[ET Net News Agency, 28 October 2019] UBS Global Research lowered its target price for
CSC Financial (06066) to HK$8.1 from HK$8.9 on the latest market conditions and outlook
and maintained its "buy" rating.
Based on preliminary monthly earnings, the research house estimated CSC's earnings in
the first nine months were around Rmb3.7bn, implying 3Q earnings of Rmb1.4bn.
Despite challenging market conditions on trading volume and index, UBS thinks STAR
market underwriting is one of the key support factors of its profit, as CSC is one of the
leading underwriters of the STAR board.
As the first batch of STAR listings was launched in July, UBS expects to see STAR
underwriting revenue from 2H. (KL)