JP Morgan raises CICC's target price to 28.5 Hong Kong dollars and maintains a "buy" rating.

JPMorgan Chase released a research report stating that it has raised the target price of CICC (03908) by 16.3%, from HK$24.5 to HK$28.5, maintaining a "buy" rating. The bank's forecast for CICC's ROE in 2027 is 11.3%, significantly higher than the general expectation of 10.2% from other institutions. The bank expects that the market's overall expectation adjustment will drive a revaluation of CICC's valuation. The bank indicated that the ongoing merger of CICC will enhance its return on equity (ROE), and the speed of ROE recovery will be faster than the current expectations of investors. The bank predicts that, driven by a strong market environment and the leverage on the balance sheet post-merger, CICC's ROE will increase from 9.4% in 2025 to 11.3% in 2027. The bank also believes that CICC is a unique beneficiary in China's technology growth cycle, and expects it to outperform its peers in taking advantage of regulatory favorable factors.