SCS(SH:601555) Shanxi Securities·2025-08-29 08:11Investment Rating - The report maintains an "Accumulate-A" rating for the company [1][10]. Core Views - The company has shown steady transformation in wealth management and an increase in equity investment scale, with significant growth in wealth management and investment business revenues [3][5]. - The company is expected to achieve revenues of CNY 93.33 billion, CNY 101.29 billion, and CNY 109.98 billion from 2025 to 2027, with corresponding net profits of CNY 37.78 billion, CNY 40.47 billion, and CNY 43.53 billion, reflecting growth rates of 59.66%, 7.12%, and 7.56% respectively [10]. Financial Performance Summary - In the first half of 2025, the company reported operating income of CNY 4.428 billion, a year-on-year increase of 33.63%, and a net profit attributable to shareholders of CNY 1.932 billion, up 65.76% [2]. - Wealth management and investment business revenues reached CNY 1.004 billion and CNY 2.158 billion, representing year-on-year increases of 33.72% and 65.90% respectively [3]. - The asset under management (AUM) grew by 5.21% to CNY 695.847 billion, with the total number of wealth management clients increasing by 10.21% to 3.1667 million [3]. - The company’s self-operated equity and derivatives accounted for 31.61% of net capital, an increase of 1.63 percentage points from the previous year [5]. Market Data - As of August 28, 2025, the closing price was CNY 10.19, with a year-to-date high of CNY 10.69 and a low of CNY 5.96 [7]. - The company’s total market capitalization is CNY 50.631 billion [7]. Earnings Forecast - The basic earnings per share (EPS) for the first half of 2025 is CNY 0.39, with a diluted EPS also at CNY 0.39 [8]. - The projected price-to-book (PB) ratios for 2025, 2026, and 2027 are 1.11, 1.03, and 0.98 respectively [10].