Strong wealth franchise to lead outperformance
- Expect earnings outperformance to continue thanks to its (1) higher % rev contribution from brokerage activity and (2) stable fee income from Asset Mark
- One-stop shop capability another plus, which will help expand its clients’ wallet share and partially offset the headwinds
- Revised down FY23F/24F earnings by 2%/27% to reflect weaker-than-expected market recovery, earnings impact from IPO tightening and public fund fee cuts
- Maintain BUY on Huatai-H, TP revised up to HK$12 on a slightly higher multiple to reflect its earnings resilience; Huatai-A upgraded to BUY on revised valuation basis