Changjiang Securities·2025-05-04 07:59Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - In Q1 2025, the company achieved a rapid growth in performance, with brokerage business increasing alongside market growth, and resilient self-investment returns [2][6]. - The company is expected to benefit from policies favoring strong firms and mergers and acquisitions, with investment banking and asset management likely to continue gaining momentum under new management and strategy [2][12]. Summary by Sections Financial Performance - In Q1 2025, the company reported operating revenue of 7.56 billion yuan, a year-on-year increase of 4.8%, and a net profit attributable to shareholders of 3.02 billion yuan, up 84.9% year-on-year. The weighted average return on equity (ROE) increased by 1.14 percentage points to 2.44% [6][12]. - Revenue from various business lines includes brokerage at 1.92 billion yuan (up 53.1%), investment banking at 150 million yuan (up 59.5%), asset management at 130 million yuan (up 19.3%), interest income at 910 million yuan (down 2.4%), and self-investment income at 3.16 billion yuan (up 94.2%) [12]. Brokerage and Financing - The average daily trading volume in the two markets was 1.52 trillion yuan, a year-on-year increase of 70.3%, with the margin financing balance at 1.92 trillion yuan, up 24.8% year-on-year. The company's brokerage revenue increased by 53.1% to 1.92 billion yuan, with a financing balance up 3.8% to 105.4 billion yuan, resulting in a market share of 5.52%, an increase of 0.08 percentage points from the beginning of the year [12]. Investment and Underwriting - Despite market fluctuations, the company achieved impressive investment returns of 3.16 billion yuan in Q1 2025, a year-on-year increase of 94.2%, with a calculated annualized investment return rate of 5.7%, up 2.76 percentage points year-on-year [12]. - The company’s bond underwriting scale reached 157.41 billion yuan, a year-on-year increase of 88.7%, with a market share increase of 1.84 percentage points [12]. Future Outlook - The company is projected to achieve net profits attributable to shareholders of 11.22 billion yuan and 12.74 billion yuan for 2025 and 2026, respectively, corresponding to price-to-book ratios of 1.53 and 1.40 [12].