STOCKS | BofA Raises CICC Target Price On Strong First-Half Profit

Bank of America said CICC (03908) delivered strong performance in the first half of 2026, with net profit of RMB 8.2 billion, up 89% year on year and well above market expectations, according to ETNet. The bank raised its target price on CICC to HK$27.6 from HK$27 and kept a Buy rating. It said CICC International reported 53% year-on-year net profit growth in the first half of 2026 and an annualised return on equity of 23%. CICC International contributed 31% of group revenue and was a key driver of balance-sheet expansion, helped by steady growth in equity derivatives. Total leverage rose to 11.5 times from 3.9 times at the half-year level and accounted for 39% of group assets. CICC also proposed injecting RMB 4.2 billion of group cash into CICC International. BofA lifted its 2026-28 earnings per share forecasts by 26% to 40%, citing higher assumptions for average daily turnover and stronger investment income from private equity and STAR Market co-investments. It also raised its mid-cycle return on equity assumption to 8.5% but cut its A-H valuation premium to 70% from 80% as the post-merger gap narrows.