Core Viewpoint - Pingao Co., Ltd. (688227.SH) is currently experiencing a decline in stock price, closing at 33.44 yuan with a drop of 5.75%, resulting in a total market capitalization of 3.781 billion yuan. The stock is in a state of breaking its initial public offering price [1]. Summary by Sections Company Overview - Pingao Co., Ltd. was listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board on December 30, 2021, with an issuance of 28.263819 million shares at an initial price of 37.09 yuan per share [1]. - The company raised a total of 1.048 billion yuan from its initial public offering, with a net amount of 917 million yuan after deducting issuance costs. The final net fundraising exceeded the original plan by 348 million yuan [1]. Fundraising Purpose - The funds raised are intended for several projects, including the development of an information technology innovation cloud platform, a dedicated information service cloud platform, the construction of Pingao Building, and to supplement working capital [1]. Issuance Costs - The total issuance costs for the initial public offering amounted to 131 million yuan, with underwriting and sponsorship fees accounting for 104 million yuan [2].

Group 1 - The core viewpoint of the report is that Guolian Minsheng (601456.SH) is rated as outperforming the market due to its expanding proprietary scale and the construction of equity accounts [1] - The brokerage business shows significant regional complementarity, and the fund advisory business continues to grow [1] - The scale of equity financing has decreased, indicating a more cautious approach in capital markets [1]

Group 1 - The core viewpoint is that all 49 listed brokerage firms in A-shares have reported positive growth in net profit, with 13 firms showing an increase of over 100%, and Huaxi Securities and Guolian Minsheng achieving nearly 1200% profit growth [1] - 28 listed brokerages have disclosed their profit distribution plans for the first half of 2025, with seven firms including CITIC Securities, Guotai Junan, and China Galaxy planning to distribute cash dividends exceeding 1 billion yuan [1] - The brokerage sector's performance is driven by increased trading activity, with core businesses such as brokerage and proprietary trading being the main sources of profit growth [3][5] Group 2 - The brokerage ETF (512000) has seen significant net inflows, with a recent single-day net inflow of 462 million yuan and cumulative net inflows exceeding 4.1 billion yuan over the past 20 days [6][5] - The current price-to-book ratio (PB) of the brokerage sector is 1.65, which is at the 51.47% percentile over the past decade, indicating that the sector is still undervalued [3] - Analysts expect the brokerage index to maintain a steady upward trend if the equity market continues to expand, with the potential to approach a PB of two times, which is the upper limit of the valuation range over the past ten years [5][3] Group 3 - The brokerage ETF (512000) is designed to passively track the CSI All Share Securities Company Index, encompassing 49 listed brokerage stocks, with nearly 60% of its holdings concentrated in the top ten leading brokerages [7] - The ETF has a current fund size exceeding 31.2 billion yuan, marking a historical high, and has an average daily trading volume of over 900 million yuan, making it one of the most liquid ETFs in the A-share market [6][7]

Core Insights - The A-share listed securities firms reported strong performance in the first half of 2025, with total operating revenue reaching 251.87 billion yuan, a year-on-year increase of over 30%, and net profit attributable to shareholders of 104.02 billion yuan, up 65.08% from the previous year [1] - The growth was driven by active trading in the equity market, with brokerage and proprietary trading businesses being the main contributors to the firms' performance [1][7] - Regulatory policies aimed at stabilizing expectations and boosting confidence, along with continued inflows from individual and long-term investors, provided a solid foundation for the positive performance of listed securities firms [1] Performance of Major Firms - Ten securities firms reported revenues exceeding 10 billion yuan, with CITIC Securities leading at 33.04 billion yuan, a 20.44% increase year-on-year, and a net profit of 13.72 billion yuan, up 29.80% [2] - Guotai Junan's revenue reached 23.87 billion yuan, a significant increase of 77.71%, with net profit soaring by 213.74% to 15.74 billion yuan, surpassing CITIC Securities [2][3] Growth of Smaller Firms - Smaller securities firms exhibited remarkable growth, with eight out of ten firms showing over 100% year-on-year increase in net profit [4] - Huaxi Securities achieved a revenue of 2.07 billion yuan, a 46.72% increase, and a net profit of 512 million yuan, up 1195.02%, leading the industry [4] - Guolian Minsheng also demonstrated strong growth, with revenue of 4.01 billion yuan, a 269.40% increase, and net profit of 1.13 billion yuan, up 1185.19% [5][6] Market Trends and Future Outlook - The trading volume in the Shanghai and Shenzhen markets reached 188.78 trillion yuan, a 63.87% increase year-on-year, with the A-share market continuing to show upward momentum [7] - The active trading environment and ongoing capital market reforms are expected to further enhance the performance of securities firms [7]

Investment Rating - The report maintains an "Outperform the Market" rating for the company [3][5][23] Core Views - The integration of Guolian and Minsheng Securities is showing initial results, with significant increases in revenue and net profit for the first half of 2025 [1][3] - The company has adjusted its profit forecasts for 2025-2027 upwards by 85.8%, 81.8%, and 71.1% respectively, anticipating net profits of 1.81 billion, 2.00 billion, and 2.14 billion yuan [3][19] - The company is expected to benefit from the synergistic effects of the integration, enhancing its brokerage network, investment banking capabilities, and capital base [3][19] Financial Performance Summary - In the first half of 2025, the company achieved operating revenue of 4.011 billion yuan, a year-on-year increase of 47.4%, and a net profit attributable to shareholders of 1.127 billion yuan, up 166.9% [1] - The company's self-operated business revenue reached 2.097 billion yuan, reflecting a 94.3% year-on-year growth [1] - The brokerage business generated revenue of 905 million yuan, a 22.6% increase year-on-year, while investment banking revenue decreased by 9.6% to 531 million yuan [2] Financial Projections - The company forecasts operating revenues of 10.007 billion yuan, 11.087 billion yuan, and 11.838 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 73.9%, 10.8%, and 6.8% [19][20] - The projected net profits for the same years are 1.806 billion yuan, 2.003 billion yuan, and 2.140 billion yuan, with growth rates of 89.7%, 10.9%, and 6.8% [19][20] - Key financial ratios include a projected PE of 38.5, 34.7, and 32.5 for 2025, 2026, and 2027, and a PB of 2.1, 2.0, and 1.9 for the same years [3][20]

Meeting Details - The fifth session of the supervisory board of Guolian Minsheng Securities Co., Ltd. was held on August 28, 2025, in Wuxi, combining on-site and communication methods [1] - All five supervisors attended the meeting, with two participating via communication [1] - The meeting was chaired by the chairman of the supervisory board, Xue Chunfang, and complied with relevant laws and regulations [1] Resolutions Passed - The supervisory board approved the 2025 semi-annual report with a unanimous vote of 5 in favor, 0 against, and 0 abstentions [2] - The board also approved the comprehensive risk management report for the mid-year with the same voting results [2] - A special report on the storage and actual use of the funds raised in the first half of 2025 was also approved unanimously [2]

Core Viewpoint - The report highlights significant growth in total assets and net income for Guolian Minsheng Securities Co., Ltd. in the first half of 2025, following the acquisition of Minsheng Securities, which has been consolidated into the company's financials [1][7]. Financial Performance - Total assets reached approximately 185.40 billion RMB, an increase of 90.72% compared to the previous year [1]. - Operating income for the period was approximately 4.01 billion RMB, reflecting a substantial increase of 269.40% year-on-year [1]. - Net profit attributable to shareholders was approximately 1.12 billion RMB, marking a significant rise of 1,355.70% compared to the same period last year [1]. - The net profit after deducting non-recurring gains and losses was approximately 1.12 billion RMB, also showing a substantial increase [1]. Shareholder Information - As of the end of the reporting period, the total number of shareholders was 94,627 [2]. - The largest shareholder, Wuxi Guolian Development (Group) Co., Ltd., holds 23.86% of the shares directly and an additional 14.65% indirectly through controlled entities, totaling 38.52% [2]. Debt Issuance - The company has issued various bonds aimed at professional investors, including a bond with a 20% interest rate and a maturity of three years [4][6]. - The company plans to issue additional bonds in 2025, with varying interest rates and maturities [6][7]. Important Events - The company completed the acquisition of control over Minsheng Securities through the issuance of A-shares, which has been included in the consolidated financial statements [7].

Group 1 - The board of directors of Guolian Minsheng Securities held its 28th meeting on August 14, 2025, with all 9 directors present, and the meeting was conducted in accordance with legal and regulatory requirements [1][2] - The board approved the 2025 semi-annual report with a unanimous vote of 9 in favor, 0 against, and 0 abstentions [1][2] - The board also approved the comprehensive risk management report for the mid-year with the same voting results [2] Group 2 - The board approved a special report on the use of raised funds for the first half of 2025, again with unanimous support [2] - The board agreed to revise the basic compliance management system, with the proposal having been pre-reviewed by the risk control committee [2] - The establishment of the Guolian Tongzhi Technology Asset Equity Investment Fund and related transactions was approved, with 6 votes in favor and 3 directors abstaining from the vote due to conflicts of interest [3]

Core Viewpoint - The company plans to establish the Guolian Tongzhi Fund in collaboration with its affiliate, Guolian Life Insurance, with a total fund size of RMB 12.2 billion, aimed at private equity investments in smart technology and new productivity sectors [1][5][12] Summary by Sections Transaction Overview - Guolian Tongbao Capital Investment Co., Ltd., a wholly-owned subsidiary of the company, will contribute RMB 480 million to the fund, while Guolian Life Insurance will contribute RMB 740 million, making it a limited partner [1][5] - The fund will focus on private equity investments in the fields of new productivity and smart technology, expanding the company's private equity business management scale and generating investment returns and management fee income [1][5][12] Related Party Information - Guolian Life Insurance is a company controlled by Guolian Group, which holds a 33.33% stake in it, and has a historical connection with the company through board member relationships [2][4] - As of June 30, 2025, Guolian Life Insurance reported total assets of RMB 388.62 billion and a net asset of RMB 39.04 billion, with a net loss of RMB 2.36 billion for the first half of 2025 [4][5] Fund Structure and Management - The fund will be structured as a limited partnership, with Guolian Tongbao as the general partner and fund manager, and Guolian Life as the limited partner [5][6] - The fund's management fee is set at 0.5% per year of the total capital contributions during the investment period, which lasts for three years, followed by a four-year exit period [6][7] Investment Strategy - The fund aims to invest primarily in unlisted companies within China, focusing on direct or indirect equity investments to achieve capital appreciation [9][10] - An investment decision-making committee and an advisory committee will be established to oversee investment activities [9][10] Impact on the Company - The establishment of the Guolian Tongzhi Fund is expected to enhance the company's private equity asset management capabilities, increase brand recognition, and provide long-term investment returns through collaboration with insurance funds [11][12]

Fundraising Overview - The company raised a total of RMB 1,999,999,995.07 through the issuance of 208,550,573 shares at a price of RMB 9.59 per share, with a net amount of RMB 1,970,895,307.90 after deducting issuance costs [1][7] - The funds were deposited into a designated account on February 26, 2025, and verified by an accounting firm [1] Fund Usage Status - As of June 30, 2025, the raised funds had not been utilized, with a remaining balance of RMB 1,979,332,538.10 in the fundraising account [2] - The company has established a fundraising management system to ensure the proper use and supervision of the raised funds [2] Fund Management Agreements - The company signed tripartite and quadripartite agreements with various banks to ensure the secure storage and management of the raised funds [3] Fund Allocation and Investment - There have been no changes in the investment projects funded by the raised capital as of June 30, 2025 [5] - The company has not used idle funds for temporary working capital, cash management, or investment in related products [5] Compliance and Disclosure - The company confirms that the disclosure of the fundraising usage aligns with the actual usage, with no issues of timeliness or accuracy in the reported information [5]