Key Takeaways:
JPMorgan upgraded GTHT to Neutral from Underweight, forecasting 2Q26 profit growth of 140% year over year.
The broker cited three reasons for the upgrade: GTHT's position as a key beneficiary of the recent STAR Market rally, improving industry fundamentals supported by stronger average daily turnover in May and enhanced margin financing and securities lending businesses, and the stock's year-to-date underperformance of about 10 percentage points versus peers, JPMorgan said in a report.
JPMorgan placed both the H-shares and A-shares on Positive Catalyst Watch, projecting revenue growth of approximately 64% year over year and profit growth of roughly 140% in the second quarter of 2026. The growth is expected to be driven by stronger investment income and a low comparison base in 2Q25, according to the report.
The broker said current valuations appear reasonable but not sufficiently attractive to warrant an Overweight rating, assigning Neutral to both share classes. JPMorgan sees attractive risk-reward in accumulating GTHT's A-shares and H-shares ahead of potentially better-than-expected results in 2Q26, the report said.
The growth momentum may outpace Chinese brokerage peers and should support near-term share price performance, JPMorgan said. GTHT's H-shares rose 6.3% on the day of the report, while the A-shares gained 2.6%.
The upgrade suggests GTHT's recent underperformance may reverse as earnings momentum accelerates. Investors will watch for the company's 2Q26 results, expected in August, to see if the projected growth materializes.
This article is for informational purposes only and does not constitute investment advice.
