Guotai Junan International Holdings Limited Fundamental Analysis (HKSE: 1788.HK)
Guotai Junan International Holdings Limited Fundamental Analysis (HKSE: 1788.HK)
Guotai Junan International Holdings Limited (HKSE: 1788.HK) shows moderate financial fundamentals with a PE ratio of 18.70, profit margin of 20.28%, and ROE of 9.18%. The company generates $7.2B in annual revenue with weak year-over-year growth of 1.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 1788.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1788.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent1788.HK trades at attractive valuation levels.
Growth Score
Weak1788.HK faces weak or negative growth trends.
Financial Health Score
Moderate1788.HK shows balanced financial health with some risks.
Profitability Score
Moderate1788.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1788.HK Expensive or Cheap?
P/E Ratio
1788.HK trades at 18.70 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 1788.HK's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values Guotai Junan International Holdings Limited at 1.70 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -24.87 times EBITDA. This is generally considered low.
How Well Does 1788.HK Make Money?
Net Profit Margin
For every $100 in sales, Guotai Junan International Holdings Limited keeps $20.28 as profit after all expenses.
Operating Margin
Core operations generate 65.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.18 in profit for every $100 of shareholder equity.
ROA
Guotai Junan International Holdings Limited generates $0.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Guotai Junan International Holdings Limited generates strong operating cash flow of $2.59B, reflecting robust business health.
Free Cash Flow
Guotai Junan International Holdings Limited generates strong free cash flow of $2.56B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.27 in free cash annually.
FCF Yield
1788.HK converts 9.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
9.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How 1788.HK Stacks Against Its Sector Peers
| Metric | 1788.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.70 | 21.03 | Better (Cheaper) |
| ROE | 9.18% | 647.00% | Weak |
| Net Margin | 20.28% | -1591.00% (disorted) | Strong |
| Debt/Equity | 9.34 | 0.90 | Weak (High Leverage) |
| Current Ratio | 1.15 | 912.43 | Neutral |
| ROA | 0.68% | -579.00% (disorted) | Weak |
1788.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Guotai Junan International Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.86%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-16.26%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
4148.84%
Industry Style: Value, Dividend, Cyclical
High Growth