Xin Lang Cai Jing·2025-09-01 14:28Core Insights - Huatai Securities reported its 2025 interim results, meeting expectations with a revenue of 16.22 billion and a net profit of 7.55 billion, reflecting year-on-year increases of 31.0% and 42.2% respectively [1] - The company demonstrated strong performance across its brokerage, investment banking, and investment businesses, with effective cost control contributing to its financial stability [1] Financial Performance - In 1H25, Huatai Securities achieved a weighted average ROE of 4.30%, an increase of 1.12 percentage points year-on-year [1] - The main revenue sources included brokerage (3.75 billion), investment banking (1.17 billion), asset management (0.89 billion), net interest (2.04 billion), net investment (5.99 billion), and long equity investment (1.69 billion), with respective year-on-year growth rates of 37.8%, 25.4%, -59.8%, 186.6%, 35.4%, and 170.0% [1] Cost Management - The company maintained effective cost control, with management expenses totaling 7.26 billion, a slight increase of 0.8% year-on-year, resulting in a management expense ratio of 46.3%, down 12.6 percentage points year-on-year [1] International Expansion - Huatai International's net profit grew steadily, with 1H25 revenues of 3.76 billion HKD, a year-on-year decrease of 61.2%, and a net profit of 1.15 billion HKD, up 25.6% year-on-year, accounting for 13.8% of the company's total net profit [2] - The company completed a capital increase of 50 million USD for its subsidiary Huatai Securities (USA), enhancing its influence in overseas markets [2] Investment Metrics - As of the end of 2Q25, the company's operating leverage was 3.48x, an increase of 0.21x quarter-on-quarter, while investment leverage was 2.20x, up 0.23x quarter-on-quarter [3] - The financial investment scale reached 441.3 billion, reflecting a quarter-on-quarter increase of 14.5% and a year-to-date increase of 19.3% [3] - The net investment income for 2Q25 was 3.42 billion, with an annualized investment return rate of 3.31%, up 1.01 percentage points year-on-year [3] Wealth Management and Brokerage - The company is advancing its wealth management transformation, with net income from agency buying reaching 3.24 billion, a year-on-year increase of 42.7% [4] - The margin financing and securities lending business generated 3.51 billion in revenue, with a year-end balance of 127.32 billion, down 2.1% from the beginning of the year [4] Investment Banking Activities - In the domestic investment banking sector, the company reported an IPO underwriting scale of 3.19 billion, down 36.7% year-on-year, while the refinancing underwriting scale increased significantly to 39 billion, up 565% year-on-year [5] - The company maintained a leading position in the overseas investment banking market, completing nine Hong Kong IPO sponsorship projects in 1H25 [5] Future Projections - The company forecasts net profits of 15.35 billion, 16.39 billion, and 16.69 billion for 2025-2027, with year-on-year growth rates of 0%, 6.8%, and 1.8% respectively [5]