Zheshang Securities(601878) Huachuang Securities·2025-04-14 08:31Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 12.25 CNY [1]. Core Views - The company's return on equity (ROE) decreased year-on-year to 5.5%, with a notable decline in leverage [1]. - The total revenue for the reporting period was 6.4 billion CNY, reflecting a year-on-year increase of 12.3% [6]. - The net profit attributable to the parent company was 1.93 billion CNY, up 10.2% year-on-year [6]. Financial Performance Summary - The company's financial leverage ratio at the end of the reporting period was 3.51 times, down 1.1 times year-on-year [1]. - The asset turnover ratio was 5.2%, an increase of 0.6 percentage points year-on-year [1]. - The net profit margin for the reporting period was 30.2%, a decrease of 0.6 percentage points year-on-year [1]. Business Segment Performance - Proprietary business revenue totaled 1.74 billion CNY, with a quarterly revenue of 710 million CNY, reflecting a quarter-on-quarter increase of 250 million CNY [2]. - Interest income from credit business was 2.51 billion CNY, with a quarterly income of 710 million CNY, up 110 million CNY quarter-on-quarter [2]. - Brokerage business revenue increased significantly by 105.2% quarter-on-quarter to 2.35 billion CNY [8]. Future Earnings Projections - The company is expected to achieve earnings per share (EPS) of 0.52, 0.58, and 0.65 CNY for the years 2025, 2026, and 2027 respectively [9]. - The projected net profit for the years 2025, 2026, and 2027 is 2.38 billion, 2.66 billion, and 2.98 billion CNY respectively [9].