Goldman Sachs raises GF SECURITIES target price to 18.26 yuan, rating "Neutral"

Goldman Sachs published a research report indicating that GF Securities (01776.HK) will have strong performance in the fiscal year 2025, with revenue and net profit expected to be RMB 35 billion and RMB 15 billion respectively, representing year-on-year growth of 30% and 43%, slightly below the bank's expectations, mainly affected by market volatility in the fourth quarter impacting brokerage and investment businesses. However, the core asset management business showed resilience, growing 13% year-on-year, benefiting from the strong growth in assets under management (AUM) of its subsidiaries, GF Fund and E Fund.

Goldman Sachs stated that taking into account the fourth quarter performance and management guidance, it has adjusted its average revenue and profit forecasts for GF Securities for 2026 to 2028, raising revenue estimates by 3% and lowering profit estimates by 1%. The bank maintains a "Buy" rating for A-shares and a "Neutral" rating for H-shares, and has rolled the valuation benchmark year from 2026 to 2027. Based on unchanged target price-to-earnings ratios of 14 times and 8 times, the target price for GF Securities A-shares (000776.SZ) has been raised from RMB 29.18 to RMB 29.31, and the target price for H-shares has been raised from HKD 18.17 to HKD 18.26