601688 (Huatai Securities Co Ltd) vs Shanghai Composite Comparison

601688

Shanghai Composite

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601688

Shanghai Composite

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601688

Shanghai Composite

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Shanghai Composite

601688

EFGD

SCHW

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Huatai Securities Co Ltd
Glance View

Market Cap

148.9B CNY

Industry

Financial Services

Huatai Securities Co Ltd. is a pivotal player in China's financial services sector, weaving its narrative amidst the country's economic evolution. Established in the wake of China's market reforms, the company carved a niche by providing comprehensive securities services, including brokerage, wealth management, and trading, which form the backbone of its revenue streams. As the financial landscape in China broadened, Huatai seized the opportunity to build a robust client base, catering to retail investors, institutions, and high-net-worth individuals. This diverse customer focus enabled the firm to offer tailored financial solutions, leveraging its deep market insight and extensive network to facilitate transactions not only in equities but also in debt securities and other financial instruments. At the heart of Huatai's operations is its commitment to technological innovation and digital transformation, which further sharpens its competitive edge. The company's strategic investments in fintech and digital platforms have not only enhanced the efficiency of its service delivery but also magnified its reach to tech-savvy, younger investors. Through its proprietary trading platforms and mobile applications, Huatai capitalizes on the burgeoning demand for seamless and sophisticated online trading experiences. This digital-first approach not only streamlines its operations but also underpins its ability to generate commissions and fees, a primary revenue driver. Meanwhile, its asset management and investment banking segments contribute significantly to its financial health, showcasing Huatai's adeptness in navigating the complexities of capital markets and corporate finance, positioning itself as a trusted partner in China's economic journey.

View Huatai Securities Co Ltd Analysis

Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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CN	Guotai Junan Securities Co Ltd SSE:601211	Add

US	Morgan Stanley NYSE:MS	Select
US	Goldman Sachs Group Inc NYSE:GS	Select
EG	EFG Hermes Holdings SAE LSE:EFGD	Select
US	Charles Schwab Corp NYSE:SCHW	Select
US	Interactive Brokers Group Inc NASDAQ:IBKR	Select
CN	CITIC Securities Co Ltd SSE:600030	Select
US	Robinhood Markets Inc NASDAQ:HOOD	Select
US	Raymond James Financial Inc NYSE:RJF	Select
US	LPL Financial Holdings Inc NASDAQ:LPLA	Select
CN	Guotai Junan Securities Co Ltd SSE:601211	Select

US	Morgan Stanley NYSE:MS	Add
US	Goldman Sachs Group Inc NYSE:GS	Add
EG	EFG Hermes Holdings SAE LSE:EFGD	Add
US	Charles Schwab Corp NYSE:SCHW	Add
US	Interactive Brokers Group Inc NASDAQ:IBKR	Add
CN	CITIC Securities Co Ltd SSE:600030	Add
US	Robinhood Markets Inc NASDAQ:HOOD	Add
US	Raymond James Financial Inc NYSE:RJF	Add
US	LPL Financial Holdings Inc NASDAQ:LPLA	Add
CN	Guotai Junan Securities Co Ltd SSE:601211	Add

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601688

vs

Shanghai Composite

Stocks Performance
601688 vs Shanghai Composite

Performance Gap
601688 vs Shanghai Composite

Performance By Year
601688 vs Shanghai Composite

Competitors Performance
Huatai Securities Co Ltd vs Peers

Huatai Securities Co Ltd
Glance View

Company

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601688 vs Shanghai Composite

Stocks Performance 601688 vs Shanghai Composite

Performance Gap 601688 vs Shanghai Composite

Performance By Year 601688 vs Shanghai Composite

Competitors Performance Huatai Securities Co Ltd vs Peers

Huatai Securities Co Ltd Glance View

Company

Help

Tools

Stocks

601688

vs

Shanghai Composite

Stocks Performance
601688 vs Shanghai Composite

Performance Gap
601688 vs Shanghai Composite

Performance By Year
601688 vs Shanghai Composite

Competitors Performance
Huatai Securities Co Ltd vs Peers

Huatai Securities Co Ltd
Glance View