JP Morgan: CITIC SEC (06030) first-quarter profit far exceeded expectations, target price raised to 29.6 Hong Kong dollars.

J.P. Morgan released a research report, stating that it has raised the net profit forecast for CITIC SEC (06030) from 2026 to 2028 by 6%, 6%, 6%, and 7%, to reflect strong business momentum in the first quarter. The target price for the H shares has been increased from HK$25.3 to HK$29.6. CITIC SEC's A shares (600030.SH) have been upgraded from "Neutral" to "Buy", with the target price raised from RMB 26.8 to RMB 33. In the first quarter of this year, CITIC SEC's preliminary performance far exceeded market expectations. The bank expects CITIC SEC's operational performance to outperform its peers, supporting short-term stock price performance. April data showed that the company gained market share in both A shares and H shares IPO markets, easing investors' concerns about its slow start at the beginning of the year. The report points out that the positive trend is expected to continue, as international businesses benefit from increasing customer demand and activities. CITIC SEC is the second-highest brokerage in the industry in terms of overseas revenue contribution and is expected to benefit from this trend. Secondly, with increasing regulatory support and institutional asset management scale and activity growth, institutional business recovery is expected to continue, benefiting leading brokerages like CITIC SEC.