[ET Net News Agency, 20 July 2020] Morgan Stanley raised its target price for China
International Capital Corp. (CICC)(03908) to HK$21.22 from HK$18.53 and maintained its
"overweight" rating.
The research house said CICC has a strong project pipeline, especially in new economy
companies, and a solid client base in foreign listed companies prepares it well for
opportunities in investment banking.
Its new strategy is potentially accretive to ROE of 0.2-0.8ppt in one year, which is not
yet priced in. A-share IPO may serve as a catalyst while ADRs' return may support
sentiment; capital leverage ratio relaxation is to support more balance sheet business.
A lower interest rate environment should help support CICC's revenue. Its valuation is
still near the historical trough. (KL)