Ge Long Hui·2025-11-03 03:53Core Viewpoint - The report indicates a significant increase in total revenue and net profit for the company in the first three quarters of 2025, driven by improved operational metrics and a favorable market environment [1][4]. Financial Performance - Total revenue (excluding other business income) reached 20.7 billion RMB, a year-on-year increase of 54.5% [1] - Net profit attributable to shareholders was 6.57 billion RMB, up 129.8% year-on-year [1] - Return on equity (ROE) improved to 5.7%, an increase of 3.1 percentage points year-on-year [1] - Total assets (excluding client funds) amounted to 587.3 billion RMB, a year-on-year increase of 764.3 billion RMB [1] Business Segments - Proprietary business income totaled 10.97 billion RMB, with a quarterly proprietary yield of 1.2%, showing a year-on-year increase of 0.1 percentage points [2] - Brokerage business revenue was 4.52 billion RMB, with a quarterly revenue of 1.86 billion RMB, reflecting a year-on-year increase of 135.5% [3] - Investment banking revenue was 2.94 billion RMB, with a quarterly revenue of 1.27 billion RMB, showing a year-on-year increase of 4.9 billion RMB [3] Market Position and Strategy - The company adjusted its proprietary asset structure in response to low bond yields, increasing the proportion of equity investments [2] - The company’s leverage ratio was reported at 5.08 times, an increase of 0.39 times year-on-year [1] - The company maintains a strong capital position with a risk coverage ratio of 196% and a net capital of 46 billion RMB [3] Future Outlook - The company is optimistic about growth opportunities in the context of supply-side reforms in the industry and an upward trend in market conditions [4] - Earnings per share (EPS) estimates for 2025, 2026, and 2027 have been revised upward to 1.87, 1.97, and 2.13 RMB respectively [4] - The target price is set at 26.15 HKD, with a recommendation to buy based on historical valuation and current business performance [4]