UBS: Raises target price for CITIC SEC (06030) to 36.8 Hong Kong dollars, outperforming the industry in the first quarter.

UBS released a research report stating that CITIC SEC (06030) has raised its net profit forecast for 2026 to 2028 by 3% to reflect first quarter performance. The target price has been raised from HK$35.6 to HK$36.8, maintaining a "buy" rating. CITIC SEC's first quarter operating income, net profit, and recurring net profit were RMB 23.2 billion, RMB 10.2 billion, and RMB 10.2 billion respectively, representing a year-on-year growth of 41%, 55%, and 57%. The non-annualized return on equity reached 3.5%, making it one of the strongest quarterly performances in the past ten years. The first quarter performance is in line with preliminary expectations and is expected to outperform most listed peers, benefiting from comprehensive year-on-year growth in all major business segments. The bank stated that first quarter brokerage net revenue increased by 48% year-on-year, investment banking net revenue increased by 24% year-on-year, and asset management net revenue increased by 37% year-on-year. Total investment income increased by 32% year-on-year, driven mainly by fair value changes; net interest income reached RMB 1.1 billion.