[ET Net News Agency, 17 July 2020] Nomura lifted its target price for CITIC Securities
(CITICS)(06030) to HK$23.72 from HK$17.65 and maintained its "buy" rating.
The research house lifted its FY2020-22 A-shares market ADT (average daily turnover) by
28%/44%/52%. It also increased its FY2020-22 A-shares IPO volume growth to 80%/50%/50%
from 50%/30%/30%.
Nomura said CITICS is a leading broker with balanced business lines, implying that the
company will likely benefit from both market liquidity improvement and capital market
reforms.
Nomura estimated that for every 1% equity index gain could translate into a 3% increase
in FY2020 net profit, and for every 1% increase in equity market ADT could translate into
a 0.25% increase in FY2020 net profit. (KL)