[ET Net News Agency, 4 May 2020] Credit Suisse lowered its target price for CITIC
Securities (06030) to HK$21.8 from HK$22.1 and maintained its "outperform" rating.
The research house said CITIC's 1Q net profit tracks 28% of 2019 Bloomberg consensus.
The soft growth (down 4%) was mainly due to (1) decline of IBD fees, and (2) impairment
losses of Rmb1.6bn.
On the bright side, resilient investment return helped drive investment income growth of
12%/25% YoY/QoQ, bucking the weak market conditions. Credit Suisse revised its FY2020
earnings estimate down by 7.4% and tweaked FY2021-22 earnings forecasts after factoring 1Q
results. (KL)