Zheshang Securities(SH:601878) Huachuang Securities·2025-11-05 15:20Investment Rating - The report maintains a "Recommendation" rating for the company [1][8]. Core Views - The company reported a net profit increase of 50% year-on-year for the first three quarters, driven by improved market conditions [1]. - The return on equity (ROE) for the reporting period was 5.2%, up by 0.7 percentage points year-on-year [1]. - The total assets, excluding client funds, reached 1,744 billion yuan, an increase of 569.1 billion yuan year-on-year [7]. Financial Performance - The total operating revenue, excluding other business income, was 6.8 billion yuan, a year-on-year increase of 68.4% [6]. - The net profit attributable to the parent company was 1.89 billion yuan, up 49.6% year-on-year [6]. - The company's self-operated business income totaled 2.48 billion yuan, with a quarterly self-operated yield of 2.3%, reflecting a year-on-year increase of 1.1 percentage points [2]. Business Segments - Brokerage business revenue increased to 2.33 billion yuan, with a year-on-year growth of 132.4% [2]. - Investment banking revenue was 510 million yuan, showing a stable performance compared to the previous year [2]. - The company's interest income from credit business was 2.08 billion yuan, with a significant increase in margin financing business scale [2]. Valuation and Price Target - The target price for the company's stock is set at 14.00 yuan, with the current price at 11.52 yuan [3]. - The expected earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 0.58, 0.63, and 0.68 yuan respectively [8]. - The report suggests a price-to-book (PB) ratio of 1.60 times for the 2026 performance, indicating a favorable valuation outlook [8].