# Zheshang Securities (601878.SHG)

Canonical: https://gigainvestors.com/s/601878.SHG

Analysis as of: 2026-10-16T07:37:00.209Z. Financial observations: FY2015–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 9.04 per share; close as of 2026-10-15.

Estimated value: low CNY 4.85 per share, central CNY 5.33 per share, high CNY 5.93 per share. Buy at or below the central value CNY 5.33 per share. Valuation as of 2026-10-16T07:37:00.209Z; scenarios are not confidence intervals.

Expected annual return: 5.9% at the stated quote. About 5.9% 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

- Financial history: 10 years

- Profitable years in the last ten: 10

- Required profitable years: 9

- Return on common equity variation (informational): 0.29×

Chart: Net income; fiscal year observations.

- FY2016: CNY 1.2B

- FY2017: CNY 1.1B

- FY2018: CNY 737M

- FY2019: CNY 968M

- FY2020: CNY 1.6B

- FY2021: CNY 2.2B

- FY2022: CNY 1.7B

- FY2023: CNY 1.8B

- FY2024: CNY 1.9B

- FY2025: CNY 2.4B

### moat: fail

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- median return on common equity below threshold

- Bank / P&C ROTE, median of available years: 6.7%

- Required median return: 12.0%

- Return uses tangible common equity: Yes

- Bank ROTE, second-lowest year: 5.5%

- Years with reported combined ratio: 0

Chart: Return on tangible common equity; fiscal year observations.

- FY2016: 13.1%

- FY2017: 7.9%

- FY2018: 5.4%

- FY2019: 6.6%

- FY2020: 8.5%

- FY2021: 9.3%

- FY2022: 6.4%

- FY2023: 6.6%

- FY2024: 5.5%

- FY2025: 6.8%

### economics: pass

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- Book value per share + reinvested dividends, annualized return: 16.3%

- Book return interval: 10 years

- Starting book value per share: CNY 2.77

- Ending book value per share: CNY 7.81

Chart: Annual book + dividend return; fiscal year observations.

- FY2016: 29.1%

- FY2017: 19.0%

- FY2018: 19.9%

- FY2019: 15.4%

- FY2020: 15.5%

- FY2021: 15.7%

- FY2022: 15.8%

- FY2023: 4.2%

- FY2024: 34.8%

- FY2025: -1.8%

### management: fail

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- ordinary share count growth exceeds 2% annually in both the full and five-year windows

- Diluted shares, 10-year annual growth: 4.2%

- Diluted shares, 5-year annual growth: 4.1%

- Share growth excluding flagged crisis recapitalisations: 4.2%

- Five-year share growth excluding flagged crisis recapitalisations: 4.1%

- Flagged crisis recapitalisations: 0

- Book created / earnings retained after dividends and buybacks: 3.39×

- Book value created per share: CNY 5.04

- Earnings retained per share after dividends and buybacks: CNY 1.49

Chart: Shares (first year = 100); fiscal year observations.

- FY2015: 100

- FY2016: 95

- FY2017: 118

- FY2018: 106

- FY2019: 108

- FY2020: 123

- FY2021: 134

- FY2022: 133

- FY2023: 138

- FY2024: 139

- FY2025: 151

### accounting: pass

- Financial accounting warning count: 0

- Known restatement years: 0

## Holders

## Price story

Down 37% since Sep 2024 · net income +24.9%

Story as of 2026-10-16T10:00:08.463Z; price observation 2026-10-15.

The price assumes profits grow 4.1% a year forever

### Net income · FY2025

net income +24.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 1.2B 

- FY2017: CNY 1.1B 

- FY2018: CNY 737M 

- FY2019: CNY 968M 

- FY2020: CNY 1.6B 

- FY2021: CNY 2.2B 

- FY2022: CNY 1.7B 

- FY2023: CNY 1.8B 

- FY2024: CNY 1.9B 

- FY2025: CNY 2.4B 

## Owner memo

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

### How it makes money

Operates in capital markets; annual sales are CNY 8.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:00.209Z); FY2025: revenue 8633338609.2.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601878.SHG: Zheshang Securities Co., Ltd. provides investment and financing products and services in China. It offers brokerage services, including investment consulting and diverse wealth management services and solutions for margin trading and short selling; investment banking services comprising personalized and full-range capital market advisory services; asset management services, such as management of securities assets and publicly placed securities investment funds; proprietary investment activity; commodities futures and financial futures brokerage, futures investment consulting, and risk management; and research and advisory services. The company was founded in 2002 and is headquartered in Hangzhou, China.

### Why customers stay

It earns 6.7% on shareholders’ money, excluding intangible assets.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:00.209Z); 10-year return on tangible equity observations [[2016,0.13071935503590434],[2017,0.07916713035331979],[2018,0.05433767529258109],[2019,0.06565770498164837],[2020,0.08472421364830272],[2021,0.09305838222239615],[2022,0.06395245292071387],[2023,0.06560360632929786],[2024,0.05532711034274662],[2025,0.06785818769671884]]; median 0.06675794633918361. 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 2026-10-16T07:37:00.209Z); Dividend observations: [[2016,800121488.51],[2017,539986324.66],[2018,972785655.34],[2019,1092515544.4],[2020,300001216],[2021,504161943],[2022,1399610633.53],[2023,1174545045.9],[2024,1327408804.48],[2025,1595511715.13]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 51.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601878.SHG SharesStats.PercentInsiders = 51.339999999999996 percentage points; cache date 2026-10-16.

### What the price says

The price assumes profits grow 4.1% a year forever.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:00.209Z); Price 9.04; FX 1; original perpetual distributable cash 0.5333325894926922; discount 0.1; growth 0.04100303213576413. Same book-value model and 4× ceiling; no ten-year operating fade applies. Closing-price date 2026-10-15.

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

- 2017-06: CNY 17.01 per share

- 2017-07: CNY 16.34 per share

- 2017-08: CNY 23.04 per share

- 2017-09: CNY 21.30 per share

- 2017-10: CNY 17.25 per share

- 2017-11: CNY 16.30 per share

- 2017-12: CNY 16.62 per share

- 2018-01: CNY 16.13 per share

- 2018-02: CNY 13.47 per share

- 2018-03: CNY 12.74 per share

- 2018-04: CNY 11.86 per share

- 2018-05: CNY 10.48 per share

- 2018-06: CNY 8.40 per share

- 2018-07: CNY 7.70 per share

- 2018-08: CNY 6.69 per share

- 2018-09: CNY 7.43 per share

- 2018-10: CNY 7.30 per share

- 2018-11: CNY 8.22 per share

- 2018-12: CNY 7.26 per share

- 2019-01: CNY 7.56 per share

- 2019-02: CNY 10.05 per share

- 2019-03: CNY 11.61 per share

- 2019-04: CNY 10.02 per share

- 2019-05: CNY 8.84 per share

- 2019-06: CNY 9.30 per share

- 2019-07: CNY 8.86 per share

- 2019-08: CNY 8.06 per share

- 2019-09: CNY 8.65 per share

- 2019-10: CNY 8.75 per share

- 2019-11: CNY 8.37 per share

- 2019-12: CNY 11.13 per share

- 2020-01: CNY 10.57 per share

- 2020-02: CNY 10.54 per share

- 2020-03: CNY 10.01 per share

- 2020-04: CNY 9.82 per share

- 2020-05: CNY 9.85 per share

- 2020-06: CNY 9.91 per share

- 2020-07: CNY 16.52 per share

- 2020-08: CNY 14.88 per share

- 2020-09: CNY 17.71 per share

- 2020-10: CNY 14.86 per share

- 2020-11: CNY 16.49 per share

- 2020-12: CNY 15.30 per share

- 2021-01: CNY 13.24 per share

- 2021-02: CNY 12.58 per share

- 2021-03: CNY 12.80 per share

- 2021-04: CNY 11.38 per share

- 2021-05: CNY 13.29 per share

- 2021-06: CNY 13.08 per share

- 2021-07: CNY 11.09 per share

- 2021-08: CNY 12.40 per share

- 2021-09: CNY 12.45 per share

- 2021-10: CNY 12.34 per share

- 2021-11: CNY 12.42 per share

- 2021-12: CNY 13.18 per share

- 2022-01: CNY 12.33 per share

- 2022-02: CNY 11.55 per share

- 2022-03: CNY 10.51 per share

- 2022-04: CNY 9.21 per share

- 2022-05: CNY 9.66 per share

- 2022-06: CNY 11.38 per share

- 2022-07: CNY 10.70 per share

- 2022-08: CNY 10.93 per share

- 2022-09: CNY 9.48 per share

- 2022-10: CNY 10.17 per share

- 2022-11: CNY 10.69 per share

- 2022-12: CNY 9.93 per share

- 2023-01: CNY 10.63 per share

- 2023-02: CNY 10.32 per share

- 2023-03: CNY 10.07 per share

- 2023-04: CNY 10.22 per share

- 2023-05: CNY 10.00 per share

- 2023-06: CNY 9.88 per share

- 2023-07: CNY 10.86 per share

- 2023-08: CNY 10.30 per share

- 2023-09: CNY 10.08 per share

- 2023-10: CNY 10.07 per share

- 2023-11: CNY 10.50 per share

- 2023-12: CNY 10.43 per share

- 2024-01: CNY 9.65 per share

- 2024-02: CNY 10.24 per share

- 2024-03: CNY 11.32 per share

- 2024-04: CNY 11.30 per share

- 2024-05: CNY 10.97 per share

- 2024-06: CNY 10.72 per share

- 2024-07: CNY 11.62 per share

- 2024-08: CNY 11.19 per share

- 2024-09: CNY 14.41 per share

- 2024-10: CNY 12.94 per share

- 2024-11: CNY 12.69 per share

- 2024-12: CNY 12.24 per share

- 2025-01: CNY 11.29 per share

- 2025-02: CNY 11.55 per share

- 2025-03: CNY 11.37 per share

- 2025-04: CNY 10.49 per share

- 2025-05: CNY 10.44 per share

- 2025-06: CNY 10.91 per share

- 2025-07: CNY 11.37 per share

- 2025-08: CNY 12.08 per share

- 2025-09: CNY 11.53 per share

- 2025-10: CNY 11.62 per share

- 2025-11: CNY 10.95 per share

- 2025-12: CNY 10.81 per share

- 2026-01: CNY 10.70 per share

- 2026-02: CNY 10.67 per share

- 2026-03: CNY 9.66 per share

- 2026-04: CNY 9.85 per share

- 2026-05: CNY 9.44 per share

- 2026-06: CNY 9.50 per share

- 2026-07: CNY 9.55 per share

- 2026-08: CNY 9.39 per share

- 2026-09: CNY 8.97 per share

- 2026-10: CNY 9.02 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 5.20 per share, central CNY 6.50 per share, high CNY 8.67 per share

- FY2017: low CNY 4.76 per share, central CNY 5.95 per share, high CNY 7.94 per share

- FY2018: low CNY 3.73 per share, central CNY 4.11 per share, high CNY 4.56 per share

- FY2019: low CNY 2.15 per share, central CNY 2.53 per share, high CNY 3.08 per share

- FY2020: low CNY 2.45 per share, central CNY 2.88 per share, high CNY 3.50 per share

- FY2021: low CNY 2.56 per share, central CNY 3.20 per share, high CNY 4.27 per share

- FY2022: low CNY 3.32 per share, central CNY 4.01 per share, high CNY 5.06 per share

- FY2023: low CNY 4.02 per share, central CNY 4.63 per share, high CNY 5.47 per share

- FY2024: low CNY 5.47 per share, central CNY 6.02 per share, high CNY 6.69 per share

- FY2025: low CNY 4.74 per share, central CNY 5.21 per share, high CNY 5.79 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