BofA Securities: Slashes CMSC (06099) Rating to "Underperform" in One Move, Cuts Target Price to HK$13.5

BofA Securities issued a research report stating that it has slashed the rating on CMSC (06099) and CMSC's (600999.SH) A-shares from "Buy" straight to "Underperform," cut the H-share target price from HK$17.5 to HK$13.5, and lowered the A-share target price from RMB19.5 to RMB15.5. The bank said that although CMSC's profit growth for the first nine months may remain strong, it believes most of the positive factors have already been reflected in the share price. Looking beyond the third quarter, as investment income faces a higher base, the company's profit growth is expected to slow on both a quarter-on-quarter and year-on-year basis. In addition, starting from 2027, the contribution of fair value gains related to CXMT Corporation (CXMT) (688825.SH) to future results is expected to diminish, leading BofA Securities to expect that CMSC's year-on-year profit decline next year will be the most significant among peers, and it has lowered the company's 2026 and 2027 earnings per share forecasts by 2% and 7%, respectively.