Xin Lang Cai Jing·2025-04-30 08:37Core Viewpoint - Huatai Securities reported strong Q1 2025 results, with net profit reaching 3.64 billion, a year-on-year increase of 59.0%, and revenue of 8.23 billion, up 34.8% [1] Financial Performance - Q1 2025 net profit attributable to shareholders was 3.64 billion, with a year-on-year growth of 59.0% - Revenue for the same period was 8.23 billion, reflecting a year-on-year increase of 34.8% - The weighted average ROE (non-annualized) was 2.10%, up 0.73 percentage points year-on-year [1] - Main revenue breakdown: brokerage, investment banking, asset management, net interest, net investment, and long equity investment revenues were 1.94 billion, 0.54 billion, 0.42 billion, 0.96 billion, 2.58 billion, and 0.75 billion respectively, with year-on-year changes of +42.6%, -5.9%, -61.7%, +319%, +39.7%, and +240% [1] Cost Management - Management expenses were 3.14 billion, down 11.6% year-on-year - The management fee ratio (management expenses/securities main revenue) was 43.2%, a decrease of 19.9 percentage points year-on-year, contributing to net profit growth outpacing revenue growth [1] Investment and Leverage - As of Q1 2025, operating leverage was 3.27x, down 0.69x year-on-year, and investment leverage was 1.97x, down 0.54x year-on-year [2] - Financial investment scale was 385.5 billion, down 15.6% year-on-year but up 4.2% quarter-on-quarter [2] - Net investment income for Q1 2025 was 2.58 billion, a year-on-year increase of 39.7% [2] Brokerage and Credit Business - Brokerage income for Q1 2025 was 1.94 billion, up 42.6% year-on-year, with a market average daily trading volume increase of 72% year-on-year [2] - As of the end of Q1 2025, the scale of funds lent was 133.6 billion, up 0.8% from the beginning of the year, with a margin trading market share of 6.96%, down 0.15 percentage points year-on-year [2] Underwriting and International Expansion - Q1 2025 A-share IPO underwriting scale was 1.54 billion, down 69.5% year-on-year, with a market share of 9.3%, down 13.2 percentage points year-on-year [3] - Bond underwriting scale was 290 billion, up 28.0% year-on-year, with a market share of 9.1%, up 0.92 percentage points year-on-year [3] - Huatai International obtained multiple business licenses in Hong Kong, accelerating international business expansion [3] Future Profit Projections - Expected net profit attributable to shareholders for 2025-2027 is projected to be 13.15 billion, 13.84 billion, and 14.51 billion, with year-on-year changes of -14%, +5%, and +5% respectively [4] - As of April 29, 2025, the closing price corresponds to dynamic PB for 2025-2027 of 0.87x, 0.83x, and 0.78x respectively [4]