[ET Net News Agency, 12 January 2018] Credit Suisse assumed coverage on China Merchants
Securities (CMSC)(06099) with an "outperform" rating (from "neutral") and a new target
price of HK$15.5 (from HK$14.2).
It said that CMSC's well-established franchise in institutional services helps it grasp
new business opportunities, along with the institutionalisation of China's capital market.
Its strong geographical presence in the wealthy coastal areas in Mainland China positions
it well to serve the growing wealth management demand of affluent investors.
The research house added that CMSC's customer mix towards institutional and affluent
investors leads to gain in brokerage market share in 2017 and makes it continue to benefit
from structural shift in investor mix.
Credit Suisse revised down its FY2017-19 EPS by 16%/12%/10%. (KL)