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| HSCEI1 | 8,471.36 | -162.98 | 116.43B |
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2026-08-24 16:37:53 G Sachs issued a report saying that CITIC SEC (06030.HK) reported 2Q revenue and net profit of RMB26.5 billion and RMB13.4 billion respectively, representing YoY growth of 74% and 82%. The figures were 2% and 1% below the broker's forecasts respectively, and were broadly in line with the preliminary results. During the period, brokerage commission income was RMB4.9 billion (6% below the broker's forecast), investment banking income was RMB1.8 billion (27% below the broker's forecast), asset management income was RMB3.7 billion (2% below the broker's forecast), investment gains were RMB15.5 billion (19% above the broker's forecast), while net interest income was RMB700 million (41% below the broker's forecast). The cost-to-income ratio was 35.3%, slightly above the broker's forecast of 34%. Annualized ROE in 2Q was 15.3%, up 6 ppts YoY and 2.8 ppts QoQ, broadly in line with expectations, while the active leverage ratio was 5.1x. Overall, G Sachs believed the results were in line with its recent view on the sector, namely that Chinese brokers will continue to benefit from strong capital market activity, record-high average daily turnover in A-shares, robust Hong Kong IPO financing activity, and improved capital utilization efficiency. At the same time, the broker maintained its view that medium-term earnings and valuation upside will increasingly rely on ROE improvement driven by balance sheet expansion and international capital deployment, rather than solely depending on cyclical market trading momentum. The broker adjusted its forecasts for CITIC SEC's revenue and net profit for 2026 to 2027 by an average of -1% and +1% respectively. It raised the H-share TP from HKD33.46 to HKD33.51, and raised the A-share TP for CITIC SECURITIES (600030.SH) from RMB44.64 to RMB44.72. The broker maintained a Buy rating on CITIC SECURITIES (600030.SH) A-shares and a Neutral rating on CITIC SEC (06030.HK) H-shares. (ad/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |