Western Securities·2025-10-31 12:32Investment Rating - The investment rating for China Galaxy is "Accumulate" [6] Core Views - China Galaxy reported strong performance in the first three quarters of 2025, achieving operating revenue and net profit attributable to shareholders of 22.751 billion and 10.968 billion yuan, respectively, representing year-on-year increases of 44.4% and 57.5% [1][6] - The company benefits from a solid brokerage foundation, with a significant increase in daily trading volume in the A-share market, which rose by 107% year-on-year [2] - The self-operated investment income showed robust growth, with net interest income and investment business income reaching 3.207 billion and 12.103 billion yuan, respectively, reflecting year-on-year increases of 22.1% and 39.4% [3] Summary by Sections Financial Performance - In Q3 2025, the net profit attributable to shareholders was 4.48 billion yuan, up 74% year-on-year and 29% quarter-on-quarter [1] - The weighted average ROE for the first three quarters of 2025 increased by 2.97 percentage points to 8.8% [1] - The company’s operating leverage, excluding customer funds, was 4.23 times at the end of Q3 2025, an increase of 4% from the beginning of the year [1] Revenue Breakdown - For the first three quarters of 2025, net income from brokerage, investment banking, and asset management was 6.305 billion, 0.475 billion, and 0.396 billion yuan, respectively, with year-on-year growth rates of 70.7%, 29.9%, and 12.7% [2] - The company’s investment banking revenue continued to expand, with equity financing reaching 1.683 billion yuan, up from zero in the same period last year, and bond underwriting volume increased by 75% to 576.8 billion yuan [2] Investment Strategy - The company has increased its allocation to TPL assets, with the scale of holdings growing by 16.3% to 256.7 billion yuan compared to the beginning of the year [3] - The forecast for net profit attributable to shareholders for 2025-2027 is 15.064 billion, 16.246 billion, and 17.772 billion yuan, with year-on-year growth rates of 50.2%, 7.8%, and 9.4% respectively [3]