$Futu Holdings Ltd (FUTU.US)$ Guotai Junan Securities Co. and Haitong Securities Co. unveiled the terms of their proposed merger to create a state-backed brokerage with US$226 billion ($295.3 billion) in assets to compete with Wall Street firms expanding in the country. Under the share swap deal, Guotai Junan will issue A shares and H shares to all holders of its smaller rival Haitong at a ratio of 0.62 to 1. The exchange offer is worth RMB8.57 ($1.58) in China, or a 2.3% discount on Haitong shares in Shan...
The market's valuation of the stock contrasts with the company's improving EPS. The discrepancy between EPS growth and share price growth suggests other metrics may be needed to understand changing market sentiment. The five-year annualised TSR loss of 2% per year raises concerns compared to recent share price performance.
The research is done by the respective broker and I do not endorse any of them. Just sharing here for information and reading pleasure. alphaedgeinvest... $GTJA (02611.HK)$$Guotai Junan (601211.SH)$
Justified low P/E ratio expected due to slower growth than broader market. Low P/E reflects investor unease; forecasted earnings improvement needed for share price growth.
Market expectation of growth might have been overly optimistic three years ago. No clear correlation can be discerned from the observation of fundamental business metrics and the share price, implying the stock might have been overrated.
On August 19, Vipshop released its financial report. In the second quarter, the company realized a net revenue of 24.5 billion yuan, which was better than the market expectation; Non-Gaap's net profit was 1.6 billion yuan, with a year-on-year increase of 8.4%. Both the profit level and the overall profit margin achieved a year-on-year increase; Its user data is also a bright spot. In the second quarter, the...
Jimmy w : Does this mean Futu will take off?
bullrider_21 OP Jimmy w : I think after a consolidation, it will rise again.