Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has demonstrated better-than-expected growth through both organic and acquisition strategies, with the first interim dividend being distributed [1] - The integration of the acquired company, Yuefeng, has shown significant contributions to revenue and profit, indicating strong synergy effects [1] - The company's financial performance is projected to improve, with net profit estimates for 2025-2027 being raised due to better-than-expected growth [1] Financial Summary - Total revenue for 2023 is projected at 12,541 million, with a decline of 2.59% year-on-year, while 2024 is expected to see a further decline of 5.22% [1] - Net profit attributable to shareholders is forecasted to be 1,430 million in 2023, with a year-on-year growth of 25.23% [1] - The latest diluted EPS is expected to be 1.75 in 2023, with a P/E ratio of 14.85 [1] - The company’s operating cash flow for the first half of 2025 is reported at 12.21 billion, showing a year-on-year increase of 2.80 billion [1] - The company plans to distribute an interim dividend of 0.25 per share, totaling 2.04 billion, which is 21.08% of the net profit for the first half of 2025 [1]

Core Viewpoint - Securities companies play an increasingly critical role in the strategic layout of regional economies, particularly under the expectations of state-owned and local government shareholders [1][2]. Group 1: Performance Expectations from Major Shareholders - Major shareholders, including state-owned enterprises, are assessing the performance of securities companies and setting new targets for the upcoming year, emphasizing the need for these firms to integrate their development into the group's overall strategy [2]. - There is a strong focus on "operational efficiency," with multiple shareholders urging securities firms to control costs and improve quality and efficiency [3][11]. Group 2: Service to Local Economies - Local state-owned enterprises are exploring ways to enhance the role of provincial state-owned securities firms in supporting their members and implementing regional development strategies [5]. - For instance, Shaanxi Coal and Chemical Industry Group has set performance expectations for its subsidiary, Kaiyuan Securities, to align with the group's key objectives and enhance macroeconomic strategies and industry research [5]. Group 3: Strategic Development and Integration - The integration of securities firms into the broader strategic framework of their parent groups is emphasized, with a focus on high-quality development and effective service to state-owned enterprises [6][10]. - The recent merger of Guolian Minsheng Securities is highlighted as a significant step towards establishing a national-level securities platform, enhancing its competitive position in the market [7][8]. Group 4: Emphasis on "Industrial Investment Banking" - There is a growing trend among securities firms to adopt an "industrial investment banking" strategy, which involves integrating investment, research, and banking services to better serve regional and sectoral development [9][10]. - Major shareholders are pushing for a collaborative model that enhances the synergy between investment banking, asset management, and investment services [10]. Group 5: Cost Control and Efficiency Improvement - Cost control and efficiency improvement are recurring themes, with shareholders urging their securities firms to adopt innovative methods to enhance operational performance [11]. - Specific goals include optimizing governance structures, enhancing talent development, and implementing effective cost management strategies across departments [11].