[ET Net News Agency, 9 October 2019] HSBC Global Research initiated coverage on CITIC
Limited (00267) with a "hold" rating and a target price of HK$11.
The research house said CITIC has a high level of exposure to financial services, which
accounts for 52% of GAV (Gross Asset Value) and 69% of net profit in 2019, which spans
across banks, brokers, insurance and trust businesses in Greater China.
While HSBC is cautious on the sector, given macro, market and regulation headwinds, the
research house has a more positive long term stance on CITIC's presence in the insurance
and trust segments. CITIC is trying to lower its reliance on the financial sector by
growing its non-financial segments, but this will take time.
After a decent 14% earnings growth in 2018, HSBC forecast CITIC's growth momentum to
normalise at 6% CAGR in 2018-21, including a 4% CAGR in financial services during the
period. (KL)
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00267 CITIC
Nominal 
6.930 -0.070 (-1.000%) Others
09/10/2019 10:27
{I-bank focus}HSBC starts CITIC Limited (00267) at HK$11
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