[ET Net News Agency, 10 October 2019] HSBC Global Research lowered its target price for
GF Securities (GFS)(01776) to HK$11.2 from HK$12 and maintained its "buy" rating.
The research house said GFS' net profit grew by 45% in 1H on the back of a strong
recovery in investment income, despite RMB395m contingent liabilities being further
charged on the liquidated overseas fund (Pandion). HSBC believes GFS still has a strong
franchise in both investment banking and asset management, as well as a solid wealth
management business.
However, the 6-month restriction on new businesses and regulatory rating downgrade to
"BBB" imposed by CSRC could add uncertainties about earnings stability, HSBC noted. (KL)