Goldman Sachs: Maintain CICC's (03908) “Buy” rating and raise the target price to HK$38.2

The Zhitong Finance App learned that Goldman Sachs released a research report saying that it raised the average revenue and net profit forecast of CICC (03908) by 1% and 9% from 2026 to 2028, mainly reflecting higher investment return assumptions, lower operating expenses forecasts, and more efficient balance sheet allocations. The target price was raised from HK$34.32 to HK$38.2, based on the 2027 forecast price-earnings ratio unchanged at 11 times and 18 times, maintaining CICC's “buy” rating.

CICC's performance in the first half of the year was steady. Profits benefited from strong investment returns, balance sheet expansion, and improved capital utilization efficiency. Despite mixed performance in the charging business, particularly in the investment banking business, operating leverage continued to improve, and the annualized return on shareholders' equity (ROE) reached approximately 12.8% in the first half of the year. Goldman Sachs believes that the results confirm that the market focus is shifting to structural ROE drivers, including capital allocation driven by mergers and acquisitions, international expansion, and increased exposure to high-return Hong Kong business, rather than simply being affected by cyclical market activity.