China Galaxy Securities Co., Ltd. (6881.HK) stock analysis

In our weekly check, China Galaxy Securities Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 3, red flags: 4.

About China Galaxy Securities Co., Ltd.

China Galaxy Securities Co., Ltd. is a Financial Services company (Financial - Conglomerates) based in China, listed on HKSE as 6881.HK.

What our checks show for 6881.HK

Red flags

• Net debt is 8.6x a year of EBITDA (debt/equity 3.55). That limits room in a downturn and raises refinancing risk.
• Analysts expect revenue to shrink about 15.4% a year.
• The stock has fallen as much as 79% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 1.8%.

Warning signs

• Analysts expect earnings per share to shrink about 1.9% a year.
• The price swings a lot: 35.6% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 3.9 points over 5 years, to 37.7%.
• The gross margin is 89.9% and has risen by 16.3 points: pricing power is holding.
• Operating cash flow is 1.91x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 11.4 points from today's 37.7%.
• Revenue grew 27.4% a year over the last 3 years.
• Earnings per share grew 37% a year over the last 3 years.

Similar companies

EXO.AS · 3396.HK · SOL.AX · 4065.KL · FRHC · STB.OL

Questions

What grade does China Galaxy Securities Co., Ltd. (6881.HK) have?

In our weekly check, China Galaxy Securities Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 3, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 6881.HK stock?

This week's biggest flags for China Galaxy Securities Co., Ltd.: High debt, Weak revenue forecast, Deep past fall. In total 7 of 25 checks show a warning or a red flag.

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

China Galaxy Securities Co., Ltd. is a Financial Services company (Financial - Conglomerates) based in China, listed on HKSE as 6881.HK.

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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