[ET Net News Agency, 19 August 2020] Goldman Sachs raised its target price for China
International Capital Corp. (CICC)(03908) by 14% to HK$23.62 from HK$ and maintained its
"buy" rating.
The research house said CICC's 1H NPAT of Rmb3.1bn (growth of 62%) was 23% higher than
Goldman's estimates mainly on stronger-than-expected trading income and better cost
control.
Goldman sees the key highlight of its 1H result as the further expansion of active B/S
leverage mainly driven by the strong growth of equity derivative business, which is one of
CICC's key competitive edge vs. its peers. Other major earning drivers include STAR
board/FICC (Fixed Income, Currency & Commodity) investment income and IBD (Investment
Banking Department) income growth as well as improved CIR (cost to income ratio).
Goldman revised up its 2020/21/22 NPAT forecasts by 14%/15%/16% on higher trading income
with an expanded trading portfolio. (KL)