Western Securities·2025-10-31 08:13Investment Rating - The investment rating for the company is "Buy" [6][12]. Core Views - The company reported a revenue of 26.164 billion and a net profit attributable to shareholders of 10.934 billion for the first three quarters of 2025, representing year-on-year increases of 41.0% and 61.6% respectively. In Q3 2025, the net profit attributable to shareholders was 4.465 billion, up 20.3% quarter-on-quarter [1][6]. - The company has a weighted average ROE of 8.2%, an increase of 2.92 percentage points year-on-year, and a management expense ratio that decreased by 9.57 percentage points to 45.4% [1][3]. - The company plans to issue H shares amounting to no more than 20% of its total share capital, which is expected to enhance its capital strength [3][6]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved net income from brokerage, investment banking, and asset management of 6.979 billion, 0.516 billion, and 5.661 billion respectively, with year-on-year changes of +75.0%, -3.0%, and +11.4% [2]. - The company’s net interest income and proprietary investment income for the first three quarters were 1.690 billion and 10.206 billion respectively, with year-on-year increases of 23.1% and 55.4% [3]. - The company’s financial asset scale grew by 30.4% year-to-date to 482 billion, primarily due to a 45% increase in TPL and significant growth in other equity instruments and derivative financial assets [3]. Business Segments - The brokerage business maintained a market share of 4.95%, up 0.37 percentage points year-on-year, with a 107% increase in market transaction volume for the first three quarters [2]. - The asset management business showed strong performance, with E Fund and GF Fund's non-money AUM increasing by 26% and 18% respectively since the beginning of the year [2]. Future Outlook - The company is expected to achieve a net profit attributable to shareholders of 13.476 billion in 2025, representing a year-on-year increase of 39.8% [3][4]. - The projected P/B ratios for A shares and H shares are 1.30 and 1.08 respectively based on the closing price on October 30 [3].