The Zhitong Finance App learned that Daiwa released a research report saying that it raised the target price of CITIC Construction Investment (06066) by 15%, from HK$10 to HK$11.5, reflecting the 12-month forward market account ratio of its overall business by 0.7 times, reaffirming its “buy” rating. The company's profit growth in the first quarter of 2023 was ahead of its peers, with a year-on-year increase of 58% to 2.4 billion yuan, mainly driven by a surge in investment income, which increased 298% year-on-year. The bank believes that the increase was mainly due to an increase in revenue from its own trading business.

According to the report, the Group's return on equity (annualized) increased 4.2 percentage points year-on-year to 12.6%, ranking first among companies covered by the bank. The bank expects its strong IPO (IPO) pipeline to support the continued growth of investment banks and is expected to gain market share faster under comprehensive IPO reforms. Also, as the Group increases its digitalization efforts, its wealth management growth momentum that is superior to its peers will be maintained in 2023. Furthermore, CITIC Construction Investment's 2023-25 profit forecast was raised by 2%-8%, due to the recent rebound in major market indices, which led to higher investment returns and the industry-wide assumption that the average daily transaction rate for the capital market was higher.