Bocom International has issued a research report stating that CITIC Securities (06030) reported a net profit attributable to shareholders of RMB 30.076 billion in the previous year, representing a year-on-year increase of 38.6%. In the first quarter of this year, the company continued its strong profit growth, with quarterly profit exceeding RMB 10 billion for the first time. The target price has been raised to HK$32, and a "Buy" rating is maintained. During the period, all business segments recorded relatively rapid year-on-year revenue growth. Specifically, revenue from securities brokerage, investment banking, asset management, and investment businesses increased by 48%, 24%, 37%, and 25% year-on-year, respectively. Investment income rose by 32% year-on-year, driven by fair value changes, while net interest income grew to RMB 1.1 billion. Management believes that with the current benefits of capital market reforms being realized, the company's leading advantages in scale, comprehensive licenses, and full business chain will become more prominent. They expressed optimism about the resilience and sustainability of performance growth. The institution expects the company to maintain its leading position over the next three years, with net profit attributable to shareholders reaching RMB 37.5 billion, RMB 40.5 billion, and RMB 44 billion, respectively. It is noted that the company's business performance leads peers in the current market environment, and there is potential for further upward valuation adjustment.
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