Minsheng Securities·2025-05-03 00:23Investment Rating - The report maintains a "Recommended" rating for Huatai Securities [8] Core Views - In Q1 2025, Huatai Securities reported operating revenue of 8.2 billion yuan, a year-on-year increase of 34.8%, and a net profit attributable to shareholders of 3.6 billion yuan, up 59.0% year-on-year, indicating a significant recovery in profitability [3][4] - The company's self-operated income turned positive year-on-year, with net interest income and brokerage income maintaining high growth rates, while investment banking and asset management revenues experienced slight declines [4][5] Business Segment Summaries - Self-Operated Business: In Q1 2025, self-operated income reached 2.8 billion yuan, a year-on-year increase of 47%. The self-operated investment return rate was 2.9%, showing a significant year-on-year growth [4][5] - Brokerage Business: Brokerage income grew by 42.6% year-on-year to 1.9 billion yuan, with the scale of securities purchased on behalf remaining high at 183.9 billion yuan, reflecting strong investor engagement [6] - Credit Business: Interest net income was 1 billion yuan, a year-on-year increase of 319.5%, driven by a decrease in interest expenses due to lower debt scale and funding costs [7] - Investment Banking: Investment banking revenue was 500 million yuan, down 5.9% year-on-year, with a notable increase in refinancing revenue [8] - Asset Management: Asset management income fell significantly to 400 million yuan, a year-on-year decline of 61.7%, attributed to a decrease in AUM growth rates [8][9] Financial Performance - The annualized return on equity (ROE) increased to 8.4%, up 2.92 percentage points year-on-year, while the net profit margin rose to 44.2%, marking a new high since Q2 2021 [9] - Revenue projections for 2025-2027 are estimated at 45 billion, 48.1 billion, and 51.4 billion yuan, with net profits expected to be 16.6 billion, 17.9 billion, and 19.3 billion yuan respectively, indicating a stable growth outlook [10][46]