Zheshang Securities Co (601878) Fair Value & Analysis

Financial Services · CN · Market cap 43.2B CNY

Below-average quality, and screening another 28% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (¥8.55). The favourable scenario is already priced in.
• Weak quality (33/100) 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 Aug 10, 2026.

How to read this chart

60‑month range ¥8.52 – ¥15.85 · fair‑value band ¥5.13 – ¥8.55 · the ¥9.45 price screens above the ¥6.84 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 10, 2026.

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Analysis

Zheshang Securities Co (601878) currently trades at ¥9.45, while our model-based Fair Value estimate is ¥6.84, implying the stock looks roughly 27.6% overvalued today. The Quality Score stands at 33/100 (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: medium).

Over the trailing twelve months, Zheshang Securities Co generated revenue of 9.4B CNY at a net margin of 27.6%. Revenue grew 39.8% year over year. It earns a return on equity of 7.3%. The balance sheet holds a net cash position of 62.6B CNY. Fundamentals as of Aug 10, 2026

Our scenario range runs from ¥5.13 (bear case) to ¥8.55 (bull case); at ¥9.45, 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 25% below its 52-week high and 6% 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 -28%, 601878 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 (¥6.84) versus Asset-Based (¥5.39). Highest evidence: P/B Multiple (55).

Key figures & financial health

Quality Score breakdown

About the company

Zheshang Securities Co., Ltd. provides investment and financing products and services in China. It offers brokerage services, including investment consulting and diverse wealth management services and solutions for margin trading and short selling; investment banking services comprising personalized and full-range capital market advisory services; asset …

Full company description

Zheshang Securities Co., Ltd. provides investment and financing products and services in China. It offers brokerage services, including investment consulting and diverse wealth management services and solutions for margin trading and short selling; investment banking services comprising personalized and full-range capital market advisory services; asset management services, such as management of securities assets and publicly placed securities investment funds; proprietary investment activity; commodities futures and financial futures brokerage, futures investment consulting, and risk management; and research and advisory services. The company was founded in 2002 and is headquartered in Hangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zheshang Securities Co reported revenue of ¥8.6B in FY2025 versus ¥18.0B in FY2021, a compound −16.8%/yr. Reported net income was ¥2.4B in FY2025, compounding +2.4%/yr from FY2021.

601878 screens 28% overvalued. Compare with Huatai Securities Co →

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.

Valuation Multiples vs Capital Markets 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.