Zhi Tong Cai Jing·2025-11-03 02:03Core Viewpoint - Huachuang Securities expresses optimism about China International Capital Corporation (CICC) due to its high leverage and excellent business capabilities, anticipating growth opportunities amid supply-side reforms in the industry [1] Financial Performance - CICC's total revenue for the first three quarters of 2025 reached 20.7 billion yuan, a year-on-year increase of 54.5%, while net profit attributable to shareholders was 6.57 billion yuan, up 129.8% year-on-year [2] - The company's return on equity (ROE) improved significantly, with a reported ROE of 5.7%, an increase of 3.1 percentage points year-on-year [2] - The financial leverage ratio at the end of the reporting period was 5.08 times, an increase of 0.39 times year-on-year and 0.5 times quarter-on-quarter [2][3] - The net profit margin for the reporting period was 31.7%, up 10.4 percentage points year-on-year [3] Asset and Liability Management - CICC's total assets, excluding client funds, amounted to 587.3 billion yuan, an increase of 76.43 billion yuan year-on-year, with net assets of 115.5 billion yuan, up 6.69 billion yuan year-on-year [3] - The company's interest-bearing liabilities totaled 312 billion yuan, an increase of 25.51 billion yuan quarter-on-quarter [3] Business Segments - Proprietary business income totaled 10.97 billion yuan, with a quarterly proprietary yield of 1.2%, showing a slight decrease of 0.1 percentage points quarter-on-quarter but an increase of 0.1 percentage points year-on-year [3] - Interest income from credit business was 6.19 billion yuan, with a margin trading scale of 62.2 billion yuan, up 168.8 billion yuan quarter-on-quarter [4] - Brokerage business revenue was 4.52 billion yuan, with a quarterly revenue of 1.86 billion yuan, reflecting a quarter-on-quarter increase of 37.6% and a year-on-year increase of 135.5% [4] - Investment banking revenue was 2.94 billion yuan, with a quarterly revenue of 1.27 billion yuan, showing slight growth from the previous quarter and a year-on-year increase of 4.9 billion yuan [4] Regulatory Metrics - CICC's risk coverage ratio stood at 196%, well above the warning line of 120%, with risk capital reserves of 23.5 billion yuan, an increase of 3.4% from the previous period [4] - The net capital was 46 billion yuan, with a net stable funding ratio of 139%, also above the warning line of 120% [4]