China Galaxy Securities (CGS) stock plummeted 5.22% during intraday trading on Thursday, reflecting significant investor concern over the company's financial performance.
The sharp decline was triggered by disappointing first-quarter earnings quality, where net profit growth of 10.09% significantly trailed revenue growth of 15.66%, indicating margin compression despite strong operational metrics. Additionally, persistent institutional selling pressure contributed to the downturn, with net outflows of approximately 440 million yuan over the past 20 trading days and major institutional holdings declining by 31.239 million shares.
Market participants appear focused on the profitability deterioration despite some positive business developments, including a 33.23% increase in fee and commission income and a 40.94% rise in net interest income driven by expanded margin lending activities.