[ET Net News Agency, 25 May 2018] Goldman Sachs lowered its target price for China
International Capital Corp (CICC)(03908) to HK$22.4 from HK$24.1, and retained its "buy"
(on Conviction List) rating.
With various initiatives over the past few quarters, the research house sees China's
capital market reforms picking up speed as policy makers look to support sustainable and
high-quality growth in the real economy and to mitigate and control systemic risk in the
financial system.
Goldman believes CICC's business set-up, with a focus on high growth and smooth earnings,
and its long-tenured internationally experienced management team position it best among
peers to benefit from the trend as it capitalizes on the institutionalization and
internationalization of China's capital markets.
It expects CICC to deliver 28% NPAT CAGR - more than double the average of peers - and
boost ROE nearly 4pp in 2018-2020, driven by structural growth momentum in its
institutional brokerage, cross-border financing and asset/wealth management businesses.
(KL)