Goldman Sachs: Raising the target price of GF Securities (01776) to HK$23.55, asset management strength and overseas expansion to support medium-term ROE improvement

The Zhitong Finance App learned that Goldman Sachs released a research report saying that GF Securities (01776) was supported by investment income, improved use of balance sheets, and resilient asset management business profits, and recorded strong quarterly performance. After the results, the bank increased its average revenue from 2026 to 2028 and net profit forecasts due to shareholders by 5% each, which mainly reflected stronger investment income assumptions, accelerated overseas profit contributions, and improved use of leverage, which were partially offset by the normalization of expected return on investment starting in 2027. The bank maintained the “buy” rating for GF Securities (000776.SZ) and the “neutral” rating for H shares, and raised the target price of H shares from HK$22.32 to HK$23.55, and raised the target price for A-shares from RMB 35.83 to RMB 37.81.

The bank believes that what is more important is that the improvement in the company's return on equity (ROE) is increasingly supported by structural factors, including international expansion, capital allocation, and recurring charging services, so it continues to regard Guangfa as one of the traditional brokerage firms that are more in a position to benefit from overseas expansion and capital efficiency improvements.