Western Securities(SZ:002673) 智通财经网·2025-11-17 03:36Core Viewpoint - The brokerage industry is expected to see a net profit growth of 23.5% year-on-year by 2026 under a neutral assumption, driven by a positive economic outlook and a rising capital market trend, making the brokerage sector a relatively undervalued asset with high growth potential in performance [1] Group 1: Market Trends and Performance - In 2025, the stock prices of brokerages and trading software are anticipated to exhibit a pattern of fluctuation followed by an upward trend, with undervalued Hong Kong brokerages and A-share trading software performing better [2] - The continuous liquidity easing is expected to enhance risk appetite in the capital market, leading to active trading and significant performance improvements in brokerages and trading software, which are closely tied to market activity [2] Group 2: Industry Development Outlook for 2026 - The influx of new capital is expected to maintain high prosperity in brokerage wealth management, with regulatory support for long-term funds like insurance capital flowing into the capital market, potentially leading to sustained high trading volumes in the A-share market [3] - The importance of equity proprietary trading for brokerages is projected to increase as the index breaks upward, with significant performance differentiation among brokerages, and a growing focus on equity investments expected to influence performance [3] - The deepening of interconnectivity between mainland and Hong Kong markets is likely to drive recovery in investment banking and rapid development of international business for brokerages, with a notable increase in southbound capital and a significant share of IPOs from A-share companies in Hong Kong [4] - The trend of supply-side reform in the industry is expected to continue, with an increase in industry concentration despite a slowdown in new mergers and acquisitions [4]