Guosen Securities(SZ:002736) Zhong Guo Ji Jin Bao·2025-08-07 22:47Core Viewpoint - Guosen Securities is closing multiple branches to optimize its service network and improve customer experience, reflecting a broader trend in the industry towards branch consolidation and digital transformation [1][2][3]. Group 1: Branch Closures - Guosen Securities announced the closure of 12 branches starting September 5, including locations in Jilin, Foshan, Qingdao, and Xiamen [1]. - In August, the company also announced the closure of 9 additional branches, effective August 1, 2025 [2]. - The closures are part of a strategy to optimize branch locations and enhance service quality, with some branches being relocated to local subsidiaries or other branches [2]. Group 2: Industry Trends - A total of 68 branches have been closed across the industry this year, with several firms announcing closures in July alone [3]. - The primary reasons for these closures include optimizing regional layouts, reducing costs, and transitioning towards wealth management services [3]. - The brokerage industry is facing declining commission rates, prompting firms to either reduce costs through operational efficiencies or shift focus to wealth management and high-net-worth client services [3]. Group 3: Financial Performance - Guosen Securities reported a significant decline in revenue due to external market conditions, with 2023 net profit at approximately 60% of 2021 levels [4]. - The company is undergoing a "slimming down" of its branch network, reducing the number of securities and futures outlets from 263 in 2022 to 238 in 2023, with further reductions planned [5]. - The user base for Guosen's mobile securities platform has grown from 12.8 million in 2019 to 29 million in 2024, indicating a compound annual growth rate of 18% [5]. Group 4: Future Projections - Guosen Securities expects a net profit of between 4.78 billion and 5.53 billion yuan in the first half of 2025, representing a year-on-year growth of 52% to 76% [9]. - The company has reported strong performance in its main business areas, with significant growth in self-investment and brokerage fee income [9]. - The wealth management and institutional business segment achieved an impressive operating profit margin of 46% in 2024, highlighting the company's strong capabilities in client acquisition and service [9].