CICC: Cuts CG SERVICES (06098) target price by 17% to HKD 6.50, maintains "Neutral" rating; interim performance meets expectations.

CICC has released a research report stating that it maintains its profit forecasts for 2026 and 2027, retains a "Neutral" rating on CG SERVICES (06098), and lowers the target price by 17% to HKD 6.5 to reflect a decline in market risk appetite for this sector. The current stock price corresponds to a projected core P/E ratio of 6 times for 2026, with an expected dividend yield of 9.5% for 2026. The profit and loss statement of CG SERVICES shows initial signs of stabilization, maintaining a positive outlook on shareholder returns. Its revenue for the first half of the year increased by 6% year-on-year to RMB 24.5 billion; net profit decreased by 5% year-on-year to RMB 950 million; core net profit increased by 3% year-on-year to RMB 1.62 billion, returning to year-on-year growth. The results are in line with the bank's expectations.