[ET Net News Agency, 4 June 2020] Morgan Stanley lowered its target price for China
Galaxy Securities (CGS)(06881) to HK$4.62 from HK$5.22 and maintained its "equal-weight"
rating.
The research house noted CGS's higher revenue exposure to brokerage business with a
client base more skewed to retail. But its operating efficiency is lower than peers.
In addition, the higher revenue exposure to equity-related business gives Galaxy greater
leverage to A-share rise or increase in average daily turnover (ADT) and could
periodically present good trading opportunities. (KL)