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China Galaxy Securities Co (601881) Fair Value & Analysis

Financial Services · CN · Market cap 141B CNY

CG China Galaxy Securities Co 601881 · SHG
Price¥12.44
Fair Value¥18.92
Upside+52.1%
Quality41/100
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Expensive Growth
Highly profitable · 42.6% net margin
Low debt · negative free cash flow
2.90% dividend yield
Ranks above peers (10/12)
Wide moat 65/100
Evidence: High Range ¥14.19 – ¥23.65 Share as image

Fair value as of: Jul 13, 2026

From 17 valuation models · updated 25 days ago

Fair value updated Jul 13, 2026, revised from ¥21.02 to ¥18.92 (−10.0%) since Jul 5, 2026. Share price −5.6% over the past month.

Below-average quality, screening 52% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (41/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (¥14.19). The market is more pessimistic than our downside scenario.
  • 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)

¥19.00 ¥8.16 Fair Value ¥18.92 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.

How to read this chart

60‑month range ¥8.16 – ¥19.00 · fair‑value band ¥14.19 – ¥23.65 · the ¥12.44 price screens below the ¥18.92 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 13, 2026.

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Analysis

China Galaxy Securities Co (601881) currently trades at ¥12.44, while our model-based Fair Value estimate is ¥18.92, implying the stock looks roughly 52.1% undervalued today. We read business quality at 41/100 (below-average 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 Galaxy Securities Co generated revenue of 30.1B CNY at a net margin of 42.6%. Revenue grew 14.7% year over year. It earns a return on equity of 8.6%. Net debt stands at 161B CNY. Fundamentals as of Jul 13, 2026

Our scenario range runs from ¥14.19 (bear case) to ¥23.65 (bull case); at ¥12.44, 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 35% below its 52-week high and 4% 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 52%, 601881 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 ¥11.43 ¥12.37 ¥15.24 76
ROIC Compounder ¥28.95 ¥30.33 ¥31.53 72
Gordon GGM ¥4.20 ¥8.73 ¥13.85 70
All 17 models by family
DCF Models
Owner Earnings ¥34.80 ¥44.07 ¥59.00 31
Earnings-Based
Graham-Dodd ¥7.79 ¥29.13 ¥39.39 54
Lynch FV ¥7.02 ¥10.03 ¥13.04 50
PEG = 1.0 ¥7.02 ¥10.03 ¥13.04 46
EPV ¥28.95 ¥30.33 ¥31.53 59
Dividend Discount
Gordon GGM ¥4.20 ¥8.73 ¥13.85 70
DDM Multi-Stage ¥4.20 ¥7.36 ¥9.16 61
Multiples
P/E Multiple ¥17.17 ¥22.90 ¥28.62 63
P/S Multiple ¥4.84 ¥6.46 ¥8.07 58
P/B Multiple ¥14.60 ¥19.46 ¥24.33 55
EV/EBIT ¥33.69 ¥38.02 ¥42.35 53
EV/EBITDA ¥31.16 ¥34.65 ¥38.14 54
EV/Revenue ¥25.23 ¥27.16 ¥29.10 43
Asset-Based
NCAV (Graham) ¥6.76 ¥9.06 ¥13.52 50
Economic Profit
Residual Income ¥11.43 ¥12.37 ¥15.24 76
ROIC Compounder ¥28.95 ¥30.33 ¥31.53 72
Growth Earnings
Growth-Adj P/E ¥12.59 ¥17.99 ¥23.38 68

Widest divergence: DCF Models (¥44.07) versus Dividend Discount (¥7.36). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 30.1B CNY
Revenue growth (YoY) +14.7%
Net margin 42.6%
Return on equity 8.6%
Free cash flow −26.4B CNY FY2025
P/E ratio 12.6
More key figures
Operating margin 54.5%
EPS (TTM) ¥1.03
Dividend yield 2.9%
EPS growth (YoY) +12.0%
Net debt 161B CNY FY2024

Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 50 · Market factors (momentum, volatility) 36

Profitability 34
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 58
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 6
Distance to the 52-week high (market factor)
Net Issuance 79
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 Galaxy Securities Co., Ltd., together with its subsidiaries, provides various financial services in China, Hong Kong, and internationally. The company operates through six segments: Wealth Management, Investment Banking, Institutional Business, International Business, Investment and Trading Business, and Parent-Subsidiary Integration Business.

Full company description

China Galaxy Securities Co., Ltd., together with its subsidiaries, provides various financial services in China, Hong Kong, and internationally. The company operates through six segments: Wealth Management, Investment Banking, Institutional Business, International Business, Investment and Trading Business, and Parent-Subsidiary Integration Business. It offers agency trading of stocks, funds, bonds, and derivative financial instruments; financial services, including investment consulting, portfolio advice, financial product sale, and asset allocation, as well as securities trading, stock-pledged repurchase agreements, agreed repurchase transactions; and investment banking services, such as equity, bond, and structured financing, as well as financial advisory, asset securitization, and various financing solutions. The company also provides prime brokerage, seat leasing, custody and fund services, investment research, and sales and transactions; research and asset management services; and fixed-income securities, commodities, and derivatives, as well as comprehensive financial solutions for investment, financing, and risk management. In addition, it offers professional development, revenue generation, futures, and private equity, as well as equity investment management, alternative investment, and asset management. The company was founded in 2007 and is based in Beijing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Galaxy Securities Co reported revenue of ¥28.2B in FY2025 versus ¥30.9B in FY2021, a compound −2.2%/yr. Reported net income was ¥12.5B in FY2025, compounding +4.7%/yr from FY2021.

Growth Quality 32/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
28.2B CNY
Latest YoY
−13.9%
Avg. growth/yr (3Y)
+0.9%
Avg. growth/yr (5Y)
+3.3%
Avg. growth/yr (20Y)
+17.1%
Revenue −2.2%/yr
FY21 ¥30.9B
FY22 ¥27.5B
FY23 ¥34.6B
FY24 ¥32.8B
FY25 ¥28.2B
Net income +4.7%/yr
FY21 ¥10.4B
FY22 ¥7.8B
FY23 ¥7.9B
FY24 ¥10.0B
FY25 ¥12.5B

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Cite: Fair Value Calculator (2026). "China Galaxy Securities Co Fair Value". https://www.fairvalue-calculator.com/stock/601881

Peer Group

Financial Conglomerates · 55 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 48 · Below median
Fair Value upside +52% · Top 25%
Return on equity (TTM) 9% · Above median
Return on assets 1% · Above median
Net margin (TTM) 43% · Top 25%
Operating margin (TTM) 55% · Top 25%
Revenue growth 15% · Above median
Dividend yield (TTM) 2.9% · Above median
Debt / equity 0.31× · Lower than median

Valuation Multiples vs Financial Conglomerates median · lower = cheaper

P/E (TTM) 12.6× · Cheaper than median
P/B 0.96× · Cheaper than median
P/S (TTM) 4.70× · 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 100 · sector 7
FUTURE 74 · sector 39
PAST 34 · sector 33
HEALTH 84 · sector 84
DIVIDEND 58 · sector 41

Insider activity: 40/100

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 Financial Conglomerates stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).

Stock Price Fair Value vs Fair Value
ORIX Corporation IX $40.31 $35.05 -13%
Bajaj Finserv Ltd BAJAJFINSV ₹2,065 ₹682.29 -67%
Yuanta Financial Holding 2885 66.70 TWD 35.75 TWD -46%
Guosen Securities Co 002736 ¥10.34 ¥17.96 +74%
CNPC Capital Company 000617 ¥6.80 ¥5.78 -15%
Aditya Birla Capital Limited ABCAPITAL ₹399.25 ₹176.15 -56%
Freedom Holding FRHC $152.69 $32.75 -79%
Voya Financial, Inc VOYA $98.49 $76.48 -22%
Guangzhou Yuexiu Capital Holdings 000987 ¥7.77 ¥9.27 +19%
Bicecorp S.A BICE 401.29 CLP 342.22 CLP -15%

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Frequently asked questions

Is China Galaxy Securities Co (601881) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of ¥18.92 versus a price of ¥12.44, about +52% (undervalued).
What is the fair value of 601881?
Our model-based fair value for China Galaxy Securities Co is ¥18.92 (as of Jul 13, 2026), built from audited fundamentals. The current price is ¥12.44.
What is the quality score of 601881?
China Galaxy Securities Co has a Quality Score of 41/100. 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 Galaxy Securities Co (601881)?
China Galaxy Securities Co reported trailing-twelve-month revenue of about 30.1B CNY (latest available figure, as of Jul 13, 2026).
What is the net profit margin of 601881?
The net profit margin of China Galaxy Securities Co is about 42.6%, meaning it keeps roughly 42.6% of revenue as net income. Based on the latest reported figures.
Does China Galaxy Securities Co pay a dividend?
China Galaxy Securities Co currently shows a dividend yield of about 2.90% relative to its recent price (as of Jul 13, 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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