Shenwan Hongyuan Securities·2026-02-26 12:05Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a total revenue of HKD 29.16 billion for 2025, representing a year-on-year increase of 30%. The main revenue reached HKD 27.11 billion, up 32% year-on-year, while net profit was HKD 17.75 billion, reflecting a 36% increase year-on-year [4] - The report highlights significant growth in fee-related income, with various fee categories showing double-digit growth. Trading fees increased by 44%, settlement and clearing fees by 49%, and listing fees by 21% [6] - The Hong Kong stock market maintained its position as the global leader in IPO fundraising, with 119 new listings in 2025 and total IPO proceeds reaching HKD 286.9 billion, a 226% year-on-year increase [6] Financial Data and Earnings Forecast - The company’s projected financials for 2026E show a revenue of HKD 28.32 billion, a slight decrease of 3% year-on-year, with a net profit forecast of HKD 17.59 billion, down 1% year-on-year. The earnings per share (EPS) is expected to be HKD 13.9 [5][7] - The report provides a detailed breakdown of revenue sources for 2025, with trading fees contributing HKD 10.33 billion (38%), settlement and clearing fees HKD 7.04 billion (26%), and investment income HKD 5.11 billion (19%) [6][7] - The report anticipates a return on equity (ROE) of 29.8% for 2026E, with a price-to-earnings (PE) ratio of 29.7x, indicating that the stock is trading near historical lows [5][6]