0346 GMT - Chinese brokerage firms may deliver stronger operating performances from 2Q given the stronger market momentum in Hong Kong and China since April, says Lawrence Chen, an analyst at CCB International. Chen notes that aggregate sector profit contracted 26% on year in 1Q while revenue declined 21% with weakness across investment income, securities underwriting and interest income. CCB lowers its 2024-2025 profit forecasts for the sector by 9%-10% to account for expectations for revenue to drop 4%-5%. CITIC Securities remains its top pick for its strong product spectrum, overseas presence and ample liquidity. The stock is last at HK$12.82. (monica.gupta@wsj.com)
(END) Dow Jones Newswires
May 06, 2024 23:46 ET (03:46 GMT)
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