Goldman Sachs(US:GS) Xin Lang Cai Jing·2026-01-04 11:17Core Insights - Goldman Sachs (GS.US) has been selected as a key asset in the "Global Vision" top ten core assets for 2026, representing the financial industry due to its strategic focus and strong market position [1][2]. Industry Environment - The global investment banking industry is entering a recovery phase in 2024 after adjustments in 2022-2023, with a significant increase in M&A activity expected in 2025, projected to reach $4.5 trillion, a nearly 50% year-on-year growth [1][2]. - The easing monetary policy will lower corporate financing costs, stimulating M&A and LBO demand, benefiting Goldman Sachs as the leading M&A advisor [2][3]. Business Breakdown - Global Banking and Markets (GBM): Expected to benefit from the recovery in global M&A and IPO markets, with revenue growth projected at 20%-30% for M&A advisory and over 25% for overall investment banking fees [4][6]. - Asset and Wealth Management (AWM): Anticipated to achieve both scale expansion and revenue improvement, with assets under management expected to exceed $4 trillion and revenue growth of 10%-15% [6][14]. - Platform Solutions: This segment is relatively small, focusing on core areas like transaction banking, with stable revenue expected [10][11]. Core Advantages - The strategic focus on high-margin core businesses has optimized Goldman Sachs' business structure, reducing reliance on volatile retail banking and enhancing profitability [12][14]. - The GBM segment remains a strong revenue contributor, with significant growth in M&A advisory and fixed income, currency, and commodities (FICC) businesses [12][14]. - AWM is positioned as a long-term growth engine, benefiting from the increasing wealth of high-net-worth individuals and providing stable cash flow [14]. Financial and Valuation - Financial performance has improved, with revenue and net profit growth rates exceeding industry averages, and ROE reaching 14.6% [15][17]. - Valuation is expected to recover as the market recognizes the shift towards a more stable and high-quality growth model, with a potential 15%-25% upside in valuation [17].