BOCOM International has issued a research note raising its price target for Huatai Securities (06886) to HK$22, while reaffirming a "Buy" rating on the stock.

The firm has updated its forecasts for 2026 through 2028, projecting that the company's profitability will continue to strengthen over the next three years, with net profit attributable to shareholders expected to reach RMB 21.2 billion, RMB 23.3 billion, and RMB 25 billion, respectively.

Since the start of 2026, there remains a noticeable gap between the company's share price performance and its operational results. Given its significant growth potential in areas such as deepening cross-border wealth management, supporting Chinese enterprises in their global expansion, and deploying AI-driven cost reduction and efficiency enhancements, the stock's current valuation — trading at approximately 0.63 times price-to-book for 2026 — still offers room for further upward revision.

Since the second quarter of 2026, the company's earnings growth has accelerated further. In the first half of the year, total assets increased by 25.5% compared to the end of 2025, while net profit attributable to shareholders jumped 54.9% year-on-year. The business is clearly showing an expansionary trend, with simultaneous improvements across multiple business lines, including proprietary investment, brokerage, and investment banking.