Minsheng Securities·2025-10-31 15:19Investment Rating - The report maintains a "Recommended" rating for Huatai Securities [7][10]. Core Insights - In the first three quarters of 2025, Huatai Securities reported total operating revenue of 27.1 billion yuan, a year-on-year increase of 12.6%, while net profit attributable to shareholders was 12.7 billion yuan, up 1.7% year-on-year [3][4]. - The brokerage, credit, and investment banking revenues showed significant growth, while proprietary trading revenue was impacted by a high base from the previous year [4][10]. - The company is expected to maintain historical high performance for the full year 2025, despite a decline in quarterly net profit growth due to last year's asset sales [3][10]. Summary by Sections Revenue Breakdown - For the first three quarters of 2025, the revenue from various segments was as follows: proprietary trading 10.2 billion yuan (-15% YoY), brokerage 6.6 billion yuan (+66% YoY), credit 3.3 billion yuan (+151% YoY), investment banking 1.9 billion yuan (+44% YoY), and asset management 1.4 billion yuan (-55% YoY) [4][5]. Proprietary Trading - In Q3 2025, proprietary trading income was 3.6 billion yuan, down 54.1% YoY. Excluding last year's asset sales, the income would have increased by 141.4% YoY [5][6]. Brokerage Business - Brokerage income in Q3 2025 reached 2.8 billion yuan, a significant increase of 128.1% YoY, driven by high market activity and an increase in active users of the company's app [6][10]. Credit Business - The credit business saw a substantial increase in net interest income, which reached 1.2 billion yuan in Q3 2025, up 108.8% YoY. The balance of funds lent out was 169.8 billion yuan, a 61.2% increase YoY [7][8]. Investment Banking - Investment banking revenue in Q3 2025 was 800 million yuan, up 83.0% YoY, with significant growth in IPO and refinancing activities [8][9]. Asset Management - Asset management revenue decreased to 500 million yuan in Q3 2025, down 43.2% YoY, but the decline rate has been narrowing [9][10]. Financial Metrics - As of Q3 2025, the company's total assets reached 1.03 trillion yuan, a 21.1% increase YoY, with a return on equity (ROE) of 7.21% [9][10]. Future Projections - The report forecasts revenues of 45 billion yuan, 48.1 billion yuan, and 51.4 billion yuan for 2025, 2026, and 2027 respectively, with net profits projected at 16.6 billion yuan, 17.9 billion yuan, and 19.3 billion yuan [10][11].