HTSC·2025-11-06 11:00Investment Rating - The investment rating for the company is "Buy" for both A and H shares, maintained from previous assessments [7]. Core Insights - The company demonstrates a solid leadership advantage with continuous improvement across various business segments, including wealth management, investment income, and international business [1][2][4]. - The wealth management transformation is deepening, with a focus on building a comprehensive financial service system and expanding cross-border product offerings [2]. - Investment income is steadily growing, with Q3 2025 investment revenue reaching 12.6 billion RMB, a year-on-year increase of 26% and a quarter-on-quarter increase of 23% [3]. - The investment banking business maintains a leading position, with a total equity financing underwriting amount of 218.7 billion RMB from January to October 2025, ranking first in the industry [4]. - The international business is gaining momentum, contributing approximately 21% to net profit in H1 2025, up from 16% in H1 2024 [4]. Summary by Sections Wealth Management - The company is enhancing its wealth management transformation by establishing a full product system and providing comprehensive financial services. As of Q3 2025, client asset scale has rapidly increased compared to the beginning of the year [2]. Investment Income - The company adopts a balanced investment style across fixed income, equity investments, and derivatives, leading to steady growth in investment performance. Q3 2025 saw a significant increase in investment income, with trading financial assets growing by 7% quarter-on-quarter to 792.9 billion RMB [3]. Investment Banking - The investment banking business continues to lead the market, with a strong project reserve. As of the end of October, there are over 30 domestic IPO projects in the pipeline, and the company ranks first in the market for bond underwriting [4]. International Business - The company is advancing its internationalization strategy, with its international subsidiary contributing 21% to net profit in H1 2025, indicating a growing importance of international operations [4]. Profit Forecast and Valuation - The forecast for net profit attributable to the parent company for 2025-2027 is 31.5 billion, 35.5 billion, and 39.1 billion RMB, respectively, with corresponding EPS of 2.12, 2.39, and 2.64 RMB [5]. The target price is set at 42.24 RMB for A shares and 39.34 HKD for H shares, based on a PB valuation of 2.0 and 1.7 times for 2025 [5].