Guosheng Securities Inc (002670) Fair Value & Analysis

Financial Services · CN · Market cap 23.4B CNY

Below-average quality, and screening another 79% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (¥3.00). The favourable scenario is already priced in.
• Weak quality (43/100) and above fair value at the same time, the margin of safety is missing on both counts.
• For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 25, 2026.

How to read this chart

60‑month range ¥7.39 – ¥24.34 · fair‑value band ¥1.80 – ¥3.00 · the ¥11.18 price screens above the ¥2.40 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 25, 2026.

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Analysis

Guosheng Securities Inc (002670) currently trades at ¥11.18, while our model-based Fair Value estimate is ¥2.40, implying the stock looks roughly 78.5% overvalued today. The Quality Score stands at 43/100 (below-average quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Guosheng Securities Inc generated revenue of 1.7B CNY at a net margin of 12.3%. Revenue declined 29.1% year over year. It earns a return on equity of 1.8%. The balance sheet holds a net cash position of 529M CNY. Fundamentals as of Jul 25, 2026

Our scenario range runs from ¥1.80 (bear case) to ¥3.00 (bull case); at ¥11.18, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 54% below its 52-week high and 3% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -15% fair-value upside, at -79%, 002670 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Multiples (¥4.98) versus Asset-Based (¥3.92). Highest evidence: P/B Multiple (55).

Key figures & financial health

Quality Score breakdown

About the company

Guosheng Securities Inc, together with its subsidiaries, operates as a securities company in China. It operates through Futures Business, Asset Management Business, Securities Brokerage Business, Securities Proprietary Trading Business, Investment Banking Business, Credit Business, Non-Securities Investment Business, and Other Business segments.

Full company description

Guosheng Securities Inc, together with its subsidiaries, operates as a securities company in China. It operates through Futures Business, Asset Management Business, Securities Brokerage Business, Securities Proprietary Trading Business, Investment Banking Business, Credit Business, Non-Securities Investment Business, and Other Business segments. The company offers securities brokerage and futures brokerage services to individual and institutional clients; professional research and consulting services through various forms, such as reports, roadshows, strategy meetings, research, and teleconferences; stock underwriting and sponsorship, bond underwriting, M&A financial advisory, and listing recommendations for companies listed on the National Equities Exchange and Quotations (NEEQ); single asset management, collective asset management, and asset-backed special plans; and investment advisory services for asset management products. It also provides capital intermediary services, such as margin financing and securities lending, margin trading, stock pledged repurchase, and agreed repurchase; and securities underwriting. In addition, the company is involved in the promotion and sale of securities and financial products; trading and market-making of equity, fixed-income, direct investment, derivative products, and other financial products; development of asset management products; commodity futures brokerage; financial futures brokerage; equity investment; financial consulting; technical services; computer hardware and software; and computer system integration technology development. The company was formerly known as Guosheng Financial Holding Inc. and changed its name to Guosheng Securities Inc in October 2025. Guosheng Securities Inc was founded in 1995 and is headquartered in Nanchang City, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Guosheng Securities Inc reported revenue of ¥1.8B in FY2025 versus ¥1.9B in FY2021, a compound −2.4%/yr. Reported net income was ¥273M in FY2025, compounding +37.3%/yr from FY2021.

002670 screens 79% overvalued. Compare with ORIX Corporation →

Peer Group

Financial Conglomerates · 56 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Financial Conglomerates median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.