[ET Net News Agency, 9 January 2020] DBS Group Research initiated coverage on CSC
Financial (CSC)(06066) with a "hold" rating and a target price of HK$7.2.
The research house said CSC is a comprehensive financial services provider that has
special focus on the investment banking and brokerage business, representing 41% and 46%
of total revenue respectively.
However, DBS noted a bottleneck for each business. As for the investment banking
business, although income recorded a 9% growth in 1H 2019, it was mostly supported by the
fixed income business, while equity underwriting volume saw a dramatic 86% drop. DBS
believes this will hinder the company's future performance due to the improving market
sentiment and upcoming market liberalisation. (KL)