EASTMONEY(SZ:300059) Soochow Securities·2025-08-16 07:43Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights that the company has experienced significant growth in its brokerage and margin financing businesses due to a continuously active market, with total revenue for H1 2025 increasing by 39% year-on-year to 6.9 billion yuan and net profit attributable to shareholders rising by 37% to 5.6 billion yuan [1] - The report anticipates continued strong performance, projecting net profits of 12.7 billion yuan, 15.1 billion yuan, and 17.8 billion yuan for 2025, 2026, and 2027 respectively, reflecting a positive outlook for the company's growth trajectory [1][8] Summary by Sections Financial Performance - In H1 2025, the company achieved total revenue of 6.9 billion yuan, a year-on-year increase of 39%, and net profit attributable to shareholders of 5.6 billion yuan, up 37% [1] - For Q2 2025, the company reported a total revenue of 3.4 billion yuan, a 35% increase year-on-year, and a net profit of 2.9 billion yuan, reflecting a 36% year-on-year growth [1] Revenue Breakdown - The brokerage business benefited from an active market, with net commission income rising by 61% to 3.8 billion yuan in H1 2025, and the market share for stock trading reaching 4.24%, an increase of 0.15 percentage points year-on-year [8] - Interest income also saw a 39% increase to 1.4 billion yuan, while securities investment income decreased by 15% to 1.4 billion yuan due to lower returns from fixed-income products [8] Cost Management - The company's total operating costs increased by only 2.3% to 2.1 billion yuan in H1 2025, with sales expenses decreasing by 7% to 140 million yuan and R&D expenses down by 10% to 500 million yuan [8] Strategic Positioning - The company is well-positioned with leading platforms such as Eastmoney and Tiantian Fund, creating a high-retention, diversified demand ecosystem for retail clients [8] - The integration of AI into financial services is expected to enhance customer experience and operational efficiency, further solidifying the company's competitive edge in the market [8] Earnings Forecast - The report has revised the earnings forecast upwards, projecting net profits of 12.7 billion yuan for 2025, 15.1 billion yuan for 2026, and 17.8 billion yuan for 2027, with corresponding P/E ratios of 33, 28, and 24 [1][8]