BofAS Maintains Buy Rating for CICC (03908.HK) with Target Price of $26.9

The analyst rating from JPMorgan for CICC (03908.HK) is based on the anticipated arbitrage activities resulting from the proposed merger of DONGXING SECURITIES and CINDA SECURITIES. JPMorgan expects that CICC's H-shares may outperform its A-shares in the short term due to this merger activity. Additionally, the broker noted that CICC's H-shares are estimated to outperform its peers and continue to be a top pick among Chinese brokers, leading to an Overweight rating and a target price of $21.2.

The analyst rating for CICC was reiterated as "Buy" for its H-shares due to the anticipated positive impact of its planned acquisition of DONGXING SECURITIES and CINDA SECURITIES. BofA Securities noted that upon completion of the acquisitions, CICC's ranking in terms of revenue, net profit, net assets, and net capital is expected to improve significantly, moving from 6th-11th place to 3rd-6th place. This potential growth in ranking and financial metrics supports the positive outlook on CICC's H-shares, while the rating for its A-shares was kept at "Neutral" due to relatively higher valuation requirements.

The analyst rating from Morgan Stanley is an Overweight rating on CICC (03908.HK) due to the expected upside potential from synergies resulting from the share-swap merger and the limited dilution impact on net asset per share, estimated to be around 9%. Additionally, the management's confidence in rapid integration and the potential for net capital to double post-merger further supports this positive outlook. The target price was set at HKD28.9.