SINOLINK SECURITIES(SH:600109) Sou Hu Cai Jing·2025-11-14 11:30Core Viewpoint - Guojin Securities has shown impressive performance in Q3 2025, with a nearly doubled net profit year-on-year, despite not being favored by investors, leading to a lower valuation compared to peers [2][3][20]. Financial Performance - In the first three quarters of 2025, Guojin Securities achieved operating revenue of 6.152 billion yuan, a year-on-year increase of 43.36%, and a net profit attributable to shareholders of 1.7 billion yuan, up 90.27%, both reaching historical highs [3][20]. - The significant growth in revenue and profit is attributed to a surge in brokerage business and investment income [4][20]. Brokerage and Investment Income - Brokerage income for the first three quarters of 2025 was 2.073 billion yuan, a more than 78% increase from 1.162 billion yuan in the same period of 2024 [4][7]. - Investment income reached 1.691 billion yuan, up over 80 million yuan from 890 million yuan in the previous year [7][20]. Market Context - The increase in brokerage income is closely linked to a substantial rise in A-share trading volume, which reached 137.6 trillion yuan in Q3 2025, marking a 217.05% year-on-year increase [7][20]. - The overall performance of A-shares has been strong, with the Shanghai Composite Index rising nearly 16% and the ChiNext Index increasing over 50% during the same period [9][20]. Asset Management - As of September 30, 2025, Guojin Securities held trading financial assets totaling 37.95 billion yuan, primarily in bonds [7][8]. - The company has been reducing its trading financial asset holdings, decreasing by nearly 3.7 billion yuan from the previous quarter [9][20]. Shareholder Dynamics - Following the death of former controlling shareholder Wei Dong, Guojin Securities has seen changes in its ownership structure, with Chengdu state-owned assets becoming the second-largest shareholder [2][13]. - The entry of Chengdu state-owned assets has led to increased support in business operations, particularly in bond underwriting [13][20]. Debt and Leverage - Guojin Securities has increased its leverage, with total liabilities rising from 63.87 billion yuan to 110.9 billion yuan over five years, reflecting a strategy to enhance investment income [14][20]. - The company’s interest income and investment income have also seen growth, with interest income rising from 1.186 billion yuan in 2021 to 1.292 billion yuan in 2024 [14][20]. Market Performance and Valuation - Despite strong financial results, Guojin Securities' stock price has lagged behind industry peers, with a 70% decline from its peak in 2015 [18][20]. - As of November 12, 2025, the stock price was 9.62 yuan per share, with a price-to-book ratio of 1.02, ranking 51st among 55 brokerage firms [20][21]. - The company has conducted multiple share buybacks totaling approximately 360 million yuan since 2023, but these efforts have not significantly boosted the stock price [20][21].