Core Viewpoint - The overall performance of listed securities firms in the first half of the year exceeded expectations, with significant growth in both revenue and net profit attributable to shareholders, boosting market confidence [1]. Group 1: Performance Highlights - Major securities firms showed stable performance, with some achieving leapfrog growth through mergers and acquisitions, while a number of smaller firms demonstrated strong earnings elasticity [1]. - Since the beginning of the year, the equity market has shown a steady upward trend, with significant increases in trading activity, including transaction volume, margin financing balance, and the issuance scale of equity products [1]. Group 2: Market Dynamics - Key indicators have continued to recover, collectively driving the securities sector into a valuation repair phase, which has contributed to the growth of securities firms' performance [1]. - The securities sector exhibits strong beta characteristics, with the performance of core businesses closely linked to capital market performance. As global liquidity narratives resonate, trading activity in capital markets has surged, enhancing market risk appetite and improving the overall prosperity of the securities industry [1]. Group 3: Investment Opportunities - It is recommended to continue monitoring the securities ETF (512880) that has surpassed a scale of 46 billion, as it leads in liquidity among peers, presenting investment opportunities [1].

Group 1 - The core viewpoint of the article highlights the positive movement in brokerage stocks, with the securities ETF (512880) showing resilience and a trading volume exceeding 2.6 billion yuan [1] - There has been a continuous net inflow of over 4 billion yuan for five consecutive days, and nearly 10 billion yuan in the last 20 trading days, indicating strong investor interest [1] - Huatai Securities notes that the current valuation of major brokerages remains at a historical low, with a PBLF average of 1.61x, which is at the 44th percentile since 2014, suggesting potential for valuation recovery [1] Group 2 - Dongwu Securities states that the current valuation of brokerage stocks is reasonable, and with positive industry development policies, brokerages have significant advantages [1] - Investors interested in the sector are encouraged to explore related investment opportunities, including the securities ETF connection fund (012363) for those without stock accounts [1]

Core Viewpoint - The securities industry is experiencing growth, with significant performance in the brokerage sector, as indicated by the rise in the brokerage ETF and the strong revenue figures from leading firms [1][2]. Group 1: Market Performance - As of September 4, 2025, the CSI All Share Securities Company Index increased by 0.56%, with notable gains from Pacific Securities (up 10.11%) and Huayin Securities (up 5.72%) [1]. - The brokerage ETF (512000) rose by 0.67%, with a trading volume of 1.164 billion yuan and a turnover rate of 3.78% [1]. - Over the past two weeks, the brokerage ETF's scale grew by 2.288 billion yuan, ranking second among comparable funds [1]. Group 2: Fund Performance - The brokerage ETF's net value increased by 13.36% over the past six months, placing it among the top two in its category [2]. - Since its inception, the brokerage ETF has achieved a maximum monthly return of 38.02% and an average monthly return of 6.98% [2]. - The ETF has seen consistent net inflows, totaling 1.852 billion yuan over the last five days, with a peak single-day inflow of 768 million yuan [1][2]. Group 3: Industry Insights - In the first half of the year, ten leading brokerages reported revenues exceeding 10 billion yuan, with CITIC Securities leading at 33.039 billion yuan [2]. - The brokerage sector is expected to benefit from a new upward cycle in the capital market, with improved operating conditions and market capacity [2]. - The current average P/B ratio for large brokerages is 1.61x, indicating that valuations are at a historically low level [2]. Group 4: ETF Composition - The brokerage ETF tracks the CSI All Share Securities Company Index, encompassing 49 listed brokerage stocks, with nearly 60% of its holdings concentrated in the top ten brokerages [5]. - The ETF serves as an efficient investment tool, balancing exposure to leading brokerages while also capturing the high growth potential of smaller firms [5].

Group 1 - The A-share market showed mixed performance on September 4, with the brokerage sector being active, particularly the brokerage ETF (159842), which rose by 0.25% and had a trading volume exceeding 27 million yuan, indicating active trading with a premium rate of 0.02% [1] - The brokerage ETF (159842) has seen a net inflow of 99.88 million yuan yesterday and has recorded net inflows for six consecutive trading days, accumulating over 1 billion yuan [1] - The securities brokerage business revenue for 42 listed brokerages reached 74.563 billion yuan in the first half of 2025, marking a year-on-year increase of approximately 50%, with the top ten brokerages accounting for over 60% of the total revenue [1] Group 2 - Huatai Securities noted that while the equity market has been rising since the beginning of the year, the brokerage index has not recovered as much as the broader market, with large brokerages' valuations remaining at historically low levels [2] - The average PBLF (Price to Book Value) ratio is currently at 1.61x, which is at the 44th percentile since 2014, indicating potential for valuation recovery in the brokerage sector [2] - The brokerage sector is expected to experience a new upward cycle in the capital market, with enhanced sustainability in performance due to a different operating environment and market capacity compared to the past [2]

Group 1: Gold Market Outlook - CITIC Securities predicts that gold prices may exceed $3730 per ounce by the end of the year, driven by factors such as tariff impacts, U.S. fiscal policies, geopolitical tensions, and central bank gold purchases [1] Group 2: A-Share Market Trends - Galaxy Securities anticipates that the A-share market will continue its structural trend in September, supported by liquidity and policy expectations, with a focus on sectors showing high profitability or positive trends [2] - The current liquidity environment is relatively abundant, and expectations for a potential interest rate cut by the Federal Reserve in September could further enhance global liquidity, benefiting the A-share market, particularly large-cap growth stocks [2] Group 3: Brokerage Sector Analysis - Huatai Securities highlights a significant year-on-year increase in net profit for listed brokerages, with a projected growth of 65% for the first half of 2025 [3] - The brokerage sector is experiencing asset expansion driven by client funds, a strong recovery in investment and brokerage services, and accelerated international expansion, leading to improved profitability for subsidiaries [3] - Despite a rising equity market, brokerage indices have not fully recovered, with current valuations remaining at historical lows, indicating potential for valuation recovery in the sector [3]

Group 1 - CITIC Securities predicts that gold prices may exceed $3,730 per ounce by the end of the year, driven by factors such as tariff impacts, U.S. fiscal policies, geopolitical risks, and central bank gold purchases [1] - The report indicates that since late April, gold has been in a volatile market, with a complex balance of bullish and bearish factors [1] - The expectation of improved tariffs may be temporarily paused, while the effects of stagflation are just beginning to manifest [1] Group 2 - Galaxy Securities anticipates that the A-share market will continue its structural trend in September, driven by liquidity and policy expectations [2] - The report highlights that with the completion of the 2025 mid-year reports, there are structural allocation opportunities in sectors showing high prosperity or positive trends [2] - Current market liquidity is relatively abundant, and expectations of a Fed rate cut in September could enhance the global liquidity environment, benefiting the A-share market, especially large-cap growth stocks [2] Group 3 - Huatai Securities expresses optimism about the valuation recovery opportunities in the brokerage sector, with listed brokerages expected to see a year-on-year net profit increase of 65% in the first half of 2025 [3] - The report identifies three main lines of focus for large brokerages: asset expansion driven by client funds, strong recovery in investment and brokerage businesses, and accelerated international expansion [3] - Despite the upward trend in the equity market, brokerage indices have not recovered as much as the broader market, with current valuations at historical lows, suggesting potential for valuation recovery [3]

Group 1 - The core viewpoint is that all 49 listed brokerage firms in A-shares have reported positive growth in net profit, with 13 firms showing an increase of over 100%, and Huaxi Securities and Guolian Minsheng achieving nearly 1200% profit growth [1] - 28 listed brokerages have disclosed their profit distribution plans for the first half of 2025, with seven firms including CITIC Securities, Guotai Junan, and China Galaxy planning to distribute cash dividends exceeding 1 billion yuan [1] - The brokerage sector's performance is driven by increased trading activity, with core businesses such as brokerage and proprietary trading being the main sources of profit growth [3][5] Group 2 - The brokerage ETF (512000) has seen significant net inflows, with a recent single-day net inflow of 462 million yuan and cumulative net inflows exceeding 4.1 billion yuan over the past 20 days [6][5] - The current price-to-book ratio (PB) of the brokerage sector is 1.65, which is at the 51.47% percentile over the past decade, indicating that the sector is still undervalued [3] - Analysts expect the brokerage index to maintain a steady upward trend if the equity market continues to expand, with the potential to approach a PB of two times, which is the upper limit of the valuation range over the past ten years [5][3] Group 3 - The brokerage ETF (512000) is designed to passively track the CSI All Share Securities Company Index, encompassing 49 listed brokerage stocks, with nearly 60% of its holdings concentrated in the top ten leading brokerages [7] - The ETF has a current fund size exceeding 31.2 billion yuan, marking a historical high, and has an average daily trading volume of over 900 million yuan, making it one of the most liquid ETFs in the A-share market [6][7]

Group 1: Industry Overview - The securities industry has experienced a comprehensive recovery, with many brokerages showing significant growth in revenue and net profit in the first half of 2025 [1][2] - Since September 2024, the industry has seen signs of profit recovery due to a series of incremental policies and market improvements [1][2] - A total of 10 brokerages reported revenues exceeding 10 billion yuan, with CITIC Securities leading at 33.039 billion yuan [1][2] Group 2: Brokerage Business Performance - The brokerage business has collectively surged, with 44 listed brokerages achieving a total net income from brokerage fees of 64.437 billion yuan, marking a year-on-year increase of 44% [3] - CITIC Securities topped the brokerage fee income with 6.402 billion yuan, followed by Guotai Junan at 5.733 billion yuan [3] - Nearly all A-share listed brokerages reported year-on-year growth in brokerage business, with only Huachuang Yuxin showing a slight decline of 2% [2][3] Group 3: Proprietary Trading Performance - Listed brokerages achieved a total proprietary trading income of 117.826 billion yuan in the first half of the year, up from 78.199 billion yuan in the same period last year [4] - 25 brokerages reported an increase in proprietary trading income exceeding 50%, with Changjiang Securities seeing a growth from 0.192 billion yuan to 1.479 billion yuan [4] - Notably, some brokerages like Jindong Securities and Zhongyuan Securities experienced significant declines in proprietary trading income, with Jindong's drop reaching 96% [5] Group 4: Investment Banking and Market Outlook - The investment banking sector has shown signs of recovery, with net income from investment banking for 44 comparable brokerages increasing by over 20% year-on-year [5][6] - Despite the overall positive trend, 16 brokerages reported a decline in investment banking income, with some experiencing drops exceeding 30% [6] - Analysts expect continued growth in the third quarter, driven by increased market activity and low base effects, with a focus on retail, institutional, and wealth management sectors [7][8] Group 5: Policy and Market Dynamics - The core logic behind the increased allocation value in the brokerage sector is supported by policies, capital influx, and internal transformation [8] - Regulatory encouragement for industry consolidation is seen as a means to enhance competitiveness and optimize resource allocation [8]

Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 35.69 CNY [2][10]. Core Insights - The company demonstrates a significant improvement in ROE, with a reported ROE of 4.5%, up by 0.7 percentage points year-on-year. The quarterly ROE stands at 2.3%, reflecting a 0.2 percentage point increase quarter-on-quarter and a 0.3 percentage point increase year-on-year [2]. - The total assets, excluding client funds, reached 1,242.2 billion CNY, an increase of 141.1 billion CNY year-on-year, while net assets grew to 305.4 billion CNY, up by 26.16 billion CNY year-on-year [2]. - The company’s net profit margin improved to 41.9%, up by 2.4 percentage points year-on-year, with a quarterly net profit margin of 43.3%, reflecting a 2.9 percentage point increase quarter-on-quarter and a 3.4 percentage point increase year-on-year [2]. Financial Performance - The company’s self-operated business revenue totaled 19.05 billion CNY, with a quarterly revenue of 10.19 billion CNY, showing a quarter-on-quarter increase of 1.33 billion CNY. The self-operated yield for the quarter was 1.4%, up by 0.2 percentage points quarter-on-quarter and 0.4 percentage points year-on-year [3]. - Interest income from credit business amounted to 9.51 billion CNY, with a quarterly figure of 4.75 billion CNY, reflecting a slight decrease of 0.09 million CNY quarter-on-quarter. The margin for margin financing and securities lending stood at 1,432 billion CNY, down by 6.61 billion CNY quarter-on-quarter [3]. - The company’s brokerage business revenue was 6.4 billion CNY, with a quarterly revenue of 3.08 billion CNY, down by 7.5% quarter-on-quarter but up by 26.2% year-on-year [9]. Earnings Forecast - The report projects the company’s EPS for 2025, 2026, and 2027 to be 1.88 CNY, 2.11 CNY, and 2.29 CNY respectively, with corresponding PB ratios of 1.68, 1.58, and 1.49 [10][11]. - The expected growth rates for the company’s main revenue and net profit are 25% and 28% for 2025, respectively, indicating strong future performance [11].

Core Viewpoint - The A-share market opened positively in September, with the Shanghai Composite Index rising by 0.46%, the ChiNext Index increasing by over 2%, and the Sci-Tech 50 Index gaining over 1% [1] Market Performance - The leading Securities ETF (560090) experienced a volatile trading day, closing down by 0.91%, despite attracting over 34 million yuan in net inflows on the previous trading day, totaling over 190 million yuan in net inflows over the last 10 days [1][3] - Most constituent stocks of the Securities ETF saw declines, with notable increases in China International Capital Corporation (CICC) by over 1%, while Guotai Junan, Huatai Securities, and Dongfang Securities fell by over 1% [3] Financial Performance of Securities Firms - The China Securities Association reported that the securities industry achieved significant growth in the first half of the year, with total operating revenue reaching 2510.36 billion yuan, a year-on-year increase of 23.47%, and net profit of 1122.80 billion yuan, up 40.37% [5] - Among 128 securities firms, 85% reported profits, with 30 firms achieving profitability and 12 firms, including Huaxi Securities and Guolian Minsheng, seeing net profit growth exceeding 100% [5][6] Revenue Breakdown - The total revenue of 42 listed securities firms reached 2518.66 billion yuan, reflecting a year-on-year increase of 11.37%, while net profit totaled 1040.17 billion yuan, up 65.08% [6] - Revenue from various business segments included brokerage (634.54 billion yuan, +43.98%), investment banking (155.30 billion yuan, +18.11%), asset management (211.95 billion yuan, -3.02%), investment (1123.54 billion yuan, +53.05%), and net interest income (196.57 billion yuan, +30.66%) [7] Individual Firm Performance - Notable individual performances included: - CITIC Securities: Operating revenue of 330.39 billion yuan (+9.46%), net profit of 137.19 billion yuan (+29.80%) - Guotai Junan: Operating revenue of 238.72 billion yuan (+39.85%), net profit of 157.37 billion yuan (+213.74%) - Huatai Securities: Operating revenue of 162.19 billion yuan (-7.00%), net profit of 75.49 billion yuan (+42.16%) [8] Market Outlook - The securities industry is expected to benefit from high trading volumes, normalized equity financing, and a recovering capital market, leading to improved performance and valuation recovery [9] - The A-share securities sector has seen significant gains since June, driven by favorable policies and increased market activity, suggesting potential for further valuation uplift [9]