JPMorgan has issued a research report upgrading its rating on GTHT (ASX: 02611) H-shares and A-shares from "Underweight" to "Neutral."

The upgrade is based on several key factors. Firstly, the bank views GTHT as a primary beneficiary of the recent rally in the STAR Market.

Secondly, the brokerage sector's fundamentals are improving, supported by stronger average daily turnover in May and enhanced margin financing business.

Thirdly, while the stock's recent underperformance—lagging peers by approximately 10 percentage points year-to-date for both its A and H shares—makes its current valuation appear reasonable, it is not yet compelling enough to warrant an "Overweight" rating.

Consequently, JPMorgan maintains a "Neutral" stance on both share classes.

However, the bank sees an attractive risk-reward profile for accumulating GTHT shares ahead of a potential second-quarter earnings beat.

Based on current operating trends, JPMorgan forecasts that GTHT's revenue and profit for the second quarter of 2026 could see year-on-year growth of approximately 64% and 140%, respectively.

This projected growth is driven by stronger investment returns and a low base in the second quarter of 2025.

This momentum is expected to outpace that of its Chinese brokerage peers and should support the stock's near-term performance.

As a result, JPMorgan has added GTHT's A and H shares to its Positive Catalyst Watchlist.