Ge Long Hui·2025-09-10 19:24Core Viewpoint - 中金公司 reported a significant increase in total revenue and net profit for the first half of 2025, indicating strong operational performance and growth potential in the investment banking sector [1][2]. Financial Performance - Total revenue (excluding other business income) reached 12.8 billion RMB, a year-on-year increase of 44.1%, with a quarterly revenue of 7.1 billion RMB, up by 1.39 billion RMB quarter-on-quarter [1]. - Net profit attributable to shareholders was 4.33 billion RMB, a year-on-year increase of 94.4%, with a quarterly net profit of 2.29 billion RMB, up by 250 million RMB quarter-on-quarter [1]. - Return on equity (ROE) improved significantly, with a reported ROE of 3.6%, up by 1.5 percentage points year-on-year [1]. Asset and Liability Overview - Total assets (excluding client funds) amounted to 544.3 billion RMB, an increase of 60.89 billion RMB year-on-year, with net assets of 118.8 billion RMB, up by 13.15 billion RMB [2]. - The company maintained a stable leverage ratio of 4.58 times, with interest-bearing liabilities at 286.4 billion RMB, down by 6.27 billion RMB quarter-on-quarter [2]. Business Segments - Heavy capital business net income totaled 6.4 billion RMB, with a quarterly income of 3.52 billion RMB, reflecting a quarter-on-quarter increase of 640 million RMB [2]. - Proprietary business income was 7.25 billion RMB, with a quarterly income of 3.86 billion RMB, up by 460 million RMB quarter-on-quarter [2]. - Margin financing business scale reached 45.3 billion RMB, with a market share of 2.45%, up by 0.21 percentage points year-on-year [3]. Investment Banking and Asset Management - Investment banking revenue was 1.67 billion RMB, with a quarterly income of 1.26 billion RMB, reflecting a quarter-on-quarter increase of 860 million RMB [3]. - Asset management revenue was 680 million RMB, with a quarterly income of 370 million RMB, up by 60 million RMB quarter-on-quarter [3]. Regulatory Metrics - Risk coverage ratio stood at 204.5%, down by 14.6 percentage points from the previous period, with net capital at 46.4 billion RMB, down by 2.3% [3]. - The company’s capital leverage ratio was 12.7%, slightly down by 0.1 percentage points [3]. Future Outlook - The company is expected to benefit from industry supply-side reforms, with projected EPS for 2025, 2026, and 2027 at 1.55, 1.63, and 1.77 RMB respectively [4]. - The target price is set at 24.11 HKD, with a recommendation for investment based on the current market conditions and company performance [4].