East Money Securities·2026-03-31 08:32Investment Rating - The report maintains a rating of "Add" for the company [2][6] Core Views - The company has shown significant improvement in ROE, with a weighted average ROE of 9.84%, up by 1.54 percentage points year-on-year [4][6] - The company achieved a revenue of 28.302 billion yuan in 2025, representing a year-on-year growth of 24%, and a net profit attributable to shareholders of 12.520 billion yuan, up 25% year-on-year [4][6] - The company aims to become a respected, leading domestic, and internationally first-class modern investment bank, with a multi-faceted approach to enhance its investment banking capabilities [6] Summary by Relevant Sections Financial Performance - In 2025, the company reported a total revenue of 283.02 billion yuan, with a year-on-year growth of 24% and a net profit of 125.20 billion yuan, reflecting a 25% increase [4][6] - The company’s Q4 revenue was 55.52 billion yuan, down 21% year-on-year, and net profit was 15.51 billion yuan, down 49% year-on-year [4][6] Business Segments - Brokerage business revenue reached 88 billion yuan, up 43% year-on-year, with significant growth in client trading volume and new fund issuance [4][6] - Investment banking revenue was 8.3 billion yuan, a 37% increase year-on-year, with notable improvements in both equity and debt underwriting [4][6] - Asset management revenue grew by 7% year-on-year to 5.2 billion yuan, with total asset management scale reaching 907 billion yuan [4][6] - Proprietary trading income was 131 billion yuan, with an investment return rate of 3.39%, up 0.26 percentage points year-on-year [5][6] Future Outlook - The company expects net profits to reach 14.71 billion yuan in 2026, 16.35 billion yuan in 2027, and 17.55 billion yuan in 2028, with corresponding P/B ratios of 0.92, 0.86, and 0.79 [7][6] - The company is well-positioned to benefit from the expansion of financial resources and the integration of brokerage firms, enhancing its competitive edge in the market [6]