Goldman Sachs: Raises GF SEC (01776) target price to HK$23.55; asset management strength and overseas expansion support mid-term ROE improvement.

Goldman Sachs released a research report stating that GF SEC (01776), supported by investment income, improved balance sheet utilization, and the earnings resilience of its asset management business, recorded another strong quarterly performance. Following the results, the bank raised its revenue and net profit attributable to shareholders forecasts for 2026 to 2028 by an average of 5% each, mainly reflecting stronger investment income assumptions, accelerated overseas earnings contribution, and improved leverage utilization, partially offset by the expected normalization of investment returns from 2027 onward. The bank maintained its "Buy" rating on GF SEC's A-shares (000776.SZ) and "Neutral" rating on its H-shares, and raised the H-share target price from HK$22.32 to HK$23.55, and the A-share target price from RMB35.83 to RMB37.81. The bank believes that, more importantly, the company's return on equity (ROE) improvement is increasingly supported by structural factors, including international expansion, capital allocation, and recurring fee-based businesses. Therefore, it continues to view GF SEC as one of the traditional brokerages better positioned to benefit from overseas expansion and improved capital efficiency.