Floating profit of nearly 700 million yuan! CITIC Securities "One-click windfall" Moer Thread

On the first day of Moore Threads' listing, the entire market was watching how much it had risen.

But there is one perspective that seems to have gone unnoticed by many:

In this surge, one of the biggest beneficiaries is CITIC Securities Co., Ltd., the "king of brokerages."

The popularity of Moore Threads was expected, but the floating profit for CITIC Securities completely exceeded market expectations.

As the sponsoring institution, CITIC Securities did not stand on the sidelines collecting underwriting fees, but instead put its own funds behind the issuer. This seemingly ordinary follow-on investment suddenly became apparent on the first day of listing, with a floating profit of nearly 700 million yuan, directly jumping out of all discussions.

This is the contrast: the company that is being watched and the least noticed "bettor" happen to overlap.

If today we only look at the rise of Moore Threads, it would seem that it has hit the windfall; if we shift our perspective to CITIC Securities, we will discover another layer of meaning.

The king of brokerages has made a substantial bet, and it is "worth a lot."

Many people are telling the story of Moore Threads, but why CITIC Securities is willing to take such action is the real question worth pursuing.

Single-day floating profit of nearly 700 million yuan

Moore Threads listed today, and CITIC Securities' subsidiary, Zhongzheng Investment, became the most watched institution in this deal.

As the strategic placement party of the sponsoring institution, Zhongzheng Investment had previously fully paid the subscription funds, acquiring 1.4 million shares, with a subscription amount of approximately 160 million yuan, and an issue price of 114.28 yuan per share.

In other words, Zhongzheng Investment's total investment was less than 200 million yuan and will be locked for 24 months after listing, unable to exit in the short term.

However, today's market performance has caused a leap in the book value of this position.

The closing price of Moore Threads on the first day was 600.50 yuan per share. Based on 1.4 million shares, the book market value for Zhongzheng Investment at closing was approximately 841 million yuan.

Compared to the strategic placement cost of 160 million yuan, the single-day floating profit is about 681 million yuan.

The "true identity" of Zhongzheng Investment

To understand the key position of Zhongzheng Investment in this strategic placement, we first need to clarify its "true identity."

Zhongzheng Investment is a wholly-owned subsidiary of CITIC Securities, with CITIC Securities holding a 100% stake. Its positioning within the brokerage system is as an alternative investment subsidiary, mainly responsible for investing its own funds, strategic layout, and undertaking the follow-on investment function of the sponsoring institution in Sci-Tech Innovation Board projects.

This is also the key reason it can directly enter the strategic placement list.

In fact, the sponsoring institutions for Sci-Tech Innovation Board projects must follow on with their own funds through relevant subsidiaries to prove the quality of due diligence with their own money.

It is worth noting that the 1.4 million shares allocated to Zhongzheng Investment must be locked for 24 months from the date of Moore Threads' listing. During these two years, it cannot reduce its holdings, realize floating profits, or hedge risks through trading.

In simple terms, Zhongzheng Investment is equivalent to CITIC Securities personally betting beyond sponsorship, turning "I am responsible for this company" into a two-year actual position with real money.

What is CITIC Securities Holding?

Putting aside the assets of Zhongzheng Investment, let's look at the nearly 700 million yuan paper profit brought by Moore Threads, and things will become very intuitive.

According to the announcement: By the end of 2024, the total assets of Zhongzheng Investment are approximately 29.1 billion yuan, with net assets of about 26.2 billion yuan, and the profit earned in 2024 is expected to be around 1.2 billion yuan.

Under such circumstances, a follow-on investment bringing nearly 700 million yuan in paper profit is almost equivalent to half of Zhongzheng Investment's annual profit.

In other words, CITIC Securities is not just symbolically investing a small amount of money this time, but has truly put in a significant stake that can be felt.

Why can Moore Threads create such a strong "amplification effect" from this investment?

The reason is not complicated.

This company itself is one of the hottest topics in the market this year. It has hit the sweet spot of domestic computing power and carries the expectations of the local GPU industry chain. Under the premise of a relatively stable pricing in the primary market, the secondary market sentiment has suddenly pushed it into a higher valuation range.

Therefore, this nearly 700 million yuan change in paper profit is not just "luck," but rather the market's expectations for Moore Threads far exceed the pricing at the time of issuance, combined with CITIC Securities, as the "brokerage king," putting in real money.

Putting these two points together, one can understand the true significance of this follow-on investment