Goldman Sachs has revised its target price for CITIC Securities Co Ltd (06030) upward to HK$33.51 from HK$33.46, while also adjusting the A-share (600030.SH) target price to RMB44.72 from RMB44.64, according to a research report released by the investment bank.

The company's second-quarter revenue and net profit reached RMB26.5 billion and RMB13.4 billion respectively, representing year-on-year growth of 74% and 82%, which broadly aligns with the preliminary results announced earlier. During the period, brokerage commission income came in at RMB4.9 billion, investment banking revenue at RMB1.8 billion, and asset management income at RMB3.7 billion. Investment income of RMB15.5 billion exceeded Goldman Sachs' expectations by 19%, while net interest income stood at RMB700 million. The cost-to-income ratio was recorded at 35.3%, slightly higher than the bank's forecast of 34%.

The annualized return on equity for the second quarter reached 15.3%, up 6 percentage points year-on-year and 2.8 percentage points quarter-on-quarter, broadly in line with market expectations. The active leverage ratio stood at 5.1 times.

Overall, Goldman Sachs believes this performance is consistent with its recent industry view that Chinese brokerages will continue to benefit from robust capital market activity, record-high average daily turnover in A-shares, active Hong Kong IPO fundraising, and improved capital utilization efficiency.

Meanwhile, the bank maintains its existing stance that medium-term earnings and valuation upside will increasingly depend on return on equity improvement driven by balance sheet expansion and international capital deployment, rather than relying solely on cyclical market trading sentiment.