ZHESHANG SECURITIES·2025-07-25 14:21Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company is a leading private brokerage firm with optimized governance structure and a potential for a "Davis Double" effect [1] - The A-share and Hong Kong stock markets are gradually emerging from a long bull market, and the brokerage sector may welcome a new wave of innovation encouragement [1][2] - The company has a balanced business structure and excellent profitability, with a leading position in wealth management and a recovering investment banking business [1] Market and Policy Drivers - Market factors include the internationalization of the RMB, which is expected to drive a systematic revaluation of RMB assets, alongside domestic liquidity easing [1] - Policy support is anticipated to continue, benefiting brokerages as key participants in the capital and monetary markets [1][2] - The brokerage sector is expected to experience a "Davis Double" effect in terms of valuation and performance [1] Financial Forecasts - Projected net profit growth rates for 2025E-2027E are 23.9%, 16.4%, and 15.3% respectively [2][8] - The current price corresponds to a 2025 PB of 1.2x, which is below the average valuation of 1.4x for the brokerage sector [2] Target Price and Upside Potential - The target price is set at 27.18 CNY based on a 1.5x PB for 2026, indicating a potential upside of 36% [3]