Huaxi Securities(SZ:002926) Huachuang Securities·2026-01-14 14:18Investment Rating - The report assigns a "Neutral" rating to the company with a target price of 11.18 CNY [2][11]. Core Insights - The report emphasizes the company's core competitive advantages built on the "three pillars" of wealth management, investment banking, and investment management, which are expected to drive revenue growth [8][9]. - The company has shown significant recovery in revenue and profitability, achieving record highs in recent quarters, driven by active brokerage and proprietary trading businesses [35][33]. Financial Summary - Total revenue is projected to grow from 3,920 million CNY in 2024 to 5,870 million CNY in 2027, with a compound annual growth rate (CAGR) of 23% in 2024 and 33% in 2025 [3]. - Net profit attributable to shareholders is expected to increase from 728 million CNY in 2024 to 1,512 million CNY in 2027, reflecting a growth rate of 71% in 2024 and 78% in 2025 [3]. - Earnings per share (EPS) is forecasted to rise from 0.28 CNY in 2024 to 0.58 CNY in 2027, with a price-to-earnings (P/E) ratio decreasing from 33.4 in 2024 to 16.2 in 2027 [3]. Company Overview - The company, Huaxi Securities, is a comprehensive securities firm rooted in Southwest China, focusing on wealth management, investment banking, and investment management as its main business pillars [15][18]. - It has a strong shareholder structure, with significant stakes held by local state-owned enterprises, ensuring stable control [18][19]. Business Analysis - The brokerage and proprietary trading segments are the main drivers of revenue, with brokerage income accounting for 47.2% of total revenue in 2025, significantly above the industry average [27][51]. - The company has seen a substantial increase in client funds, reaching a historical high of 330.9 million CNY, with a market share of 1.7% [58][60]. - The investment banking segment has faced challenges due to regulatory issues but is expected to recover as the company focuses on debt financing and restructuring its operations [62][64]. Market Position - The company has gradually regained market share, with total revenue reaching 34.9 billion CNY in the first three quarters of 2025, reflecting a year-on-year increase of 56.5% [33][35]. - The asset scale has also grown, with total assets and net assets increasing by 17.3% and 6.2% year-on-year, respectively, providing a solid foundation for future business expansion [33][34].