Huaxi Securities(SZ:002926) Zhi Tong Cai Jing·2025-12-31 07:33Core Viewpoint - The report from Huaxi Securities expresses optimism about the securities industry serving as a financing intermediary for new productive forces and long-term capital allocation, recommending attention to securities firms with expected industry mergers, well-established overseas business layouts, and those with strong retail brokerage and effective wealth management transformations [1] Group 1: Industry Performance - From the beginning of 2025 to December 28, the non-bank financial sector increased by 12.12%, ranking 19th among 31 Shenwan primary industries, underperforming the Shanghai Composite Index by 6.13 percentage points [1] - The non-bank financial sector's price-to-earnings ratio stands at 11.62 times, ranking 23rd among primary industries, while the weighted price-to-book ratio is 1.79 times, marking the lowest 37th percentile in the past decade [1] Group 2: Earnings Outlook - In the first three quarters of 2025, 46 comparable listed securities firms achieved adjusted revenue of 432.6 billion yuan and net profit attributable to shareholders of 179 billion yuan, representing year-on-year increases of 45% and 62% respectively [2] - The high growth in brokerage net income and proprietary net income supports the industry's performance in 2025 [2] - In the same period, five A-share listed insurance companies reported a total net profit attributable to shareholders of 426 billion yuan, a year-on-year increase of 33.5% from a high base last year [2] - The expectation for the fourth quarter of 2025 is that the equity market will perform better than the same period last year, leading to a continued double-digit growth in net profit for listed insurance companies throughout 2025 [2] Group 3: Policy Overview - On April 25, 2025, the Central Committee of the Communist Party of China emphasized the need to "maintain a stable and active capital market," signaling positive developments [3] - In 2026, the "14th Five-Year" plans from various regulatory bodies and local financial sectors will gradually clarify and implement policies for the securities industry [3] - Multiple initiatives from various departments aim to promote the entry of long-term funds into the market, addressing barriers for social security, insurance, and wealth management funds to facilitate "long money, long investment" [3]