HTSC·2025-11-20 01:28Investment Rating - The report maintains a "Buy" rating for the company [7][8] Core Views - The merger of the companies under the Huijin system is expected to reshape the competitive landscape of the securities industry, indicating a shift towards a new era of consolidation among leading firms [2][3] - The combined entity is projected to enhance its capital strength and profitability, with significant improvements in various financial metrics post-merger [3][4] Financial Metrics Summary - The merged company is estimated to have total assets of CNY 1.01 trillion, making it the fourth securities firm to surpass the trillion mark in total assets [3] - The report forecasts a net profit of CNY 95 billion for the merged entity, ranking it sixth in the industry, with a revenue of CNY 274 billion, placing it third [3][4] - The expected earnings per share (EPS) for 2025-2027 are CNY 1.60, CNY 1.84, and CNY 2.12 respectively, with a projected book value per share (BPS) of CNY 26.76 for 2026 [5][10] Business Synergies - The merger is anticipated to create strong synergies across brokerage, investment banking, and asset management sectors, enhancing the overall service capabilities of the new entity [4] - The investment banking segment is expected to maintain its leading position, with significant rankings in IPOs, equity financing, and bond underwriting [4][11] Valuation and Price Target - The target price for the company's A and H shares is set at CNY 56.20 and HKD 32.34 respectively, reflecting an increase from previous estimates [5][7] - The report suggests a price-to-book (PB) ratio of 2.1 for A shares and 1.1 for H shares for 2026, indicating a positive outlook on the company's valuation post-merger [5][13]