A recent analyst report has ignited a firestorm of controversy in the A-share market, with critics questioning the objectivity and diligence of brokerage research. The report, issued by GTHT on March 13, 2026, gave a "Buy" rating to Beijing Space Eye Innovation Technology Co., Ltd. (688066.SH), setting a target price of 32.65 yuan, despite the company's rapidly deteriorating financial health.
At the time of the report, the company had already posted three consecutive years of losses, was in a state of negative equity, and had been flagged for a possible delisting risk warning. The situation worsened dramatically, leading to the company being designated as a *ST stock on May 6, 2026. Then, on August 7, the company and its actual controller were formally investigated by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure rules. By the close of trading on August 14, the stock price had plummeted by approximately 60% from the 22.6 yuan level when the report was published, to around 9 yuan.
Deepening Financial Crisis and Mounting Risks
The company, a pioneer on the STAR Market focused on commercial aerospace and satellite remote sensing, has seen its fundamentals crumble since 2023. After a profitable 2022, its net profit attributable to the parent company plunged to a loss of 374 million yuan in 2023. The situation worsened in 2024, with the net loss widening to 1.39 billion yuan, a drastic increase driven by the suspension of its military procurement qualification. This suspension, effective from July 2024, crippled its ability to bid for new contracts and led to significant asset impairment losses of 930 million yuan.
A performance preview released on February 27, 2026, showed that the company's revenue had collapsed by 66% year-on-year to just 534 million yuan, while the net loss for the year remained substantial at 1.17 billion yuan. More alarmingly, the company's net assets attributable to the parent company stood at a negative 332 million yuan at the end of 2025, confirming it was technically insolvent. The auditor issued a "disclaimer of opinion" on its 2025 financial report and an "adverse opinion" on its internal controls. Independent directors also expressed their inability to guarantee the accuracy of the annual report.
High-Risk Rating Ignites Market Indignation
The intense scrutiny centers on GTHT's decision to assign its highest rating, "Buy," to a company facing such severe and publicized difficulties. The report's core investment thesis, promoting the company as a leader in the "full-chain going overseas" strategy, appeared to be a stark disconnect from the reality of its financial condition. The report used a Price-to-Sales (PS) valuation method, which is typically applied to high-growth companies. However, the company's revenue had already plummeted by 66%, and the report's forecast of a 37% rebound in 2026 and 59% growth in 2027 contradicted the disclosed, negative business trends.
Critics argue that the "Buy" rating, given while the company was already in a state of net loss and negative equity, represents a fundamental mismatch between risk and reward and is highly misleading to average investors. The situation is compounded by the fact that this is not the first time the brokerage has issued a "first-time coverage" report on this company. An earlier entity of the same brokerage had issued a similar "Buy" rating in October 2024, even as the company's first annual loss was already reported. Within a year and a half, the company's fundamentals have completely deteriorated, yet the rating has remained unchanged.
Compliance Concerns Mount for the Brokerage
This is not the only regulatory black mark for Guotai Haitong Securities Co., Ltd., which was formed from the merger of Guotai Junan and Haitong Securities. In 2025, the company received several regulatory penalties, including a warning from the Shenzhen Stock Exchange for underwriting violations and another for failing to supervise a restructuring project properly. In 2026, a subsidiary of the brokerage was investigated by Hong Kong regulators, and a Shanghai regulator issued a warning for improper professional conduct in a separate project.
On August 14, 2026, the Shenzhen Stock Exchange issued oral warnings to two member firms for research report violations for the first time, a move widely seen as a direct response to this case. This incident highlights the growing regulatory focus on the quality and independence of sell-side research, and serves as a stark reminder of the risks associated with relying on overly optimistic ratings when a company's fundamentals are in clear decline.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investing in the stock market involves risk, including the potential loss of principal.