CICC(SH:601995) Zhi Tong Cai Jing·2025-07-24 09:35Core Viewpoint - The capital market has been recovering since September 2024, leading to increased trading activity and a significant rise in the brokerage sector, supported by improved liquidity from interest rate cuts and favorable financial policies [1][8]. Group 1: Industry Performance Recovery - The total assets of 42 listed brokerages reached 13.11 trillion yuan, with net assets of 2.72 trillion yuan. The combined operating income was 125.93 billion yuan, a year-on-year increase of 25%, and net profit attributable to shareholders was 52.18 billion yuan, up 83.5% year-on-year [2]. - Over 80% of brokerages reported year-on-year net profit growth, with an average ROE of 1.6%, an increase of 0.6 percentage points year-on-year [2]. - Proprietary trading and brokerage services have become the main growth drivers, with proprietary business revenue increasing from 32.74% to 40.53% of total revenue, and brokerage revenue rising from 21.61% to 26.00% [2][3]. Group 2: Growth Drivers - The recovery in proprietary and brokerage businesses is attributed to increased retail investor participation and a rise in the issuance of equity funds, leading to higher daily trading volumes [4]. - The average daily trading volume of equity funds increased by 71% year-on-year, significantly boosting brokerage income [3][4]. Group 3: Internationalization Trends - The internationalization of Chinese brokerages has accelerated, driven by policy incentives and market demand, with a focus on expanding licenses and capital investments [6]. - In 2024, the contribution of international revenue to CICC reached 47%, with significant involvement in cross-border mergers and global IPOs, ranking first in the market [6][7]. - CICC has established an international network covering major financial centers, enhancing its cross-border service capabilities [7]. Group 4: Future Outlook - The brokerage sector is expected to maintain a positive growth trajectory in 2025, with 29 listed brokerages forecasting profit increases, and CICC projecting a net profit growth of 55% to 78% year-on-year [8][9]. - The ongoing recovery in the capital market, combined with supportive policies, is anticipated to enhance the profitability and valuation of the brokerage sector, entering a new upward cycle [9].