HTSC·2025-08-29 04:55Investment Rating - The report maintains a "Buy" rating for the company in the A-share market and an "Overweight" rating in the H-share market [6]. Core Views - The company reported a significant revenue increase of 37.71% year-on-year for H1 2025, reaching 13.747 billion RMB, with a net profit of 6.488 billion RMB, up 47.86% year-on-year, aligning with the earnings forecast [1][2]. - The investment and brokerage businesses have shown remarkable growth, benefiting from an upturn in market conditions, leading to an upward revision of revenue and profit forecasts for 2025 [4][17]. Summary by Sections Financial Performance - In H1 2025, investment income reached 7.399 billion RMB, a 50% increase year-on-year, with brokerage income at 3.647 billion RMB, up 45% year-on-year [2][3]. - The company increased its financial investments, with a leverage ratio of 4.14x, reflecting a 0.07 percentage point increase since the beginning of the year [2]. Investment Banking and Asset Management - The investment banking segment generated a net income of 316 million RMB, a 19% increase year-on-year, with notable rankings in equity underwriting and bond issuance [3]. - Asset management income also grew by 18% year-on-year, with a focus on diversifying product offerings [3]. Profit Forecast and Valuation - The report projects a 31% year-on-year growth in operating revenue for 2025, with net profits expected to reach 14 billion RMB, 15.7 billion RMB, and 17.4 billion RMB for 2025, 2026, and 2027 respectively [4][10]. - The target price has been adjusted to 21.46 RMB for A-shares and 15.28 HKD for H-shares, reflecting a price-to-book ratio of 2.0 and 1.3 respectively for 2025 [4][7].