The Zhitong Finance App learned that Guotai Junan released a research report stating that maintaining the “increase in shares” rating of CICC (03908) is expected to seize policy opportunities and maintain the target price of HK$19.85, considering that the company continues to improve its professional capabilities in various businesses around functionality. Revenue/net profit for fiscal year 23 was 229.90/6.156 billion yuan, -11.87%/-18.97% YoY; the weighted average RoE was -2.45pct YoY to 6.43%, and the performance was slightly lower than expected. Based on the company's latest business situation and current market environment, the profit forecast was slightly lowered to 2024-2025 EPS of 1.33/1.50 yuan (1.55/1.89 yuan before adjustment), giving the 26th EPS forecast of 1.63 yuan.

The report mentioned that the company focuses on functionality, continuously improves various business expertise, and has a leading risk control compliance system. It is expected to benefit from supply-side industry reforms centered around functionality and achieve growth exceeding expectations. It is expected that supply-side reforms in the securities industry will continue to advance, and leading brokerage firms will improve and become stronger through mergers, acquisitions, restructuring, and organizational innovation. The company focuses on functionality, continuously improves professional capabilities in various businesses, innovates fixed income products in the investment banking business, and continuously improves merger and acquisition service capabilities; the wealth management business continues to improve asset allocation and investment service capabilities. Furthermore, the company has a leading risk control compliance system, which will benefit from supply-side industry reforms centered around functionality and achieve development beyond expectations.