[ET Net News Agency, 17 July 2020] Nomura lifted its target price for China
International Capital Corporation (CICC)(03908) to HK$20.9 from HK$15.31 and maintained
its "neutral" rating.
The research house lifted its FY2020-22 A-shares market ADT (average daily turnover) by
28%/44%/52% and lifted FY2020-22 A-shares IPO volume growth to 80%/50%/50% from
50%/30%/30%.
Nomura said CICC is one of the key beneficiaries of capital market reforms, but its IPO
pipeline lags that of key peers. For 1H, CICC recorded underwriting revenue of CNY741mn,
up 265% y-y. Despite the strong growth of underwriting revenue in 1H, Daiwa thinks it may
slow down in 2H, given that (1) 2H 2019 laid a relatively high base, and (2) CICC's IPO
pipeline ranked 9th among brokers in China, though its IPO underwriting revenue ranked
second for 1H. (KL)