China Merchants Securities Co., Ltd. (600999.SS) stock analysis

In our weekly check, China Merchants Securities Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 7.

About China Merchants Securities Co., Ltd.

China Merchants Securities Co., Ltd. is a Financial Services company (Financial - Capital Markets) based in China, listed on SHH as 600999.SS.

What our checks show for 600999.SS

Red flags

• The gross margin fell by 18.7 points, to 81.3%: costs are rising faster than prices.
• Profits not backed by cash
• Analysts expect the net margin to shrink by 19.6 points from today's 66.7%.
• The stock has fallen as much as 70% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 3.9%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect earnings per share to shrink about 3.8% a year.
• Free cash flow is only 0% of revenue.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 27 points over 5 years, to 66.7%.
• Revenue grew 17.7% a year over the last 3 years.
• Earnings per share grew 40.2% a year over the last 3 years.
• Net profit grew 36.9% a year over the last 3 years.
• The company keeps 66.7% of its revenue as net profit.
• The dividend takes 4% of profit: there is a cushion.

Similar companies

6886.HK · 3908.HK · SCHW · 1776.HK · SAVE.ST

Questions

What grade does China Merchants Securities Co., Ltd. (600999.SS) have?

In our weekly check, China Merchants Securities Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 600999.SS stock?

This week's biggest flags for China Merchants Securities Co., Ltd.: Gross margin falling, Profits not backed by cash, Margins expected to shrink. In total 10 of 25 checks show a warning or a red flag.

What does China Merchants Securities Co., Ltd. do?

China Merchants Securities Co., Ltd. is a Financial Services company (Financial - Capital Markets) based in China, listed on SHH as 600999.SS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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