Guotai Haitong Securities Co Ltd

Guotai Haitong Securities Co Ltd maintains a capital structure characterized by high leverage, with a debt-to-equity ratio of 2.97. Total liabilities stand at 1.78 trillion CNY against total equity of 330.4 billion CNY. The firm holds 26.5 billion CNY in cash and equivalents, which is insufficient to cover its 980.8 billion CNY in long-term debt, resulting in a negative net cash position. Liquidity is assessed as medium, supported by a current ratio of 1.11. Operating cash flow is negative at -20.3 billion CNY, while free cash flow remains positive at 21.7 billion CNY, driven by capital expenditures of -1.6 billion CNY.

Profitability metrics indicate modest returns, with a return on equity (ROE) of 8.42% and a return on assets (ROA) of 1.32%. The company reports net income of 27.8 billion CNY on revenue of 95.0 billion CNY, yielding a net margin of approximately 29.3%. Valuation multiples are compressed, with a price-to-earnings (P/E) ratio of 1.88 and a price-to-book (P/B) ratio of 0.16. The enterprise value to EBITDA ratio is 26.92, and EV to revenue is 10.6.

Revenue concentration and segment details are not explicitly provided in the available data, preventing a detailed analysis of geographic or business segment exposure. The company’s activity is broadly classified as Multiline Insurance & Brokers within the Capital Markets industry.

Growth trajectory analysis is limited due to the absence of historical period data in the input. The current financial snapshot reflects a single normalized period, with no year-over-year or quarterly trend data available to assess revenue or earnings momentum.

Risk assessment highlights medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, indicating reliance on external financing or operational cash generation to service liabilities. The high debt-to-equity ratio of 2.97 further underscores the leverage risk inherent in the capital structure.

Recent investor relations observations show a mean analyst price target of 19.85 CNY, with a median target of 20.16 CNY. The mean recommendation is 2.25, indicating a moderate buy sentiment, with two strong-buy ratings and one hold rating recorded. The high price target is 21.40 CNY, and the low is 18.00 CNY.