中金拟换股吸收东兴信达，行业供给侧改革延续

Investment Rating - The industry investment rating is "Overweight" [5] Core Views - The supply-side reform in the securities industry continues, with ongoing optimization of the industry structure. The merger of CICC with Dongxing Securities and Xinda Securities is expected to enhance the competitive landscape and accelerate the creation of a top-tier investment bank [2] - Following the merger, CICC's financial metrics are projected to improve significantly, with total assets reaching 1 trillion yuan and net assets increasing to 174.7 billion yuan, elevating its ranking among listed securities firms [3] - The brokerage and asset management capabilities of CICC are anticipated to strengthen post-merger, with revenue expected to rise to 27.39 billion yuan and net profit to 9.52 billion yuan, positioning it favorably in the market [3] - There is a mismatch between profitability and valuation in the brokerage sector, with an annualized ROE of 8.2% and a PB valuation of 1.41x, indicating substantial room for valuation recovery [4] Summary by Sections - Merger Details: CICC announced a stock swap to absorb Dongxing and Xinda Securities, with trading suspension expected to last no more than 25 trading days [2] - Financial Impact: Post-merger, CICC's total asset scale is projected to reach 1 trillion yuan, moving it from the 6th to the 4th position among listed brokers [3] - Market Positioning: The merger is expected to enhance CICC's revenue and profit rankings, with significant regional synergies from the combined brokerage networks [3] - Valuation Insights: The current valuation of the brokerage sector is seen as misaligned with its fundamentals, suggesting potential for recovery, particularly through this merger [4]