UBS has released a research report updating its forecasts for CITIC Securities (06030). The report increases the net profit projections for 2026 to 2028 by 3%, reflecting the company's first-quarter performance. The target price has been raised from HK$35.6 to HK$36.8, with a "Buy" rating maintained. In the first quarter, CITIC Securities reported operating revenue, net profit, and recurring net profit of 23.2 billion yuan, 10.2 billion yuan, and 10.2 billion yuan, respectively. This represents year-on-year growth of 41%, 55%, and 57%. The non-annualized return on equity reached 3.5%, marking one of the strongest quarterly performances in the past decade. The first-quarter results were consistent with preliminary figures and are expected to outperform most listed peers, driven by broad-based year-on-year growth across all major business segments. The report indicated that net revenue from brokerage services grew 48% year-on-year, investment banking net revenue increased 24%, and asset management net revenue rose 37%. Total investment income grew by 32%, primarily driven by fair value gains, while net interest income reached 1.1 billion yuan.
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