Bank of America Securities: Slight increase in GF Securities (01776.HK) target price raised to 21.1 Hong Kong dollars, beating expectations for mid-year results, reiterating "buy" rating.

Wisdom Finance app learned that Bank of America Securities released a research report stating that Guangfa Securities (01776.HK) had a net profit of 6.5 billion yuan in the first half of the year, a year-on-year increase of 48%, which performed better than expected. Profit in the second quarter increased by 31% year-on-year, increasing by 35% quarterly to 3.7 billion yuan. During the period, operating income increased by 34% year-on-year to 15.4 billion yuan, mainly due to a 42% increase in brokerage commission income and a 51% increase in trading income. The bank raised its forecast for trading income rate and annual average daily trading volume of A shares to 1.4 trillion yuan (previously estimated at 1.3 trillion yuan), corresponding to a 7% increase in earnings per share forecast for Guangfa Securities this year. The H-share target price was raised from the original 20.5 Hong Kong dollars to 21.1 Hong Kong dollars, and the A-share target price was raised from the original 24.3 yuan to 25.1 yuan, both reiterating a "buy" rating.