[ET Net News Agency, 10 October 2019] HSBC Global Research lifted its target price for
Guotai Junan Securities (GTJA)(02611) to HK$21 from HK$20 and maintained its "hold"
rating.
The research house is positive on GTJA's well-rounded business structure and
sector-leading capital strength. Its net profit rose 27% in 1H, on the back of solid
revenue growth and improved cost-efficiency. The company is less exposed to stock-pledged
lending (SPL) risks versus sector, given its high provision ratio of 4.9% of SPL balance.
With a strong capital base, prudent financial leverage and leading positions across
different business lines, the company is expected to be a relatively safe proxy for
tapping the long-term growth potential of China's capital market developments. (KL)