Core Viewpoint - CICC has raised the profit forecast for CITIC Financial Assets (02799) for 2025 and 2026 by 16% and 20% to 11.5 billion and 11.4 billion respectively, due to growth in equity business income and declining funding costs [1] Group 1: Profit Forecast and Performance - The company expects a year-on-year increase in net profit attributable to shareholders of approximately 12.5% to 16.3% for 1H25, estimating net profit to be around 6 billion to 6.2 billion [2] - Excluding the impact of the financial leasing company, the year-on-year growth is projected to be about 23.9% to 28.2% [2] - The company aims to achieve its strategic goal of "significant improvement in quality and efficiency" by the end of 2025 and to become an industry benchmark by 2026-2027 [2] Group 2: Revenue Growth and Investment - The expected profit growth is attributed to increased income from equity business and a decrease in financing costs [2] - The company has increased its holdings in Bank of China and China Everbright Bank, with a significant rise in main business income [2] - The company has confirmed a one-time investment income of 17.9 billion to 20.6 billion for 1H25, compared to a loss of 0.1 billion in 1H24 [2] Group 3: Financing Costs and Risk Management - The company has strengthened its financing capabilities, with financing costs decreasing year-on-year [3] - The estimated financing cost for 2H24 is 3.63%, down 20 basis points year-on-year and 17 basis points compared to 1H24 [3] - The company has reported an increase in impairment provisions, with a total of approximately 21.8 billion for 1H25, enhancing its risk resistance capacity [3] Group 4: MSCI Inclusion and Fund Inflows - The company will be included in the MSCI China Index, with adjustments effective after August 26, potentially attracting passive fund inflows of approximately 110 million USD [3] Group 5: Financing Authorization - The company's shareholders have authorized the board to issue new shares, with a limit of 20% of the total number of issued domestic and H shares, valid until the next shareholders' meeting in 2024 or the end of the 2025 meeting [4]