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China Galaxy Securities Co Ltd (6881) Fair Value & Analysis

Financial Services · HK · Market cap HK$80.8B (≈ $10.3B) · ISIN CNE100001NT6

What is China Galaxy Securities Co Ltd really worth?

CG China Galaxy Securities Co Ltd 6881 · HK
PriceHK$7.98
Fair ValueHK$9.02
Upside+13.0%
Quality66/100

A solid business, trading 12% below our fair value of HK$9.02.

As of Sep 3, 2026, the fair value of China Galaxy Securities Co Ltd is HK$9.02 per share against a price of HK$7.98, so the fair value sits 13% above the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Healthy Growth (revenue 5y +9.1 %/yr)
Highly profitable · 42.6% net margin
Moderate debt · generates free cash flow
Ranks above peers (11/13)
Wide moat 67/100

Risks

!Evidence only medium, so the estimate is less certain
!Weak on valuation: 22 out of 100

For context

·4.39% dividend yield
Evidence: Medium Range HK$6.76 – HK$11.27

Fair value as of: Sep 3, 2026

From 2 valuation models · updated 3 days ago

Share price +1.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
  • The price sits in the lower half of our model range, the side with the larger margin of safety.
  • Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.

Price vs Fair Value (5 years)

HK$12.61 HK$2.48 Fair Value HK$9.02 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 3, 2026.

How to read this chart

60‑month range HK$2.48 – HK$12.61 · fair‑value band HK$6.76 – HK$11.27 · the HK$7.98 price screens below the HK$9.02 fair value. Dashed = 300-day average. As of Sep 3, 2026.

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Analysis

China Galaxy Securities Co Ltd (6881) currently trades at HK$7.98, while our model-based Fair Value estimate is HK$9.02, implying the stock looks roughly 11.5% undervalued today. The Quality Score stands at 66/100 (solid quality), in the Financial Services sector. How firm this estimate is: it rests on 25 models at a data quality of 95/100, which puts the evidence level at medium.

Over the trailing twelve months, China Galaxy Securities Co Ltd generated revenue of HK$30.1B 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 HK$215B. Fundamentals as of Sep 3, 2026

Our scenario range runs from HK$6.76 (bear case) to HK$11.27 (bull case); at HK$7.98, the current price sits within 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 38% below its 52-week high and 12% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −34% fair-value upside, at 13%, 6881 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly HK$0.4844 per share, which is 5.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
P/B Multiple HK$6.88 HK$9.17 HK$11.46 55
NCAV (Graham) HK$5.39 HK$7.23 HK$10.79 54
All 2 models by family
Multiples
P/B Multiple HK$6.88 HK$9.17 HK$11.46 55
Asset-Based
NCAV (Graham) HK$5.39 HK$7.23 HK$10.79 54

Widest divergence: Multiples (HK$9.17) versus Asset-Based (HK$7.23). Highest evidence: P/B Multiple (55).

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Key figures & financial health

P/E ratio 6.2 as of Jul 2, 2026
P/S ratio 2.04 P/E × margin
EPS (TTM) HK$1.06 price ÷ EPS = P/E 6.2
Dividend yield 4.4% payout 33.0%
Net margin 32.8% FY2025
Return on equity 8.6% TTM
More key figures
Profitability
Return on assets (EBIT) 1.7% avg 5y
Operating margin 54.5% TTM
Growth
Revenue (TTM) HK$30.1B TTM
Revenue growth (YoY) +14.7% 3y avg +10.5%
EPS growth (YoY) +12.0%
Balance sheet & cash flow
Free cash flow HK$40.2B FY2025
Net debt HK$215B FY2025 · ≈ 5.3 yrs of FCF

Figures from reported company fundamentals · as of Sep 3, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 71 · Market factors (momentum, volatility) 34

Profitability 36
Margins and returns on capital today
Quality Growth 72
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 73
Disciplined investing over empire-building
Low Volatility 72
Calm price path (market factor)
Momentum 25
Price trend over the last 3–12 months (market factor)
52W Momentum 7
Distance to the 52-week high (market factor)
Net Issuance 76
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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 Ltd reported revenue of 37.1B CNY in FY2025 versus 30.9B CNY in FY2021, a compound +4.7%/yr. Reported net income was 12.2B CNY in FY2025, compounding +4.0%/yr from FY2021.

Growth Quality 84/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$37.1B
Latest YoY
+13.1%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.5%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.1%
Avg. revenue growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.7%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
≈ +13.7% (approximate, leans on 2025) · in HKD
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+9.3%
Dividend yield4.4%
Trend Two data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y 9.3% vs 10Y 7.5%, steady
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.38.1% (2020) → 55.6% (2025) · rising
Worst earnings drop69% (2008) · in HKD
⚠ Rate leans on 2025: that final year sits 52% above its own trend (e.g. a one-off disposal gain) and could not be adjusted
Revenue +4.7%/yr
FY21 30.9B CNY
FY22 27.5B CNY
FY23 28.9B CNY
FY24 32.8B CNY
FY25 37.1B CNY
Net income +4.0%/yr
FY21 10.4B CNY
FY22 7.8B CNY
FY23 7.9B CNY
FY24 10.0B CNY
FY25 12.2B CNY
Character of growth · EPS growth decomposed (2014-2025) +2.7 % p.a.
Revenue per share +2.3 %

of which total revenue +5.0 % · buybacks/dilution −2.6 %

EBIT margin +0.3 %
Tax rate +2.1 %
Residual (interest, one-offs) −2.0 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "China Galaxy Securities Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/6881.HK

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 74 · Top 25%
Fair Value upside −9% · Above median
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) 4.4% · Above median
Debt / equity 0.64× · Higher than median

Valuation Multiples vs Financial Conglomerates median · lower = cheaper

P/E (TTM) 6.2× · Cheaper than 75% of peers
P/B 0.68× · Cheaper than 75% of peers
P/S (TTM) 2.68× · Pricier than median
P/FCF 0.3× · Cheaper than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE22 · sector 0
FUTURE74 · sector 39
PAST34 · sector 33
HEALTH68 · sector 84
DIVIDEND88 · sector 52

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

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Frequently asked questions

Is China Galaxy Securities Co Ltd (6881) overvalued or undervalued?
As of Sep 3, 2026, our model estimates a fair value of HK$9.02 versus a price of HK$7.98, about +13% upside (undervalued).
What is the fair value of 6881?
Our model-based fair value for China Galaxy Securities Co Ltd is HK$9.02 (as of Sep 3, 2026), built from audited fundamentals. The current price: HK$7.98.
What is the quality score of 6881?
China Galaxy Securities Co Ltd has a Quality Score of 66/100. 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 price target for China Galaxy Securities Co Ltd (6881)?
Our model-based price target is the fair value of HK$9.02 (as of Sep 3, 2026) from 2 valuation models. Cautious scenario HK$6.76, optimistic scenario HK$11.27. It is a calculation from audited fundamentals, not an analyst target.
What is the China Galaxy Securities Co Ltd stock forecast for 2026?
Our models put fair value at HK$9.02, about +13% upside versus a price of HK$7.98 (undervalued). Cautious scenario HK$6.76, optimistic scenario HK$11.27. The calculation is refreshed regularly with new filings.
What is the revenue of China Galaxy Securities Co Ltd (6881)?
China Galaxy Securities Co Ltd reported trailing-twelve-month revenue of about HK$30.1B (latest available figure, as of Sep 3, 2026).
What is the net profit margin of 6881?
The net profit margin of China Galaxy Securities Co Ltd 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 Ltd pay a dividend?
China Galaxy Securities Co Ltd currently shows a dividend yield of about 4.39% relative to its recent price (as of Sep 3, 2026).
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