| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.29 | 231 |
| Intrinsic value (DCF) | 5.61 | -29 |
| Graham-Dodd Method | 2.57 | -68 |
| Graham Formula | 7.98 | 0 |
Nanjing Securities Co., Ltd. is a prominent Chinese securities firm established in 1990 and headquartered in Nanjing. As a comprehensive financial services provider, the company operates across multiple business segments including securities brokerage, underwriting and sponsorship, proprietary trading, asset management, credit trading, and over-the-counter markets. Serving the dynamic Chinese capital markets, Nanjing Securities has built a strong regional presence in Jiangsu Province while expanding its national footprint. The company leverages its expertise in financial derivatives and internet finance to adapt to evolving market trends and digital transformation in the financial sector. Operating in China's highly regulated financial services environment, Nanjing Securities plays a vital role in capital formation, market liquidity, and investment services for both institutional and retail clients. With over three decades of experience, the company has established itself as a significant player in China's rapidly growing financial markets, contributing to regional economic development while navigating the complexities of one of the world's largest securities industries.
Nanjing Securities presents a mixed investment profile with several notable characteristics. The company demonstrated solid profitability in FY2024 with net income of CNY 1.00 billion on revenue of CNY 3.78 billion, translating to a healthy net margin of approximately 26.5%. The diluted EPS of CNY 0.27 and dividend per share of CNY 0.128 indicate reasonable shareholder returns. However, the company carries substantial leverage with total debt of CNY 33.26 billion against cash equivalents of CNY 1.04 billion, reflecting the capital-intensive nature of securities operations. The beta of 0.509 suggests lower volatility than the broader market, which may appeal to risk-averse investors in the financial sector. The strong operating cash flow of CNY 2.99 billion provides liquidity support, though the competitive and regulated nature of China's securities industry presents ongoing challenges. Investors should weigh the company's regional strengths against intense competition from larger national players and regulatory uncertainties in China's financial markets.
Nanjing Securities operates in a highly competitive Chinese securities market dominated by state-owned giants and increasingly challenged by digital disruptors. The company's competitive positioning reflects a regional focus with aspirations for national relevance. Its primary advantage lies in deep-rooted presence in Jiangsu Province, one of China's most economically developed regions, providing access to a substantial client base of enterprises and high-net-worth individuals. This regional specialization allows for targeted services and stronger client relationships compared to national competitors with more dispersed operations. However, Nanjing Securities faces significant scale disadvantages against industry leaders like CITIC Securities and Haitong Securities, which benefit from larger capital bases, broader distribution networks, and stronger brand recognition nationwide. The company's comprehensive service offering across brokerage, investment banking, and asset management provides diversification benefits, but each segment faces intense competition from specialized players. The relatively smaller scale limits underwriting capabilities for major IPOs and large corporate transactions, constraining revenue growth potential. Digital transformation presents both challenges and opportunities, as the company must invest significantly in technology to compete with tech-driven brokers while leveraging internet finance to expand beyond its traditional geographic boundaries. Regulatory changes and market liberalization in China's financial sector create additional competitive pressures from foreign entrants and domestic fintech companies.