[ET Net News Agency, 18 December 2019] Daiwa Research lifted its target price for CSC
Financial (06066) to HK$6 from HK$5.6 and maintained its "hold" rating.
The research house appreciated CSC's advantage in investment banking, but sees its
strategy posing difficulties for an uplift in ROE (return on equity), due mainly to the
company's lack of cross-selling capabilities and management's cautious mindset as regards
to leverage.
Despite its 12th place ranking in net assets in the sector for 2018, CSC ranked
respectively 5th and 1st in the equity and debt underwriting league tables, Daiwa noted.
However, Daiwa estimated its lending market share dropped below 3% at end-September,
from 3.3% in 2018. The research house cut its earnings forecasts for 2019-20 by research
house to account for its worsening profitability trend in non-investment banking lines,
while its 6% upward revision to 2021 EPS estimate takes into account benefits from a
deepening of capital-market reforms. (KL)
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06066 CSC
Nominal 
5.660 +0.010 (+0.177%) Research Report
18/12/2019 11:08
{I-bank focus}Daiwa lifts CSC Financial (06066) to HK$6
| Remark: | Real time quote last updated: 23/04/2024 17:06 |
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