CGS

China Galaxy Securities declined 0.54% to HKD 7.61 today, reflecting profit-taking pressure following robust earnings. Q1 2026 net profit reached HKD 3.764 billion, up 16.54% year-over-year, with EPS of HKD 0.3174 up 18.56%, yet the stock has fallen 27.04% year-to-date from its HKD 10.43 opening price, touching a 52-week low of HKD 6.97. The stock has since recovered 9.18% from that low. Valuation remains extremely attractive with P/E of just 5.73x and P/B of just 0.61x, offering a 5.20% dividend yield. UBS maintains a target price of HKD 9.4, implying 23.5% upside. Today's turnover rate of just 0.53% reflects thin trading, with the stock consolidating within a HKD 7.57-7.68 range, displaying a pattern consistent with strong fundamentals meeting suppressed valuations.

Hong Kong trading on July 30, China Galaxy Securities declined 0.5% to close at HKD7.65, presenting a V-shaped move with morning weakness followed by afternoon recovery under high base pressure. Year-to-date the stock is down approximately 27%, having retreated over 41% from the 52-week high of HKD12.99. 1Q2026 results drove sentiment, with operating revenue up 21.45% year-over-year, net profit up 16.54% and earnings per share up 18.56%; full-year net profit reached RMB12.52 billion, up 24.8% year-over-year, with a dividend of RMB2.25 per share. UBS set a price target of HKD9.4 following the 1Q results, implying further upside from current levels. The stock trades at a low valuation, with a PE ratio of just 5.76 and PB ratio of just 0.61, though trading activity remains subdued with a daily turnover rate of 0.3%, as the market focuses on fundamental investing opportunities amid volatility.

Shares fell 1.6% to HKD 7.4 today, pressured by profit-taking and UBS's downward target price revision to HKD 9.4. Despite Q1's strong earnings—revenue of HKD 8.232 billion up 21.45% YoY and net profit of HKD 3.764 billion up 16.54% YoY—the stock has declined 29.05% year-to-date from HKD 10.43, trading 43% below its 52-week high of HKD 12.99. Current valuation metrics are attractive: P/E stands at 5.57x, P/B at 0.59x, with a dividend yield of 5.35%, yet the stock sits only 6.17% above its recent 52-week low of HKD 6.97. UBS's target price of HKD 9.4 implies 27% upside from current levels, though lingering concerns about brokerage-sector liquidity and commissions-income compression continue to weigh on sentiment.

China Galaxy Securities edged up 0.13% to HKD 7.52 on the day, with notable intraday volatility of 1.87% spanning the high of 7.59 and low of 7.45. Morning session rallied to 7.55 bolstered by strong Q1 results, though afternoon profit-taking pressure pulled it back to a near-flat close. UBS's latest research maintained a target price of HKD 9.4, offering 25% potential upside from current levels. Q1 earnings showed substantial recovery with EPS climbing 18.56% year-over-year, revenue surging 21.45%, and net profit advancing 16.54%, a sharp reversal from Q4's triple-digit declines. Yet the stock has fallen 27.9% year-to-date and sits 42% below its August 2025 peak of HKD 12.99; despite a recent 8% bounce from July's 52-week low of HKD 6.97, the exceedingly low valuation—PE 5.66 and PB 0.60—underscores persistent skepticism about the brokerage's medium-term trajectory.

China Galaxy Securities declined 2.2% to close at HKD 7.510, with intraday lows touching HKD 7.480 in afternoon trading, reflecting persistent market pessimism regarding brokerage sector prospects and the stock's continued positioning within a deeply corrected range. From a valuation perspective, the stock has retreated 28% year-to-date, standing 42% below its August 2025 peak of HKD 12.99 and only 7.75% above the 52-week low of HKD 6.97 registered on July 13. Trading at exceptionally depressed valuations—PE of just 5.65, PB of 0.60, and a dividend yield of 5.27%—with a market capitalization of approximately HKD 82.1 billion—the stock shows a bifurcated earnings picture: Q1 2026 delivered marked recovery with net profit rebounding to HKD 3.76 billion (YoY +16.54%), operating revenue surging 21.45% to HKD 8.23 billion, and EPS rising 18.56% YoY to HKD 0.3174. However, the severe deterioration in Q4 2025 earnings (net profit declined 81.61% YoY) continues to weigh on investor sentiment, while UBS's target price of HKD 9.40 (implying 25% upside) also signals analyst caution on sustainable profitability.