# Huatai Securities (601688.SHG)

Canonical: https://gigainvestors.com/s/601688.SHG

Analysis as of: 2026-10-16T07:34:34.018Z. Financial observations: FY2006–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 17.87 per share; close as of 2026-10-15.

Estimated value: low CNY 19.65 per share, central CNY 22.36 per share, high CNY 25.96 per share. Buy at or below the central value CNY 22.36 per share. Valuation as of 2026-10-16T07:34:34.018Z; scenarios are not confidence intervals.

Expected annual return: 11.8% at the stated quote. About 11.8% 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: pass

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

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.33×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.50×

- FY2017: 0.52×

- FY2018: 0.41×

- FY2019: 0.47×

- FY2020: 0.29×

- FY2021: 0.33×

- FY2022: 0.41×

- FY2023: 0.42×

- FY2024: 0.39×

- FY2025: 0.86×

### 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: 9.3%

- ROIC, second-lowest year: 4.9%

- Years with nonpositive capital: 3

- Capital spending / revenue: 4.5%

- ROIC including acquisitions, ten-year median: 17.6%

- Typical minus recent gross margin: 0.0 pp

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 8.5%

- FY2017: 7.8%

- FY2018: 10.0%

- FY2019: 31.4%

- FY2020: 2.6%

- FY2021: 49.7%

- FY2022: 44.4%

- FY2023: 19.7%

- FY2024: 5.9%

- FY2025: 4.9%

### economics: pass

- Owner earnings / net income, 5-yr: 0.99×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 68B

- Net income, five-year total: CNY 69B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 283.1 pp

- Working capital / revenue, change between three-year averages: 2063.1 pp

- Working capital / revenue, final three-year average: -109.2%

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

- FY2021: 0.96×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 1.01×

### management: pass

- 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: 8.5% vs 5.9%

- Per-share earnings: 1.30 to 1.62 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.7%

- Ordinary dilution, 5-year annual growth: 1.0%

- Market cap gain: CNY 93B

- Cumulative retained earnings: CNY 40B

- Diluted shares, 10-year annual growth: 2.7%

- Diluted shares, 5-year annual growth: 1.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 2.8%

- Per-share value change: CNY 0.32

- Per-share value, starting three-year median: CNY 1.30

- Per-share value, ending three-year median: CNY 1.62

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.2%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 12B

- Cumulative net income, 10 years: CNY 109B

- ROIC, first three-year median: 8.5%

- ROIC, last three-year median: 5.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.86

- FY2017: CNY 1.30

- FY2018: CNY 0.65

- FY2019: CNY 0.98

- FY2020: CNY 1.20

- FY2021: CNY 1.45

- FY2022: CNY 1.16

- FY2023: CNY 1.33

- FY2024: CNY 1.62

- FY2025: CNY 1.73

### accounting: fail

- earnings not backed by cash

- Sloan accruals: 2.7%

- Receivables to sales index (DSRI): 0.09×

- Earnings backed by cash: No

- Operating cash / earnings: -0.77×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 5.4%

- FY2017: 11.9%

- FY2018: -4.6%

- FY2019: -2.0%

- FY2020: -2.1%

- FY2021: 7.2%

- FY2022: -6.6%

- FY2023: 4.9%

- FY2024: -6.5%

- FY2025: 2.7%

## Holders

## Price story

Down 24% since Dec 2025 · sales -19.4%

Story as of 2026-10-16T10:00:01.346Z; price observation 2026-10-15.

Price needs cash profits to shrink 1.9% a year for ten years

### Sales · FY2024–2025

sales -19.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 17B 

- FY2017: CNY 21B 

- FY2018: CNY 16B 

- FY2019: CNY 24B 

- FY2020: CNY 33B 

- FY2021: CNY 41B 

- FY2022: CNY 30B 

- FY2023: CNY 35B 

- FY2024: CNY 40B 

- FY2025: CNY 32B 

## Owner memo

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

### How it makes money

Operates in capital markets; annual sales are CNY 32.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); FY2025: revenue 32446562469.58; operatingIncome 27922470889.36; margin = operatingIncome / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601688.SHG: Huatai Securities Co., Ltd., together with its subsidiaries, provides securities and financial services for individual, enterprise, and institutional clients in Mainland China and internationally. It operates through Wealth Management, Institutional Services, Investment Management, International Business, and Other segments. The company offers wealth management services, including securities, futures, and options brokerage, financial products sales, fund investment advisory, and capital-based intermediary services; asset allocation; and margin financing, securities lending, securities-backed lending, and stock pledged repurchase services, as well as trades in stocks, funds, and bonds on behalf of clients. It also provides investment banking services comprising domestic and overseas equity financing, bond financing, and financial advisory; prime brokerage services, such as asset custody and fund services; research and institutional sales; equity securities and fixed income investments and transactions; and over-the-counter financial products and transactions services. In addition, the company provides asset management services, private equity investment, alternative investments, and commodities trading and arbitrage services; overseas business; fintech and digital services; and platforms for investment management and banking, FICC trading, cross-border and structured finance, equity derivatives, equity research and sales, and online securities lending. Huatai Securities Co., Ltd. was founded in 1990 and is based in Nanjing, the People's Republic of China.

### Why customers stay

Margins ranged from 38.7% to 86.1% during 2023–25; it earns 9.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); FY2023: operatingIncome / revenue = 42%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); FY2024: operatingIncome / revenue = 38.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); FY2025: operatingIncome / revenue = 86.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); 10-year return on capital observations [[2016,0.08535677003019349],[2017,0.07839626765880028],[2018,0.10034827946791318],[2019,0.31380927726499014],[2020,0.026003090201946907],[2021,0.496645121596903],[2022,0.4441308772182945],[2023,0.1965199229661178],[2024,0.05867369701084907],[2025,0.048674355038405295]]; median 0.09285252474905334. 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 111.8 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); FY2016: growth capex 0; upkeep 600368132.74; owner earnings 6034987110.26. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); FY2017: growth capex 0; upkeep 377634159.77; owner earnings 9426678680.94. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); FY2018: growth capex 0; upkeep 954649428.45; owner earnings 4666504527.94. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); FY2019: growth capex 0; upkeep 1084940937.81; owner earnings 9040331043.73. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); FY2020: growth capex 0; upkeep 1007100190.64; owner earnings 11068608185.24. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); FY2021: growth capex 1449615605.4276497; upkeep 1503559716.5923502; owner earnings 12782212230.00765. Growth capex / owner earnings = 0.11340881995563472.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); FY2022: growth capex 0; upkeep 1431834665.65; owner earnings 11047684962.28. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); FY2023: growth capex 0; upkeep 1676304288.82; owner earnings 12779606263.66. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); FY2024: growth capex 168199463.76999998; upkeep 1637842536.23; owner earnings 15351162321. Growth capex / owner earnings = 0.010956790127865913.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); FY2025: growth capex 0; upkeep 1221754124.18; owner earnings 16504660705.01. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); Dividend observations: [[2016,7618745443.99],[2017,7244285555.37],[2018,7144294351.84],[2019,6111803842.49],[2020,2701394989],[2021,3612548602],[2022,10400133991.75],[2023,15060654479],[2024,12833054000],[2025,10869055990.75]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); FY2025: cash repurchases 111844933.92000002 CNY.

### Are managers owners

Insiders own 29.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601688.SHG SharesStats.PercentInsiders = 29.918 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 1.9% yearly over ten years; actual growth was 1.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:34.018Z); Ten-year compound average after fade. Initial solved rate -0.03975240573286. Price 17.87; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.4701505166706181 → FY2025 1.7427941552373023. Closing-price date 2026-10-15.

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

- 2016-10: CNY 20.53 per share

- 2016-11: CNY 19.83 per share

- 2016-12: CNY 17.86 per share

- 2017-01: CNY 18.47 per share

- 2017-02: CNY 18.15 per share

- 2017-03: CNY 16.81 per share

- 2017-04: CNY 17.00 per share

- 2017-05: CNY 17.58 per share

- 2017-06: CNY 17.90 per share

- 2017-07: CNY 19.90 per share

- 2017-08: CNY 22.95 per share

- 2017-09: CNY 22.62 per share

- 2017-10: CNY 19.57 per share

- 2017-11: CNY 19.30 per share

- 2017-12: CNY 17.26 per share

- 2018-01: CNY 19.59 per share

- 2018-02: CNY 17.29 per share

- 2018-03: CNY 17.24 per share

- 2018-04: CNY 18.32 per share

- 2018-05: CNY 16.85 per share

- 2018-06: CNY 14.97 per share

- 2018-07: CNY 15.46 per share

- 2018-08: CNY 15.36 per share

- 2018-09: CNY 15.75 per share

- 2018-10: CNY 16.65 per share

- 2018-11: CNY 16.80 per share

- 2018-12: CNY 16.20 per share

- 2019-01: CNY 19.14 per share

- 2019-02: CNY 23.01 per share

- 2019-03: CNY 22.41 per share

- 2019-04: CNY 21.30 per share

- 2019-05: CNY 18.63 per share

- 2019-06: CNY 22.32 per share

- 2019-07: CNY 20.32 per share

- 2019-08: CNY 18.96 per share

- 2019-09: CNY 19.09 per share

- 2019-10: CNY 17.45 per share

- 2019-11: CNY 16.97 per share

- 2019-12: CNY 20.31 per share

- 2020-01: CNY 18.94 per share

- 2020-02: CNY 18.55 per share

- 2020-03: CNY 17.23 per share

- 2020-04: CNY 18.14 per share

- 2020-05: CNY 17.28 per share

- 2020-06: CNY 18.80 per share

- 2020-07: CNY 20.79 per share

- 2020-08: CNY 21.41 per share

- 2020-09: CNY 20.53 per share

- 2020-10: CNY 20.36 per share

- 2020-11: CNY 19.30 per share

- 2020-12: CNY 18.01 per share

- 2021-01: CNY 17.39 per share

- 2021-02: CNY 17.17 per share

- 2021-03: CNY 16.96 per share

- 2021-04: CNY 15.92 per share

- 2021-05: CNY 17.17 per share

- 2021-06: CNY 15.80 per share

- 2021-07: CNY 14.44 per share

- 2021-08: CNY 16.38 per share

- 2021-09: CNY 16.99 per share

- 2021-10: CNY 15.87 per share

- 2021-11: CNY 15.82 per share

- 2021-12: CNY 17.76 per share

- 2022-01: CNY 17.08 per share

- 2022-02: CNY 15.84 per share

- 2022-03: CNY 14.88 per share

- 2022-04: CNY 13.35 per share

- 2022-05: CNY 13.32 per share

- 2022-06: CNY 14.20 per share

- 2022-07: CNY 13.26 per share

- 2022-08: CNY 13.14 per share

- 2022-09: CNY 12.12 per share

- 2022-10: CNY 11.97 per share

- 2022-11: CNY 13.07 per share

- 2022-12: CNY 12.74 per share

- 2023-01: CNY 12.97 per share

- 2023-02: CNY 12.60 per share

- 2023-03: CNY 12.77 per share

- 2023-04: CNY 14.05 per share

- 2023-05: CNY 13.53 per share

- 2023-06: CNY 13.77 per share

- 2023-07: CNY 16.96 per share

- 2023-08: CNY 15.88 per share

- 2023-09: CNY 15.81 per share

- 2023-10: CNY 16.03 per share

- 2023-11: CNY 14.33 per share

- 2023-12: CNY 13.95 per share

- 2024-01: CNY 13.74 per share

- 2024-02: CNY 14.54 per share

- 2024-03: CNY 14.04 per share

- 2024-04: CNY 13.77 per share

- 2024-05: CNY 13.58 per share

- 2024-06: CNY 12.39 per share

- 2024-07: CNY 13.30 per share

- 2024-08: CNY 12.58 per share

- 2024-09: CNY 17.60 per share

- 2024-10: CNY 17.63 per share

- 2024-11: CNY 17.97 per share

- 2024-12: CNY 17.59 per share

- 2025-01: CNY 16.99 per share

- 2025-02: CNY 17.48 per share

- 2025-03: CNY 16.54 per share

- 2025-04: CNY 16.05 per share

- 2025-05: CNY 16.76 per share

- 2025-06: CNY 17.81 per share

- 2025-07: CNY 20.05 per share

- 2025-08: CNY 21.68 per share

- 2025-09: CNY 21.77 per share

- 2025-10: CNY 21.72 per share

- 2025-11: CNY 21.10 per share

- 2025-12: CNY 23.59 per share

- 2026-01: CNY 22.96 per share

- 2026-02: CNY 21.38 per share

- 2026-03: CNY 17.80 per share

- 2026-04: CNY 19.15 per share

- 2026-05: CNY 18.18 per share

- 2026-06: CNY 20.62 per share

- 2026-07: CNY 19.62 per share

- 2026-08: CNY 19.42 per share

- 2026-09: CNY 17.80 per share

- 2026-10: CNY 17.89 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 9.05 per share, central CNY 10.29 per share, high CNY 11.95 per share

- FY2017: low CNY 11.95 per share, central CNY 13.60 per share, high CNY 15.79 per share

- FY2018: low CNY 8.29 per share, central CNY 9.44 per share, high CNY 10.96 per share

- FY2019: low CNY 11.64 per share, central CNY 14.35 per share, high CNY 16.74 per share

- FY2020: low CNY 14.09 per share, central CNY 16.03 per share, high CNY 18.62 per share

- FY2021: low CNY 20.46 per share, central CNY 29.23 per share, high CNY 34.34 per share

- FY2022: low CNY 14.50 per share, central CNY 20.71 per share, high CNY 24.33 per share

- FY2023: low CNY 14.57 per share, central CNY 16.58 per share, high CNY 19.25 per share

- FY2024: low CNY 16.99 per share, central CNY 19.33 per share, high CNY 22.45 per share

- FY2025: low CNY 13.82 per share, central CNY 15.73 per share, high CNY 18.27 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 2026-10-15T06:40:20.214Z 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.