Zhongtai Securities issued a research report stating that considering the overall improvement in market trading activity, it expects CICC (03908) to achieve net profits attributable to shareholders of RMB 8.5 billion, RMB 9.4 billion, and RMB 10.6 billion for 2025-2027, representing year-on-year growth rates of 49%, 11%, and 13%, respectively. The corresponding price-to-book (PB) ratios are projected at 0.7x, 0.7x, and 0.6x, prompting the firm to maintain its "Buy" rating.

Key highlights from Zhongtai Securities' analysis include:

**Performance Overview**: CICC released its Q3 2025 earnings preview, reporting strong profit growth and continued expansion in asset scale. In the first three quarters of 2025, the company recorded a net profit attributable to shareholders of RMB 6.57 billion, up 129.8% year-on-year. Operating revenue (and adjusted operating revenue excluding other businesses) reached RMB 207.6 billion and RMB 207.1 billion, respectively, growing by 54.4% and 55.3%, demonstrating robust profitability.

As of Q3 2025, CICC's total assets/shareholders' equity stood at RMB 764.94 billion and RMB 115.5 billion, increasing by 16.7% and 6.2% year-on-year, respectively, reflecting strengthened capital adequacy. The operating leverage ratio rose to 5.5x, up 0.3x from the previous year.

**Business Segments**: CICC maintained a balanced revenue structure, with brokerage and investment businesses contributing significantly. In the first three quarters of 2025, the company generated brokerage/investment banking/asset management/net investment income of RMB 4.52 billion, RMB 2.94 billion, RMB 1.06 billion, and RMB 11.43 billion, respectively.

Among capital-light businesses, brokerage, investment banking, and asset management accounted for 22%, 14%, and 5% of total revenue, with their combined share increasing. In capital-intensive segments, net investment/net interest income represented 55% and -5% of revenue, up 0.1 and 4.0 percentage points year-on-year, with net investment delivering substantial earnings.

**Growth Drivers**: The strong performance was primarily driven by brokerage and investment activities. Improved market conditions and higher client activity in 2025 led to significant growth across all business lines. Brokerage and investment income surged, while investment banking, asset management, and credit businesses maintained double-digit growth, collectively fueling overall earnings.

Year-on-year, CICC's brokerage/investment banking/asset management/net interest/net investment income rose by 76.3%, 42.6%, 26.6%, 14.5%, and 54.7%, respectively, in the first three quarters of 2025. Brokerage and investment businesses emerged as the key engines of revenue growth.