UBS: CITIC Securities (H): Broad-Based YoY Growth Across All Business Lines in Q1, Outpacing Listed Peers
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CITIC Securities (6030.HK) delivered exceptionally strong Q1 2026 results, with revenue, net profit, and recurring net profit surging 41%, 55%, and 57% year-on-year to RMB 23.2 billion, RMB 10.2 billion, and RMB 10.2 billion, respectively. This represents one of the strongest non-annualized quarterly ROE readings in a decade at 3.5%. The performance exceeded expectations and is anticipated to outpace most listed peers.
Growth was robust across all major business lines. Net brokerage income grew 48% year-on-year, driven by improving market share, although lagging slightly behind the 79% surge in domestic equity ADT due to declining commission rates. Investment banking revenue increased 24%, while asset management revenue climbed 37%, supported by strong AUM growth in both proprietary funds and ChinaAMC. Total investment income rose 32%, primarily as fair-value changes swung from a RMB 5.5 billion loss to a RMB 6.1 billion profit, demonstrating strong drawdown control during market volatility. Net interest income reached RMB 1.1 billion, reversing a RMB 0.2 billion loss in the prior year.
Following this broad-based beat, UBS raised its 2026 to 2028 net profit forecasts by approximately 3% and increased the 12-month target price from HK$35.6 to HK$36.8. The firm maintains a Buy rating, citing the company's attractive valuation at 1.1 times FY26E adjusted P/B and a 3.0% dividend yield.