Zhongtai: Maintain "buy" rating for CICC (03908), brokerages and investments drive growth.

Zhongtai released a research report stating that considering the overall increase in market trading activity, it is expected that CICC (03908) will achieve a net profit attributable to owners of 85/94/106 billion yuan from 2025 to 2027, with year-on-year growth rates of 49%/11%/13% respectively. The corresponding PB ratios are 0.7/0.7/0.6 times, and a "buy" rating is maintained. Key points from Zhongtai are as follows: Event: CICC released its 2025 third quarter report Performance Overview: Company's profits have significantly increased year-on-year, and asset size continues to expand In the first three quarters of 2025, CICC achieved a net profit attributable to owners of 65.7 billion yuan, a year-on-year increase of 129.8%; operating income/operating income excluding other businesses reached 207.6/207.1 billion yuan respectively, with growth rates of 54.4%/55.3%, demonstrating strong profitability. As of 2025Q3, the company's total assets/net assets attributable to owners reached 7649.4/1155.0 billion yuan, with a year-on-year increase of 16.7%/6.2%, further strengthening its capital base; operating leverage was at 5.5x, with a year-on-year increase of 0.3x. Main business structure: Company's revenue structure is balanced, with outstanding contribution from brokerage and investment businesses In the first three quarters of 2025, the company achieved brokerage/investment banking/asset management/net investment income of 45.2/29.4/10.6/114.3 billion yuan. In the light capital business, the proportion of brokerage/investment banking/asset management income accounted for 22%/14%/5%, with a combined increase in proportion; in the capital business, the net investment/net interest income ratio was 55%/-5%, with a year-on-year increase of +0.1/+4.0 percentage points, making a significant contribution to income. Profit driver: Performance growth driven mainly by brokerage and investment With improved market conditions and increased customer activity in 2025, all business segments achieved significant growth, with brokerage and investment income increasing significantly. Meanwhile, investment banking, asset management, and credit business income maintained double-digit positive growth, collectively driving strong overall performance growth. In the first three quarters of 2025, CICC's brokerage/investment banking/asset management/net interest/net investment income increased year-on-year by +76.3%/+42.6%/+26.6%/+14.5%/+54.7%, with brokerage and investment businesses becoming key engines driving income growth.