GF Securities Co Ltd

GF Securities maintains a capital structure characterized by high leverage, with a debt-to-equity ratio of 2.88 and long-term debt of 449.07 billion CNY against total equity of 156.11 billion CNY. The firm trades at a price-to-book ratio of 0.82, indicating a discount to tangible book value, while the price-to-earnings ratio stands at 8.2. Liquidity is assessed as medium risk, with a key flag noting that net cash is negative after subtracting total debt. Operating cash flow is negative at -27.78 billion CNY, though free cash flow remains positive at 5.37 billion CNY, supported by low capital expenditure of -0.73 billion CNY.

Profitability metrics show a return on equity of 10.03% and a return on assets of 1.6%. The company generated net income of 13.70 billion CNY on revenue of 35.85 billion CNY, resulting in a gross profit of 35.47 billion CNY and operating income of 18.79 billion CNY. Without cohort median data provided, these returns are evaluated in isolation, though the high gross margin suggests significant operating leverage typical of asset management businesses.

Revenue concentration is not detailed by segment or geography in the available data, so specific exposure analysis is omitted. The company’s activity is broadly defined as asset management and custody services within the Capital Markets industry.

Growth trajectory cannot be assessed due to the absence of historical period data for revenue and net income trends. The current financial snapshot provides a single-period view without year-over-year or quarterly progression metrics.

Risk factors include medium liquidity risk and low dilution risk, with shares outstanding basic and diluted both at 5.90 billion, indicating no immediate dilutive instruments in the count. The negative net cash position after debt subtraction is a primary balance sheet concern.

Recent events are reflected in analyst sentiment, with a mean price target of 27.29 CNY and a median of 27.48 CNY, suggesting upside potential from the current market price of 21.75 CNY. The mean recommendation is 1.50, driven by 7 strong-buy and 4 buy ratings, with only 1 hold rating, indicating strong institutional confidence.

Net income surged 42.2% year-over-year to CNY 13.7 billion, demonstrating strong profitability growth momentum.

Analysts project 43.7% upside to a mean price target of CNY 27.29, reflecting strong market confidence.

Return on equity of 10.0% outperforms the 4.13% cohort median, highlighting effective capital utilization.

Free cash flow improved 191.5% year-over-year to CNY 5.37 billion, signaling robust liquidity generation.

Debt-to-equity ratio of 2.88 sits in the bottom quartile, indicating significantly higher leverage than peers.

High credit risk flags suggest potential vulnerabilities in asset quality or counterparty exposure.

Long-term debt increased to CNY 449.1 billion, raising concerns about financial flexibility and interest burden.

Cash conversion ratio of -1.77 is in the bottom quartile, indicating poor cash generation relative to earnings.

Medium liquidity risk flags indicate potential challenges in meeting short-term financial obligations.

Revenue ¥11.68B, +64,3% YoY; Operating income +75,8% YoY.

• ▍Revenue ¥11.68B, +64,3% YoY
• ▍Operating income +75,8% YoY
• ▍Net income +70,7% YoY
• ▍Net margin 40.3%

Revenue ¥9.33B, +18,6% YoY; Operating income +39,7% YoY.

• ▍Revenue ¥9.33B, +18,6% YoY
• ▍Operating income +39,7% YoY
• ▍Net income −3,7% YoY
• ▍Net margin 29.7%

Revenue ¥10.76B, +51,7% YoY; Operating income +91,9% YoY.

• ▍Revenue ¥10.76B, +51,7% YoY
• ▍Operating income +91,9% YoY
• ▍Net income +85,9% YoY
• ▍Net margin 41.5%

Revenue ¥8.16B, +25,3% YoY; Operating income +44,8% YoY.

• ▍Revenue ¥8.16B, +25,3% YoY
• ▍Operating income +44,8% YoY
• ▍Net income +31,5% YoY
• ▍Net margin 45.5%

Revenue ¥7.11B; Operating income ¥3.55B.

• ▍Revenue ¥7.11B
• ▍Operating income ¥3.55B
• ▍Net margin 38.8%

Revenue ¥7.87B; Operating income ¥3.27B.

• ▍Revenue ¥7.87B
• ▍Operating income ¥3.27B
• ▍Net margin 36.5%

Revenue ¥7.09B; Operating income ¥3.07B.

• ▍Revenue ¥7.09B
• ▍Operating income ¥3.07B
• ▍Net margin 33.9%

Revenue ¥6.51B; Operating income ¥3.31B.

• ▍Revenue ¥6.51B
• ▍Operating income ¥3.31B
• ▍Net margin 43.4%

Revenue ¥35.85B, +34,1% YoY; Operating income +63,9% YoY.

• ▍Revenue ¥35.85B, +34,1% YoY
• ▍Operating income +63,9% YoY
• ▍Net income +42,2% YoY
• ▍Free cash flow +191,5% YoY
• ▍Net margin 38.2%

Revenue ¥26.74B, +13,2% YoY; Operating income +30,4% YoY.

• ▍Revenue ¥26.74B, +13,2% YoY
• ▍Operating income +30,4% YoY
• ▍Net income +38,1% YoY
• ▍Free cash flow +1 409,9% YoY
• ▍Net margin 36.0%

Revenue ¥23.63B, −7,2% YoY; Operating income −15,8% YoY.

• ▍Revenue ¥23.63B, −7,2% YoY
• ▍Operating income −15,8% YoY
• ▍Net income −12,0% YoY
• ▍Free cash flow +83,0% YoY
• ▍Net margin 29.5%

Revenue ¥25.48B, −26,3% YoY; Operating income −30,5% YoY.

• ▍Revenue ¥25.48B, −26,3% YoY
• ▍Operating income −30,5% YoY
• ▍Net income −26,9% YoY
• ▍Free cash flow −121,1% YoY
• ▍Net margin 31.1%