Haitong Securities’s Stock Price Skyrockets to 7.09 HKD, Marking a Staggering 95.48% Increase

Haitong Securities (6837)

7.09 HKD +3.46 (+95.48%) Volume: 568.46M

Haitong Securities’s stock price has soared to 7.09 HKD, marking an impressive +95.48% increase this trading session with a trading volume of 568.46M, and a remarkable year-to-date percentage change of +70.02%, highlighting the firm’s robust market performance.

Latest developments on Haitong Securities

Today, the stock price of Haitong Securities Co Ltd (H) experienced significant movements following the announcement of a proposed merger with Guotai Junan Securities. This merger, set to create a $226 billion brokerage powerhouse, has been a hot topic in the financial world. The deal, which has been finalized, is expected to boost market sentiment and benefit other key players in the industry such as CGS, CICC, and GF SEC. With the exemption of the Haitong Unitrust merger from mandatory offer requirements, investors are eagerly anticipating the potential upside room for Haitong Securities Co Ltd (H) in the near future.

Haitong Securities on Smartkarma

Analysts on Smartkarma, such as David Blennerhassett and Arun George, are bullish on Haitong Securities Co Ltd (H) following the announcement of a merger with Guotai Junan Securities. The deal, which involves a share swap, is seen as favorable for H-Shareholders, with an attractive exchange ratio of 0.62x. Regulatory approvals are expected to be a formality, and the key risk lies in timing. The merger is anticipated to create China’s largest securities entity, aligning with the government’s ambition to reform the brokerage sector.

According to the research reports on Smartkarma, analysts like David Blennerhassett and Arun George view the Guotai Junan Securities/Haitong Securities merger as a positive development amidst challenging capital markets and regulatory changes. The all-scrip merger is deemed low risk, with the shareholder vote and regulatory approvals expected to proceed smoothly. The share exchange ratio is considered attractive compared to historical price ratios, and the merger is seen as a step towards creating world-class investment banks in China.

A look at Haitong Securities Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on Smartkarma Smart Scores, Haitong Securities Co Ltd (H) seems to have a positive long-term outlook. With a high score in Value and a decent score in Dividend, the company appears to be undervalued and potentially offering good returns to investors. However, the lower scores in Growth, Resilience, and Momentum indicate that there may be some challenges ahead for the company in terms of growth, stability, and market performance.

Haitong Securities Co Ltd (H) operates as a securities firm, providing a range of services including brokerage, investment advisory, and underwriting. While the company shows strength in terms of value and dividends, investors may want to keep an eye on its growth potential, resilience in the face of market fluctuations, and momentum in the market to make informed decisions about their investment in Haitong Securities Co Ltd (H).

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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