Bank of Communications International has updated its forecasts and raised its target price for CITIC Securities (06030).

The firm now anticipates the company's net profit for 2026 to 2028 to reach 37.5 billion yuan, 40.5 billion yuan, and 44.0 billion yuan, respectively.

Consequently, the target price has been increased to HK$32, which corresponds to a target price-to-book ratio of 1.36 times for 2026, and the "Buy" rating is maintained.

Following a 38.6% year-on-year increase in 2025 net profit attributable to shareholders to 30.076 billion yuan, CITIC Securities sustained robust profit growth in the first quarter of this year, with quarterly profit exceeding 10 billion yuan for the first time.

All business segments reported solid year-on-year revenue growth.

Securities brokerage, investment banking, asset management, and investment business revenues grew by 48%, 24%, 37%, and 25% year-on-year, respectively.

Investment income increased by 32% year-on-year, driven by fair value changes, while net interest income rose to 1.1 billion yuan.

Management believes that with the ongoing release of benefits from current capital market reforms, the company's leading advantages in scale, full licensing, and integrated business chain will become more pronounced.

They express optimism regarding the resilience and sustainability of earnings growth.

Bank of Communications International has revised its profit outlook, expecting the company to maintain its leading position over the next three years, with net profit attributable to shareholders reaching 37.5 billion yuan, 40.5 billion yuan, and 44.0 billion yuan.

Since 2026, the company's share price has rebounded from its lows and has now turned positive compared to the start of the year.

Overall, the company's business performance leads its peers in the current market environment, and there is potential for further valuation recovery.