The Zhitong Finance App learned that Morgan Stanley released a research report saying that overall, the profit forecast for CICC (03908) from 2023 to 25 was lowered by 14.4%, 14.5%, and 13.8%, respectively, and the target price was lowered by 13%, from HK$17.01 to HK$14.85. The rating was “increased holdings”, and the return on equity is expected to drop from 9.6% to 8.2% in 2024.

The bank said that considering that CICC faces a tightening regulatory environment, it is expected that investment bank fees and transaction revenue will be reduced. As a result, the bank lowered the company's 2023 revenue forecast by 9%, and lowered its 2024 and 25 forecasts by 15%. It is expected that CICC will cut operating expenses to offset revenue pressure.