[ET Net News Agency, 6 July 2020] Goldman Sachs sees limited business synergy between
CITICS (06030) and CSC (06066) due to their similar business layout. It does not take a
view on the likelihood of a merger deal.
But the research house said any a potential consolidation could benefit their business
in two aspects: (1) expansion of financial/business scale would help to increase their
competitiveness within the broker sector, and (2) it could help to lower competition
between CITICS and CSC, which could improve their overall profit margin.
Goldman rated both CITICS and CSC "buy", with respective target prices of HK$19.05 and
HK$8.45. (KL)