SCS(SH:601555) Ping An Securities·2026-03-03 09:26Investment Rating - The industry investment rating is "Outperform the Market," indicating an expected performance that exceeds the market by more than 5% over the next six months [3]. Core Insights - The integration of financial licenses within Jiangsu Province is enhancing comprehensive financial service capabilities. Dongwu Securities is acquiring a 26.68% stake in Donghai Securities to gain control, which is part of a broader trend of license consolidation among local brokerages [2]. - Following the merger, Dongwu Securities is projected to improve its total assets and net assets ranking among A-share listed brokerages, moving up 5 and 4 places to 15th and 14th, respectively. This merger is expected to strengthen its profitability and regional collaboration [2]. - The ongoing supply-side financial reforms are accelerating, with notable mergers among brokerages, which are expected to enhance the industry's overall competitiveness and service capabilities. The report anticipates steady growth in the securities industry’s performance in 2026, driven by continued capital market reforms and the integration of brokerage firms [2]. Summary by Sections Industry Overview - The report highlights the ongoing consolidation of financial licenses in Jiangsu, which is expected to improve the efficiency of financial resource utilization within the province [2]. Company Analysis - Dongwu Securities, after the merger, will have total assets of approximately 1,719 billion yuan and net assets of 432 billion yuan, while Donghai Securities will contribute 571 billion yuan in total assets and 103 billion yuan in net assets [2]. Market Outlook - The report suggests that the capital market's investment and financing functions are becoming more robust, with a positive outlook for the securities industry in 2026, benefiting from the ongoing supply-side reforms and the emergence of leading brokerage firms [2].