Core Viewpoint - The stock market recovery has led to a significant increase in the wealth management business of brokerage firms, with notable growth in both brokerage fees and financial product distribution revenues [1][2]. Brokerage Business Performance - In the first half of the year, the securities industry achieved a net income of 78.95 billion yuan from brokerage fees, a substantial increase from 60.36 billion yuan in the same period last year, representing a growth of over 30% [2][4]. - The average daily trading volume for stocks and funds reached 1.61 trillion yuan, a year-on-year increase of 63.87%, while the Hong Kong stock market saw an average daily turnover of 240.2 billion HKD, up 117.61% [4]. - The top ten brokerage firms by net income from brokerage fees included CITIC Securities, Guotai Junan, and GF Securities, with CITIC Securities leading at 6.40 billion yuan [4]. New Account Growth - Many brokerage firms reported a rapid increase in new account openings during this market rally. Guotai Junan noted a 4.2% increase in domestic personal accounts, reaching 38.45 million, with high-net-worth clients growing by 6.8% [5]. - The average monthly active users for Guotai Junan's apps increased by 9.6%, while the client assets under custody for Guoxin Securities exceeded 2.6 trillion yuan, a 7.5% increase [5]. Financial Product Distribution - The revenue from financial product distribution among 42 listed brokerage firms totaled 5.57 billion yuan in the first half of the year, marking a year-on-year growth of 32.09% [7]. - Smaller brokerage firms outperformed larger ones in terms of growth rates, with Nanjing Securities and Guolian Minsheng leading with increases of 191.28% and 135.08%, respectively [7]. AI Integration in Wealth Management - The integration of AI into wealth management has become a key focus for brokerage firms. Guotai Junan has implemented an "all in AI" strategy, enhancing service efficiency and driving growth in both traditional brokerage and financial product distribution [11]. - Huatai Securities reported a significant increase in the number of financial products offered, with a total of 14,433 products and a sales scale of 304.57 billion yuan [11]. - The use of AI technology is expected to reshape the wealth management landscape, with firms like Huatai and招商证券 actively enhancing their digital platforms and client service capabilities [12].

Financial Performance - In 2024, the company achieved revenue of 41.466 billion yuan (+13.37%) and a net profit attributable to shareholders of 15.351 billion yuan (+20.40%) [1] - The basic earnings per share increased to 1.62 yuan (+20.00%), while the return on equity (ROE) for 2023 was 9.24%, an increase of 1.12 percentage points year-on-year [1] Wealth Management - The company reported net income from brokerage services of 6.447 billion yuan (+8.19%) in 2024 [2] - By the end of 2024, the company had 1,776.39 billion yuan in cash, a year-on-year increase of 18.17% due to increased client funds [2] - The number of financial products sold (excluding cash management products) reached 16,760, an increase of 51.40%, with a sales scale of 503.991 billion yuan (+13.63%) [2] - The company maintained a leading position in public fund sales, with significant holdings in various fund categories [2] Investment Banking - The company achieved net income from investment banking of 2.097 billion yuan (-30.95%) in 2024, with equity underwriting reaching 54.897 billion yuan (-39.87%) [3] - The company ranked second in the industry for IPO and refinancing projects, participating in two of the top ten IPOs and two of the top ten refinancing projects [3] - Bond underwriting reached 12,960.48 billion yuan (+3.12%), ranking third in the industry [3] Asset Management - The company reported net income from asset management of 4.146 billion yuan (-2.58%) [4] - The total asset management scale grew significantly to 556.267 billion yuan (+16.98%), driven by increases in collective and single asset management [4] - The company's fund subsidiary, Southern Fund, managed assets totaling 2.47 trillion yuan (+30.54%), while Huatai-PineBridge managed 688.208 billion yuan (+72.82%) [4] Proprietary Trading - The company generated 14.5 billion yuan (+24.24%) in proprietary trading income, which was a major driver of performance growth [5] - The proportion of bond investments increased, accounting for 56.86% of the investment portfolio, while equity investments slightly decreased [5] International Business - International business revenue surged to 14.34 billion yuan (+80.93%), accounting for 34.58% of total revenue [6] - The company ranked third in the market for Hong Kong IPO sponsorship projects [6] Investment Outlook - The company is expected to benefit from a gradually improving economic environment and ongoing reforms in the capital market, which may lead to valuation increases [7] - Forecasted basic earnings per share for 2025-2027 are 1.73 yuan, 1.80 yuan, and 1.95 yuan, respectively [7]

Investment Rating - The investment rating for the company is "Buy" with an expected return exceeding 10% relative to the CSI 300 index over the next six months [22]. Core Views - The company's self-operated business shows steady growth, and its wealth management maintains an industry-leading position. With the gradual improvement of the economic fundamentals and the moderate rise of the equity market, the company's valuation is expected to increase alongside market trading enthusiasm and policy reforms [10]. Financial Performance - In 2024, the company achieved revenue of 41.466 billion yuan, a growth of 13.37%, and a net profit attributable to shareholders of 15.351 billion yuan, an increase of 20.40%. The basic earnings per share were 1.62 yuan, up by 20.00% [1]. - The return on equity (ROE) for 2023 was 9.24%, an increase of 1.12 percentage points compared to the previous year [1]. Wealth Management - The company reported net income from brokerage services of 6.447 billion yuan, an increase of 8.19%. By the end of 2024, the company had 177.639 billion yuan in cash, a year-on-year increase of 18.17%, primarily due to increased client funds [2]. - The number of financial products (excluding cash management products) reached 16,760, a growth of 51.40%, with a sales scale of 503.991 billion yuan, up by 13.63% [2]. Investment Banking - The company achieved net income from investment banking of 2.097 billion yuan, a decrease of 30.95%. The equity underwriting scale was 54.897 billion yuan, down by 39.87%, ranking second in the industry [3]. - The bond underwriting scale reached 1,296.048 billion yuan, an increase of 3.12%, ranking third in the industry [3]. Asset Management - The net income from asset management was 4.146 billion yuan, a decrease of 2.58%. The asset management scale grew significantly to 556.267 billion yuan, an increase of 16.98% [4]. International Business - The company's international business revenue surged to 14.340 billion yuan, an increase of 80.93%, accounting for 34.58% of total revenue [9]. Future Earnings Projections - The projected basic earnings per share for 2025, 2026, and 2027 are 1.73 yuan, 1.80 yuan, and 1.95 yuan, respectively. The projected net asset per share for the same years is 17.60 yuan, 18.91 yuan, and 20.37 yuan [10].