HTSC·2025-08-29 04:49Investment Rating - The investment rating for the company is "Buy" (maintained) for both A and H shares [7]. Core Views - The company reported a significant increase in revenue and net profit for the first half of 2025, with revenue reaching 4.011 billion RMB, up 269% year-on-year, and net profit attributable to shareholders at 1.127 billion RMB, up 1185% year-on-year [1]. - The core driver of profit growth is attributed to a substantial increase in investment income, which reached 2.097 billion RMB, a year-on-year increase of 459% [2]. - The acquisition of Minsheng Securities has strengthened the company's investment banking capabilities and expanded its wealth management client base [3]. Summary by Sections Financial Performance - The company achieved a net investment banking income of 531 million RMB, a year-on-year increase of 214% [3]. - The underwriting amount for equity financing was 2.62 billion RMB, with IPO underwriting amounting to 1.52 billion RMB, significantly up from 295 million RMB in the same period last year [3]. - The asset management net income was 357 million RMB, a year-on-year increase of 14% [4]. Investment Forecast and Valuation - The earnings per share (EPS) for 2025-2027 are projected to be 0.45, 0.50, and 0.58 RMB respectively, with significant upward adjustments due to the acquisition of Minsheng Securities [5]. - The target price is set at 16.56 RMB for A shares and 9.07 HKD for H shares, reflecting a price-to-book (PB) ratio of 1.8 for A shares and 0.9 for H shares [5]. - The company is expected to maintain a strong market position with a projected net profit of 2.561 billion RMB in 2025, representing a year-on-year increase of 544.3% [11].