Group 1 - The core viewpoint indicates that the securities sector is experiencing a decline, with major stocks like Dongfang Securities and Guotai Haitong leading the drop, while the Securities ETF is seeing significant net inflows [1][2] - The market has shown a collective downturn, with the three major indices closing lower and a trading volume of 2.52 trillion yuan, which is an increase of 832 billion yuan compared to the previous trading day [1] - East China Securities suggests that the reduction in sales service fees and the differentiated commission structure will promote long-term investment behaviors, positively impacting the growth of brokerage businesses [1] Group 2 - The Securities ETF closely tracks the Guozheng Securities Leader Index, reflecting the performance of quality listed companies in the securities theme within the Shanghai and Shenzhen markets [2] - As of August 29, 2025, the top ten weighted stocks in the Guozheng Securities Leader Index account for 79.16% of the index, with Dongfang Wealth and CITIC Securities being the top two [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The report indicates that the leading advantage of the company remains solid, and with high trading activity, the performance is expected to grow steadily [2][17] - For the first half of 2025, the company achieved operating revenue of 33.04 billion yuan, a year-on-year increase of 9.5%, and a net profit attributable to shareholders of 13.72 billion yuan, up 29.8% year-on-year [5][13] Financial Performance Summary - In 2025H1, the company reported: - Operating revenue of 33.04 billion yuan, up 9.5% year-on-year - Net profit attributable to shareholders of 13.72 billion yuan, up 29.8% year-on-year - Weighted average ROE of 4.91%, an increase of 0.95 percentage points compared to the same period last year [5][13] - In Q2 2025, the company recorded: - Operating revenue of 15.28 billion yuan, down 7% year-on-year and down 14% quarter-on-quarter - Net profit attributable to shareholders of 7.17 billion yuan, up 27.9% year-on-year and up 9.6% quarter-on-quarter [5][13] Business Segment Performance - Brokerage business revenue for 2025H1 was 6.40 billion yuan, up 31.2% year-on-year, accounting for 19.6% of the main securities revenue [14] - Asset management business revenue for 2025H1 was 5.44 billion yuan, up 10.8% year-on-year [14] - Investment banking revenue for 2025H1 was 2.10 billion yuan, up 20.9% year-on-year [15] - Investment net income (including exchange gains) for 2025H1 was 17.23 billion yuan, up 30.2% year-on-year [16] Future Projections - The company is expected to achieve operating revenues of 83.9 billion yuan, 101.5 billion yuan, and 113.5 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 31.5%, 21.0%, and 11.8% [17][18] - Net profits attributable to shareholders are projected to be 30.93 billion yuan, 38.22 billion yuan, and 43.90 billion yuan for the same years, with growth rates of 42.5%, 23.6%, and 14.8% respectively [17][18]