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    China Galaxy Securities (SEHK:6881) Stock Stays Cheap As Debt Risks Trail Profit Surge

    Simply Wall St·09/19/2026 22:27:09
    語音播報

    The market barely flinched on China Galaxy Securities today, with the stock edging down about 0.7% over the past week even as fresh results hit the tape. Traders focused on the headline profit print. Longer horizon investors will likely be more interested in what sits underneath it.

    The key story in this quarter is earnings power. Basic earnings per share reached ¥0.38 for Q2 on revenue of about ¥9.6b. That leaves China Galaxy Securities trading on a P/E multiple that sits well below both peer and industry averages, which keeps the valuation debate firmly in play after this release.

    Like the earnings power at China Galaxy Securities but wondering if the low P/E is a genuine opportunity or simply the market pricing in risk? Compare this quarter with a wider field of value candidates using our 180 high quality undervalued stocks

    Q2 2026 Earnings Summary

    • Revenue (Q2 2026 vs Q2 2025): ¥9,588.9m vs. ¥6,593.4m (up about 45.5%)
    • Net Income (Excl. Extra Items, Q2 2026 vs Q2 2025): ¥4,476.9m vs. ¥2,869.2m (up about 56.1%)
    • Basic EPS (Earnings Per Share, Q2 2026 vs Q2 2025): ¥0.3804 vs. ¥0.2926 (up about 30.0%)
    • Trailing Twelve Month Net Income (Excl. Extra Items, Q2 2026 vs Q2 2025): ¥12,603.3m vs. ¥10,918.7m (up about 15.4%)

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    SEHK:6881 Trailing 12-Month Earnings & Revenue History as at Sep 2026
    SEHK:6881 Trailing 12-Month Earnings & Revenue History as at Sep 2026

    China Galaxy bullish story leans on earnings breadth

    For investors leaning positive on China Galaxy Securities, the earnings mix gives some backing. Revenue of about ¥9.6b in Q2 2026 came with net income excluding extra items of ¥4,476.9m, which points to solid profitability from the platform, not just top line momentum. Trailing twelve month net income excluding extra items of ¥12.6b also lines up with the idea of a sizeable, diversified profit engine that can act as a broad proxy for capital markets activity.

    Debt funded growth keeps the cautious case alive

    The bear story around earnings volatility and regulatory sensitivity does not disappear here. Profit is healthy, yet recent fund raising of RMB5.8b in bonds and RMB4b in short term commercial paper shows reliance on debt markets to support working capital. That can feed concerns about leverage and exposure to swings in market activity. A flat 90 day share price move and a small 7 day decline suggest investors are not treating these strong quarterly figures as a clear green light.

    After fresh bond issuance and short term paper, is leverage risk just beginning to surface? Review the full risk analysis for China Galaxy Securities which shows 1 important warning sign

    Stay Ahead Of Your Next Move

    If the earnings power and low P/E around China Galaxy Securities have caught your eye, register for free with Simply Wall St and add it to a Watchlist to track price against fair value and watch for a cleaner entry point. After you decide to take a position, keep your holdings organised with the Portfolio Command Center so you only see focused, timely alerts that matter for your thesis. For longer term context and fresh angles, tap into the Community to see how other investors are thinking through the same risks and potential catalysts. This can help you identify possible triggers and red flags earlier and may improve your chances of staying a step in front of the wider market.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.