Changjiang Securities·2025-11-07 08:45Investment Rating - The investment rating for Huatai Securities is "Buy" and is maintained [10]. Core Insights - In the first three quarters of 2025, Huatai Securities reported a significant increase in non-recurring profit, with brokerage business income recovering alongside market improvements and rapid growth in the non-monetary AUM of its public fund subsidiary [2][7]. - The company has launched a financial AI independent application terminal "AI Zhangle," integrating AI capabilities into stock selection, trading, and analysis, aiming to build a new intelligent service ecosystem [2][13]. Summary by Sections Financial Performance - For the first three quarters of 2025, Huatai Securities achieved operating revenue of 27.13 billion yuan, up 12.6% year-on-year, and a net profit attributable to shareholders of 12.73 billion yuan, up 1.7% year-on-year. The weighted average return on equity (ROE) decreased by 0.38 percentage points to 7.2% [7][13]. - The non-recurring net profit for the first three quarters was 12.64 billion yuan, reflecting a 100% year-on-year increase, influenced by a high base from the previous year due to the sale of Assetmark [13]. - Revenue from various business lines showed significant recovery, with brokerage, investment banking, asset management, interest, and proprietary trading revenues reaching 6.59 billion, 1.95 billion, 1.35 billion, 3.27 billion, and 13.19 billion yuan respectively, with year-on-year growth rates of 66.1%, 43.5%, -55.3%, 151.3%, and 63.4% [13]. Market Position - The equity IPO market share has improved, while the bond underwriting market share remained stable. The total scale of equity financing and refinancing in the first three quarters was 77.3 billion and 298.9 billion yuan, respectively, with year-on-year increases of 61.5% and 91.3% [13]. - Huatai Securities' IPO and refinancing scale reached 10.2 billion and 42.21 billion yuan, with market shares of 13.4% and 8.8%, reflecting increases of 0.4 percentage points and a decrease of 0.2 percentage points year-on-year [13]. Asset Management and Investment - The financial asset scale significantly recovered, reaching 464.7 billion yuan by the end of Q3, a 29.2% increase from the beginning of the year. The estimated annualized investment return rate was 5.3%, up 2.39 percentage points from the previous year [13]. - The company’s wealth management and fintech leadership is expected to continue generating positive effects, with projected net profits of 17.6 billion and 20.55 billion yuan for 2025 and 2026, corresponding to price-to-book ratios of 1.07 and 0.96 [13].