Hongta Securities Co Ltd
SSE:601236

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Hongta Securities Co Ltd
SSE:601236
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Price: 7.72 CNY 0.65% Market Closed
Market Cap: ¥36.4B

EV/GP

22.7
Current
28%
Cheaper
vs 3-y average of 31.5

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
22.7
=
Enterprise Value
¥54.9B
/
Gross Profit
¥2.4B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
22.7
=
Enterprise Value
¥54.9B
/
Gross Profit
¥2.4B

Valuation Scenarios

Hongta Securities Co Ltd is trading below its 3-year average

If EV/GP returns to its 3-Year Average (31.5), the stock would be worth ¥10.73 (39% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-50%
Maximum Upside
+39%
Average Downside
3%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 22.7 ¥7.72
0%
3-Year Average 31.5 ¥10.73
+39%
5-Year Average 31.5 ¥10.72
+39%
Industry Average 11.4 ¥3.87
-50%
Country Average 13.6 ¥4.62
-40%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

In line with most companies in China
Percentile
69th
Based on 6 967 companies
69th percentile
22.7
Low
0 — 8
Typical Range
8 — 23.3
High
23.3 —
Distribution Statistics
China
Min 0
30th Percentile 8
Median 13.6
70th Percentile 23.3
Max 17 898 541.1

Hongta Securities Co Ltd
Glance View

Market Cap
36.4B CNY
Industry
Financial Services

Hongta Securities Co Ltd., a key player in China's financial landscape, traces its roots back to 1993. Born out of the Hong Yun Group, known for its ties to the tobacco industry, Hongta Securities has since carved out a robust presence in the world of financial services. The company functions as a comprehensive securities firm, offering a wide array of financial services encompassing securities brokerage, investment banking, asset management, and wealth management. Its brokerage arm stands as a cornerstone, facilitating the buying and selling of securities for a diverse clientele, ranging from individual retail investors to large institutional clients. Through this brokerage service, the firm earns commissions on trades and fees for advisory services, thereby generating a stable revenue stream. Beyond brokerage, Hongta's investment banking segment propels the company into corporate finance, where it lends its expertise in underwriting, mergers and acquisitions, and strategic advisory services. This segment significantly contributes to Hongta's revenue by securing fees from clients for helping them access capital markets or navigate complex financial transactions. Meanwhile, the asset management division seeks to enhance revenue through management and performance fees by offering tailored investment products and solutions. This diversified business model enables Hongta Securities to withstand market volatility, capitalizing on various opportunities across China's ever-evolving financial ecosystem. Through a blend of traditional financial acumen and modern financial service offerings, Hongta Securities positions itself as a pivotal player harnessing growth trajectories both within and beyond domestic markets.

Intrinsic Value
10.68 CNY
Undervaluation 28%
Intrinsic Value
Price ¥7.72
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