Changjiang Securities·2025-11-06 13:41Investment Rating - The report maintains a "Buy" rating for the company [2][7]. Core Views - The growth momentum of the company continues in the first three quarters of 2025, driven primarily by high contributions from proprietary brokerage, improved investment banking performance, and a narrowing decline in asset management business. The outlook remains positive with expectations for the company's wealth management and asset management advantages to become more apparent as the capital market operates at high levels [2][5]. Summary by Sections Financial Performance - In the first three quarters of 2025, the company achieved operating revenue and net profit attributable to shareholders of 12.71 billion and 5.11 billion yuan, respectively, representing year-on-year increases of 39.4% and 54.8%. The weighted average return on equity (ROE) increased by 2.19 percentage points to 6.35%. The operating leverage, excluding client funds, rose by 3.4% to 3.86 times compared to the beginning of the year [5][10]. Business Segments - Proprietary brokerage significantly boosted overall performance, with revenue from brokerage, investment banking, asset management, interest income, and proprietary investment reaching 2.38 billion, 1.17 billion, 970 million, 780 million, and 6.73 billion yuan, respectively. Year-on-year changes were +49.1%, +41.1%, -4.3%, -15.1%, and +56.2%, indicating strong contributions from proprietary brokerage and a continued recovery in investment banking, while the decline in asset management has narrowed [10][11]. Market Conditions - The overall equity market continued to recover, with the Wind All A Index rising by 26.4% in the first three quarters of 2025, compared to an increase of 8.2% in the same period last year. The company’s proprietary investment income reached 6.73 billion yuan, up 56.2% year-on-year, strongly supporting performance [10][11]. Future Outlook - The company is expected to benefit from its wealth management and asset management capabilities in the long term. With the capital market operating at high levels, the company’s performance is anticipated to continue its growth momentum. Projected net profits attributable to shareholders for 2025 and 2026 are 4.25 billion and 4.78 billion yuan, respectively, with corresponding price-to-earnings (PE) ratios of 21.5 and 19.1 times, and price-to-book (PB) ratios of 0.99 and 0.91 times [10][11].