Investment Rating - The report maintains an "Accumulate" rating for the company [7][5]. Core Views - The company reported a significant improvement in Q2 performance, with a notable recovery in investment income compared to Q1, leading to a Q2 net profit of 1.61 billion RMB, a year-on-year decrease of 29.96% but a quarter-on-quarter increase of 1630.64% [1]. - The company initiated a share buyback of 626,800 shares on August 27, signaling confidence to investors [1]. - The company is focusing on enhancing its brokerage and fund sales operations, achieving a 13% increase in domestic futures trading volume and a 4% increase in brokerage fee income year-on-year [2]. - The risk management business remains strong, with a 72% year-on-year growth in off-exchange derivatives business nominal amount, reaching 1,603 billion RMB [3]. - The overseas business is also growing steadily, with a 5% increase in revenue and a significant 185.5% growth in new fund sales [4]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 55.56 billion RMB, a year-on-year decrease of 54.12%, primarily due to accounting adjustments [1]. - The net profit attributable to shareholders was 1.70 billion RMB, down 44.69% year-on-year, but Q2 showed a recovery with a net profit of 1.61 billion RMB [1][5]. Business Segments - The brokerage business is showing steady growth, with a daily average equity scale improvement and a 4% increase in net income from brokerage fees [2]. - The risk management business is leading the industry, with a total spot trading volume of 196.46 billion RMB and a 23% increase in market-making business volume [3]. - The overseas business segment reported a revenue of 1.24 billion RMB, with a 5% year-on-year increase, and plans to establish a subsidiary in the UK [4]. Earnings Forecast and Valuation - The company adjusted its earnings per share (EPS) estimates for 2025-2027 to 0.35, 0.39, and 0.42 RMB respectively, reflecting an increase of 21%, 15%, and 9% [5]. - The target price is set at 20.84 RMB, corresponding to a price-to-book (PB) ratio of 1.7 times for 2025 [5].

Investment Rating - The investment rating for the company is "Buy" (maintained) for both A-shares and H-shares [8]. Core Insights - The company reported a revenue of 43.397 billion RMB for 2024, representing a year-on-year increase of 20%, and a net profit attributable to shareholders of 13.024 billion RMB, up 39% year-on-year [1]. - Investment income reached a record high of 14.8 billion RMB in 2024, driven by significant growth in brokerage net income, which more than doubled in Q4 [2][3]. - The company has completed the absorption of Haitong Securities, which is expected to enhance integration and synergy [1]. Summary by Sections Financial Performance - The company achieved a total revenue of 43.397 billion RMB in 2024, with a year-on-year growth of 20% [7]. - The net profit attributable to shareholders was 13.024 billion RMB, reflecting a 39% increase compared to the previous year [7]. - Q4 revenue was 14.396 billion RMB, showing a year-on-year increase of 58% and a quarter-on-quarter increase of 21% [1]. Investment Income - Investment income for the year reached 14.8 billion RMB, marking a 62% increase year-on-year, which was the main driver of the company's performance [2]. - The company significantly expanded its balance sheet, with total assets increasing by 122.3 billion RMB year-on-year [2]. Brokerage and Wealth Management - Brokerage net income for the year was 7.8 billion RMB, up 16% year-on-year, with Q4 net income reaching 3.4 billion RMB, more than doubling year-on-year and quarter-on-quarter [3]. - The average monthly active users of the Junhong APP reached 8.85 million, a year-on-year increase of 11% [3]. Asset Management and Investment Banking - Asset management net income decreased by 5% year-on-year to 3.9 billion RMB, while the scale of the company's asset management reached 588.4 billion RMB, up 6.5% year-on-year [4]. - Investment banking net income fell by 21% year-on-year to 2.9 billion RMB, with equity financing under pressure [4]. Earnings Forecast and Valuation - The company has adjusted its earnings per share (EPS) forecasts for 2025-2027 to 1.66, 1.90, and 2.22 RMB respectively, with a target price of 27.64 RMB for A-shares and 18.21 HKD for H-shares [5]. - The price-to-book (PB) ratio for 2025 is projected at 1.38 for A-shares and 0.84 for H-shares [5].