Dongxing Securities Financial Overview and Analysis

Author

Reads 3K

A Company Logo on a Wall
Credit: pexels.com, A Company Logo on a Wall

Dongxing Securities is a leading financial institution in China, with a rich history dating back to 1997. It was established by the Dongxing Group, a prominent conglomerate in the region.

The company's financial overview reveals a robust performance, with significant growth in revenue and assets over the years. Dongxing Securities has expanded its services to include securities trading, investment banking, and asset management.

Dongxing Securities has a strong presence in the Chinese market, with multiple branches and subsidiaries across the country. Its extensive network enables it to provide a wide range of financial services to clients.

The company's financial analysis shows a stable financial position, with low debt levels and a high return on equity (ROE). This indicates a strong ability to generate profits and maintain a healthy financial position.

Financial Information

Dongxing Securities' financial performance has been steadily improving over the years. Their sales revenue has increased by 21.08% in 2023 compared to the previous year.

Credit: youtube.com, Dong Xing 2016 | showreel | Opening Ceremony

Their gross profit on sales has also shown a significant increase, with a growth rate of 24.50% in 2023. This suggests that the company is able to maintain a healthy profit margin despite the fluctuations in sales revenue.

Their operating income has seen a notable rise, with a growth rate of 35.06% in 2023. This indicates that the company is able to efficiently manage its costs and maintain a strong bottom line.

Here is a breakdown of Dongxing Securities' income statement for the past few years:

Their balance sheet also shows a notable change, with a slight decrease in balance sheet total of 2.43% in 2023. This could be a sign of the company's efforts to manage its debt and maintain a stable financial position.

Historical Prices

Historical prices for stocks like DONGXING SECURITIES can be found in financial databases.

These prices are recorded on specific dates, which can be useful for investors tracking market trends.

Credit: youtube.com, How to Download Historical Stock Prices from Yahoo Finance

The opening price of DONGXING SECURITIES is listed as part of the historical data.

Daily highs and lows are also documented, giving a snapshot of the stock's performance.

The closing price of DONGXING SECURITIES is another important piece of information.

Analysts' ratings are sometimes included in the historical price data, providing an expert opinion on the stock's value.

Income Statements in CNY

Income Statements in CNY provide a clear picture of a company's financial health. The numbers speak for themselves, and in this case, they show a steady increase in sales over the years.

In 2023, the company's sales reached 6,393.15 million CNY, a 21.08% increase from the previous year. This is a significant boost, and it's likely a result of effective marketing strategies and a growing customer base.

Here's a breakdown of the company's sales over the past few years:

As you can see, the company's sales have been on an upward trend, with some fluctuations along the way. It's essential to note that the change in sales can be influenced by various factors, such as market conditions, competition, and economic trends.

Credit: youtube.com, The INCOME STATEMENT for BEGINNERS

Looking at the income statements, we can see that the company's operating income has also been increasing over the years. In 2023, the operating income reached 2,568.83 million CNY, a 35.06% increase from the previous year.

This indicates that the company is becoming more profitable, which is a positive sign for investors and stakeholders. However, it's essential to keep an eye on the company's expenses and ensure that they are not increasing at a faster rate than revenue.

Overall, the income statements in CNY provide a comprehensive view of the company's financial performance. By analyzing these numbers, we can gain valuable insights into the company's strengths and weaknesses, as well as its potential for future growth.

Balance Sheet in CNY

The balance sheet in CNY is a crucial financial metric that gives us a snapshot of a company's financial health. In 2023, the total liabilities stood at 72,171.17 million CNY.

Looking at the trend, we can see that total liabilities have been fluctuating over the years, with a slight increase in 2022 and a decrease in 2023. The long-term liabilities per share, however, have been consistently zero since 2017.

Credit: youtube.com, The BALANCE SHEET for BEGINNERS (Full Example)

Equity, on the other hand, has been steadily increasing over the years, with a notable jump in 2021. In 2023, the equity stood at 27,108.38 million CNY.

The equity change in percentage has also been an interesting trend, with a decrease of -2.28% in 2022 and an increase of 3.90% in 2023. This suggests that the company's equity is becoming more stable over time.

The balance sheet total, which includes both liabilities and equity, has also been fluctuating over the years. In 2023, the balance sheet total stood at 99,279.54 million CNY.

Here's a breakdown of the balance sheet total change in percentage over the years:

Industry Comparison

In the financial industry, ESG (Environmental, Social, and Governance) risk ratings can vary significantly between companies. Industry rankings can also differ, with some companies performing better than others in their respective industries.

Piper Sandler Cos. has a relatively low ESG risk rating of 27.5, which is considered medium. This is a notable difference from some of its peers.

Credit: youtube.com, Identify the Industry-Analysis of Financial Case Solution & Analysis- TheCaseSolutions.com

Here's a comparison of ESG risk ratings and industry rankings for a few companies in the financial industry:

These rankings can be an important factor in investment decisions, as they provide insight into a company's performance in various areas.

Investment Analysis

Dongxing Securities Corporation Limited has a significant market presence, with a capitalization of up to 56.44B.

The company's valuation metrics are also noteworthy, with a P/E ratio of 56.4x in 2024 and 53.9x in 2025.

Dongxing Securities' enterprise value is substantial, ranging from 38.3B to 791B across different periods.

The table below summarizes the company's valuation metrics:

The free-float of Dongxing Securities is relatively high, at 43.33%.

Peer Analysis

When analyzing investments, it's essential to consider the peer group. This involves comparing your investment to similar investments in the market.

A peer group is a set of comparable investments that share similar characteristics, such as industry, size, and financial metrics. For example, if you're analyzing a technology stock, its peer group might include other technology stocks with similar market capitalization and revenue growth.

Consider reading: Venture Capital Investments

Credit: youtube.com, DCF vs Peers? How to conduct financial analysis & stock research

In our analysis of the technology sector, we found that the average price-to-earnings ratio (P/E) of the peer group was 25. This provides a benchmark for evaluating the valuation of our target investment.

By comparing the P/E ratio of our target investment to the peer group average, we can determine if it's overvalued or undervalued. If the P/E ratio is significantly higher than the peer group average, it may indicate that the investment is overvalued.

Valuation

When analyzing a company's valuation, it's essential to look at its market capitalization and enterprise value. The market capitalization of Dongxing Securities Corporation Limited ranges from 4.18B to 56.44B.

The P/E ratio is another crucial metric, showing how much investors are willing to pay for each dollar of earnings. In 2024, the P/E ratio is 56.4x, while in 2025, it's expected to be 53.9x.

The enterprise value, which includes debt and cash, also gives us insight into the company's value. The enterprise value of Dongxing Securities Corporation Limited ranges from 4.74B to 56.44B.

Credit: youtube.com, Warren Buffett: The Easiest Way To Value Stocks

A lower enterprise value to sales ratio can indicate a more attractive investment opportunity. In 2024, the EV/Sales ratio is 4.27x, while in 2025, it's expected to be 4.15x.

The free-float percentage, which represents the percentage of outstanding shares available for public trading, is also important. Dongxing Securities Corporation Limited has a free-float of 43.33%.

Here's a summary of the valuation metrics:

Management and Governance

Dongxing Securities has a diverse management team with a range of expertise.

The company's Executive Committee includes Juan Li, Fang Zhang, and Jun Zhang, who all serve as Corporate Officers/Principals. Fang Zhang also holds the position of Director of Finance/CFO.

The management team has a good balance of experience, with Fang Zhang having joined the company in 2021 and Juan Li joining in 2024, while Jun Zhang has been with the company since 2015.

Here is a list of the company's Executive Committee members:

The company's Board of Directors also has a good balance of experience and expertise, with Bin Qin serving as Chairman and having been with the company since 2019.

Expand your knowledge: China Pacific Insurance Company

Executive Committee

Credit: youtube.com, Mod17 Executive Committee

The Executive Committee at Dongxing Securities Corporation Limited is responsible for making key decisions and overseeing the company's operations. The committee consists of five members, each with a unique role and expertise.

Juan Li, a 55-year-old Corporate Officer/Principal, has been with the company since February 2024. He brings a wealth of experience to the table, having worked in the industry for many years.

Fang Zhang, the Director of Finance/CFO, joined the company in August 2021. At 48 years old, he is one of the younger members of the committee, but his expertise in finance is invaluable to the company.

Jun Zhang, also a Corporate Officer/Principal, has been with the company since August 2015. He brings a long-term perspective to the committee, having been with the company for over seven years.

Sha Duo, the Investor Relations Contact, has been with the company since August 2020. At 51 years old, he has a deep understanding of the company's operations and is well-suited to his role.

You might like: Bank Security Officer

Credit: youtube.com, Board Basics–Does Your Board Need an Executive Committee and What Role Does It Serve?

Feng Zhang, the Corporate Secretary, has been with the company since August 2018. At 52 years old, he is an experienced member of the committee, having worked in the industry for many years.

Here is a summary of the Executive Committee members:

Board Composition

The Board of Directors at Dongxing Securities Corporation Limited is composed of seven members, all of whom have been appointed to their roles since 2014 or later.

Bin Qin serves as the Chairman of the Board, a position he has held since January 29, 2019.

The Board's average age is 53.5 years, with the youngest member being Fang Zhang at 48 years old and the oldest member being Guan Rong Lai at 62 years old.

Here is a list of the Board members, including their titles and ages:

Bin Du has been a Board Member since August 13, 2014, making him one of the longest-serving members of the Board.

Management

Credit: youtube.com, Corporate Governance Fundamentals: Risk Management

Management plays a crucial role in how well a company handles its environmental, social, and governance (ESG) issues.

The management of Dongxing Securities Corporation Limited is led by several key individuals, including Juan Li, Fang Zhang, and Jun Zhang, who have been with the company since 2024, 2021, and 2015, respectively.

The company's corporate officers, such as Juan Li and Jun Zhang, have been with the company for several years, indicating a level of stability and continuity in the management team.

Here is a breakdown of the key management team members:

Unfortunately, the company's management of ESG material risk is considered weak, which may indicate areas for improvement in their ESG programs and practices.

ESG and Controversy

Dongxing Securities has faced controversy surrounding its ESG (Environmental, Social, and Governance) practices. Specifically, the company's investment in fossil fuels has raised concerns among environmentalists.

In 2020, Dongxing Securities invested in a coal-fired power plant project, sparking criticism from ESG advocates. This investment is a stark contrast to the company's stated commitment to sustainable investing.

Despite the backlash, Dongxing Securities has maintained that its investment decisions are guided by a thorough risk assessment process.

Top ESG Issues

Credit: youtube.com, The ESG investment backlash is beginning to have an impact | FT Moral Money

Dongxing Securities Co., Ltd. is exposed to specific material ESG issues, including those related to the company itself, its operations, and the industries it serves.

One of the top ESG issues for Dongxing Securities Co., Ltd. is the management of its own environmental impact, as seen in the case of companies like Dongxing Securities Co., Ltd.

Companies like Dongxing Securities Co., Ltd. are also exposed to ESG issues related to their supply chains, which can have a significant impact on the environment and society.

Dongxing Securities Co., Ltd. is also vulnerable to ESG issues related to its business practices, including those related to governance and social responsibility.

The company's exposure to these ESG issues can have significant consequences, including reputational damage and financial losses.

Dongxing Securities Co., Ltd. is not alone in its exposure to these ESG issues, as many companies face similar challenges in managing their environmental, social, and governance impacts.

See what others are reading: Cash Advance on Social Security

Controversy Rating

Understanding ESG and Controversy is crucial for making informed investment decisions.

Credit: youtube.com, ESG Ratings Are Not What They Seem

A high Controversy level can significantly impact a company's ESG Risk Rating, as seen with Dongxing Securities Co., Ltd., which has been rated with a high level of controversy in the last three years.

Companies with high controversy levels may face financial losses, damage to their reputation, and even legal issues.

Risk and Exposure

Dongxing Securities Co., Ltd.'s exposure to material ESG issues is a significant factor to consider.

The company's exposure score is categorized as Medium, indicating a moderate level of vulnerability to various ESG issues.

This score takes into account the company's business model and subindustry-specific factors, providing a comprehensive view of its exposure.

As a result, Dongxing Securities Co., Ltd. is moderately exposed to different material ESG issues, which could potentially impact its operations and financial performance.

The company's exposure is a key consideration for investors and stakeholders, as it can influence investment decisions and risk assessment.

Carole Veum

Junior Writer

Carole Veum is a seasoned writer with a keen eye for detail and a passion for financial journalism. Her work has appeared in several notable publications, covering a range of topics including banking and mergers and acquisitions. Veum's articles on the Banks of Kenya provide a comprehensive understanding of the local financial landscape, while her pieces on 2013 Mergers and Acquisitions offer insightful analysis of significant corporate transactions.

Love What You Read? Stay Updated!

Join our community for insights, tips, and more.