CICC has 43 IPO reserve projects, ranking 4th, including 13 main boards in the two cities, 13 science and technology innovation boards, and 17 GEM.
The Zhitong Finance App learned that Haitong Securities released a research report stating that it maintained the “superior to the market” rating of CICC (03908), with a reasonable value range of HK$14.25-16.29. The company's leading position in investment banking business is stable. Wealth management relies on product, service, model innovation and fintech to achieve rapid business scale development in the context of moving towards full net worth.
Incident: CICC announced 2023 results: achieved operating income of 22.99 billion yuan and net profit of 6.16 billion yuan, corresponding to EPS of 1.28 yuan, and ROE of 6.43%.
Haitong Securities's main views are as follows:
Brokerage revenue declined with the market, and the scale and revenue of wealth management holdings continued to grow.
In 2023, the company's brokerage revenue was 4.53 billion yuan, -13.4% year-on-year, accounting for 19.7% of revenue. The average daily stock base transaction volume of the entire market was 962.5 billion yuan, -4.0% year-on-year. Revenue for the fourth quarter was 1.02 billion yuan, -32.5% YoY, unchanged from month to month. The company's wealth management business continues to deepen. The product holding scale of the wealth management business is about 350 billion yuan, and the scale has been growing for four consecutive years; in 2023, the company's revenue from consignment financial products was 1.26 billion yuan, +3.5% year-on-year, accounting for 27.7% of brokerage revenue, +4.5 pct. The company's two financing balance was 42.4 billion yuan, +3.1% year over year, market share 2.57%, -0.1 pct year on year.
The investment banking business ranks high, the scale of bond underwriting continues to rise, and IPO reserves are abundant.
In 2023, the company's investment banking business revenue was 3.7 billion yuan, -47.2% year-on-year. Investment bank revenue for the fourth quarter was 1.08 billion yuan, -54.1% YoY and +71.1% YoY. In 2023, the company's shareholder underwriting scale was 108.54 billion yuan, with a year-on-year ratio of -50.7%, ranking 4th; of these, 17 IPOs raised 32.2 billion yuan; and 37 were refunded, with an underwriting scale of 76.3 billion yuan. The principal underwriting scale of bonds was 1155.9 billion yuan, +27.6% over the same period, ranking 3rd; of these, the underwriting scale of local government bonds, financial bonds, and corporate bonds was 451.3 billion yuan, 322.3 billion yuan, and 159.6 billion yuan respectively. There are 43 IPO reserve projects, ranking 4th, including 13 main boards in the two cities, 13 science and technology innovation boards, and 17 GEM.
Insist on promoting the high-quality development of asset management business.
In 2023, the company's asset management revenue was 1.21 billion yuan, -11.2% year-on-year. Asset management revenue for the fourth quarter was 260 million yuan, -16.6% year-on-year and -11.4% month-on-month. The asset management scale was 552.6 billion yuan, -21.3% year-on-year.
Investment returns (including fair value) rebounded in the fourth quarter.
In 2023, the company's annual investment income (including fair value) was 10.56 billion yuan, -0.5% year on year; fourth quarter investment income (including fair value) was 3.58 billion yuan, +3.0% year on year, +40.4% year on year.