EN DE

China Merchants Securities Co (600999) Fair Value & Analysis

Financial Services · CN · Market cap 165B CNY

CM China Merchants Securities Co 600999 · SHG
Price¥18.00
Fair Value¥25.41
Upside+41.2%
Quality58/100
Watch China Merchants Securities Co for free, get notified when fair value or trend changes. Watch for free
Weak Growth
Highly profitable · 48.8% net margin
Low debt · negative free cash flow
2.92% dividend yield
Ranks above peers (9/12)
Wide moat 67/100
Evidence: High Range ¥19.06 – ¥31.76 Share as image

Fair value as of: Jul 18, 2026

From 17 valuation models · updated 20 days ago

Share price −10.9% over the past month.

A solid business, screening 41% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (¥19.06). The market is more pessimistic than our downside scenario.
  • Solid quality (58/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

¥22.45 ¥10.75 Fair Value ¥25.41 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range ¥10.75 – ¥22.45 · fair‑value band ¥19.06 – ¥31.76 · the ¥18.00 price screens below the ¥25.41 fair value. Dashed = 300-day average. As of Jul 18, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

China Merchants Securities Co (600999) currently trades at ¥18.00, while our model-based Fair Value estimate is ¥25.41, implying the stock looks roughly 41.2% undervalued today. We read business quality at 58/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, China Merchants Securities Co generated revenue of 27.3B CNY at a net margin of 48.8%. Revenue grew 52.5% year over year. It earns a return on equity of 9.7%. The balance sheet holds a net cash position of 89.7B CNY. Fundamentals as of Jul 18, 2026

Our scenario range runs from ¥19.06 (bear case) to ¥31.76 (bull case); at ¥18.00, the current price sits below 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 11% below its 52-week high and 21% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 11% fair-value upside, at 41%, 600999 screens cheaper 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.

Model BearBaseBull Evidence
Highest evidence
Residual Income ¥15.72 ¥17.19 ¥22.32 76
ROIC Compounder ¥52.52 ¥55.21 ¥57.57 72
Gordon GGM ¥11.44 ¥23.78 ¥37.73 70
All 17 models by family
DCF Models
Owner Earnings ¥60.42 ¥86.27 ¥136.64 31
Earnings-Based
Graham-Dodd ¥11.27 ¥67.89 ¥94.65 54
Lynch FV ¥19.37 ¥27.68 ¥35.98 50
PEG = 1.0 ¥19.37 ¥27.68 ¥35.98 46
EPV ¥52.52 ¥55.21 ¥57.57 59
Dividend Discount
Gordon GGM ¥11.44 ¥23.78 ¥37.73 70
DDM Multi-Stage ¥11.44 ¥20.06 ¥24.96 61
Multiples
P/E Multiple ¥24.86 ¥33.14 ¥41.43 63
P/S Multiple ¥6.29 ¥8.39 ¥10.48 58
P/B Multiple ¥21.13 ¥28.17 ¥35.22 55
EV/EBIT ¥61.81 ¥70.29 ¥78.77 53
EV/EBITDA ¥55.72 ¥62.17 ¥68.63 54
EV/Revenue ¥42.23 ¥44.75 ¥47.27 43
Asset-Based
NCAV (Graham) ¥9.08 ¥12.16 ¥18.15 50
Economic Profit
Residual Income ¥15.72 ¥17.19 ¥22.32 76
ROIC Compounder ¥52.52 ¥55.21 ¥57.57 72
Growth Earnings
Growth-Adj P/E ¥27.49 ¥39.27 ¥51.05 68

Widest divergence: DCF Models (¥86.27) versus Asset-Based (¥12.16). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 27.3B CNY
Revenue growth (YoY) +52.5%
Net margin 48.8%
Return on equity 9.7%
Free cash flow −32.1B CNY FY2025
P/E ratio 11.6
More key figures
Operating margin 56.2%
EPS (TTM) ¥1.46
Dividend yield 3.3%
EPS growth (YoY) +44.0%
Net cash 89.7B CNY FY2024

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 58 · Market factors (momentum, volatility) 63

Profitability 35
Margins and returns on capital today
Quality Growth 67
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 60
Price trend over the last 3–12 months (market factor)
52W Momentum 41
Distance to the 52-week high (market factor)
Net Issuance 92
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

China Merchants Securities Co., Ltd. engages in the wealth management and institutional, investment banking, investment management, investment, and trading businesses in the People's Republic of China. It operates through Wealth management and institutional business; Investment banking; Investment management; and other segments.

Full company description

China Merchants Securities Co., Ltd. engages in the wealth management and institutional, investment banking, investment management, investment, and trading businesses in the People's Republic of China. It operates through Wealth management and institutional business; Investment banking; Investment management; and other segments. The company trades in stocks and futures contracts; provides margin financing and securities lending services; and sells financial and other wealth management products. It also offers investment banking services to its institutional clients, including financial advisory, equity and debt underwriting, and sponsorship; and assets management, investing advisory, deal execution, and private equity investment management services. In addition, the company trades in equity and fixed-income securities, derivatives, and other financial products, as well as offers market maker and alternative investment services. The company was founded in 1991 and is based in Shenzhen, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Merchants Securities Co reported revenue of ¥24.9B in FY2025 versus ¥29.3B in FY2021, a compound −4.0%/yr. Reported net income was ¥12.3B in FY2025, compounding +1.4%/yr from FY2021.

Growth Quality 31/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
24.9B CNY
Latest YoY
+19.4%
Avg. growth/yr (3Y)
+9.3%
Avg. growth/yr (5Y)
+0.5%
Avg. growth/yr (21Y)
+18.8%
Revenue −4.0%/yr
FY21 ¥29.3B
FY22 ¥19.1B
FY23 ¥19.7B
FY24 ¥20.9B
FY25 ¥24.9B
Net income +1.4%/yr
FY21 ¥11.6B
FY22 ¥8.1B
FY23 ¥8.8B
FY24 ¥10.4B
FY25 ¥12.3B

Watch 600999: get an alert when its fair value changes →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "China Merchants Securities Co Fair Value". https://www.fairvalue-calculator.com/stock/600999

Peer Group

Capital Markets · 424 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.

Quality Score 64 · Top 25%
Fair Value upside +41% · Top 25%
Return on equity (TTM) 10% · Above median
Return on assets 2% · Above median
Net margin (TTM) 49% · Top 25%
Operating margin (TTM) 56% · Top 25%
Revenue growth 53% · Above median
Dividend yield (TTM) 2.9% · Above median
Debt / equity 0.41× · Higher than median

Valuation Multiples vs Capital Markets median · lower = cheaper

P/E (TTM) 13.0× · Cheaper than median
P/B 1.22× · Pricier than median
P/S (TTM) 6.03× · Pricier than 75% of peers

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 88 · sector 11
FUTURE 100 · sector 91
PAST 39 · sector 31
HEALTH 80 · sector 93
DIVIDEND 58 · sector 37

Values & ESG

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

None of the checked exposures detected

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

Similar stocks

10 more Capital Markets stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Huatai Securities Co HTSC $0.2700 $0.0400 -85%
Mirae Asset Securities Co 006800 38,750 KRW 31,645 KRW -18%
Meritz Financial Group 138040 117,000 KRW 87,706 KRW -25%
Korea Investment Holdings 071050 239,000 KRW 318,825 KRW +33%
NH Investment & Securities Co 005940 31,000 KRW 37,133 KRW +20%
Samsung Securities Co 016360 107,700 KRW 126,487 KRW +17%
Motilal Oswal Financial Services Limited MOTILALOFS ₹967.00 ₹299.65 -69%
Kiwoom Securities Co 039490 322,000 KRW 358,091 KRW +11%
SSI Securities Corporation SSI 24,250 VND 28,021 VND +16%
Bolsas y Mercados Argentinos S.A BYMA 313.75 ARS 120.22 ARS -62%

Compare China Merchants Securities Co with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Financial Services stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is China Merchants Securities Co (600999) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of ¥25.41 versus a price of ¥18.00, about +41% (undervalued).
What is the fair value of 600999?
Our model-based fair value for China Merchants Securities Co is ¥25.41 (as of Jul 18, 2026), built from audited fundamentals. The current price is ¥18.00.
What is the quality score of 600999?
China Merchants Securities Co has a Quality Score of 58/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of China Merchants Securities Co (600999)?
China Merchants Securities Co reported trailing-twelve-month revenue of about 27.3B CNY (latest available figure, as of Jul 18, 2026).
What is the net profit margin of 600999?
The net profit margin of China Merchants Securities Co is about 48.8%, meaning it keeps roughly 48.8% of revenue as net income. Based on the latest reported figures.
Does China Merchants Securities Co pay a dividend?
China Merchants Securities Co currently shows a dividend yield of about 3.32% relative to its recent price (as of Jul 18, 2026).

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.

14 days Pro free · no card

Track China Merchants Securities Co and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.