Group 1 - The core viewpoint is that the formal establishment of the Sci-Tech Innovation Growth Sector provides strong capital market institutional support for the national strategy of technological self-reliance and strength [1] - The report emphasizes that the policy goals of "stabilizing growth, stabilizing the stock market," and "boosting the capital market" will continue to guide the future direction of the sector [1] - Factors such as a moderately loose liquidity environment, continuous optimization of the capital market environment, and the restoration of investor confidence are expected to drive the improvement in the securities sector's prosperity [1] Group 2 - The expansion of medium- and long-term funds is anticipated to further enhance the expectations for the improvement of the securities industry's fundamentals [1] - The report suggests that it is an appropriate time to allocate resources to the sector [1]

Core Viewpoint - The securities sector is experiencing a significant upward trend, driven by strong earnings forecasts from key companies and supportive government policies aimed at stabilizing and boosting the capital market [1][2]. Group 1: Company Performance - Guosheng Financial Holdings expects a net profit attributable to shareholders of 150 million to 220 million yuan for the first half of 2025, representing a year-on-year increase of 236.85% to 394.05% [1]. - Haitou Co. anticipates a net profit of approximately 380 million yuan for the first half of 2025, reflecting a year-on-year increase of around 233.10% [1]. - Both companies attribute their performance improvements to better results in brokerage and investment banking businesses, as well as favorable market conditions impacting financial asset valuations [1]. Group 2: Market Environment - The ongoing government policies aimed at "stabilizing growth and the stock market" and "boosting the capital market" are expected to continue influencing the sector's future trajectory [1]. - A moderately loose liquidity environment and an improving capital market are anticipated to enhance investor confidence, further driving the recovery of the securities sector [1]. - Xiangcai Securities notes that measures to maintain a stable and active capital market will support ongoing trading activity, benefiting brokerage firms' performance and valuation recovery [2]. Group 3: Investment Outlook - The expectation of increased capital inflows into the brokerage sector is supported by the relatively low allocation of active equity funds in comparison to performance benchmarks, indicating potential for valuation recovery [2].

Core Viewpoint - The securities sector is experiencing a significant rally, driven by positive news and strong performance of related ETFs, particularly the Securities ETF (512880) which saw a notable increase in trading volume and price [1][3]. Group 1: Market Performance - The Securities ETF (512880) showed active performance with a trading volume exceeding 1.3 billion yuan within the first hour of trading, and it reached a peak increase of over 2% during the day [1]. - As of 10:59 AM, the Securities ETF was priced at 1.086, reflecting a rise of 1.50% from the previous close [2]. Group 2: Key Stocks and Drivers - Among the top ten holdings of the Securities ETF, notable performers included Xinyi Securities with a gain exceeding 5%, along with other firms like Dongfang Caifu and CITIC Securities also showing upward movement [3]. - Recent favorable policies, such as the approval for companies in the Guangdong-Hong Kong-Macao Greater Bay Area to list on the Shenzhen Stock Exchange, are expected to attract more capital into the A-share market, enhancing trading volume and revenue from brokerage and margin financing businesses [3]. Group 3: Financial Performance - In the first quarter, 42 listed securities firms reported a total revenue of 125.93 billion yuan, marking a year-on-year increase of 24.6%, while net profit attributable to shareholders reached 52.18 billion yuan, up 83.48% year-on-year [4]. - The ongoing policy focus on stabilizing growth and boosting the capital market is anticipated to sustain the positive trajectory of the securities sector, with expectations for continued improvement in liquidity and investor confidence [4]. Group 4: Future Outlook - Analysts predict that the securities sector will maintain strong growth in the upcoming reporting periods, supported by low base effects and improving trading volumes [4]. - The current price-to-book (PB) ratio for the securities sector stands at 1.27x, indicating a favorable valuation and suggesting that it remains a suitable time for investment in this sector [4].