Industrial Securities(SH:601377) KAIYUAN SECURITIES·2025-09-03 04:09Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown performance improvement with significant year-on-year growth in brokerage and proprietary investment income. The total revenue and net profit for H1 2025 were 5.4 billion and 1.33 billion yuan, respectively, representing a year-on-year increase of 29% and 41%. The net profit for Q2 was 800 million yuan, up 58% quarter-on-quarter [4][5] - The company is expected to benefit from an active market, leading to an upward revision of net profit forecasts for 2025-2027 to 3 billion, 4 billion, and 4.9 billion yuan, respectively, with year-on-year growth rates of 39%, 33%, and 23% [4][6] - The company is focusing on enhancing its wealth management and institutional service strategies, which are expected to improve overall performance and return on equity (ROE) [4][5] Financial Performance Summary - For H1 2025, the brokerage business net income was 1.24 billion yuan, up 34% year-on-year, driven by increased market activity with an average daily trading volume of 1.4 trillion yuan, a 61% increase year-on-year [5] - The investment income (including fair value gains and losses) reached 1.77 billion yuan, a 49% increase year-on-year, with a Q2 figure of 1.15 billion yuan, up 89% quarter-on-quarter [6] - The company's total revenue for 2025 is projected to be 11.63 billion yuan, with a year-on-year decrease of 5.9%, followed by a recovery in subsequent years [7][10] Valuation Metrics - The projected price-to-earnings (P/E) ratio for 2025 is 19.1 times, with a price-to-book (P/B) ratio of 1.0 times [7][10] - The return on equity (ROE) is expected to improve to 5.1% in 2025, up from 3.8% in 2024 [7][10]