BOCOM INTL: Raises CITIC SEC (06030) target price to HK$32, solidifying its leading position.

BOCOM International released a research report stating that CITIC Securities (06030) continued to maintain high profit growth in the first quarter of this year after achieving a net profit attributable to the parent company of RMB 30.076 billion last year, an increase of 38.6% year-on-year, with a single quarter profit for the first time exceeding RMB 10 billion. The target price has been raised to HKD 32 with a "buy" rating maintained. During the period, all business segments recorded significant year-on-year revenue growth. Among them, revenue from securities brokerage, investment banking, asset management, and investment business increased by 48%, 24%, 37%, and 25% respectively year-on-year, with a 32% increase in investment income driven by fair value changes, and net interest income increased to RMB 1.1 billion. The management believes that as the current capital market reform dividend is released, the company's leading advantages in scale, full license, and full business chain will be further highlighted, expressing optimism about performance growth resilience and sustainability. The bank expects the company's leading position to remain solid over the next three years, with net profit attributable to the parent company reaching RMB 37.5 billion, RMB 40.5 billion, and RMB 44 billion respectively. The bank believes that the company's performance in various business areas leads the industry in the current market environment, with further potential for valuation improvement.