[ET Net News Agency, 18 December 2019] Daiwa Research lowered its target price for
China Galaxy Securities (CGS)(06881) to HK$4.1 from HK$4.4 and maintained its "hold"
rating.
The research house sees CGS being hampered by its retail-brokerage-focused business
model, and believes it has fallen behind its peers in terms of catching the wealth
management transformation opportunity.
Daiwa expects CGS's brokerage market share to continue to shrink in the next few years
due to its relatively slow pace of technology deployment and multi-business-line
integration. It sees CGS lagging behind some of its industry peers such as HTSC
(06886)(attracting customers through a low-cost model and easy-to-use mobile app) and GTJA
(02611)(providing additional professional services to attract high-net-worth customers).
Daiwa cut its 2019-21 EPS forecasts by 2-5% to factor in lower commission rates that are
partially offset by lower funding costs. (KL)
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06881 CGS
Nominal 
3.890 +0.070 (+1.832%) Research Report
18/12/2019 11:30
{I-bank focus}Daiwa lowers CGS (06881) to HK$4.1; "hold"
| Remark: | Real time quote last updated: 24/04/2024 17:59 |
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