601788 (Everbright Securities Co Ltd) vs Shanghai Composite Comparison

601788

Shanghai Composite

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601788

Shanghai Composite

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601788

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

601788

EFGD

SCHW

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Everbright Securities Co Ltd
Glance View

Market Cap

80.7B CNY

Industry

Financial Services

In the bustling corridors of Shanghai, Everbright Securities Co., Ltd. stands as a pillar in the financial services landscape of China. Established in 1996, this company has carved out a distinguished reputation by offering a comprehensive suite of financial services that cater to both retail and institutional clients. As a subsidiary of China Everbright Group, it leverages a robust network that spreads across the global financial markets. Its operational heartbeats are investment banking, brokerage services, and asset management. By navigating the volatile pulse of the financial markets, Everbright Securities ensures steady revenues through commissions and fees from its brokerage services, a vital lifeblood of any securities firm. Its investment banking division thrives on underwriting services, helping entities access capital through securities offerings. This division is known for its capability to steer public offerings and provision of advisory services to navigate mergers and acquisitions. A distinct facet of Everbright Securities is its prowess in asset management, where it crafts tailored investment solutions that cater to a diverse clientele, ranging from high-net-worth individuals to corporate entities. By managing portfolios that balance high-performing stocks and bonds, the firm generates revenue through management fees proportional to the assets under its care. The interwoven operations of Everbright's service divisions create a symbiotic ecosystem that captures value from the Chinese economy’s ebbs and flows. This adaptability not only ensures its robust presence in the domestic financial theatre but also fortifies its ambition of expanding a global footprint. By embracing technology and innovation, Everbright Securities is continually evolving, ensuring it remains at the forefront of financial services, adeptly reading market trends and client needs alike.

View Everbright 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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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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601788

vs

Shanghai Composite

Stocks Performance
601788 vs Shanghai Composite

Performance Gap
601788 vs Shanghai Composite

Performance By Year
601788 vs Shanghai Composite

Competitors Performance
Everbright Securities Co Ltd vs Peers

Everbright Securities Co Ltd
Glance View

Company

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601788 vs Shanghai Composite

Stocks Performance 601788 vs Shanghai Composite

Performance Gap 601788 vs Shanghai Composite

Performance By Year 601788 vs Shanghai Composite

Competitors Performance Everbright Securities Co Ltd vs Peers

Everbright Securities Co Ltd Glance View

Company

Help

Tools

Stocks

601788

vs

Shanghai Composite

Stocks Performance
601788 vs Shanghai Composite

Performance Gap
601788 vs Shanghai Composite

Performance By Year
601788 vs Shanghai Composite

Competitors Performance
Everbright Securities Co Ltd vs Peers

Everbright Securities Co Ltd
Glance View