FY23 preliminary earnings down 7.6% y-o-y, widening from 0.9% y-o-y decline in 9M23 as market activity remained soft in 4Q23
Cut FY23F/24F earnings by 22%/41% to reflect (1) weaker-than-expected recovery in sentiment and (2) lower IB and trading income due to temporary regulatory tightening
Yet, we think CITICS will stand out from peers due to its more diversified business mix and stronger profitability
Maintain BUY on CITICS-H, TP lowered to HK$19 to reflect lower earnings forecast and multiple; maintain HOLD on CITICS-A, TP lifted to Rmb23 after applying 40% target A-H premium
