[ET Net News Agency, 8 May 2020] Nomura initiated coverage on CITIC Securities (06030)
with a target price of HK$17.65 and a "buy" rating.
The research house said CITIC is a top-ranked flagship broker by CSRC (ranking for 2018
by CSRC), with a balanced business mix and strong franchise, enables the company to seize
all aspects of opportunities from the capital market reform.
Meanwhile, leveraging its well-established branding and strong service capabilities, the
company's profitability has been more solid than peers, with ROE at 7.8%, compared to
industry ROE at 6.3% in 2019.
Nomura thinks the acquisition of Guangzhou Securities will strengthen CITIC's leading
position in the brokerage trading business, as the acquisition will help CITIC increase
geographical coverage effectively. (KL)