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Hongta Securities Co (601236) Fair Value & Analysis

Financial Services · CN · Market cap 32.9B CNY

HS Hongta Securities Co 601236 · SHG
Price¥7.01
Fair Value¥4.57
Upside-34.8%
Quality54/100
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Weak Growth
Highly profitable · 48.4% net margin
negative free cash flow
3.00% dividend yield
Mixed vs. peers (5/12)
Moderate moat 58/100
Evidence: High Range ¥3.43 – ¥5.71 Share as image

Fair value as of: Aug 10, 2026

From 2 valuation models · updated today

Fair value updated Aug 10, 2026, revised from ¥4.37 to ¥4.57 (+4.6%) since Jul 25, 2026. Share price +1.6% over the past month.

A solid business, but screening 35% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥5.71). The favourable scenario is already priced in.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

¥14.06 ¥6.02 Fair Value ¥4.57 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 10, 2026.

How to read this chart

60‑month range ¥6.02 – ¥14.06 · fair‑value band ¥3.43 – ¥5.71 · the ¥7.01 price screens above the ¥4.57 fair value. Dashed = 300-day average. As of Aug 10, 2026.

Full chart & analysis →

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Analysis

Hongta Securities Co (601236) currently trades at ¥7.01, while our model-based Fair Value estimate is ¥4.57, implying the stock looks roughly 34.8% overvalued today. The Quality Score stands at 54/100 (solid 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, Hongta Securities Co generated revenue of 2.3B CNY at a net margin of 48.4%. Revenue declined 21.6% year over year. It earns a return on equity of 4.4%. Net debt stands at 23.5B CNY. Fundamentals as of Aug 10, 2026

Our scenario range runs from ¥3.43 (bear case) to ¥5.71 (bull case); at ¥7.01, 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 31% below its 52-week high and 10% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 11% fair-value upside, at -35%, 601236 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.

Model BearBaseBull Evidence
Highest evidence
P/B Multiple ¥3.43 ¥4.57 ¥5.71 55
NCAV (Graham) ¥2.69 ¥3.60 ¥5.38 50
All 2 models by family
Multiples
P/B Multiple ¥3.43 ¥4.57 ¥5.71 55
Asset-Based
NCAV (Graham) ¥2.69 ¥3.60 ¥5.38 50

Widest divergence: Multiples (¥4.57) versus Asset-Based (¥3.60). Highest evidence: P/B Multiple (55).

Key figures & financial health

Revenue (TTM) 2.3B CNY
Revenue growth (YoY) -21.6%
Net margin 48.4%
Return on equity 4.4%
Free cash flow −1.3B CNY FY2025
P/E ratio 29.2
More key figures
Operating margin 51.7%
EPS (TTM) ¥0.2400
Dividend yield 3.0%
EPS growth (YoY) -33.3%
Net debt 23.5B CNY FY2025

Figures from reported company fundamentals · as of Aug 10, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 48 · Market factors (momentum, volatility) 41

Profitability 33
Margins and returns on capital today
Quality Growth 76
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 50
Balance sheet, leverage, solvency risk
Investment 75
Disciplined investing over empire-building
Low Volatility 92
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 13
Distance to the 52-week high (market factor)
Net Issuance 91
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

Hongta Securities Co., Ltd. operates as a securities company in China. The company operates through Proprietary Investment Business, Wealth Management Business, and Institutional Service Business segments.

Full company description

Hongta Securities Co., Ltd. operates as a securities company in China. The company operates through Proprietary Investment Business, Wealth Management Business, and Institutional Service Business segments. It offers commodity futures brokerage and financial futures brokerage services, professional research and investment consulting services, margin financing and securities lending, asset management, securities investment fund raising, fund share purchase and redemption, fund property investment, equity financing, debt bond financing, asset securitization, mergers and acquisitions, stock pledge financing, research services, and investment advisory services. The company also engages in private equity management, proprietary investment, institutional service, and fund management businesses. Hongta Securities Co., Ltd. was founded in 2002 and is based in Kunming, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hongta Securities Co reported revenue of ¥3.0B in FY2025 versus ¥7.4B in FY2021, a compound −20.3%/yr. Reported net income was ¥1.2B in FY2025, compounding −6.3%/yr from FY2021.

Growth Quality 25/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
3.0B CNY
Latest YoY
+16.5%
Avg. growth/yr (3Y)
+27.5%
Avg. growth/yr (5Y)
−14.6%
Avg. growth/yr (20Y)
+13.0%
Revenue −20.3%/yr
FY21 ¥7.4B
FY22 ¥1.4B
FY23 ¥1.7B
FY24 ¥2.5B
FY25 ¥3.0B
Net income −6.3%/yr
FY21 ¥1.6B
FY22 ¥38.5M
FY23 ¥312M
FY24 ¥764M
FY25 ¥1.2B

601236 screens 35% overvalued. Compare with Huatai Securities Co →

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Cite: Fair Value Calculator (2026). "Hongta Securities Co Fair Value". https://www.fairvalue-calculator.com/stock/601236

Peer Group

Capital Markets · 425 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 55 · Above median
Fair Value upside −35% · Below median
Return on equity (TTM) 4% · Below median
Return on assets 2% · Above median
Net margin (TTM) 48% · Top 25%
Operating margin (TTM) 52% · Top 25%
Revenue growth -22% · Bottom 25%
Dividend yield (TTM) 3.0% · Above median

Valuation Multiples vs Capital Markets median · lower = cheaper

P/E (TTM) 29.2× · Pricier than 75% of peers
P/B 1.30× · Pricier than median
P/S (TTM) 14.29× · Pricier than 75% of peers
EV/EBITDA 14.0× · Pricier than median

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 · sector 9
FUTURE 0 · sector 96
PAST 18 · sector 30
HEALTH 0 · sector 93
DIVIDEND 60 · sector 36

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.

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 Aug 10, 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%

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Frequently asked questions

Is Hongta Securities Co (601236) overvalued or undervalued?
As of Aug 10, 2026, our model estimates a fair value of ¥4.57 versus a price of ¥7.01, about −35% (overvalued).
What is the fair value of 601236?
Our model-based fair value for Hongta Securities Co is ¥4.57 (as of Aug 10, 2026), built from audited fundamentals. The current price is ¥7.01.
What is the quality score of 601236?
Hongta Securities Co has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hongta Securities Co (601236)?
Hongta Securities Co reported trailing-twelve-month revenue of about 2.3B CNY (latest available figure, as of Aug 10, 2026).
What is the net profit margin of 601236?
The net profit margin of Hongta Securities Co is about 48.4%, meaning it keeps roughly 48.4% of revenue as net income. Based on the latest reported figures.
Does Hongta Securities Co pay a dividend?
Hongta Securities Co currently shows a dividend yield of about 3.09% relative to its recent price (as of Aug 10, 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.

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