GF SECURITIES·2026-03-30 10:28Investment Rating - The report maintains a "Buy-A/Buy-H" rating for the company, with a current price of CNY 9.10 and a reasonable value of CNY 12.34 for A-shares, and HKD 5.49 with a reasonable value of HKD 7.44 for H-shares [3]. Core Insights - The company reported a significant increase in revenue and net profit for 2025, with operating income reaching CNY 153.58 billion, a year-on-year increase of 26.18%, and net profit attributable to shareholders at CNY 56.34 billion, up 68.17% [13][14]. - The company's leverage ratio increased to 4.11, with a weighted average ROE of 6.99%, reflecting a 2.85 percentage point increase from the previous year [14]. - The revenue structure shows a slight increase in the proportion of capital-intensive businesses, which accounted for 56.28% of total revenue, with brokerage business contributing 19% and net investment income (including fair value) making up 48.76% [19]. Summary by Sections Market Recovery Boosts Company Performance - The company achieved a revenue of CNY 153.58 billion in 2025, marking a 26.18% increase year-on-year, driven by growth in wealth and asset management, investment banking, and international business [13]. - The leverage ratio increased to 4.11, with a weighted average ROE of 6.99%, up 2.85 percentage points from the previous year [14]. Asset Management and Proprietary Business Performance - The asset management business showed signs of recovery, with net income of CNY 13.58 billion, a 1% increase year-on-year, while the East Securities Asset Management reported revenue of CNY 15.99 billion, up 11.4% [20]. - The brokerage business generated revenue of CNY 29.16 billion, a 16.1% increase, with a total of 3.29 million customer accounts, up 12.68% year-on-year [29]. Investment Banking and Proprietary Business Growth - The investment banking segment saw revenue of CNY 15.02 billion, a 28.6% increase, completing 15 A-share financing projects, ranking 7th in the industry [46]. - The proprietary business achieved a revenue of CNY 73.47 billion, a 28% increase, with significant contributions from investment income [51]. Profit Forecast and Investment Recommendations - The company is expected to benefit from a recovering capital market, with projected net profits of CNY 65.4 billion and CNY 73.7 billion for 2026 and 2027, respectively [58].