Guolian Minsheng Securities·2026-03-30 14:09Investment Rating - The report maintains a "Buy" rating for Huatai Securities (601688.SH) with a current price of 18.21 CNY [3]. Core Insights - In 2025, Huatai Securities achieved an operating income of 35.81 billion CNY, a year-on-year increase of 6.8%. The net profit attributable to shareholders was 16.38 billion CNY, up 6.7% year-on-year. The adjusted net profit was 16.27 billion CNY, reflecting a significant increase of 80.1% year-on-year [9]. - The company has solidified its position in wealth management and experienced a notable recovery in investment banking. The brokerage business generated 9.12 billion CNY in revenue, a 41.5% increase year-on-year, while investment banking revenue reached 3.10 billion CNY, up 47.8% year-on-year [9]. - The international business generated 5.92 billion CNY in revenue, a decrease of 46.7% year-on-year, but if adjusted for one-time gains from the previous year, it would represent a 23.8% increase [9]. Financial Forecasts - The projected operating revenues for 2026, 2027, and 2028 are 42.35 billion CNY, 45.47 billion CNY, and 48.69 billion CNY, respectively, with growth rates of 18.3%, 7.4%, and 7.1% [3][10]. - The net profit attributable to shareholders is expected to be 19.47 billion CNY, 21.04 billion CNY, and 22.62 billion CNY for the years 2026, 2027, and 2028, reflecting growth rates of 18.8%, 8.1%, and 7.5% [3][10]. - Earnings per share (EPS) are forecasted to be 2.16 CNY, 2.33 CNY, and 2.51 CNY for the years 2026, 2027, and 2028 [3][10]. Business Segments - The brokerage business saw a significant increase in revenue, with a total of 91.2 billion CNY for 2025, while the asset management business faced a decline, generating only 1.80 billion CNY, down 56.6% year-on-year [9]. - The company’s financial investment scale stabilized, with a total of 494.6 billion CNY by the end of 2025, marking a 34% year-on-year increase [9]. - The weighted average return on equity (ROE) was reported at 9.2%, slightly down by 0.04 percentage points compared to the previous year [9].