Investment Rating - Investment Rating: Buy (Maintain) [1] Core Views - The company has solidified its leading position in the industry post-merger and is expected to see a rebound in ROE levels [5] - The merger with Haitong Securities has strengthened the company's client base and operational efficiency, aligning with the trend of industry consolidation [5] - The company reported significant growth in revenue and net profit for H1 2025, with revenue of 239 billion and net profit of 157 billion, representing year-on-year increases of 78% and 214% respectively [5] Financial Performance Summary - H1 2025 revenue and net profit reached 239 billion and 157 billion respectively, with a year-on-year growth of 78% and 214% [5] - The annualized weighted ROE for H1 2025 was 12.5%, with a non-recurring annualized ROE of 5.7% [5] - The company expects net profit for 2025-2027 to be 247 billion, 218 billion, and 259 billion respectively, with a projected year-on-year growth of 89%, -12%, and +19% [5] - The current stock price corresponds to PE ratios of 15.0, 17.0, and 14.3 for the years 2025, 2026, and 2027 respectively [5] Business Segment Performance - Brokerage business net income for H1 2025 was 57 billion, up 86% year-on-year, driven by the merger and market recovery [6] - Investment banking net income reached 14 billion, a 19% increase year-on-year, with the company ranking first in IPO underwriting [6] - Asset management net income was 26 billion, reflecting a 34% year-on-year growth, with total assets under management reaching 705.2 billion [6] Investment Strategy and Market Position - The company is positioned to benefit from the regulatory trend favoring capital concentration and operational efficiency in the securities industry [5] - The merger is expected to enhance the company's service capabilities and client base, leading to improved operational management [5] - The company maintains a strong market presence with a 10% market share in margin financing [7]