DBS lowered CITIC Securities (06030)'s profit forecast for this year and next two years by 4% and 2%, respectively.
The Zhitong Finance App learned that DBS released a research report stating that it maintained the “buy” rating of CITIC Securities (06030) and lowered the target price from HK$19 to HK$16.5 to reflect weak investment banking activity. The company has a leading position in all major businesses, diversified development and stable profitability. Expanding overseas business also helps mainland enterprises and investors connect with other markets, and has a good market position.
The bank said it will lower CITIC Securities' profit forecast for this year and next two years by 4% and 2%, respectively, to reflect the decline in investment banks' revenue under the increased supervision of new stock issuance in the mainland, but this is partly offset by cuts in employee costs. It is estimated that there will be a more definite recovery in the second half of the year, as economic stabilization and the US Federal Reserve's interest rate cuts will drive capital back to the mainland market and enhance the market atmosphere.