Huachuang Securities·2025-09-01 09:45Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 35.69 CNY [2][10]. Core Insights - The company demonstrates a significant improvement in ROE, with a reported ROE of 4.5%, up by 0.7 percentage points year-on-year. The quarterly ROE stands at 2.3%, reflecting a 0.2 percentage point increase quarter-on-quarter and a 0.3 percentage point increase year-on-year [2]. - The total assets, excluding client funds, reached 1,242.2 billion CNY, an increase of 141.1 billion CNY year-on-year, while net assets grew to 305.4 billion CNY, up by 26.16 billion CNY year-on-year [2]. - The company’s net profit margin improved to 41.9%, up by 2.4 percentage points year-on-year, with a quarterly net profit margin of 43.3%, reflecting a 2.9 percentage point increase quarter-on-quarter and a 3.4 percentage point increase year-on-year [2]. Financial Performance - The company’s self-operated business revenue totaled 19.05 billion CNY, with a quarterly revenue of 10.19 billion CNY, showing a quarter-on-quarter increase of 1.33 billion CNY. The self-operated yield for the quarter was 1.4%, up by 0.2 percentage points quarter-on-quarter and 0.4 percentage points year-on-year [3]. - Interest income from credit business amounted to 9.51 billion CNY, with a quarterly figure of 4.75 billion CNY, reflecting a slight decrease of 0.09 million CNY quarter-on-quarter. The margin for margin financing and securities lending stood at 1,432 billion CNY, down by 6.61 billion CNY quarter-on-quarter [3]. - The company’s brokerage business revenue was 6.4 billion CNY, with a quarterly revenue of 3.08 billion CNY, down by 7.5% quarter-on-quarter but up by 26.2% year-on-year [9]. Earnings Forecast - The report projects the company’s EPS for 2025, 2026, and 2027 to be 1.88 CNY, 2.11 CNY, and 2.29 CNY respectively, with corresponding PB ratios of 1.68, 1.58, and 1.49 [10][11]. - The expected growth rates for the company’s main revenue and net profit are 25% and 28% for 2025, respectively, indicating strong future performance [11].