Ge Long Hui·2025-11-03 03:53Core Viewpoint - The report highlights a significant increase in profitability and asset expansion for China International Capital Corporation (CICC) in the first three quarters of 2025, driven by strong performance in brokerage and investment businesses [1][2]. Financial Performance - CICC achieved a net profit attributable to shareholders of 6.57 billion yuan, representing a year-on-year increase of 129.8% [1]. - The company reported total revenue of 20.76 billion yuan, with a growth rate of 54.4%, and revenue excluding other businesses was 20.71 billion yuan, growing at 55.3% [1]. - Total assets and net assets attributable to shareholders reached 764.94 billion yuan and 115.5 billion yuan, respectively, with year-on-year growth of 16.7% and 6.2% [1]. - The operating leverage increased to 5.5x, up by 0.3x year-on-year [1]. Revenue Structure - The revenue structure is balanced, with significant contributions from brokerage and investment businesses [1]. - In the first three quarters of 2025, CICC's revenue from brokerage, investment banking, asset management, net interest, and net investment was 4.52 billion, 2.94 billion, 1.06 billion, -1.02 billion, and 11.43 billion yuan, respectively [1]. - The proportion of revenue from brokerage, investment banking, and asset management in light capital businesses was 22%, 14%, and 5%, showing slight year-on-year changes of +2.7, -1.2, and -1.1 percentage points [1]. - In capital businesses, net investment and net interest accounted for 55% and -5%, with year-on-year changes of +0.1 and +4.0 percentage points [1]. Growth Drivers - The growth in performance is primarily driven by improvements in the market environment and increased client activity, leading to significant revenue growth across all business segments [2]. - Revenue from brokerage, investment banking, asset management, net interest, and net investment grew by 76.3%, 42.6%, 26.6%, 14.5%, and 54.7% year-on-year, respectively [2]. - Brokerage and investment businesses are identified as the key engines for revenue growth [2]. Investment Outlook - Given the overall increase in market trading activity, CICC expects net profit attributable to shareholders to reach 8.5 billion, 9.4 billion, and 10.6 billion yuan for 2025, 2026, and 2027, with year-on-year growth rates of 49%, 11%, and 13% [2]. - The corresponding price-to-book ratios are projected to be 0.7, 0.7, and 0.6 times for the respective years [2].