# Hongta Securities (601236.SHG)

Canonical: https://gigainvestors.com/s/601236.SHG

Analysis as of: 2026-10-16T07:37:32.312Z. 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 7.14 per share; close as of 2026-10-15.

Estimated value: low CNY 1.19 per share, central CNY 1.36 per share, high CNY 1.58 per share. Buy at or below the central value CNY 1.36 per share. Valuation as of 2026-10-16T07:37:32.312Z; scenarios are not confidence intervals.

Expected annual return: 4.3% at the stated quote. About 4.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: fail

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

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.62×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.43×

- FY2017: 0.44×

- FY2018: 0.37×

- FY2019: 0.39×

- FY2020: 0.28×

- FY2021: 0.27×

- FY2022: -0.14×

- FY2023: 0.17×

- FY2024: 0.33×

- FY2025: 0.67×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 5.4pp below the typical margin (limit 4pp)

- ROIC, median of available years: 5.4%

- ROIC, second-lowest year: 0.7%

- Typical minus recent gross margin: 5.4 pp

- Typical gross margin (annual median): 84.7%

- Recent gross margin (lower of latest and 3-year median): 79.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.7%

- ROIC including acquisitions, ten-year median: 5.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 6.0%

- FY2017: 5.6%

- FY2018: 5.1%

- FY2019: 6.5%

- FY2020: 6.2%

- FY2021: 8.1%

- FY2022: -0.6%

- FY2023: 0.7%

- FY2024: 2.6%

- FY2025: 3.2%

### economics: fail

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

- Owner earnings / net income, 5-yr: 1.05×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 4.1B

- Net income, five-year total: CNY 3.9B

- Return on incremental invested capital: 16.2%

- Working capital / revenue, annual change: 209.7 pp

- Working capital / revenue, change between three-year averages: 1683.7 pp

- Working capital / revenue, final three-year average: 69.7%

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

- FY2021: 1.03×

- FY2022: 2.55×

- FY2023: 1.14×

- FY2024: 1.03×

- FY2025: 1.02×

### management: fail

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 5.6% vs 2.6%

- Per-share earnings: 0.09 to 0.16 (three-year endpoint medians)

- 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: 5.4%

- Ordinary dilution, 5-year annual growth: 3.1%

- Diluted shares, 10-year annual growth: 5.4%

- Diluted shares, 5-year annual growth: 3.1%

- Per-share value growth: 7.7%

- Per-share value change: CNY 0.07

- Per-share value, starting three-year median: CNY 0.09

- Per-share value, ending three-year median: CNY 0.16

- Average buyback yield: 0.4%

- Buyback history: 1 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 91M

- Cumulative net income, 10 years: CNY 7.2B

- ROIC, first three-year median: 5.6%

- ROIC, last three-year median: 2.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.09

- FY2017: CNY 0.08

- FY2018: CNY 0.09

- FY2019: CNY 0.22

- FY2020: CNY 0.35

- FY2021: CNY 0.33

- FY2022: CNY 0.01

- FY2023: CNY 0.07

- FY2024: CNY 0.16

- FY2025: CNY 0.26

### accounting: fail

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

- earnings not backed by cash

- Sloan accruals: 3.9%

- Receivables to sales index (DSRI): 53.28×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -1.00×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.0%

- FY2017: 12.9%

- FY2018: 29.9%

- FY2019: 17.4%

- FY2020: -9.3%

- FY2021: 4.9%

- FY2022: -3.9%

- FY2023: 9.2%

- FY2024: -1.3%

- FY2025: 3.9%

## Holders

## Price story

Down 40% since Dec 2021 · sales +16.5%

Story as of 2026-10-16T10:00:09.187Z; price observation 2026-10-15.

Price needs cash profits to grow 22.2% a year for ten years

### Sales · FY2024–2025

sales +16.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 976M 

- FY2017: CNY 1.1B 

- FY2018: CNY 1.4B 

- FY2019: CNY 2.9B 

- FY2020: CNY 6.6B 

- FY2021: CNY 7.4B 

- FY2022: CNY 1.4B 

- FY2023: CNY 1.7B 

- FY2024: CNY 2.5B 

- FY2025: CNY 3.0B 

### Gross margin · FY2025

gross margin 88.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2018: 84.4% 

- FY2019: 71.2% 

- FY2020: 85.0% 

- FY2021: 91.5% 

- FY2022: 58.2% 

- FY2023: 71.1% 

- FY2024: 79.3% 

- FY2025: 88.3% 

## Owner memo

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

### How it makes money

Operates in capital markets; annual sales are CNY 3 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); FY2025: revenue 2970870045; grossProfit 2622145173; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601236.SHG: Hongta Securities Co., Ltd. operates as a securities company in China. The company operates through Proprietary Investment Business, Wealth Management Business, and Institutional Service Business segments. It offers commodity futures brokerage and financial futures brokerage services, professional research and investment consulting services, margin financing and securities lending, asset management, securities investment fund raising, fund share purchase and redemption, fund property investment, equity financing, debt bond financing, asset securitization, mergers and acquisitions, stock pledge financing, research services, and investment advisory services. The company also engages in private equity management, proprietary investment, institutional service, and fund management businesses. Hongta Securities Co., Ltd. was founded in 2002 and is based in Kunming, China.

### Why customers stay

Margins ranged from 71.1% to 88.3% during 2023–25; it earns 5.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); FY2023: grossProfit / revenue = 71.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); FY2024: grossProfit / revenue = 79.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); FY2025: grossProfit / revenue = 88.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); 10-year return on capital observations [[2016,0.059587836426402654],[2017,0.05636242020932518],[2018,0.05077164072542799],[2019,0.06525510917877089],[2020,0.062100687731017304],[2021,0.08061037599377077],[2022,-0.005751763260346522],[2023,0.0074772969733422085],[2024,0.026180281806100002],[2025,0.03158813104425783]]; median 0.05356703046737658. 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 140 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); FY2016: growth capex 0; upkeep 45044563.63; owner earnings 316155797.37. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); FY2017: growth capex 10583309.579999998; upkeep 30220047; owner earnings 363082587. Growth capex / owner earnings = 0.029148491166831964.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); FY2018: growth capex 19474815.520000003; upkeep 35640436; owner earnings 386464525. Growth capex / owner earnings = 0.05039224627409205.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); FY2019: growth capex 63786767.94; upkeep 42823416; owner earnings 837541304. Growth capex / owner earnings = 0.076159548950436.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); FY2020: growth capex 13717691; upkeep 58229110; owner earnings 1413122029. Growth capex / owner earnings = 0.009707364769981942.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); FY2021: growth capex 0; upkeep 69766832.52; owner earnings 1615867328.48. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); FY2022: growth capex 0; upkeep 62549240.8; owner earnings 98179460.2. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); FY2023: growth capex 0; upkeep 76837774; owner earnings 355077674. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); FY2024: growth capex 0; upkeep 86048692; owner earnings 789827165. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); FY2025: growth capex 0; upkeep 95206000; owner earnings 1233075325. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); Dividend observations: [[2016,652635712.31],[2017,588492971.29],[2018,52489200],[2019,329066692.96],[2020,1040311492],[2021,1158210051.8],[2022,823887844],[2023,581843661],[2024,829239206],[2025,721557673]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); FY2025: cash repurchases 139984720 CNY.

### Are managers owners

Insiders own 80.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601236.SHG SharesStats.PercentInsiders = 80.131 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 22.2% yearly over ten years; actual decline was 3.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:32.312Z); Ten-year compound average after fade. Initial solved rate 0.30986278677209034. Price 7.14; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.37625406797175803 → FY2025 0.2627346950568432. Closing-price date 2026-10-15.

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

- 2019-08: CNY 14.34 per share

- 2019-09: CNY 13.37 per share

- 2019-10: CNY 12.32 per share

- 2019-11: CNY 13.20 per share

- 2019-12: CNY 15.02 per share

- 2020-01: CNY 16.18 per share

- 2020-02: CNY 19.26 per share

- 2020-03: CNY 17.95 per share

- 2020-04: CNY 17.42 per share

- 2020-05: CNY 17.46 per share

- 2020-06: CNY 17.38 per share

- 2020-07: CNY 19.17 per share

- 2020-08: CNY 18.64 per share

- 2020-09: CNY 16.38 per share

- 2020-10: CNY 15.49 per share

- 2020-11: CNY 15.14 per share

- 2020-12: CNY 16.65 per share

- 2021-01: CNY 13.43 per share

- 2021-02: CNY 12.94 per share

- 2021-03: CNY 12.65 per share

- 2021-04: CNY 11.30 per share

- 2021-05: CNY 12.00 per share

- 2021-06: CNY 12.15 per share

- 2021-07: CNY 11.97 per share

- 2021-08: CNY 12.70 per share

- 2021-09: CNY 11.80 per share

- 2021-10: CNY 11.21 per share

- 2021-11: CNY 11.18 per share

- 2021-12: CNY 11.92 per share

- 2022-01: CNY 10.63 per share

- 2022-02: CNY 9.79 per share

- 2022-03: CNY 10.38 per share

- 2022-04: CNY 9.04 per share

- 2022-05: CNY 7.91 per share

- 2022-06: CNY 9.13 per share

- 2022-07: CNY 8.82 per share

- 2022-08: CNY 8.46 per share

- 2022-09: CNY 7.32 per share

- 2022-10: CNY 7.14 per share

- 2022-11: CNY 7.94 per share

- 2022-12: CNY 7.40 per share

- 2023-01: CNY 8.16 per share

- 2023-02: CNY 8.56 per share

- 2023-03: CNY 8.63 per share

- 2023-04: CNY 8.25 per share

- 2023-05: CNY 7.92 per share

- 2023-06: CNY 7.45 per share

- 2023-07: CNY 8.14 per share

- 2023-08: CNY 7.99 per share

- 2023-09: CNY 7.74 per share

- 2023-10: CNY 7.80 per share

- 2023-11: CNY 7.82 per share

- 2023-12: CNY 7.59 per share

- 2024-01: CNY 7.32 per share

- 2024-02: CNY 7.75 per share

- 2024-03: CNY 7.14 per share

- 2024-04: CNY 7.23 per share

- 2024-05: CNY 6.88 per share

- 2024-06: CNY 6.42 per share

- 2024-07: CNY 7.16 per share

- 2024-08: CNY 6.61 per share

- 2024-09: CNY 8.78 per share

- 2024-10: CNY 8.47 per share

- 2024-11: CNY 8.48 per share

- 2024-12: CNY 8.49 per share

- 2025-01: CNY 7.87 per share

- 2025-02: CNY 7.88 per share

- 2025-03: CNY 7.80 per share

- 2025-04: CNY 7.38 per share

- 2025-05: CNY 8.13 per share

- 2025-06: CNY 8.47 per share

- 2025-07: CNY 8.67 per share

- 2025-08: CNY 9.47 per share

- 2025-09: CNY 8.83 per share

- 2025-10: CNY 8.77 per share

- 2025-11: CNY 8.60 per share

- 2025-12: CNY 8.19 per share

- 2026-01: CNY 8.17 per share

- 2026-02: CNY 8.16 per share

- 2026-03: CNY 7.66 per share

- 2026-04: CNY 7.50 per share

- 2026-05: CNY 6.86 per share

- 2026-06: CNY 6.82 per share

- 2026-07: CNY 7.12 per share

- 2026-08: CNY 6.93 per share

- 2026-09: CNY 7.01 per share

- 2026-10: CNY 7.15 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 0.93 per share, central CNY 1.06 per share, high CNY 1.23 per share

- FY2017: low CNY 0.93 per share, central CNY 1.05 per share, high CNY 1.22 per share

- FY2018: low CNY 1.14 per share, central CNY 1.30 per share, high CNY 1.51 per share

- FY2019: low CNY 2.71 per share, central CNY 3.09 per share, high CNY 3.58 per share

- FY2020: low CNY 6.40 per share, central CNY 9.14 per share, high CNY 10.73 per share

- FY2021: low CNY 5.86 per share, central CNY 8.37 per share, high CNY 9.84 per share

- FY2022: low CNY 0.73 per share, central CNY 0.83 per share, high CNY 0.96 per share

- FY2023: low CNY 0.84 per share, central CNY 0.96 per share, high CNY 1.12 per share

- FY2024: low CNY 1.27 per share, central CNY 1.45 per share, high CNY 1.68 per share

- FY2025: low CNY 1.52 per share, central CNY 1.73 per share, high CNY 2.01 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

Prior published observations retained from 2026-10-15T06:43:15.150Z where newer inputs omit a numeric field or fiscal period.

## 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.