[ET Net News Agency, 2 February 2021] Nomura cut its target price for Huatai Securities
(HTSC) (06886) to HK$17.48 from HK$20.05 and maintained its "buy" rating.
The research house factored in lower actual FY20 A-shares ADT (average daily turnover)
and revised down its market assumptions (lower FY2021/22 ADT by 10%/18%).
Apart from a strong recovery of underwriting business volume, Nomura also expects HTSC
to benefit from solid revenue contribution from brokerage commission as well as investment
gains on increased trading volume (A-shares market ADT +63%) and improved market momentum,
in line with its peers. However, growth in asset management revenue, despite HTSC's strong
technology and aggressive customer acquisition strategy, may take longer to catch up. (KL)