JPMorgan has released a research report indicating that operational improvements and the emergence of merger synergies at GTHT (02611) have prompted an upgrade. The firm has raised its investment rating for both the A-shares (601211.SH) and H-shares of GTHT from "Neutral" to "Overweight". The A-share target price has been increased from RMB 20.3 to RMB 22, while the H-share target price has been lifted from HK$16.3 to HK$18.

Back in June, the bank placed GTHT on its positive catalyst watch list, driven by expectations of robust second-quarter results, supported by a favorable industry environment. At that time, JPMorgan maintained a neutral stance because GTHT had not yet convincingly demonstrated that the Haitong integration could translate into visible and repeatable synergies.

Following the strong second-quarter earnings release, the bank's perspective has shifted. JPMorgan now believes GTHT is gaining market share in key business segments, exhibiting higher-quality trends compared to CITIC Securities (06030) and East Money (300059.SZ). The bank also observes that merger synergies are beginning to materialize and anticipates that GTHT will maintain relative resilience in the second half of the year, despite a weaker third-quarter backdrop. These factors, in the bank's view, should support a long-term valuation re-rating for GTHT.