HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

Bright Smart Securities & Commodities / Equity Bottom-Up

Bright Smart Securities & Commodities (1428 HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bright-smart-securities-commodities-group" target="_blank" data-smartkarma-citation="entities:20511:1" rel="noopener">Bright Smart Securities (1428 HK)</a> rallied by 132% since our last Insight, fueled by the euphoria in the brokerage and securities sector on the HK government's stablecoin initiative.</li>
<li>At HK$16.44, it is at 100% PER premium to the sector average, ex-<a href="https://www.smartkarma.com/entities/guotai-junan-international" target="_blank" data-smartkarma-citation="entities:13438:1" rel="noopener">Guotai Junan International (1788 HK)</a>. The risk-reward payoff now looks less attractive.</li>
<li>It also implies net profit to grow by 150% by FY31F and priced at 18x PER. This appears stretched in the near term, though long-term prospects stay decent. </li>
</ul>



Bright Smart Securities (1428 HK) rallied by 132% since our last Insight, fueled by the euphoria in the brokerage and securities sector on the HK government's stablecoin initiative.
At HK$16.44, it is at 100% PER premium to the sector average, ex-Guotai Junan International (1788 HK). The risk-reward payoff now looks less attractive.
It also implies net profit to grow by 150% by FY31F and priced at 18x PER. This appears stretched in the near term, though long-term prospects stay decent. 


<ul>
<li>
<a href="https://www.smartkarma.com/entities/bright-smart-securities-and" target="_blank" data-smartkarma-citation="entities:20511:1" rel="noopener">Bright Smart Securities (1428 HK)</a>'s earnings rebounded solidly by 20.4% YoY in 2H FY25, fueled by higher client accounts and assets, and better HK market turnover.</li>
<li>BSS has been an underperformer against peers since May, as other brokerage companies rallied on the back of potential entry into the virtual asset dealing business. </li>
<li>Ant Financial will be able to transform BSS into a sizeable cross-asset house. The share price's current implied earnings growth and PER valuations are conservative.</li>
</ul>



Bright Smart Securities (1428 HK)'s earnings rebounded solidly by 20.4% YoY in 2H FY25, fueled by higher client accounts and assets, and better HK market turnover.
BSS has been an underperformer against peers since May, as other brokerage companies rallied on the back of potential entry into the virtual asset dealing business. 
Ant Financial will be able to transform BSS into a sizeable cross-asset house. The share price's current implied earnings growth and PER valuations are conservative.


Bright Smart (1428 HK): Bright and Smart FY25

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul><li>Bonds / In Depth: China's never-ending bond bull run fuels speculation regulators may intervene</li><li>Typhoon /: Insurers receive $18 million claims after super Typhoon hits southern China</li><li>Investment bank /: China Renaissance shares plunge as trading resumes, founder still missing</li></ul>

Bonds / In Depth: China's never-ending bond bull run fuels speculation regulators may interveneTyphoon /: Insurers receive $18 million claims after super Typhoon hits southern ChinaInvestment bank /: China Renaissance shares plunge as trading resumes, founder still missing

CX Daily: China’s Never-Ending Bond Bull Run Fuels Speculation Regulators May Intervene 

<ul><li>PE / Cover Story: Private equity in China heads for exits amid three-year stock slump</li><li><p>Military /: China’s top legislature confirms ousted military officials violated ‘discipline and law’</p></li><li><p>PMI /: China services activity maintains growth, but at slower pace, Caixin PMI shows</p></li></ul>

PE / Cover Story: Private equity in China heads for exits amid three-year stock slumpMilitary /: China’s top legislature confirms ousted military officials violated ‘discipline and law’PMI /: China services activity maintains growth, but at slower pace, Caixin PMI shows

CX Daily: Private Equity in China Heads for Exits Amid Three-Year Stock Slump 

<ul><li>Tax / Cover Story: China’s tax system gets a digital upgrade</li><li>Investment banking /: Investment banker Bao Fan is aiding an investigation, China Renaissance says</li><li>Corruption /: Ex-provincial vice governor indicted for bribery, leaking insider information</li></ul>

Tax / Cover Story: China’s tax system gets a digital upgradeInvestment banking /: Investment banker Bao Fan is aiding an investigation, China Renaissance saysCorruption /: Ex-provincial vice governor indicted for bribery, leaking insider information

CX Daily: China’s Tax System Gets a Digital Upgrade

China

China Renaissance is a financial institution providing investment banking and investment management services, including financial advisory, mergers and acquisitions advisory, equity underwriting, sales, trading, brokerage, research, structured financing, fund and asset management, and wealth management. The company was founded in 2005 and is headquartered in Beijing, China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

China Renaissance (1911 HK)

Bright Smart (1428 HK): Valuation Update

Bright Smart announced that it is still working on satisfying condition c.), which is reporting with the NDRC. Given that the Long Stop Date is 25...

Osbert Tang, CFA

Bright Smart (1428 HK): Bright and Smart FY25

BSS saw a 20.4% YoY earnings rebound in 2H FY25, driven by increased client accounts and assets, and better market turnover. Ant Financial's...

Osbert Tang, CFA

CX Daily: China’s Never-Ending Bond Bull Run Fuels Speculation Regulators May Intervene

Bonds / In Depth: China's never-ending bond bull run fuels speculation regulators may intervene Over the past year, China’s bond market has...

Caixin Global

CX Daily: Private Equity in China Heads for Exits Amid Three-Year Stock Slump

PE / Cover Story: Private equity in China heads for exits amid three-year stock slump Private equity and venture capital investors, once...

Caixin Global

CX Daily: China’s Tax System Gets a Digital Upgrade

Tax / Cover Story: China’s tax system gets a digital upgrade Investment banking /: Investment banker Bao Fan is aiding an investigation, China...

Caixin Global

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Bright Smart (1428 HK): Valuation Update

Bright Smart announced that it is still working on satisfying condition c.), which is reporting with the NDRC. Given that the Long Stop Date is 25...

Osbert Tang, CFA

Bright Smart (1428 HK): Bright and Smart FY25

​BSS saw a 20.4% YoY earnings rebound in 2H FY25, driven by increased client accounts and assets, and better market turnover. Ant Financial's...

Osbert Tang, CFA

CX Daily: China’s Never-Ending Bond Bull Run Fuels Speculation Regulators May Intervene

Bonds / In Depth: China's never-ending bond bull run fuels speculation regulators may intervene Over the past year, China’s bond market has...

Caixin Global

CX Daily: Private Equity in China Heads for Exits Amid Three-Year Stock Slump

PE / Cover Story: Private equity in China heads for exits amid three-year stock slump Private equity and venture capital investors, once...

Caixin Global

CX Daily: China’s Tax System Gets a Digital Upgrade

Tax / Cover Story: China’s tax system gets a digital upgrade Investment banking /: Investment banker Bao Fan is aiding an investigation, China...

Caixin Global

BSS saw a 20.4% YoY earnings rebound in 2H FY25, driven by increased client accounts and assets, and better market turnover. Ant Financial's...