Zheng Quan Zhi Xing·2025-06-12 05:15Core Viewpoint - China Galaxy Securities is positioned as a leading state-owned enterprise with a strong shareholder background, aiming to optimize its business structure and expand into international investment banking, with a buy rating and a target price of 19.54 yuan [1][4]. Business Overview - China Galaxy has a significant advantage in brokerage services, ranking first with 461 branches, and is expected to generate net income of 6.2 billion yuan in 2024, with projected growth rates of 22%, 6%, and 5% from 2025 to 2027 [2][3]. - The investment banking segment, previously a weak area, is being strengthened under the leadership of Chairman Wang Sheng, with a projected net income of 610 million yuan in 2024 and growth forecasts of 11%, 7%, and 7% from 2025 to 2027 [2][3]. - Asset management, another weak area, is expected to see net income of 490 million yuan in 2024, with growth rates of 10%, 16%, and 6% from 2025 to 2027 as the company optimizes its product structure [3]. - The credit business, with a market share of approximately 5%, is projected to generate net income of 3.8 billion yuan in 2024, with modest growth rates of 1%, 6%, and 6% from 2025 to 2027 [3]. - Investment trading is expected to yield net income of 11.5 billion yuan in 2024, with a compound annual growth rate of 35% in financial assets over the past decade, and projected growth of 8%, 11%, and 7% from 2025 to 2027 [3]. Financial Projections - Revenue forecasts for China Galaxy are 38.5 billion yuan, 41.5 billion yuan, and 43.8 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 9%, 8%, and 6% [4]. - The projected net profit for the same years is 11.4 billion yuan, 12.8 billion yuan, and 13.8 billion yuan, with growth rates of 14%, 12%, and 7% [4]. - The book value per share (BPS) is expected to be 10.86 yuan, 11.68 yuan, and 12.57 yuan for 2025, 2026, and 2027 respectively [4].