Western Securities·2025-12-18 11:37Investment Rating - The investment rating for the company is "Buy" [5] Core Views - The report highlights that the merger through a share swap with Dongxing and China Cinda is expected to significantly enhance the capital strength of the company, moving its ranking from 9th to 4th in terms of net assets [3] - The merger does not involve any financing and is anticipated to improve the company's ability to leverage its capital intermediary business, with a projected net profit of 8.393 billion yuan for 2025 [3][4] - The report suggests that the stock price of the company is likely to increase by an average of 6% on the first day of trading post-merger, indicating a favorable investment opportunity in the brokerage sector [3] Financial Projections - Revenue projections for the company are as follows: - 2023: 22,990 million yuan - 2024: 21,333 million yuan - 2025: 30,381 million yuan (growth rate of 42.4%) - 2026: 32,752 million yuan (growth rate of 7.8%) - 2027: 35,189 million yuan (growth rate of 7.4%) [4] - Projected net profit figures are: - 2023: 6,156 million yuan - 2024: 5,694 million yuan - 2025: 8,393 million yuan (growth rate of 47.4%) - 2026: 8,725 million yuan (growth rate of 4.0%) - 2027: 9,356 million yuan (growth rate of 7.2%) [4] - Earnings per share (EPS) are expected to be: - 2023: 1.28 yuan - 2024: 1.18 yuan - 2025: 1.74 yuan - 2026: 1.81 yuan - 2027: 1.94 yuan [4] Share Swap Details - The share swap prices are set at a premium of 26% based on the average prices of the last 20 trading days before suspension, with specific prices for each entity: - CICC: 36.91 yuan/share - Dongxing: 16.14 yuan/share - Cinda: 19.15 yuan/share [2] - The swap ratio is defined as follows: - 1 share of Dongxing A shares can be exchanged for 0.4373 shares of CICC A shares - 1 share of Cinda A shares can be exchanged for 0.5188 shares of CICC A shares [2]