Goldman Sachs raised its target price for GF Securities (01776.HK) to HKD18.26, citing strong 2025 results that saw net profit grow 43 percent year-over-year.
The bank's report noted that while fourth-quarter market volatility affected brokerage and investment income, the core asset management business "remained resilient," benefiting from robust growth in assets under management.
GF Securities reported fiscal year 2025 revenue of RMB35 billion, a 30 percent increase from the prior year, and net profit of RMB15 billion. Goldman Sachs maintained its Neutral rating on the H-shares while lifting the price target from HKD18.17.
The target price adjustment rolls the valuation base forward to 2027, signaling a longer-term view on earnings. The move comes after the company's asset management arm, including China Guangfa Fund and E Fund Management, posted 13 percent year-over-year growth.
A-Share Target Also Lifted
For the company's A-shares (000776.SZ), Goldman Sachs maintained a Buy rating and raised the price target from RMB29.18 to RMB29.31. The bank based its valuation on unchanged price-to-earnings ratios of 14x for A-shares and 8x for H-shares.
While the full-year results were strong, they were slightly below the bank's expectations due to market headwinds in the final quarter. Taking the results and management guidance into account, Goldman Sachs adjusted its revenue forecasts up by three percent for the 2026-2028 period but trimmed earnings forecasts by one percent.
The updated price targets suggest confidence in the asset management division's ability to offset weakness in other segments. Investors will watch for continued growth in assets under management in the upcoming first-quarter results for 2026 to see if the momentum is sustained.
This article is for informational purposes only and does not constitute investment advice.
