Industrial Securities(SH:601377) GUOTAI HAITONG SECURITIES·2026-02-05 07:10Investment Rating - The report maintains a "Buy" rating for the company [2][6]. Core Viewpoints - The company is currently advancing market-oriented reforms, which are expected to enhance its wealth management advantages, leading to a turning point in ROE [2][13]. - The company is positioned among the top 15 securities firms in the industry, with a strong focus on asset management and wealth management, particularly through its control of Xingsheng Global Fund and its stake in Southern Fund [18][45]. - The report forecasts a significant recovery in net profit, with expected growth rates of 36.2%, 17.7%, and 12.0% for the years 2025 to 2027, respectively [13][14]. Financial Summary - Revenue Forecast: - 2023A: 10,627 million - 2024A: 12,354 million (+16.2%) - 2025E: 12,207 million (-1.2%) - 2026E: 13,994 million (+14.6%) - 2027E: 15,255 million (+9.0%) [4][14] - Net Profit (Attributable to Parent): - 2023A: 1,964 million - 2024A: 2,164 million (+10.2%) - 2025E: 2,948 million (+36.2%) - 2026E: 3,471 million (+17.7%) - 2027E: 3,886 million (+12.0%) [4][14] - Earnings Per Share (EPS): - 2023A: 0.23 - 2024A: 0.25 - 2025E: 0.34 - 2026E: 0.40 - 2027E: 0.45 [4][14] - Return on Equity (ROE): - 2023A: 3.7% - 2024A: 3.9% - 2025E: 5.2% - 2026E: 5.9% - 2027E: 6.3% [4][14] Investment Insights - The company is expected to benefit from the gradual formation of household asset allocation towards equities, with increasing account openings and fund subscriptions [34][36]. - The report highlights the company's strategic initiatives in wealth management, including the launch of the "Zhiji Wealth Management" brand and the establishment of a comprehensive service system to meet diverse client needs [43][39]. - The company has a strong profit contribution from public funds, ranking first in the industry, which is expected to support its growth trajectory [45][13].