Share Price Up 22% Despite 29% Loss: China International Capital Corporation Limited Shareholders Rejoice
December 20, 2022

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China International Capital Stock Fair Value – China International Capital ($SEHK:03908) Corporation Limited (CICC) is one of the largest investment banks in China, providing a full range of financial services. It has a strong presence in both the mainland and international markets, and its subsidiaries operate in Hong Kong, London, New York and Tokyo. Despite the company’s earnings declining compared to last year, shareholders can be relieved to see the share price up by 22%. This is despite the company’s net income dropping by 29% in the first quarter of this year, compared to the same period last year. The company has also seen a sharp rise in its assets under management from the previous quarter.
CICC’s share price rally is also attributed to its increased focus on strategic investments, such as its participation in the Chinese government’s ‘Belt and Road’ initiative. The company has invested heavily in infrastructure projects and other strategic investments. The company’s improved performance and share price rally have led to an increase in investor confidence, with shareholders rejoicing at the news that their investments are paying off. CICC is optimistic about its future prospects, and shareholders are confident that they will continue to see strong returns from their investments.
Earnings
Shareholders of China International Capital Corporation Limited (CICC) have reasons to rejoice, as their share price has increased by a substantial 22%, despite the company reporting a 29% net income loss in their latest earning report for FY2022 Q2 ending June 30. The report showed that CICC earned 38.9 billion CNY in total revenue, and 9.6 billion CNY in net income. This marks a 6.3% decrease in total revenue, and an 11.1% decrease in net income as compared to the previous year. Despite this, the company has seen an increase in total revenue from 34.4 billion CNY to 38.9 billion CNY in the last three years. The increase in share price is likely a result of shareholders’ faith in CICC’s ability to improve upon the current losses and make up for the decreased revenue and income with new investments and strategies.
With their share price up 22%, investors are confident that CICC can continue to deliver impressive returns even in difficult times. Given their resilient performance, it appears that investors are content with CICC’s current strategy, and are optimistic about the company’s outlook in the coming years. With their share price up, CICC is well-positioned to move forward and take advantage of new opportunities that can help them further increase their profits and strengthen their overall financial position.
About the Company
Key Ratios Snapshot
Some of the financial key ratios for China International Capital are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 25.2% | 25.0% | 51.4% |
| FCF Margin | ROE | ROA |
| 118.9% | 14.3% | 1.8% |
Market Price
The share price of the company rose 22% on Monday. The news sentiment surrounding the company had so far been negative.
However, on Monday, CHINA INTERNATIONAL CAPITAL stock opened at HK$14.7 and closed at HK$15.5, representing a 7.9% rise from its prior closing price of 14.4. This increase in share price marks a positive shift from the downward trend of the past few weeks. Analysts attribute the positive share price movement to the company’s strong fundamentals and the fact that it remains well capitalized for growth. Investors are also encouraged by the company’s international expansion plans and its commitment to developing innovative products and services. Investors also seem to be confident in the company’s ability to weather any further economic downturns. CHINA INTERNATIONAL CAPITAL is well positioned for future growth and is expected to continue its strong financial performance in the coming years. Live Quote…
VI Analysis – China International Capital Stock Fair Value Calculator
An analysis of the company using the VI app reveals that the intrinsic value of CHINA INTERNATIONAL CAPITAL’s share is estimated to be around HK$17.8. Currently, the stock is traded at HK$15.5, making it a fair price that is undervalued by 13%. The VI app provides investors with a comprehensive assessment of the company’s financial performance and outlook, making it easier to analyze the financials and make an informed decision. The app provides a range of indicators to help evaluate the intrinsic value of a stock and determine whether the current market price is overvalued or undervalued. Investors can use the VI app to monitor the performance of CHINA INTERNATIONAL CAPITAL and take advantage of any potential trading opportunities. By doing so, they can make more informed decisions that can lead to better returns on their investments. Additionally, the app helps investors to keep track of their investments and analyze their portfolios over time. In conclusion, the VI app provides investors with a convenient and reliable way to evaluate and monitor CHINA INTERNATIONAL CAPITAL’s performance. With its comprehensive analysis of the company’s financials and stock price, investors can make more informed decisions about their investments and potentially earn higher returns. More…
VI Peers
In the securities industry, firms compete for business by trying to offer the best prices and service to their clients. In this industry, there are a few large firms that dominate the market, but there are also many small firms that compete for business. The largest firms in the industry are China International Capital Corp Ltd, ABG Sundal Collier Holding ASA, Cohen & Co Inc, and GF Securities Co Ltd. These firms compete against each other to offer the best prices and service to their clients.
– ABG Sundal Collier Holding ASA ($BER:DAB)
ABG Sundal Collier Holding ASA is a holding company that provides investment banking and asset management services. The company has a market capitalization of $263.86 million and a return on equity of 38.92%. ABG Sundal Collier Holding ASA offers a range of services including mergers and acquisitions, capital markets, and corporate finance. The company is headquartered in Oslo, Norway.
– Cohen & Co Inc ($NYSEAM:COHN)
Cohen & Company Inc is a publicly traded company with a market capitalization of 15.92 million as of 2022. The company has a return on equity of -17.28%. Cohen & Company Inc is engaged in the business of providing financial and professional services to clients in the United States and internationally. The company’s services include accounting, auditing, tax, and consulting services.
– GF Securities Co Ltd ($SZSE:000776)
Guotai Junan Securities Co., Ltd. is a China-based company principally engaged in the securities business. The Company’s businesses include securities brokerage, underwriting, margin trading, futures trading, corporate finance advisory, investment advisory and other related businesses. The Company operates its businesses in domestic and overseas markets.
Summary
Investing in China International Capital Corporation (CICC) can be a great way to diversify a portfolio and take advantage of the growth of the Chinese economy. CICC is a leading Chinese investment bank, offering comprehensive services including private equity, venture capital, asset management, and investment banking. CICC’s clients range from domestic and international investors, to public and private companies, to governments and institutions. The company has a strong track record of success, and its stock has seen significant gains in recent years. Investors looking to capitalize on China’s ongoing economic growth may find CICC to be an attractive option. CICC’s services are comprehensive and include equity trading, fixed income products, derivatives and structured products.
In addition, CICC also provides research and advisory services, corporate finance, and other financial services. The company is also involved in mergers and acquisitions, as well as providing capital markets access for its clients. In addition to its strong performance, CICC has also taken steps to reduce risk in its operations. The company has implemented stringent risk management measures and has established a robust corporate governance framework. CICC also has extensive experience in dealing with Chinese regulators, which helps to ensure that its operations are compliant with local regulations. Overall, investing in CICC can be an attractive option for investors who wish to diversify their portfolios and capitalize on the growth of the Chinese economy. The company provides a wide range of services, has a strong track record of success, and has taken steps to reduce risk in its operations. For those looking for a reliable Chinese investment bank, CICC may be worth considering.
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