Western Securities·2025-08-29 05:23Investment Rating - The report maintains a "Buy" rating for China Galaxy [6] Core Views - China Galaxy reported strong performance in its 2025 mid-year report, achieving revenue and net profit of 13.747 billion and 6.488 billion yuan, respectively, representing year-on-year increases of 37.7% and 47.9% [1][6] - The company's net profit for Q2 2025 was 3.472 billion yuan, with a quarter-on-quarter increase of 15.1% [1] - The weighted average ROE for H1 2025 increased by 1.53 percentage points to 5.2%, and the operating leverage, excluding customer funds, was stable at 4.14 times [1][6] - Management expenses rose by 15.4% year-on-year to 6.18 billion yuan, while the management expense ratio decreased by 9.22 percentage points to 45.1% [1] Revenue Breakdown - In H1 2025, the company achieved net income from brokerage, investment banking, and asset management of 3.647 billion, 316 million, and 268 million yuan, respectively, with year-on-year growth rates of 45.3%, 18.9%, and 17.5% [2] - The average daily trading volume of A-shares increased by 61.1% year-on-year, driving significant growth in brokerage net income [2] - The investment banking net income continued to expand, with equity underwriting and major asset restructuring ranking 8th and 7th in the market, respectively, while bond underwriting grew by 82.8% year-on-year, ranking 6th [2] Investment Income and Asset Management - In H1 2025, the company reported net interest income and investment income of 1.940 billion and 7.405 billion yuan, respectively, with year-on-year increases of 5.5% and 51.8% [3] - The company’s financial asset scale reached 407.6 billion yuan, up 6.6% from the beginning of the year, with a notable increase in bond holdings [3] - The report highlights the company's solid wealth management advantages and increasing customer numbers, projecting stable future profitability [3] Profit Forecast - The profit forecast for 2025-2027 is adjusted, with expected net profits of 13.263 billion, 14.693 billion, and 16.054 billion yuan, representing year-on-year growth rates of 32.2%, 10.8%, and 9.3% [3]