China International Capital Corp. Ltd.: Update on Proposed Merger with Dongxing and Cinda

研报英文原文证据摘录

China International Capital Corp. Ltd.: Update on Proposed Merger with Dongxing and Cinda

Update

May 18, 2026 02:32 PM GMT

Morgan Stanley Asia Limited+MChina International Capital Corp. Ltd. | Asia Pacific Chiyao Huang

Equity Analyst

Update on Proposed Merger Chiyao.Huang@morganstanley.comRichard Xu, CFA +852 3963-4624

Richard.Xu@morganstanley.com +852 2848-6729

with Dongxing and Cinda Beryl Yang

Research Associate

Beryl.Yang@morganstanley.com +852 3963-2224

Key Takeaways Chenqian Liu

The second board meeting took place on 18 May. Shareholder meeting is Chenqian.Liu@morganstanley.com +852 3963-0359

scheduled on 8 June before sending for regulatory approval.

China International Capital Corp. Ltd. (3908.HK, 3908

Management expects the deal to close by September 2026. HK)

Management is confident in extracting revenue synergy and thinks the firm is China Financials | China

Stock Rating Overweight

more experienced compared to the last time, when merging CICC Wealth.

Industry View Attractive

Price target HK$28.90

Margin finance, derivatives, capital injection to overseas entity, and PE

Up/downside to price target (%) 42

investments are cited as main capital allocation areas after the merger. Shr price, close (May 18, 2026) HK$20.30

52-Week Range HK$24.34-13.96

Sh out, dil, curr (mn) 4,827

Integration timeline after closing: institutional business lines in 3-6 months; retail Mkt cap, curr (mn) HK$97,993

EV, curr (mn) HK$281,142

franchise in one year; various subsidiaries in 2-3 years.

Avg daily trading value (mn) HK$532

Management notes that CICC Wealth could be merged into the parent company Fiscal Year Ending 12/24 12/25e 12/26e 12/27e

along with DX and Cinda's retail business – enabling more efficient capital utilization EPS (Rmb)** 1.18 1.90 2.34 2.74