[ET Net News Agency, 19 June 2019] Daiwa Research lowered its target price for Haitong
Securities (HTS)(06837) to HK$10 from HK$12 and maintained its "buy" rating.
The research house believes HTS's non-core subsidiaries' businesses are now turning
around, complementing its steady core domestic franchise. Meanwhile, its overseas
businesses contributed 28% of its revenue in 2018, the highest among peers.
Daiwa noted that Haitong Bank delivered improved earnings in 2018 after completing its
restructuring, and this improvement is likely to continue in 2019. Haitong International's
net profit decline of 66% in 2018 was mainly dragged by investment income, but this could
see a recovery in 2019. (KL)