CITIC Securities (H): Quick-take of RMB16bn H-share placement

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CITIC Securities (H): Quick-take of RMB16bn H-share placement

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CITIC Securities (H)

Quick-take of RMB16bn H-share placement

Reiterate Rating: BUY | PO: 35.70 HKD | Price: 25.14 HKD

RMB16bn targeted placement to support Int’l biz 28 May 2026

CITICS announced a RMB16bn H-share targeted placement (~31% of H-share/5% of Equity

total shares on our estimates) to its largest shareholder CITIC Financial Holding, at

HKD23.13 per share (8% discount to last close or 1x 26E P/B). CITIC Financial Holding is Susie Liu, CFA >> Research Analyst

expected to increase its stake to 42% of CITICS-H (from 24%) and 23.9% of CITICS total Merrill Lynch (Hong Kong)

shares (from 19.8%). The new shares will have 4-year lock-up, which will lead to strong +852susie.liu@bofa.com3508 8456

support to CITIC-H and potentially narrowing A-H valuation gap. Proceeds will be fully Michael Li >>

used for capital injection into CITICS Int’l (holding company of CLSA) to support its Research Analyst

Merrill Lynch (Hong Kong)

equity derivatives, FICC and other capital needs. The plan aligns with CITICIS’ goal to +852 3508 7381

build China’s best-in-class global investment bank, with int’l expansion one of strategic m.li@bofa.com

priorities in its 15th Five-year Plan.

Limited dilution, but ROE relies on timing of deployment Stock Data

We estimate 2026E EPS/BPS dilution to be limited to 5%/0.1%, and 26E ROE dilution at

0.3ppt (11.6% vs. 11.9%). While the placement is still subject to regulatory and exchange Price 25.14 HKD

approvals, we see key uncertainties are from timing of injection to CITICS In’l, which will Price Objective 35.70 HKD

affect pace of its ROE accretion. CITICS Int’l contributed 22% of group profit in FY25, Date Established 24-Oct-2025

with 26% ROE (vs. 11% for group).