The Changjiang Securities Research Report pointed out that there is a significant difference in the customer base structure between CICC and traditional brokerage firms. It focuses on middle- and high-end and high-net-worth customers. Asset allocation needs still exist during the equity market turbulence period, accompanying customers through the cycle. Morgan Stanley and CICC both have institutional securities and wealth management as their main businesses, and their business structures are relatively close. In terms of valuation, CICC's current valuation evolution is equivalent to the initial phase of Damo's 2009-2011 transformation, all at a historical low. According to DuPont's analysis, the core gap between the two companies is that due to leverage, CICC is lower than Damo's ROE. After the integration of the Huijin system is implemented in the future, based on the highest level of leverage in CICC's history, the leverage is expected to increase further to 7.5 times under optimistic expectations. Assuming that the 26-year ROA remains at the 25-year level, ROE is expected to increase from 8% to 10%. Based on the PB-ROE valuation framework, considering the flexibility brought about by wealth management and investment banking business, the company's net profit corresponding to mother is estimated to be 164.56 billion yuan and 18.049 billion yuan in 2026-2027. As of July 27, 2026, the corresponding H share PB valuations are 0.80 and 0.69, respectively, maintaining a “buy” rating.

The Changjiang Securities Research Report pointed out that there is a significant difference in the customer base structure between CICC and traditional brokerage firms. It focuses on middle- and high-end and high-net-worth customers. Asset allocation needs still exist during the equity market turbulence period, accompanying customers through the cycle. Morgan Stanley and CICC both have institutional securities and wealth management as their main businesses, and their business structures are relatively close. In terms of valuation, CICC's current valuation evolution is equivalent to the initial phase of Damo's 2009-2011 transformation, all at a historical low. According to DuPont's analysis, the core gap between the two companies is that due to leverage, CICC is lower than Damo's ROE. After the integration of the Huijin system is implemented in the future, based on the highest level of leverage in CICC's history, the leverage is expected to increase further to 7.5 times under optimistic expectations. Assuming that the 26-year ROA remains at the 25-year level, ROE is expected to increase from 8% to 10%. Based on the PB-ROE valuation framework, considering the flexibility brought about by wealth management and investment banking business, the company's net profit corresponding to mother is estimated to be 164.56 billion yuan and 18.049 billion yuan in 2026-2027. As of July 27, 2026, the corresponding H share PB valuations are 0.80 and 0.69, respectively, maintaining a “buy” rating.