Investment Rating - The report maintains a "Buy" rating for the company with target prices of HKD 13.13 for H shares and RMB 21.34 for A shares [8][9]. Core Insights - The company achieved a revenue of RMB 7.24 billion in Q1 2025, representing a year-on-year increase of 46.29%, and a net profit of RMB 2.76 billion, up 79.23% year-on-year. All business lines showed growth, with investment income increasing over 100% and brokerage income rising by 51% [1][2]. - The company continues to expand its investment portfolio, with financial investments growing by 18% year-to-date to RMB 435.1 billion, contributing to a total asset increase of 7% [2]. - The brokerage segment saw a significant recovery, with net brokerage income of RMB 2.04 billion, up 51% year-on-year, and net interest income of RMB 532 million, up 21% [3]. - Asset management and investment banking revenues showed modest growth, with asset management net income at RMB 1.69 billion, up 5% year-on-year, and investment banking net income at RMB 154 million, up 4% [4]. Financial Projections and Valuation - The report adjusts earnings per share (EPS) forecasts for 2025-2027 to RMB 1.39, 1.51, and 1.66, respectively, reflecting a downward revision of 6% to 8% due to uncertainties in market conditions [5]. - The projected book value per share (BPS) for 2025-2027 is RMB 20.32, 21.33, and 22.44, respectively [5]. - The report assigns a target price-to-book (PB) ratio of 1.05 for A shares and a discounted PB of 0.6 for H shares, reflecting concerns over market liquidity and the stability of brokerage investment income [5].
广发证券（01776）：投资贡献增长，经纪提振业绩