Is Guotai Junan International (SEHK:1788) Overvalued After Its Strong Share Price Run?

Simply Wall St.12-18 00:20

Guotai Junan International Holdings (SEHK:1788) has been on a rollercoaster lately, with the share price sliding 4 % today and down roughly 12 % over the past month despite a strong year to date. See ...

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See ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/diversified-financials/hkg-1788/guotai-junan-international-holdings-shares/news/is-guotai-junan-international-sehk1788-overvalued-after-its\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Guotai Junan International (SEHK:1788) Overvalued After Its Strong Share Price Run?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Guotai Junan International (SEHK:1788) Overvalued After Its Strong Share Price Run?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-12-18 00:20 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/diversified-financials/hkg-1788/guotai-junan-international-holdings-shares/news/is-guotai-junan-international-sehk1788-overvalued-after-its><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Guotai Junan International Holdings (SEHK:1788) has been on a rollercoaster lately, with the share price sliding 4 % today and down roughly 12 % over the past month despite a strong year to date. See ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/diversified-financials/hkg-1788/guotai-junan-international-holdings-shares/news/is-guotai-junan-international-sehk1788-overvalued-after-its\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK1564","symbol_name":"中资券商股","start_time":0,"source_url":"https://simplywall.st/stocks/hk/diversified-financials/hkg-1788/guotai-junan-international-holdings-shares/news/is-guotai-junan-international-sehk1788-overvalued-after-its","article_id":"2592910273","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/7132000-choice1-main-header/1585186724276"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/diversified-financials/hkg-1788/guotai-junan-international-holdings-shares/news/is-guotai-junan-international-sehk1788-overvalued-after-its","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2592910273","pubTimestamp":1765988415,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Guotai Junan International Holdings (SEHK:1788) has been on a rollercoaster lately, with the share price sliding 4 % today and down roughly 12 % over the past month despite a strong year to date.\nSee our latest analysis for Guotai Junan International Holdings.\nThat drop to HK$2.57 gives back some of the huge year to date share price return, but with the 1 year total shareholder return still firmly positive, recent momentum looks more like a breather than a reversal in sentiment.\nIf Guotai...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK1564":"中资券商股","BK1147":"投资银行业与经纪业","01788":"国泰君安国际"},"translate_title":"国泰君安国际（SEHK：1788）股价强劲运行后是否被高估？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"01788":0.9},"content_text":"Guotai Junan International Holdings (SEHK:1788) has been on a rollercoaster lately, with the share price sliding 4 % today and down roughly 12 % over the past month despite a strong year to date. See our latest analysis for Guotai Junan International Holdings. That drop to HK$2.57 gives back some of the huge year to date share price return, but with the 1 year total shareholder return still firmly positive, recent momentum looks more like a breather than a reversal in sentiment. If Guotai Junan International has caught your eye, this is also a good moment to explore fast growing stocks with high insider ownership that could be setting up their next big move. With the shares still up strongly over one and three years despite the recent pullback, the key question now is whether Guotai Junan International remains undervalued or if the market is already pricing in its future growth. Price-to-Earnings of 34.8x: Is it justified? On a price-to-earnings basis, Guotai Junan International screens as clearly more expensive than its peers at the latest close of HK$2.57. The price to earnings ratio compares the current share price with the company’s earnings per share, so it is a quick gauge of how much investors are paying for each unit of profit. For a diversified financials and capital markets business like Guotai Junan International, this multiple is a widely used shorthand for how the market rates the quality, durability, and growth potential of its earnings. With a price to earnings ratio of 34.8 times versus a peer average of 17.2 times, investors are paying roughly double the sector going rate for similar earnings. That suggests the market is building in stronger or more resilient profitability than the historical record, even though earnings have declined sharply on average over the past five years. This premium leaves less margin for error if growth or returns disappoint. The valuation looks even richer against the broader Hong Kong capital markets industry, where the average price to earnings multiple stands at 20 times, meaning Guotai Junan International trades at a sizeable premium not just to direct peers but to the wider sector as well. See what the numbers say about this price — find out in our valuation breakdown. Result: Price-to-Earnings of 34.8x (OVERVALUED) However, if earnings weakness persists or if there is a broader pullback in Hong Kong capital markets, the premium multiple investors are currently paying could quickly be undermined. Find out about the key risks to this Guotai Junan International Holdings narrative.  Build Your Own Guotai Junan International Holdings Narrative If you see the story differently, or would rather dig into the numbers yourself, you can build a fresh perspective in minutes: Do it your way. A great starting point for your Guotai Junan International Holdings research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision. Looking for more investment ideas? Use the Simply Wall St Screener now to pinpoint your next move, or you risk missing compelling opportunities that other investors are already acting on.  Tap into potential market mispricings by targeting companies that look cheap on fundamentals with these 915 undervalued stocks based on cash flows. Ride powerful secular trends in automation and machine learning by zeroing in on innovation leaders through these 25 AI penny stocks. Strengthen your income stream by focusing on reliable cash returners via these 13 dividend stocks with yields > 3%.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.The New Payments ETF Is Live on NASDAQ:Money is moving to real-time rails, and a newly listed ETF now gives investors direct exposure. Fast settlement. Institutional custody. Simple access.Explore how this launch could reshape portfoliosSponsored ContentNew: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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