Founder Securities(SH:601901) Huachuang Securities·2025-11-02 07:46Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [20]. Core Insights - The company reported a significant increase in net profit of 93% year-on-year for the first three quarters, driven by substantial growth in brokerage business and a reduction in liability cost rates [1][6]. - The return on equity (ROE) improved to 7.5%, up by 3.4 percentage points year-on-year, with a quarterly ROE of 2.8% [1]. - The company’s total revenue, excluding other business income, reached 90 billion yuan, reflecting a year-on-year growth of 67.2% [6]. Financial Performance Summary - The company’s net profit attributable to shareholders was 38 billion yuan, a year-on-year increase of 93.3% [6]. - The financial leverage ratio, excluding client funds, was 3.72 times, a decrease of 0.14 times year-on-year [1][7]. - The net profit margin for the reporting period was 42%, up by 5.7 percentage points year-on-year [1]. Business Segment Performance - Brokerage business revenue was 41.7 billion yuan, with a year-on-year growth of 161.3% [2]. - The company’s margin from self-operated equity securities and derivatives was 42.9%, down by 0.2 percentage points from the previous period [2]. - The two financing business scale reached 51 billion yuan, with a market share of 2.13%, an increase of 0.05 percentage points year-on-year [2]. Future Earnings Forecast - The company’s earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 0.60, 0.64, and 0.68 yuan respectively, with corresponding price-to-book ratios of 1.32, 1.21, and 1.12 [8][9]. - The target price for the company is set at 10.87 yuan, based on a 1.6 times price-to-book valuation for 2026 [8].