# Everbright Securities (601788.SHG)

Canonical: https://gigainvestors.com/s/601788.SHG

Analysis as of: 2026-10-01T09:06:03.648Z. Financial observations: FY2006–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 13.78 per share; close as of 2026-10-15.

Estimated value: low CNY 11.51 per share, central CNY 12.72 per share, high CNY 14.35 per share. Buy at or below the central value CNY 12.72 per share. Valuation as of 2026-10-01T09:06:03.648Z; scenarios are not confidence intervals.

Expected annual return: 9.3% at the stated quote. About 9.3% 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

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 0

- Operating margin variation: 0.48×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.44×

- FY2017: 0.30×

- FY2018: 0.02×

- FY2019: 0.08×

- FY2020: 0.21×

- FY2021: 0.23×

- FY2022: 0.28×

- FY2023: 0.36×

- FY2024: 0.29×

- FY2025: 0.43×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 4.5%

- ROIC, second-lowest year: 2.0%

- Typical minus recent gross margin: -0.0 pp

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.2%

- ROIC including acquisitions, ten-year median: 4.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 6.1%

- FY2017: 4.1%

- FY2018: 0.5%

- FY2019: 3.1%

- FY2020: 50.2%

- FY2021: >100%

- FY2022: 35.0%

- FY2023: 2.7%

- FY2024: 4.8%

- FY2025: 2.0%

### economics: fail

- 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: 1.07×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 19B

- Net income, five-year total: CNY 18B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 255.7 pp

- Working capital / revenue, change between three-year averages: 1958.1 pp

- Working capital / revenue, final three-year average: 280.8%

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

- FY2021: 1.07×

- FY2022: 1.09×

- FY2023: 1.03×

- FY2024: 1.09×

- FY2025: 1.09×

### management: pass

- $1 retained earnings test: 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 4.1% vs 2.7%

- Market cap gain: CNY 18B

- Cumulative retained earnings: CNY 6.4B

- Diluted shares, 10-year annual growth: 2.6%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 0.7%

- Per-share value change: CNY 0.04

- Per-share value, starting three-year median: CNY 0.77

- Per-share value, ending three-year median: CNY 0.82

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 513M

- Cumulative net income, 10 years: CNY 27B

- ROIC, first three-year median: 4.1%

- ROIC, last three-year median: 2.7%

### accounting: pass

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

- Sloan accruals: -3.7%

- Receivables to sales index (DSRI): 57.22×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.11×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 12.8%

- FY2017: 21.9%

- FY2018: 9.0%

- FY2019: -17.2%

- FY2020: -10.2%

- FY2021: 3.5%

- FY2022: -5.9%

- FY2023: -4.4%

- FY2024: -11.4%

- FY2025: -3.7%

## Holders

## Price story

Down 32% since Aug 2025 · sales -10.8%

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

Price needs cash profits to grow 2% a year for ten years

### Sales · FY2024–2025

sales -10.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-01.

- FY2016: CNY 9.1B 

- FY2017: CNY 14B 

- FY2018: CNY 13B 

- FY2019: CNY 14B 

- FY2020: CNY 20B 

- FY2021: CNY 20B 

- FY2022: CNY 14B 

- FY2023: CNY 13B 

- FY2024: CNY 12B 

- FY2025: CNY 11B 

### Gross margin · FY2024

gross margin 77.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-01.

- FY2017: 71.5% 

- FY2018: 61.4% 

- FY2019: 69.6% 

- FY2020: 80.9% 

- FY2021: 81.6% 

- FY2022: 76.7% 

- FY2023: 75.2% 

- FY2024: 77.8% 

## Owner memo

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

### How it makes money

Operates in capital markets; annual sales are CNY 10.9 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); FY2025: revenue 10863270000; grossProfit 10863270000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); 601788.SHG: Everbright Securities Company Limited, together with its subsidiaries, operates as a securities company in Mainland China and internationally. It operates through Wealth Management; Corporate Financing; Institutional Customer; Investment Trading; Asset Management; Equity Investment; and Others. The company offers securities and futures brokerage, securities investment consulting, securities trading, financial advisory; NEEQ and structural financing; and margin trading and stock pledge, as well as investment banking and financial leasing, margin financing and securities lending, institutional trading, prime brokerage, online securities trading, equity and debt financing, bullion trading, and overseas brokerage and wealth management business. It provides stock and bond financing, merger and acquisition financing, insurance agency, collateralized stock repurchase transactions, and trades stocks, bonds, and derivatives, as well as asset securitization and financial advisory services. In addition, it engages in securities and fund asset management, retail, securities trading and investment, proprietary fixed income and equity investment, factoring, investment research, prime brokerage and custody, customized financial products and package solutions; bond distribution, OTC derivatives, market making, and investment consulting services, etc. Further, the company engages in private securities and equity investment, nominee, business marketing and promotion, as well as operates alternative investment and PPP business, holds motor vehicle and licenses, IT support management, commodities broking and leveraged foreign exchange, etc. The company was incorporated in 1996 and is headquartered in Shanghai, China.

### Why customers stay

Margins ranged from 75.2% to 100% during 2023–25; it earns 4.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); FY2023: grossProfit / revenue = 75.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); FY2024: grossProfit / revenue = 77.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); 10-year return on capital observations [[2016,0.06117742225492651],[2017,0.04087736714355995],[2018,0.004600691890550972],[2019,0.031034067427448343],[2020,0.5017571724304589],[2021,5.0746658725788745],[2022,0.34952027611312186],[2023,0.027381324872893492],[2024,0.048403803414947454],[2025,0.020361252109637407]]; median 0.0446405852792537. 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 2026-10-01T09:06:03.648Z); FY2016: growth capex 0; upkeep 289549185.1; owner earnings 3076156860.9. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); FY2017: growth capex 0; upkeep 178819917.89; owner earnings 3196625656.11. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); FY2018: growth capex 0; upkeep 226445647.54; owner earnings 208418180.46. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); FY2019: growth capex 0; upkeep 326901979.19; owner earnings 864846752.81. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); FY2020: growth capex 0; upkeep 353710644.36; owner earnings 2640375216.64. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); FY2021: growth capex 0; upkeep 302413475.46; owner earnings 3725265667.54. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); FY2022: growth capex 0; upkeep 286483788.79; owner earnings 3490766120.21. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); FY2023: growth capex 0; upkeep 506041359; owner earnings 4412624861. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); FY2024: growth capex 0; upkeep 372008034; owner earnings 3321465718. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); FY2025: growth capex 0; upkeep 269133000; owner earnings 4098154952.88. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); Dividend observations: [[2016,4640127753.52],[2017,2982716116.4],[2018,4162449443],[2019,4061225165.52],[2020,3125684423],[2021,3167327246.03],[2022,3359683780.66],[2023,3057572411],[2024,3604376405],[2025,2632523923.64]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 30% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); 601788.SHG SharesStats.PercentInsiders = 29.991 percentage points; cache date 2026-10-02.

### What the price says

The price assumes cash profits grow 2% yearly over ten years; actual decline was 8.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:06:03.648Z); Ten-year compound average after fade. Initial solved rate 0.016187643291090695. Price 13.68; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.166952954325925 → FY2025 0.888818777371677. Closing-price date 2026-09-30.

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

- 2016-10: CNY 16.88 per share

- 2016-11: CNY 17.62 per share

- 2016-12: CNY 15.99 per share

- 2017-01: CNY 16.00 per share

- 2017-02: CNY 15.92 per share

- 2017-03: CNY 15.32 per share

- 2017-04: CNY 14.76 per share

- 2017-05: CNY 15.46 per share

- 2017-06: CNY 14.93 per share

- 2017-07: CNY 15.29 per share

- 2017-08: CNY 15.92 per share

- 2017-09: CNY 15.53 per share

- 2017-10: CNY 14.90 per share

- 2017-11: CNY 15.00 per share

- 2017-12: CNY 13.43 per share

- 2018-01: CNY 14.50 per share

- 2018-02: CNY 12.91 per share

- 2018-03: CNY 12.32 per share

- 2018-04: CNY 12.57 per share

- 2018-05: CNY 11.92 per share

- 2018-06: CNY 10.98 per share

- 2018-07: CNY 10.94 per share

- 2018-08: CNY 10.41 per share

- 2018-09: CNY 9.50 per share

- 2018-10: CNY 9.67 per share

- 2018-11: CNY 9.98 per share

- 2018-12: CNY 8.77 per share

- 2019-01: CNY 9.28 per share

- 2019-02: CNY 13.23 per share

- 2019-03: CNY 13.16 per share

- 2019-04: CNY 12.44 per share

- 2019-05: CNY 11.15 per share

- 2019-06: CNY 11.42 per share

- 2019-07: CNY 11.31 per share

- 2019-08: CNY 10.77 per share

- 2019-09: CNY 11.33 per share

- 2019-10: CNY 11.46 per share

- 2019-11: CNY 11.21 per share

- 2019-12: CNY 13.10 per share

- 2020-01: CNY 12.40 per share

- 2020-02: CNY 11.88 per share

- 2020-03: CNY 11.01 per share

- 2020-04: CNY 11.18 per share

- 2020-05: CNY 10.93 per share

- 2020-06: CNY 16.06 per share

- 2020-07: CNY 24.01 per share

- 2020-08: CNY 21.92 per share

- 2020-09: CNY 21.95 per share

- 2020-10: CNY 17.99 per share

- 2020-11: CNY 19.20 per share

- 2020-12: CNY 18.52 per share

- 2021-01: CNY 16.45 per share

- 2021-02: CNY 15.40 per share

- 2021-03: CNY 16.25 per share

- 2021-04: CNY 14.99 per share

- 2021-05: CNY 16.80 per share

- 2021-06: CNY 17.89 per share

- 2021-07: CNY 15.12 per share

- 2021-08: CNY 15.90 per share

- 2021-09: CNY 15.53 per share

- 2021-10: CNY 15.23 per share

- 2021-11: CNY 14.45 per share

- 2021-12: CNY 14.93 per share

- 2022-01: CNY 13.73 per share

- 2022-02: CNY 13.32 per share

- 2022-03: CNY 12.46 per share

- 2022-04: CNY 11.38 per share

- 2022-05: CNY 11.55 per share

- 2022-06: CNY 15.76 per share

- 2022-07: CNY 15.16 per share

- 2022-08: CNY 16.04 per share

- 2022-09: CNY 13.15 per share

- 2022-10: CNY 14.02 per share

- 2022-11: CNY 16.17 per share

- 2022-12: CNY 14.87 per share

- 2023-01: CNY 15.90 per share

- 2023-02: CNY 15.64 per share

- 2023-03: CNY 15.24 per share

- 2023-04: CNY 15.16 per share

- 2023-05: CNY 15.84 per share

- 2023-06: CNY 15.89 per share

- 2023-07: CNY 18.34 per share

- 2023-08: CNY 17.16 per share

- 2023-09: CNY 16.66 per share

- 2023-10: CNY 16.46 per share

- 2023-11: CNY 16.25 per share

- 2023-12: CNY 15.42 per share

- 2024-01: CNY 15.64 per share

- 2024-02: CNY 16.89 per share

- 2024-03: CNY 16.35 per share

- 2024-04: CNY 16.56 per share

- 2024-05: CNY 15.78 per share

- 2024-06: CNY 14.62 per share

- 2024-07: CNY 15.18 per share

- 2024-08: CNY 14.69 per share

- 2024-09: CNY 19.25 per share

- 2024-10: CNY 17.33 per share

- 2024-11: CNY 19.69 per share

- 2024-12: CNY 18.11 per share

- 2025-01: CNY 16.95 per share

- 2025-02: CNY 17.57 per share

- 2025-03: CNY 17.05 per share

- 2025-04: CNY 16.10 per share

- 2025-05: CNY 16.27 per share

- 2025-06: CNY 17.98 per share

- 2025-07: CNY 18.19 per share

- 2025-08: CNY 20.05 per share

- 2025-09: CNY 18.82 per share

- 2025-10: CNY 18.61 per share

- 2025-11: CNY 17.33 per share

- 2025-12: CNY 17.55 per share

- 2026-01: CNY 16.76 per share

- 2026-02: CNY 16.64 per share

- 2026-03: CNY 15.24 per share

- 2026-04: CNY 15.19 per share

- 2026-05: CNY 14.27 per share

- 2026-06: CNY 14.43 per share

- 2026-07: CNY 14.80 per share

- 2026-08: CNY 14.72 per share

- 2026-09: CNY 13.55 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 18.30 per share, central CNY 19.09 per share, high CNY 20.16 per share

- FY2017: low CNY 17.16 per share, central CNY 18.16 per share, high CNY 19.50 per share

- FY2018: low CNY 19.04 per share, central CNY 19.11 per share, high CNY 19.21 per share

- FY2019: low CNY 21.36 per share, central CNY 21.64 per share, high CNY 22.01 per share

- FY2020: low CNY 32.96 per share, central CNY 33.82 per share, high CNY 34.96 per share

- FY2021: low CNY 33.41 per share, central CNY 35.67 per share, high CNY 37.20 per share

- FY2022: low CNY 33.00 per share, central CNY 33.87 per share, high CNY 35.02 per share

- FY2023: low CNY 12.92 per share, central CNY 14.06 per share, high CNY 15.58 per share

- FY2024: low CNY 37.56 per share, central CNY 38.64 per share, high CNY 40.09 per share

- FY2025: low CNY 11.51 per share, central CNY 12.72 per share, high CNY 14.35 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.