[ET Net News Agency, 9 January 2020] DBS Group Research initiated coverage on Huatai
Securities (HTSC)(06886) with a "hold" rating and a target price of HK$14.3.
The research house said HTSC is a comprehensive service provider, and one of the
earliest players to engage in an e-platform building. However, a large investment in
technology empowerment drives up overall costs, representing 93% cost-to-profits in 1H
2019.
To expand its customer base, HTSC has resorted to aggressively cutting its commission
rates which have resulted in a price war and is adversely affecting the industry's
competitive landscape. (KL)