China International Capital Intrinsic Value – 2023: China International Capital’s Earnings Outpace Shareholder Return Over Three Years.

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In the past three years, China International Capital ($SEHK:03908) (CIC) has seen impressive earnings growth, far outstripping its return for shareholders. Despite this, their recent performance has been strong, with a string of successful investments yielding significant returns. CIC has generated double-digit growth in net income and earnings per share over this time period. This has been driven by strong growth in their core investment banking and securities businesses, as well as diversified expansion into other areas such as asset management and insurance. Over the same period, however, the company’s shareholder return has lagged behind its growth in earnings. This is due primarily to the fact that CIC’s stock price has largely remained stagnant despite its underlying performance. CIC’s stock price has increased only slightly over the past three years and is currently trading at a discount to its peers. As a result, the company’s return on equity (ROE) has been low compared to other companies in the sector. Despite these issues, CIC is still well positioned to capitalize on China’s growing economy and shift to a more market-oriented approach. In particular, the company’s expertise in merger and acquisition advisory as well as equity underwriting make it well-positioned to benefit from the continued liberalization of the Chinese capital markets. As such, CIC remains a strong long-term investment for those looking to capitalize on China’s growth story. Looking ahead to 2023, it is likely that CIC’s earnings will continue to outpace its return for shareholders.

However, if the company’s stock price can begin to reflect its underlying performance, then it is possible that its return for shareholders may begin to catch up as well. For now, investors should remain cautiously optimistic about CIC’s prospects as its current share price may not accurately reflect the underlying value of the company.

Share Price

2023 is looking to be a successful year for CHINA INTERNATIONAL CAPITAL, as the company’s earnings have been outpacing shareholder return over the last three years. At the time of writing, media coverage is largely positive. On Friday, CHINA INTERNATIONAL CAPITAL stock opened at HK$15.7 and closed at HK$15.3, a decrease of 2.4% from the previous closing price of 15.7. This indicates that the company’s financial performance is continuing to maintain its positive momentum for the foreseeable future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for China International Capital. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for China International Capital. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for China International Capital. More…

Key Ratios Snapshot

Some of the financial key ratios for China International Capital are shown below. More…

Analysis – China International Capital Intrinsic Value

GoodWhale has conducted an analysis of CHINA INTERNATIONAL CAPITAL’s financials. Our proprietary Valuation Line has calculated the intrinsic value of CHINA INTERNATIONAL CAPITAL share to be around HK$17.4. At the current price of HK$15.3, CHINA INTERNATIONAL CAPITAL stock is trading at a fair price which is undervalued by 12.1%. More…

Peers

In the securities industry, firms compete for business by trying to offer the best prices and service to their clients. In this industry, there are a few large firms that dominate the market, but there are also many small firms that compete for business. The largest firms in the industry are China International Capital Corp Ltd, ABG Sundal Collier Holding ASA, Cohen & Co Inc, and GF Securities Co Ltd. These firms compete against each other to offer the best prices and service to their clients.

– ABG Sundal Collier Holding ASA ($BER:DAB)

ABG Sundal Collier Holding ASA is a holding company that provides investment banking and asset management services. The company has a market capitalization of $263.86 million and a return on equity of 38.92%. ABG Sundal Collier Holding ASA offers a range of services including mergers and acquisitions, capital markets, and corporate finance. The company is headquartered in Oslo, Norway.

– Cohen & Co Inc ($NYSEAM:COHN)

Cohen & Company Inc is a publicly traded company with a market capitalization of 15.92 million as of 2022. The company has a return on equity of -17.28%. Cohen & Company Inc is engaged in the business of providing financial and professional services to clients in the United States and internationally. The company’s services include accounting, auditing, tax, and consulting services.

– GF Securities Co Ltd ($SZSE:000776)

Guotai Junan Securities Co., Ltd. is a China-based company principally engaged in the securities business. The Company’s businesses include securities brokerage, underwriting, margin trading, futures trading, corporate finance advisory, investment advisory and other related businesses. The Company operates its businesses in domestic and overseas markets.

Summary

China International Capital (CIC) has been a standout among Chinese investment companies. Over the past three years, CIC has managed to consistently outperform its peers in terms of earnings and shareholder returns. Its ability to consistently generate returns has led to widespread positive media coverage for the company. Many investors find CIC a great investment opportunity due to the impressive performance the company has shown. CIC is a leader in Chinese equity research and analysis, providing investors with insight into the Chinese market.

CIC offers a wide array of services such as portfolio management, market analysis, and investment strategies, enabling investors to make informed decisions and maximize returns. The company also has a strong presence in the Chinese bond markets, helping investors access the growing bond market opportunities in China. CIC is well placed to take advantage of the surging Chinese economy and its long term potential. The company is well positioned to benefit from the Chinese stock market bull run and is expected to continue to generate good returns for investors in the coming years.