According to the report released by Bocom Intl on the Zhidao Finance APP, it has adjusted the profit forecast for CITIC Sec (06030), expecting a 17.7% year-on-year increase in profit in 2024. Based on a 2025 PB of 1.1 times, the target price has been raised from HK$17 by 47.1% to HK$25, maintaining a 'buy' rating.

The report states that the company's net profit attributable to the parent company in the first three quarters increased by 2.3% year-on-year, with growth turning positive compared to the first half of the year. Profit in the third quarter increased by 21.9% year-on-year, mainly benefiting from the stock market rebound driven by policy expectations, with significant year-on-year growth in proprietary investment income on a low base. The decline in light asset income narrowed in the third quarter, but net interest income decreased significantly.

The bank stated that since the financial policy announcement on September 24th, market confidence and risk appetite have significantly increased, with active market transactions. The average daily turnover of A shares in October approached nearly 2 trillion RMB, and margin balance continued to rise. The bank expects further policy space in the future, with leading brokerages set to benefit fully from active stock market trading.