Bank of America Securities: Reiterates CICC's (03908) “Buy” Rating Target Price of HK$26.9

The Zhitong Finance App learned that Bank of America Securities released a research report stating that it reaffirmed the “buy” rating of CICC (03908) and renewed the target price of HK$26.9; due to relatively high valuation requirements, the target price for CICC (601995.SH) A-shares remained at RMB 41.

CICC plans to acquire Dongxing Securities (601198.SH) and Cinda Securities (601059.SH) for RMB 114 billion. After completion, the ranking of CICC's revenue, net profit, net assets and net capital will rise from 6th to 11th to 3rd to 6th. The bank believes that the key to this acquisition is capital replenishment, so that CICC can achieve growth in the short term, while synergy effects in wealth management and investment banking business can be achieved in the medium term.