[ET Net News Agency, 18 December 2019] Daiwa Research lowered its target price for HTSC
Securities (HTSC)(06886) to HK$15 from HK$17 and maintained its "buy" rating.
The research house believes HTSC is building a new wealth management model that will
attract customers through its online app initially, and help generate higher fee and
interest income through its offline financial advisors (FAs).
Daiwa attributed HTSC's competitive edge in the brokerage business mainly to its Zhangle
mobile app, which is capable of acquiring and transferring customers to its low-cost
online platform. As at end-1H, the app had 7.5m MAUs (monthly active users), the highest
among China's securities companies, with 99% of the new accounts opened and 89% of
customers' trading done through the app.
Daiwa revised down its 2019-21 EPS forecasts by 2-12% mainly after factoring in a lower
commission rate and higher IT investments. (KL)