Huachuang Securities·2025-08-04 09:13Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index by more than 5% over the next 3-6 months compared to the benchmark index [28]. Core Insights - The total amount raised through IPOs in the Hong Kong stock market from January to July 2025 has exceeded the total for each year from 2022 to 2024, with a total of HKD 127.5 billion, representing a year-on-year increase of 604% [2]. - In the A-share market, the number of IPO applications accelerated significantly, with 148 companies applying in June 2025, accounting for 84% of the total for January to July [3]. - The reactivation of the fifth set of standards for the Sci-Tech Innovation Board and the introduction of the third set of standards for the Growth Enterprise Market are expected to broaden financing channels for unprofitable technology companies, thereby accelerating the IPO process and increasing the scale of equity financing in the industry [3]. Summary by Sections IPO Market Performance - In the Hong Kong market, 52 new stocks were listed from January to July 2025, marking a 30% year-on-year increase [2]. - The significant fundraising success is highlighted by the listing of CATL, which raised HKD 41 billion, accounting for 32.1% of the total fundraising amount [2]. A-Share Market Dynamics - The A-share IPO acceptance rate saw a notable increase in June 2025, with 148 companies applying compared to only 29 in June 2024 [3]. - The concentration of applications in June is attributed to the financial reporting deadline, prompting many companies to submit their applications before June 30 [3]. Company Earnings Forecast and Valuation - Key companies in the industry, such as GF Securities, CITIC Securities, and Huatai Securities, have been rated as "Recommended" with projected earnings per share (EPS) for 2025 estimated at CNY 1.45, CNY 1.82, and CNY 1.91 respectively [5]. - The price-to-earnings (PE) ratios for these companies are projected to be 13.36, 15.76, and 10.38 for 2025, indicating favorable valuations [5]. Market Performance Metrics - The absolute performance of the industry over the past 12 months is reported at 42.8%, with a relative performance of 24.3% compared to the benchmark [7]. - As of August 1, 2025, the PE TTM valuation for the brokerage sector stands at 21.21x, which is at the 50.5% percentile over the past five years [9].