: CNY 31.43 per share

- 2021-07: CNY 26.39 per share

- 2021-08: CNY 27.98 per share

- 2021-09: CNY 30.90 per share

- 2021-10: CNY 28.29 per share

- 2021-11: CNY 28.03 per share

- 2021-12: CNY 29.25 per share

- 2022-01: CNY 26.43 per share

- 2022-02: CNY 25.70 per share

- 2022-03: CNY 23.28 per share

- 2022-04: CNY 21.58 per share

- 2022-05: CNY 22.43 per share

- 2022-06: CNY 28.91 per share

- 2022-07: CNY 26.00 per share

- 2022-08: CNY 26.64 per share

- 2022-09: CNY 23.17 per share

- 2022-10: CNY 23.61 per share

- 2022-11: CNY 24.57 per share

- 2022-12: CNY 23.75 per share

- 2023-01: CNY 26.99 per share

- 2023-02: CNY 26.78 per share

- 2023-03: CNY 25.63 per share

- 2023-04: CNY 25.30 per share

- 2023-05: CNY 25.39 per share

- 2023-06: CNY 24.20 per share

- 2023-07: CNY 26.60 per share

- 2023-08: CNY 25.78 per share

- 2023-09: CNY 24.61 per share

- 2023-10: CNY 24.18 per share

- 2023-11: CNY 25.78 per share

- 2023-12: CNY 23.66 per share

- 2024-01: CNY 22.36 per share

- 2024-02: CNY 23.30 per share

- 2024-03: CNY 21.93 per share

- 2024-04: CNY 22.33 per share

- 2024-05: CNY 21.16 per share

- 2024-06: CNY 19.24 per share

- 2024-07: CNY 19.90 per share

- 2024-08: CNY 19.22 per share

- 2024-09: CNY 26.86 per share

- 2024-10: CNY 25.46 per share

- 2024-11: CNY 27.27 per share

- 2024-12: CNY 25.75 per share

- 2025-01: CNY 23.80 per share

- 2025-02: CNY 24.53 per share

- 2025-03: CNY 24.16 per share

- 2025-04: CNY 23.26 per share

- 2025-05: CNY 22.98 per share

- 2025-06: CNY 24.05 per share

- 2025-07: CNY 25.57 per share

- 2025-08: CNY 28.36 per share

- 2025-09: CNY 26.82 per share

- 2025-10: CNY 26.19 per share

- 2025-11: CNY 24.79 per share

- 2025-12: CNY 26.77 per share

- 2026-01: CNY 24.05 per share

- 2026-02: CNY 23.85 per share

- 2026-03: CNY 21.45 per share

- 2026-04: CNY 23.00 per share

- 2026-05: CNY 24.39 per share

- 2026-06: CNY 29.07 per share

- 2026-07: CNY 25.77 per share

- 2026-08: CNY 25.60 per share

- 2026-09: CNY 23.01 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 20.06 per share, central CNY 20.77 per share, high CNY 21.73 per share

- FY2017: low CNY 20.16 per share, central CNY 21.73 per share, high CNY 23.08 per share

- FY2018: low CNY 16.24 per share, central CNY 17.18 per share, high CNY 18.43 per share

- FY2019: low CNY 25.86 per share, central CNY 27.02 per share, high CNY 28.56 per share

- FY2020: low CNY 26.71 per share, central CNY 27.78 per share, high CNY 29.20 per share

- FY2021: low CNY 35.08 per share, central CNY 36.83 per share, high CNY 39.16 per share

- FY2022: low CNY 37.75 per share, central CNY 39.29 per share, high CNY 41.35 per share

- FY2023: low CNY 13.67 per share, central CNY 15.05 per share, high CNY 16.88 per share

- FY2024: low CNY 15.67 per share, central CNY 17.18 per share, high CNY 19.20 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