EASTMONEY(SZ:300059) Changjiang Securities·2025-10-27 23:30Investment Rating - The investment rating for the company is "Buy" and is maintained [10]. Core Insights - The company's Q3 profit growth has significantly improved, driven by its securities business. The strong market has led to a notable increase in securities revenue, and overall platform traffic is recovering. Cost control on the expense side is effective, resulting in enhanced profitability. As a benchmark for internet brokerages, the company shows significant competitive advantages in customer acquisition and cost management. In the short term, the impact of public fund fee reductions is nearly cleared, and the market share in the securities business continues to rise, with commission rates bottoming out ahead of the industry. Given the market recovery, the long-term growth potential of its securities business is promising [2][14]. Summary by Sections Financial Performance - In the first three quarters of 2025, the company achieved total revenue of 115.9 billion yuan, a year-on-year increase of 58.7%, and a net profit attributable to shareholders of 91.0 billion yuan, up 50.6%. The weighted average return on equity (ROE) increased by 2.6 percentage points to 10.7% [7][14]. Business Segments - For Q3, the company reported total revenue of 53.0 billion yuan and a net profit of 35.3 billion yuan, reflecting year-on-year growth of 69.6% and 77.7%, respectively. The revenue from various business lines includes e-commerce income of 25.4 billion yuan, net interest income of 24.1 billion yuan, net commission income of 66.4 billion yuan, and investment income of 19.7 billion yuan, with year-on-year changes of +13.4%, +59.7%, +86.8%, and -18.2% respectively [14]. Market Environment - The average daily trading volume in Q3 was 2.1 trillion yuan, a year-on-year increase of 209.7%, with a financing balance of 2.40 trillion yuan, up 66.2%. The market environment is significantly better than the same period last year [14]. Cost Management - The company effectively controlled costs, with sales, management, and R&D expenses amounting to 2.6 billion yuan, 19.0 billion yuan, and 7.5 billion yuan, reflecting year-on-year changes of +20.9%, +11.5%, and -11.2% respectively. The net profit margin improved by 4.9 percentage points to 67.1% [14]. Future Outlook - The company is expected to achieve net profits of 119.8 billion yuan and 138.1 billion yuan in 2025 and 2026, representing year-on-year growth of 24.6% and 15.3%, respectively, with corresponding price-to-earnings ratios of 34.1 and 29.6 times [14].