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].

Core Viewpoint - The company reported a strong performance in H1 2025, with total revenue and net profit attributable to shareholders reaching 1.047 billion and 228 million yuan, respectively, reflecting year-on-year increases of 4.49% and 66.49% [1][2] Revenue Structure - The revenue breakdown for the company includes futures brokerage at 23.3%, asset management at 11.6%, risk management at 63.8%, and other income at 1.3% [1] - The asset management business saw significant growth, with revenue increasing by 223.83% year-on-year to 121 million yuan, driven by an expansion in product scale and excellent investment returns [1] Asset Management Performance - As of H1 2025, the company's asset management equity scale reached 3.201 billion yuan, a year-on-year increase of 36.50% [1] - The "Ruida Futures - Ruizhi Wuyou No. 99" product ranked first among 104 CTA strategy asset management products on the private equity platform [1] Risk Management Business - The risk management business generated revenue of 668 million yuan in H1 2025, a slight decline of 5% year-on-year, attributed to a decrease in revenue from commodity risk management [1] - However, when calculated on a net basis, the risk management revenue increased by 45% to 125 million yuan [1] - The company achieved a nominal principal of 22.299 billion yuan in derivative trading during H1 2025, with options market-making volume ranking second in the industry [1] Profitability and Market Share - The operating profit from risk management increased by 47% year-on-year to 97 million yuan, with an operating profit margin rising by 5.12 percentage points to 14.5% [2] - The brokerage business remained stable, with revenue of 244 million yuan, a slight decrease of 0.3% year-on-year, while the market share of transaction volume increased by 0.08 percentage points to 0.98% [2] Investment Outlook - The company is expected to benefit from its strong innovation capabilities in the futures industry, with a projected net profit attributable to shareholders of 423 million yuan in 2025, reflecting a year-on-year increase of 10.5% [2]