Investment Rating - The report maintains a "Recommendation" rating for the securities industry, indicating a positive outlook for investment opportunities in the sector [3]. Core Insights - The securities industry has benefited from a slow bull market, with listed brokers achieving a year-on-year increase in operating income of 43% and net profit of 63% in Q3 2025 [6][16]. - The report emphasizes the importance of brokers as "flag bearers" of the bull market, despite their overall underperformance, suggesting they warrant more attention and allocation [7][16]. - The report forecasts that the industry will achieve total revenue of 556.7 billion yuan, a year-on-year increase of 23%, and net profit of 233.8 billion yuan, a year-on-year increase of 40% for the year 2025 [7][16]. Summary by Sections 1. Performance Benefiting from Slow Bull Market - The market environment is characterized by a strong stock market and weak bond market, with the ChiNext Index rising by 51.2% in Q3 2025 [9][11]. - Listed brokers reported total operating income of 419.6 billion yuan and net profit of 169 billion yuan in Q3 2025, reflecting significant growth [16][20]. - The average annualized ROE for 42 listed brokers was 7.51%, an increase of 2.2 percentage points from the previous year [25]. 2. Business Segment Performance - Brokerage income increased by 68% year-on-year, reaching 111.8 billion yuan in Q3 2025, driven by a significant expansion in the client base [39]. - Investment banking income grew by 16% year-on-year, totaling 25.2 billion yuan, with a notable increase in IPO and refinancing activities [47][56]. - Asset management income decreased by 2% year-on-year, amounting to 33.3 billion yuan, but the decline rate has narrowed [64]. 3. Annual Outlook - The report anticipates a perfect closing year for the industry, with a focus on policy and liquidity outlooks [7][16]. - The report highlights the ongoing trend of cost reduction among brokers, which is expected to impact revenue and profit concentration differently across firms [28]. 4. Investment Recommendations - The report suggests focusing on potential catalysts for low-cost acquisition of related stocks, particularly in light of upcoming policy meetings and economic work conferences [7][16]. - Specific recommendations include increasing positions in high-performing stocks such as Guotai Junan, Huatai Securities, and CICC, while also considering flexible stocks like GF Securities and Guosen Securities [7][16].

Core Viewpoint - The report from Industrial Securities initiates coverage on October Rice Field (09676) with a "Buy" rating, projecting revenue for 2025/2026/2027 to be 6.864 billion, 8.097 billion, and 9.546 billion respectively, and net profit attributable to shareholders to be 606 million, 758 million, and 972 million respectively. The firm is optimistic about the company's revenue and profit elasticity in the mid-to-high-end rice and corn business under the health food trend [1]. Group 1: Company Overview - October Rice Field is a leading staple food company in China, with major business segments including rice, corn, miscellaneous grains and beans, and other products. In the first half of 2025, the company's revenue grew by 16.9% year-on-year to 3.06 billion, and adjusted net profit increased by 97.7% to 290 million. In the third quarter of 2025, revenue is expected to grow by approximately 25.7%-31.5%, with operating profit increasing by about 71.5%-90.5% [1]. Group 2: Revenue Structure and Product Strategy - In 2023, the revenue structure heavily relied on rice, which accounted for 79% of total revenue. However, with increased investment in other product categories, the revenue share of rice decreased to 67% in the first half of 2025. The company has focused on enhancing the brand influence of mid-to-high-end rice products, leading to a continuous increase in sales of premium rice, with the revenue from rice business growing by 21% year-on-year and gross profit increasing by 106% [1]. - Corn is emerging as a new staple food choice for consumers due to its low-fat characteristics, with the corn segment growing to become the company's second growth curve. In 2023, corn product revenue accounted for only 3%, but this increased to 14% in the first half of 2025. Additionally, the miscellaneous grains and other products, as well as dried goods and other products, each accounted for about 9% of revenue in the first half of 2025 [1]. Group 3: Channel Strategy - The effectiveness of the omnichannel strategy is evident, with the contribution of modern supermarkets and direct customer channels continuing to rise, becoming significant sources of revenue. In 2023, e-commerce platforms, as the main channel, accounted for 58% of revenue, while the share of online self-operated stores increased. The combined revenue share from modern supermarkets and direct customer channels rose significantly from 26% in 2023 to 35% in the first half of 2025 [2].

Core Viewpoint - The report from Industrial Securities initiates coverage on October Rice Field (09676) with a "Buy" rating, projecting revenue and net profit growth for 2025, 2026, and 2027, driven by the health food trend and the company's focus on mid-to-high-end rice and corn businesses [1] Group 1: Company Overview - October Rice Field is a leading staple food company in China, with major business segments including rice, corn, grains, beans, and other products [1] - In the first half of 2025, the company reported a revenue increase of 16.9% year-on-year to 3.06 billion yuan, with adjusted net profit rising 97.7% to 290 million yuan [1] - In the third quarter of 2025, revenue is expected to grow approximately 25.7%-31.5%, with operating profit increasing by about 71.5%-90.5% [1] Group 2: Revenue Structure and Product Strategy - In 2023, rice products accounted for 79% of total revenue, but this share decreased to 67% in the first half of 2025 due to the company's investment in other product categories [2] - The company has focused on enhancing its mid-to-high-end rice product offerings, leading to a 21% year-on-year revenue growth in rice business and a significant 106% increase in gross profit in the first half of 2025 [2] - Corn has emerged as a new staple choice for consumers, with its revenue contribution rising from 3% in 2023 to 14% in the first half of 2025 [2] - Other product segments, including grains, beans, and dried goods, each contributed approximately 9% to revenue in the first half of 2025 [2] Group 3: Channel Strategy and Performance - The company has seen positive results from its multi-channel strategy, with online sales accounting for 58% of total revenue in 2023, and the share of online self-operated stores increasing [3] - Revenue from modern supermarkets and direct customer channels has risen significantly, from 26% in 2023 to 35% in the first half of 2025, aided by partnerships with chains like Sam's Club [3] - Revenue from the distribution network has remained stable [3]

Group 1 - The core index of the securities companies, the CSI All Share Securities Index, has decreased by 0.32% as of November 5, 2025, with mixed performance among constituent stocks [1] - The top ten weighted stocks in the CSI All Share Securities Index account for 59.88% of the index, with Dongfang Caifu and CITIC Securities being the largest contributors [4] - The latest market valuation of the CSI All Share Securities Index is at a PE-TTM of 17.76 times, indicating it is at a historical low compared to the past year [3] Group 2 - The securities ETF managed by Jiashi has seen a trading turnover of 0.56% and a total transaction volume of 3.0549 million yuan, with its scale reaching a new high of 552 million yuan [3] - The Jiashi securities ETF has experienced continuous net inflows over the past four days, totaling 56.7442 million yuan, with a single-day peak inflow of 25.4304 million yuan [3] - The securities sector's performance in the first three quarters of 2025 has met expectations, driven mainly by brokerage and proprietary trading businesses, indicating a positive outlook for the industry [6][7] Group 3 - The securities sector has seen a less than 10% increase in the first three quarters of the year, with a price-to-book ratio around 1.5 times, suggesting a mismatch with current earnings growth [7] - The transformation towards wealth management and institutional business is providing long-term growth momentum for the industry, indicating potential for value re-evaluation [7] - Investors without stock accounts can consider the Jiashi securities ETF linked fund to gain exposure to the securities sector [7]

Core Viewpoint - The essence of the year-end market performance is the market's active search for future economic clues, leading to a revaluation of various industries based on next year's economic expectations [1][5]. Group 1: Year-End Market Dynamics - The year-end market's "high-low" nature is driven by investors' perspective shift towards economic conditions, resulting in a valuation reconstruction process [2][5]. - After the disclosure of Q3 reports in October, the market typically shifts focus to the next year, adjusting valuations based on economic expectations, which leads to year-end valuation reconstruction [2][5]. - Historical analysis since 2016 shows a strong positive correlation between industry performance rankings and next year's earnings growth, while the correlation with current earnings growth is weak or even negative [2]. Group 2: Historical Comparisons - If the market expects the main style's economic advantages to continue or accelerate next year, the main line will maintain stability and may deepen towards lower positions, as seen in 2006, 2014, 2016-2017, and 2019-2020 [6][5]. - In 2006, economic acceleration and a favorable real estate cycle led to a shift in market pricing from manufacturing to cyclical sectors [6]. - In 2016-2017, the recovery of listed companies' ROE and supply-side structural reforms maintained a focus on low-valuation value and blue-chip stocks throughout the year [6]. Group 3: Potential Market Reversals - If factors undermine the main line's economic expectations or improve lower economic expectations, the market may systematically shift towards lower positions, triggering a year-end "reversal" market [7][5]. - In Q4 2007, policy shifts to curb inflation and overheating led to a market structure change from "manufacturing + cyclical" to "TMT + consumption" [7]. - In November 2014, an unexpected interest rate cut by the central bank ignited bullish sentiment, causing a market structure shift from "manufacturing + TMT" to "financial real estate + cyclical" [7].

Core Viewpoint - The report from Industrial Securities highlights that Hansoh Pharmaceutical (03692) has a high proportion of innovative drug revenue, driving rapid growth in performance through a dual engine of independent research and business development, along with a rich early pipeline and active international expansion, creating opportunities in overseas markets [1] Group 1: Financial Projections - The company has adjusted its revenue forecasts for 2025 to 2027 to be 14.537 billion, 15.511 billion, and 17.880 billion respectively, with corresponding net profits of 4.516 billion, 4.787 billion, and 5.661 billion [1] - The price-to-earnings ratios for 2025 are projected to be 44.92x, 42.38x, and 35.84x for the respective years [1] Group 2: Licensing Agreements - In October 2023, the company granted overseas rights for B7-H4ADC to GSK, receiving an upfront payment of 85 million and potential milestone payments of 1.485 billion [2] - In December 2023, the company granted overseas rights for B7-H3ADC to GSK, with an upfront payment of 185 million and potential milestone payments of 1.525 billion [2] - In December 2024, the company granted global rights for an oral GLP-1 to Merck, with an upfront payment of 112 million and potential milestone payments of 1.9 billion [2] - In June 2025, the company granted overseas rights for a GLP-1/GIP receptor agonist to Regeneron, with an upfront payment of 80 million and potential milestone payments of 1.93 billion [2] Group 3: Clinical Trials and Product Development - The HS-20110 (CDH17ADC) is currently undergoing global Phase I clinical trials for the treatment of colorectal cancer and other solid tumors in China and the United States [2] - There are currently 10 CDH17ADC products in clinical stages globally, with 4 in Phase I/II and 6 in Phase I [2] - HS-20110 is the first and only CDH17ADC to have reached a licensing agreement with a multinational corporation, indicating the company's strong R&D capabilities in the ADC platform [2]

Core Insights - The report from Industrial Securities highlights that Hansoh Pharmaceutical (03692) has a high proportion of innovative drug revenue, driving rapid growth in performance through self-research and business development (BD) dual engines, along with a rich early pipeline and active international expansion, opening up overseas market potential [1] Financial Projections - The company adjusted its revenue forecasts for 2025 to 2027 to be CNY 14.537 billion, CNY 15.511 billion, and CNY 17.880 billion respectively, with net profit attributable to the parent company projected at CNY 4.516 billion, CNY 4.787 billion, and CNY 5.661 billion respectively [1] - Corresponding to the closing price on October 31, 2025, the price-to-earnings (PE) ratios are projected to be 44.92x, 42.38x, and 35.84x [1] Licensing Agreements - On October 16, 2025, the company signed a licensing agreement with Roche, granting global exclusive rights (excluding mainland China and Hong Kong, Macau) for HS-20110 (CDH17 ADC), receiving an upfront payment of USD 80 million and potential milestone payments up to USD 1.45 billion, along with tiered royalties on future product sales [1] - In October 2023, the company granted overseas rights for B7-H4 ADC to GSK with an upfront payment of USD 85 million and potential milestones of USD 1.485 billion; in December 2023, B7-H3 ADC overseas rights were granted to GSK with an upfront payment of USD 185 million and potential milestones of USD 1.525 billion [2] - The company has established licensing agreements for five products with four multinational corporations (MNCs) over the past three years, leading among domestic enterprises [2] Clinical Trials and Competitive Position - HS-20110 (CDH17 ADC) is currently undergoing global Phase I clinical trials for the treatment of colorectal cancer and other solid tumors in China and the United States [2] - There are currently 10 CDH17 ADCs in clinical stages globally, with four in Phase I/II and six in Phase I; HS-20110 is the first and only CDH17 ADC to have secured a licensing agreement with an MNC, indicating strong R&D capabilities in the ADC platform and the ability to continuously launch high-quality ADC pipelines [2]

Group 1 - The core viewpoint of the report indicates that China's railway passenger traffic is experiencing significant growth, and the elimination of old diesel locomotives will serve as another growth driver for the industry [1] - The company, Times Electric (03898), is expected to see substantial growth in its rail transit business, with projected revenues of 28.72 billion, 31.64 billion, and 35.22 billion yuan for 2025-2027, and net profits of 4.108 billion, 4.844 billion, and 5.586 billion yuan respectively [1] - The report highlights that as of Q3 2025, the total number of high-speed train sets tendered by China Railway has reached 278, surpassing the total for 2024, indicating a robust demand for new train sets [1] Group 2 - The company's basic components business grew by 30.4% year-on-year in the first three quarters of 2025, primarily due to the production capacity coming online at the Yixing Phase III project [2] - With the full capacity of Yixing Phase III expected to be operational in the second half of the year, the company's power semiconductor business is entering a performance release phase [2] - The Zhuzhou Phase III silicon carbide project is under construction and is expected to start production in 2026, contributing to rapid growth in the company's power semiconductor capacity [2]

Group 1 - The A-share market is expected to continue a slow rising trend due to multiple favorable factors, including the "14th Five-Year Plan" and the commencement of the Federal Reserve's interest rate cut cycle [11][12][13] - Current index levels are considered to have better quality compared to 2015, with significantly lower valuation levels, suggesting that excessive focus on index points is unnecessary [3][11] - The market is entering a period of performance and policy vacuum after the third quarter reports, which may lead to a phase of consolidation [8][14] Group 2 - Short-term market movements are characterized by narrow fluctuations, with the technology growth sector losing some attractiveness, necessitating a wait for upward breakout factors [4][15] - Fund holdings have shifted, with a notable increase in electronic sector allocations, indicating a potential for structural adjustments in the market [6][7] - The market is expected to maintain a balanced configuration, with a focus on sectors like brokerage, steel, and consumer goods, transitioning from a "technology-first" approach to a more "balanced" allocation style [14][15] Group 3 - The upcoming months are anticipated to be a period of consolidation, with a focus on new industry trends such as commercial aerospace, AI applications, and innovative pharmaceuticals [8][10] - The market's performance is likely to be influenced by the economic recovery and the gradual improvement of demand-side conditions, particularly in sectors like energy storage [4][10] - The overall market sentiment is expected to remain stable, with a potential for structural opportunities in high-growth sectors [9][16]

Core Viewpoint - The financial performance of Industrial Securities in Q3 2025 shows significant growth in revenue and net profit, driven by market recovery and improved asset management [1][2]. Financial Performance - Total operating revenue (excluding other business income) reached 9.3 billion RMB, a year-on-year increase of 39.7%, with a quarterly revenue of 3.9 billion RMB, up by 8.2 billion RMB sequentially [1]. - Net profit attributable to shareholders was 2.52 billion RMB, reflecting a year-on-year growth of 91%, with a quarterly net profit of 1.19 billion RMB, up by 3.8 billion RMB sequentially [2]. Return on Equity (ROE) Analysis - The company's ROE improved significantly to 4.1%, an increase of 1.8 percentage points year-on-year, with a quarterly ROE of 1.9%, up by 0.6 percentage points sequentially [3]. - Financial leverage at the end of the reporting period was 3.81 times, an increase of 0.15 times year-on-year and 0.2 times sequentially [3]. - The asset turnover ratio was 3.9%, up by 0.8 percentage points year-on-year, with a quarterly asset turnover ratio of 1.6%, up by 0.3 percentage points sequentially [3]. - The net profit margin was 27.2%, an increase of 7.3 percentage points year-on-year, with a quarterly net profit margin of 30.8%, up by 4.1 percentage points sequentially [3]. Balance Sheet Overview - Total assets (excluding client funds) amounted to 235.4 billion RMB, an increase of 27.26 billion RMB year-on-year, with net assets of 61.9 billion RMB, up by 4.91 billion RMB year-on-year [3]. Debt and Income Analysis - Interest-bearing liabilities totaled 148.9 billion RMB, up by 15.67 billion RMB sequentially, with a quarterly cost of debt at 0.5%, down by 0.1 percentage points year-on-year [4]. - Revenue from heavy capital business increased to 4.67 billion RMB, with a quarterly revenue of 2.09 billion RMB, up by 4.3 billion RMB sequentially [4]. - Brokerage business revenue showed significant growth, reaching 2.16 billion RMB, with a quarterly revenue of 0.92 billion RMB, up by 58.6% sequentially and 137.8% year-on-year [7]. Investment Banking and Asset Management - Investment banking revenue was 420 million RMB, with a quarterly revenue of 200 million RMB, up by 100 million RMB sequentially [8]. - Asset management revenue was 110 million RMB, with a quarterly revenue of 40 million RMB, remaining stable year-on-year [9]. Regulatory Metrics - The risk coverage ratio was 334.9%, down by 19.5 percentage points from the previous period, with risk capital reserves at 12.6 billion RMB, up by 790 million RMB [10]. - The net capital was 42.1 billion RMB, up by 2% from the previous period, with a net stable funding ratio of 185.8%, down by 23 percentage points [10]. Investment Outlook - The company is expected to benefit from supply-side reforms and growth in asset management, with upward adjustments to earnings forecasts for 2025/2026/2027 [10]. - Projected EPS for 2025/2026/2027 is 0.42/0.44/0.47 RMB, with a target price of 8.72 RMB based on a 1.30 times PB valuation for 2026 [10].