Huatai Securities Co., Ltd. (6886.HK) stock analysis

In our weekly check, Huatai Securities Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2.

About Huatai Securities Co., Ltd.

Huatai Securities Co., Ltd. is a Financial Services company (Financial - Capital Markets) based in China, listed on HKSE as 6886.HK.

What our checks show for 6886.HK

Red flags

• The stock has fallen as much as 71% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 1.9%.

Warning signs

• Analysts expect only about 1.9% a year of growth in revenue.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 13.3 points over 5 years, to 42.1%.
• The gross margin is 82% and has risen by 5.7 points: pricing power is holding.
• Operating cash flow is 3.49x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 16.3% a year over the next years.
• Analysts expect the net margin to improve by 16.9 points from today's 42.1%.
• Earnings per share grew 22.7% a year over the last 3 years.

Similar companies

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Questions

What grade does Huatai Securities Co., Ltd. (6886.HK) have?

In our weekly check, Huatai Securities Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 6886.HK stock?

This week's biggest flags for Huatai Securities Co., Ltd.: Deep past fall, Low return on capital, Weak revenue forecast. In total 5 of 25 checks show a warning or a red flag.

What does Huatai Securities Co., Ltd. do?

Huatai Securities Co., Ltd. is a Financial Services company (Financial - Capital Markets) based in China, listed on HKSE as 6886.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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