Industrial Securities(SH:601377) Changjiang Securities·2025-09-03 10:43Investment Rating - The report maintains a "Buy" rating for the company [2][8]. Core Views - The company's performance continues to show a recovery trend, with proprietary wealth management contributing significantly to growth. Asset management business has slightly declined, while investment banking has faced pressure. Long-term, the company is expected to leverage business synergies in wealth management and accelerated institutionalization for growth [2][10]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved operating revenue of 5.4 billion and net profit attributable to shareholders of 1.33 billion, representing year-on-year increases of 0.2% and 41.2% respectively. The weighted average return on equity rose by 0.66 percentage points to 2.31%. The operating leverage, excluding client funds, decreased by 5.6% to 3.37 times [5][10]. Business Segments - For the first half of 2025, the company's revenue from brokerage, investment banking, asset management, interest income, and proprietary trading were 1.24 billion, 220 million, 70 million, 820 million, and 1.77 billion respectively, with year-on-year changes of +34.2%, -16.6%, -1.7%, +38.1%, and +48.6%. The growth trend in performance is evident, with proprietary wealth management being the main contributor [10]. Wealth Management and Proprietary Investment - The average daily trading volume in the two markets was 1.39 trillion, up 61% year-on-year. The brokerage business revenue increased to 1.24 billion, up 34.2% year-on-year. The company continues to deepen its wealth management efforts, with significant growth in client numbers and assets under management. Proprietary income reached 1.77 billion, up 48.6% year-on-year, with a slight decline in financial investment scale [10]. Asset Management and Investment Banking - The asset management business revenue was 70 million, down 1.7% year-on-year, while the investment banking revenue was 220 million, down 16.6% year-on-year. The company’s global fund management scale exceeded 700 billion, up 8% year-on-year, with a record high in entrusted asset scale [10]. Future Outlook - The company is expected to achieve net profits attributable to shareholders of 2.38 billion and 2.65 billion for 2025 and 2026, corresponding to price-to-earnings ratios of 24.7 and 22.2 times, and price-to-book ratios of 1.01 and 1.00 times respectively. The long-term growth potential is viewed positively due to market recovery and strategic business synergies [10].