CHINA DRAGON SECURITIES·2025-05-20 07:50Investment Rating - The report maintains a "Recommended" rating for the securities industry [2] Core Insights - The securities industry is expected to see stable performance due to long-term capital inflows, with self-operated and brokerage businesses remaining the core drivers of performance [4][11] - In Q4 2024, the overall revenue of 42 listed securities firms reached CNY 508.847 billion, a year-on-year increase of 7.32%, while net profit attributable to shareholders was CNY 147.835 billion, up 15.88% [11][30] - The self-operated business remains the primary source of income, with brokerage income turning to growth after a significant increase in market trading volume [11][12] - The report highlights that the performance of the securities industry is expected to improve significantly due to enhanced market stability and liquidity, as well as potential mergers and acquisitions [4][12] Summary by Sections 1. Overall Performance - In Q1 2025, listed securities firms achieved revenue of CNY 125.930 billion, a year-on-year increase of 24.60%, with net profit rising by 83.48% [12][30] - The self-operated and brokerage business income improvements are the main reasons for the performance enhancement [12] 2. Business Structure and Segment Analysis 2.1 Core Business Drivers - Self-operated business contributed 35% to revenue, while brokerage business accounted for 21% in 2024 [32] - The asset management business remained stable at 9%, while investment banking and interest income faced pressure, contributing 6% and 7% respectively [32] 2.2 Brokerage Business - The overall brokerage income for 42 listed firms reached CNY 106 billion in 2024, a 10% increase year-on-year [40] - In Q1 2025, brokerage income continued to grow, reaching CNY 327 billion, a 49% increase [40] 2.3 Self-Operated Business - The total self-operated income for 42 listed firms was CNY 178.9 billion in 2024, up 32% year-on-year [41] - In Q1 2025, self-operated income continued to grow, totaling CNY 487 billion, a 45% increase [43]