Zhi Tong Cai Jing·2025-08-25 06:54Core Viewpoint - The company has demonstrated strong financial performance in the first half of 2025, achieving significant growth in revenue and profit despite a challenging global capital market environment [1][3][9]. Financial Performance - Total revenue for the first half of 2025 reached HKD 18.03 billion, with total income at HKD 28 billion, marking a year-on-year increase of 43.47% [1]. - Shareholder profit surged to HKD 887 million, a remarkable increase of 1076% compared to the previous year [1]. - Basic earnings per share were HKD 0.453, with an interim dividend proposed at HKD 0.12 per share [1]. Investment Management Growth - The investment management segment generated HKD 10.35 billion in revenue, a staggering increase of 897% year-on-year, becoming the largest revenue driver for the company [3][5]. - Investment management profits before tax reversed from a loss of HKD 1.475 billion to a profit of HKD 7.856 billion, contributing over 70% of the company's total profit [3][5]. Market Performance - Since the positive earnings announcement in early August, the company's stock price has risen over 20%, and year-to-date, it has increased by 60% [2]. - The company's price-to-earnings ratio (TTM) has expanded to approximately 7 times, with a net price-to-earnings ratio exceeding 21.88 times, reflecting a revaluation by institutional investors [2]. Business Strategy and Ecosystem - The company has built a robust alternative investment ecosystem that has shown resilience across economic cycles, effectively transforming market volatility into excess returns [3][9]. - The synergy between credit and fund management has provided a stable cash flow of HKD 17.26 billion, acting as a stabilizing force amid market fluctuations [10][11]. Fund Management and Capital Flow - The total assets under management for the fund management business reached USD 2.6 billion, driven by strong net cash inflows and market performance [12][13]. - The company has shifted from a self-capital-driven model to a third-party capital-driven approach, increasing external investor capital from 79.9% to 85% [15][16]. Valuation and Market Position - The company's valuation is undergoing a significant transformation, reflecting its transition from a traditional credit institution to an ecological asset management platform [17][18]. - The core valuation premium is attributed to the restructuring of revenue models, the establishment of ecological barriers, and the ability to generate excess returns in volatile markets [17].