Ge Long Hui·2025-09-02 12:09Core Viewpoint - The report indicates that China Merchants Securities has shown a steady growth in revenue and net profit for the first half of 2025, with a notable increase in various financial metrics, reflecting a positive outlook for the company's performance in the investment banking sector [1] Financial Performance - Total operating revenue (excluding other business income) reached 10.4 billion RMB, a year-on-year increase of 9%, with a quarterly revenue of 5.8 billion RMB, up by 11.5% [1] - The net profit attributable to shareholders was 5.19 billion RMB, a year-on-year increase of 9.2%, with a quarterly net profit of 2.88 billion RMB, up by 5.7% [1] - Return on equity (ROE) for the reporting period was 3.9%, an increase of 0.1 percentage points year-on-year [1] Asset and Liability Overview - Total assets (excluding client funds) amounted to 499.3 billion RMB, an increase of 8.92 billion RMB year-on-year, with net assets of 131.4 billion RMB, up by 6.95 billion RMB [1] - The company's leverage ratio was 3.8 times, a decrease of 0.14 times year-on-year [1] Revenue Breakdown - The net income from capital-intensive businesses totaled 4.75 billion RMB, with a quarterly figure of 3.03 billion RMB, reflecting a quarter-on-quarter increase of 1.31 billion RMB [1] - Brokerage business revenue grew significantly, reaching 3.73 billion RMB, with a quarterly revenue of 1.77 billion RMB, a year-on-year increase of 40.5% [1] - Investment banking revenue was 400 million RMB, with a quarterly revenue of 220 million RMB, showing a year-on-year increase of 0.2 billion RMB [1] Market Conditions - The average daily trading volume in the market was 12.64 trillion RMB, down by 17.2% quarter-on-quarter [1] - The company’s market share in margin financing was 5.15%, a decrease of 0.13 percentage points year-on-year [1] Regulatory Metrics - The risk coverage ratio stood at 241.7%, down by 13 percentage points from the previous period [1] - The net stable funding ratio was 160.3%, a decrease of 8.9 percentage points from the previous period [1] Investment Outlook - The company maintains its earnings forecast, projecting EPS for 2025/2026/2027 at 1.45/1.56/1.67 RMB, with corresponding BPS of 13.98/15.02/16.06 RMB [1] - The target price is set at 22.37 RMB, based on a 1.6 times PB valuation for 2025, maintaining a "recommended" rating [1]