Goldman Sachs has released a research report raising its revenue and net profit forecasts for CICC (03908) for the 2026 to 2028 period by an average of 1% and 9%, respectively. This adjustment primarily reflects assumptions of higher investment returns, lower operating expense forecasts, and more efficient balance sheet allocation.

The investment bank has lifted its target price from HK$34.32 to HK$38.2, based on an unchanged 2027 estimated price-to-earnings ratio of 11 times and 18 times, while maintaining a "Buy" rating on CICC.

CICC delivered a solid first-half performance, with earnings benefiting from robust investment gains, balance sheet expansion, and improved capital deployment efficiency. Although fee-based businesses showed mixed results, particularly in investment banking, the company's operating leverage continued to improve, with an annualized return on equity (ROE) of approximately 12.8% in the first half.

Goldman Sachs believes the results confirm that market focus is shifting toward structural ROE drivers, including merger and acquisition-driven capital allocation, international expansion, and increasing exposure to high-return Hong Kong businesses, rather than being solely driven by cyclical market activity.