[ET Net News Agency, 8 June 2018] Daiwa Research trimmed its target price for China
Merchants Securities (CMSC)(06099) to HK$11.25 from HK$13, and retained its "hold" rating.
The research house expects CMSC to face increasing competition from all types of
financial institutions in the asset management (AM) business due to the new AM rules
announced in late-April. Daiwa also sees its large "channel business" as a drag going
forward.
Daiwa cut its 2018-19 revenue forecasts by 5-8% and net profit estimates by 6-7% on (1)
lower estimates for its asset management and mutual fund businesses, (2) dilutive impact
from its perpetual bonds, and (3) lower 2018 ADT assumption of CNY520bn from CNY580bn.
(KL)