[ET Net News Agency, 1 November 2018] Credit Suisse cut its target price for Haitong
Securities (HTS)(06837) to HK$9.3 from HK$10, and maintained its "outperform" rating.
The research house said HTS has a relatively large exposure to share pledge loans (SPL):
it ranked the first among Credit Suisse's covered brokers in terms of self-funded SPL
balance as of 1H. More proactive and effective regulatory measures to control SPL risks
could be a re-rating catalyst.
Credit Suisse cut its 2018-20 EPS forecasts by 2-7% to reflect lower investment return
and Investment Banking Division (IBD) revenue. (KL)