Xin Lang Cai Jing·2025-05-06 04:29Core Viewpoint - The company's performance and forecasts are in line with expectations, accelerating the implementation of a three-year strategy, which is expected to seize opportunities for building a first-class investment bank and achieve better-than-expected growth [1]. Investment Highlights - The company maintains a "Buy" rating with a target price of 19.60 yuan, corresponding to a 1.8x PB for 2025. In Q1 2025, revenue and net profit attributable to shareholders are projected at 7.56 billion and 3.02 billion yuan, respectively, representing year-on-year increases of 4.8% and 84.9%, consistent with performance forecasts [2]. - The weighted average ROE increased by 1.14 percentage points to 2.44%. The acceleration of supply-side reforms in the industry and the company's ongoing three-year strategy implementation are expected to lead to better-than-expected growth [2]. - The recovery in investment and the high growth of wealth management business are driving profit growth. The brokerage, investment banking, asset management, and investment businesses achieved year-on-year growth of 53%, 59%, 19%, and 94%, respectively. Investment income contributed 68% of the revenue increase, while brokerage business contributed 30% [2]. - The high growth in investment business is primarily due to improved investment returns from a low base, with an annualized investment return rate of 3.3%, up 1.6 percentage points year-on-year. The scale of financial assets decreased by 9% year-on-year to 386.3 billion yuan [2]. Strategic Progress - The company is accelerating the implementation of its three-year strategy, aiming to seize opportunities for building a first-class investment bank. The new "National Nine Articles" focuses on returning to the essence of the industry and strengthening leading institutions through mergers, reorganizations, and organizational innovations [3]. - The company has made significant progress in its three-year strategy, enhancing its "five-in-one" business model and continuously improving its professional capabilities. The institutional business has launched the "Galaxy Tiangong 2.0" platform to deepen and expand its service system [3]. - The investment banking business is undergoing professional reforms, showing gradual results, while the international business has officially launched the "Galaxy Overseas" brand, aiming to become a modern investment bank based in Asia [3]. - The new round of capital market reforms has accelerated since the beginning of the year, providing the company with opportunities to expedite the construction of a first-class investment bank and achieve better-than-expected growth [3].