Hongta Securities (601236 CH) Hold: Earnings growth relying on investment income likely a risk

Research evidence excerpt

Hongta Securities (601236 CH) Hold: Earnings growth relying on investment income likely a risk

9 June 2026

Equity Research Report

Hongta Securities (601236 CH) EquitiesDiversified Financial Srvcs

Hold: Earnings growth relying on investment income

likely a risk China

◆ Investment income could be an earnings drag this year MAINTAIN HOLD

◆ We reduce our 2026-28 net profit estimates by 8.0-9.6%

TARGET PRICE (CNY) PREVIOUS TARGET (CNY)

◆ Maintain Hold; cut TP to RMB7.70 (from RMB8.50) 7.70 8.50

Businesses under pressure despite decent investment income; a re-rating SHARE PRICE (CNY) UPSIDE/DOWNSIDE

could be hindered. Hongta’s share price has fallen 11.4% over the past 60 trading 6.82 +12.9%

days (vs the CITIC Broker Index down 8.6% over the same period). We believe the (as of 05 Jun 2026)

underperformance is due to the following factors, which are also in line with our

MARKET DATA

previous views: (1) Hongta relies on investment income, but the weak equity and Market cap (CNYm) 32,168 Free float 40%

derivatives market in 1Q26 may lead to below-par earnings; and (2) the transition in Market cap (USDm) 4,755 BBG 601236 CH

3m ADTV (USDm) 16 RIC 601236.SS

its brokerage and asset management businesses can not translate into a new

earnings growth driver yet. However, we note that its focus on high-risk businesses FINANCIALS AND RATIOS (CNY)

(e.g., derivatives) could have an impact on its future growth potential if regulation on Year to 12/2025a 12/2026e 12/2027e 12/2028e

HSBC QH EPS 0.26 0.25 0.28 0.32

risk control tightens, and the high base of proprietary trading income in 2025 could HSBC QH EPS prev 0.26 0.27 0.31 0.35

weigh on its overall earnings growth this year. If Hongta could overcome these Change (%) 0.0 -8.0 -9.6 -8.7 Consensus EPS 0.22 0.27 0.31 0.35