Xin Lang Cai Jing·2025-05-04 00:30Core Viewpoint - Dongfang Securities reported significant growth in Q1 2025, with operating revenue and net profit attributable to shareholders reaching 5.38 billion and 1.44 billion yuan, respectively, reflecting year-on-year increases of 49.1% and 62.0% [1][2] Financial Performance - In Q1 2025, the company achieved operating revenue of 5.38 billion yuan and net profit of 1.44 billion yuan, with year-on-year growth rates of 49.1% and 62.0% respectively [1][2] - The weighted average return on equity (ROE) increased by 0.68 percentage points to 1.79% year-on-year [1][2] - The operating leverage, excluding customer funds, decreased from -1.2% at the beginning of the year to 3.69 times [1] Business Segments - Revenue from various business lines in Q1 2025 included brokerage (0.7 billion yuan, +44.6%), investment banking (0.32 billion yuan, +17.0%), asset management (0.30 billion yuan, -16.5%), interest income (0.22 billion yuan, -26.3%), and proprietary trading (2.21 billion yuan, +144.5%) [2] - The significant growth in proprietary trading contributed to the overall performance, with self-operated investment income reaching 2.21 billion yuan, a year-on-year increase of 144.5% [2][3] Market Conditions - The average daily trading volume in the stock market was 1.74646 trillion yuan in Q1 2025, reflecting a year-on-year increase of 70.9%, which positively impacted the brokerage business [3] - The company’s investment banking revenue improved, with equity financing reaching 8.02 billion yuan and bond underwriting at 120.58 billion yuan, marking year-on-year increases of 104.4% [3] Asset Management - The asset management business saw a revenue decline of 16.5% to 0.30 billion yuan, but the decline was narrowing [3] - The company’s asset management scale was 216.57 billion yuan at the end of 2024, down 8.1% year-on-year, but it maintained a leading position in active management returns [3] Long-term Outlook - The company is positioned as a benchmark in wealth management and asset management, with expectations for its large asset management and wealth management advantages to become evident [4] - Projected net profits for 2025 and 2026 are 3.67 billion and 3.89 billion yuan, corresponding to price-to-earnings ratios of 21.1 and 19.9, and price-to-book ratios of 0.94 and 0.91 [4]