智通财经网·2025-11-03 02:01Core Viewpoint - Huachuang Securities believes that China International Capital Corporation (CICC) has high leverage and excellent business capabilities, viewing the company's development opportunities positively under industry supply-side reforms [1] Financial Performance - CICC's total revenue for the first three quarters of 2025 reached 20.7 billion RMB, a year-on-year increase of 54.5%, while net profit attributable to shareholders was 6.57 billion RMB, up 129.8% year-on-year [2] - The company's return on equity (ROE) improved significantly, with a reported ROE of 5.7%, an increase of 3.1 percentage points year-on-year [2] - The financial leverage ratio at the end of the reporting period was 5.08 times, an increase of 0.39 times year-on-year and 0.5 times quarter-on-quarter [3] Profitability Metrics - CICC's net profit margin for the reporting period was 31.7%, an increase of 10.4 percentage points year-on-year [3] - The company's total assets, excluding client funds, amounted to 587.3 billion RMB, an increase of 76.43 billion RMB year-on-year, with net assets of 115.5 billion RMB, up 6.69 billion RMB year-on-year [3] Business Segments - The company's self-operated business income totaled 10.97 billion RMB, with a quarterly self-operated yield of 1.2%, a decrease of 0.1 percentage points quarter-on-quarter but an increase of 0.1 percentage points year-on-year [3] - Interest income from credit business was 6.19 billion RMB, with a margin financing business scale of 62.2 billion RMB, an increase of 168.8 billion RMB quarter-on-quarter [4] - Brokerage business revenue was 4.52 billion RMB, with a quarterly revenue of 1.86 billion RMB, reflecting a quarter-on-quarter increase of 37.6% and a year-on-year increase of 135.5% [4] Market Position and Valuation - CICC's target price is set at 26.15 HKD, with a price-to-earnings (PE) ratio of 10.6 for 2025, 10.1 for 2026, and 9.3 for 2027, based on expected earnings per share (EPS) of 1.87, 1.97, and 2.13 RMB respectively [1] - The company is given a 1.1 times price-to-book (PB) valuation expectation for 2026, reflecting the current high market sentiment and overall business conditions [1]