China Merchants Securities Company Ltd - H: 2Q26 profits up 160-198% y/y, a beat; but does this matter?

Research evidence excerpt

China Merchants Securities Company Ltd - H: 2Q26 profits up 160-198% y/y, a beat; but does this matter?

Asia Pacific Equity Research

08 July 2026

This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of

Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan.

China Merchants Securities

Overweight

Company Ltd - H 6099.HK, 6099 HK

Price: HK$17.03

2Q26 profits up 160-198% y/y, a beat; but does this 07 Jul 2026

matter? Price Target: HK$17.20

PT End Date: 31 Dec 2026

2Q26 result a strong beat. After market close on 7 July, CMS announced Banks & Financial Services

its preliminary 1H26 results (link). 2Q26 net profits rose 160-198% y/y to AC Peter Zhang

Rmb6.7-7.7bn, a record high and likely ahead of market expectation. That (852) 2800-8557

said, investors may question whether the beat still matters given that A/H peter.zhang@jpmorgan.com

share brokers’ share prices were down by an average 3%/3% this week, J.P. Morgan Securities (Asia Pacific) Limited/

J.P. Morgan Broking (Hong Kong) Limited

after GTHT’s strong profit alert (link). We argue CMS’s results further

Katherine Lei

validate our constructive view on the sector, and that recent share price (852) 2800-8552

weakness presents an opportunity to add—given the sector’s undemanding katherine.lei@jpmorgan.com

valuations and potential upward revisions in consensus earnings following J.P. Morgan Securities (Asia Pacific) Limited/

the profit alerts. We believe CICC, Citic Sec, and Guangfa may issue J.P. Morgan Broking (Hong Kong) Limited

profit alerts in the coming weeks. Lincoln Yu

(852) 2800 8523