Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company reported a strong performance in the first nine months of 2025, with revenue of 26.2 billion yuan, a year-on-year increase of 41%, and a net profit of 10.9 billion yuan, up 62% year-on-year [5] - The brokerage and proprietary trading segments showed significant growth, with brokerage revenue reaching 6.98 billion yuan, a 75% increase, and proprietary investment income contributing positively to overall profitability [7] - The company is expected to benefit from a rebound in the Hong Kong stock market due to its international business expansion [7] Financial Data and Earnings Forecast - The company’s projected revenue and net profit for the years 2025 to 2027 are as follows: - Revenue: 34.54 billion yuan in 2025, 38.95 billion yuan in 2026, and 42.93 billion yuan in 2027 - Net profit: 13.52 billion yuan in 2025, 15.26 billion yuan in 2026, and 16.19 billion yuan in 2027 [6][8] - The company’s return on equity (ROE) is expected to improve, reaching 10.08% in 2025 [6] Business Performance - The company’s asset management business is a traditional strength, contributing significantly to revenue stability and profitability [7] - The total asset size reached 953.4 billion yuan, a 25.7% increase from the previous year, indicating robust growth and expansion [7]

Core Viewpoint - The report highlights the performance of 42 listed securities firms in the first half of 2025, showing significant growth in revenue and net profit, primarily driven by proprietary investment income. Group 1: Overall Performance - The 42 listed securities firms achieved a total operating revenue of 251.9 billion yuan, a year-on-year increase of 31% [1] - The net profit attributable to shareholders reached 104 billion yuan, reflecting a year-on-year growth of 65% [1] Group 2: Proprietary Investment Business - Proprietary investment business became the main contributor to performance, with total proprietary investment income of 112.35 billion yuan, up 53.53% year-on-year, accounting for nearly 45% of total revenue [1] - CITIC Securities reported the highest proprietary investment income at 19.05 billion yuan, while Bank of China Securities had the lowest at 0.12 billion yuan [1] Group 3: Investment Yield Analysis - The average proprietary investment yield for the 42 firms was 3.46%, with Pacific Securities leading at 8.17% and Bank of China Securities trailing at 1.52% [2] - Everbright Securities had a proprietary investment yield of 1.73%, which is below the average [2] Group 4: Everbright Securities Specifics - Everbright Securities reported a total revenue of 5.125 billion yuan, a year-on-year increase of 22.49%, and a net profit of 1.683 billion yuan, up 21.03% [9] - Despite growth in overall performance and proprietary investment income, investment banking revenue declined, with net fees from investment banking at 0.363 billion yuan, down 15.57% year-on-year [10] - The firm faced regulatory penalties due to compliance issues, including a significant drop in the number of operating branches from 227 to 218 [11]