Morgan Stanley published a report, predicting that GF Securities (01776.HK) will see a price increase within the next 30 days, with a probability of over 80%. The main reason is that the stock price has recently retreated, making short-term valuations more attractive.
The firm believes that GF Securities can continue to increase its market share in asset management. Its recently strengthened capital base can also be quickly deployed into high ROE derivative businesses to capture the growing demand from institutional investors. The current market environment is favorable, with the average daily trading volume of A-shares and H-shares remaining high, and the investment appetite for high-fee actively managed equity funds has also improved. Potential catalysts include the relaxation of leverage limits for leading brokerages and the formal implementation of new derivative regulatory guidelines.
Morgan Stanley maintains a "Market Perform" rating on GF Securities, awaiting further clarity on whether GF Securities can quickly transform its directional investment portfolio into a demand-driven derivative business