CICC says Shoucheng Holdings has 62% upside to HK$2.7

CICC maintained its "outperform industry" rating for Shoucheng Holdings (00697.HK), setting a price target of HK$2.7 that implies a 62 percent upside from its current price.

The bank's positive outlook is based on the company's dual-driver strategy of "Industrial Fund + Asset Management" and its deep investments in the robotics sector, a CICC research report released April 1 said.

The report follows Shoucheng's 2025 results, where revenue grew 18 percent year-over-year to HK$1.44 billion and net profit reached HK$310 million. The new HK$2.7 target corresponds to a 2.2x price-to-book ratio for 2026, compared to the stock's current trading multiple of 1.3x.

The valuation hinges on the performance of Shoucheng's asset management arm and the potential IPOs of its robotics investments, which could significantly boost future earnings and act as a major catalyst for the stock price.

CICC highlighted Shoucheng's strategic shift, focusing on two new funds for strategic emerging industries and special situations. The company is also enhancing its robotics business by creating a closed-loop "experience-sales-service" model and using technology to improve infrastructure asset efficiency.

The firm's industrial funds have made significant inroads into the robotics industry, with investments in leading companies such as Utree Technology, Sungyin Power, and Galaxy General. According to the annual report, the value of the Beijing Robotics Industry Development Investment Fund, which Shoucheng helps manage, had grown approximately four-fold by the end of 2025.

The CICC note signals that the market may be undervaluing Shoucheng's strategic pivot to high-growth technology sectors. Investors will be closely watching for IPO announcements from portfolio companies like Utree Technology, which could unlock substantial value.

This article is for informational purposes only and does not constitute investment advice.