Core Viewpoint - 惠理集团's 1H25 performance met market expectations, with a significant recovery in investment income and positive contributions from joint ventures driving profit growth [1][2]. Financial Performance - Total revenue for 1H25 decreased by 6% year-on-year and 4% quarter-on-quarter to HKD 220 million, while net income increased by 3% year-on-year and 8% quarter-on-quarter to HKD 170 million [1]. - The net profit attributable to shareholders was HKD 250 million, compared to HKD 37.37 million in 1H24, aligning with the company's prior earnings forecast [1]. Asset Management and Fees - Assets Under Management (AUM) rose by 4% quarter-on-quarter to USD 5.29 billion, despite a 2% year-on-year decline, with net outflows of USD 280 million during the reporting period [1][2]. - Management fees decreased by 8% year-on-year and 6% quarter-on-quarter to HKD 190 million, influenced by a higher proportion of low-fee products, resulting in a management fee rate decline of 2 basis points to 96 basis points [1][2]. Investment Income and Joint Ventures - Investment income net increased by 68% year-on-year and 155% quarter-on-quarter to HKD 180 million, primarily due to realized gains from holding a gold ETF [2]. - The share of profits from joint ventures turned positive, contributing HKD 65.51 million compared to a loss of HKD 45.97 million in 1H24 [2]. Cost Management - Total operating expenses rose by 16% year-on-year to HKD 190 million, driven by a 30% increase in compensation and benefits expenses to HKD 130 million, largely due to higher employee bonuses [2]. Product Development and Market Strategy - The company is actively developing new products to meet emerging investor demands, including those focused on tokenization and virtual assets [2]. - Existing products have performed well, with notable returns from various funds, attracting continued investor interest [2]. - The company is expanding distribution channels, particularly through cross-border initiatives and partnerships with digital banks, enhancing its market reach [2]. Earnings Forecast and Valuation - The earnings forecast for 2025 has been raised from HKD 120 million to HKD 390 million, with a new forecast for 2026 set at HKD 320 million [3]. - The target price has been increased by 43% to HKD 3.00, indicating a potential upside of 32% from the current stock price, based on a recovery in AUM and improved market sentiment [3].

Core Viewpoint - CICC has raised the profit forecast for Wisdom Group (00806) for 2025 from HKD 120 million to HKD 390 million, and introduced a profit forecast of HKD 320 million for 2026, based on the recovery of AUM and significant increase in investment income [1] Group 1: Financial Performance - Wisdom Group's 1H25 performance is generally in line with market expectations, with total revenue decreasing by 6% year-on-year and 4% quarter-on-quarter to HKD 220 million, while net income increased by 3% year-on-year and 8% quarter-on-quarter to HKD 170 million [2] - The net profit attributable to shareholders for 1H25 was HKD 250 million, consistent with the company's previous earnings forecast [2] Group 2: AUM and Management Fees - Management fees for 1H25 decreased by 8% year-on-year and 6% quarter-on-quarter to HKD 190 million, while AUM decreased by 2% year-on-year but increased by 4% quarter-on-quarter to USD 5.29 billion [3] - The report period saw a net outflow of USD 280 million, with subscriptions of USD 730 million and redemptions of USD 1.01 billion; however, funds generated a positive return of USD 530 million [3] Group 3: Investment Income and Cost Management - Investment income for 1H25 increased significantly by 68% year-on-year and 155% quarter-on-quarter to HKD 180 million, primarily due to realized net investment income of HKD 120 million from holding a gold ETF [4] - The share of profits from joint ventures was HKD 65.51 million, compared to a loss of HKD 45.97 million in 1H24 [4] - Total operating expenses increased by 16% year-on-year to HKD 190 million, driven by a 30% increase in salary and benefits expenses to HKD 130 million [4] Group 4: Product Diversification and Market Expansion - The company is actively developing new products to meet emerging investor demands, including those focused on tokenization and virtual assets [5] - Existing products have performed well, with returns for various funds ranging from 13.6% to 21.2% year-to-date, attracting continued investor interest [5] - The company is expanding distribution channels, participating in cross-border initiatives, and optimizing mutual recognition arrangements to attract mainland Chinese investors [5]

Core Viewpoint - CICC has raised the profit forecast for Wisdom Group (00806) for 2025 from HKD 120 million to HKD 390 million, and introduced a profit forecast of HKD 320 million for 2026, based on the recovery of AUM and significant increase in investment income [1] Group 1: Financial Performance - Wisdom Group reported 1H25 results: total revenue decreased by 6% YoY and 4% QoQ to HKD 220 million, while net income increased by 3% YoY and 8% QoQ to HKD 170 million; net profit attributable to shareholders was HKD 250 million compared to HKD 37.37 million in 1H24, aligning with previous earnings guidance [2] - Management fees for 1H25 decreased by 8% YoY and 6% QoQ to HKD 190 million, with AUM down by 2% YoY but up by 4% QoQ to USD 5.29 billion; net outflow during the reporting period was USD 280 million [3] Group 2: Investment Performance - Investment income for 1H25 increased by 68% YoY and 155% QoQ to HKD 180 million, primarily due to realized net investment gains of HKD 120 million from holding a gold ETF; share of profits from joint ventures was HKD 65.51 million compared to a loss of HKD 45.97 million in 1H24 [4] Group 3: Product Development and Market Strategy - The company is actively developing new products to meet emerging investor demands, including those focused on tokenization and virtual assets; existing products have performed well, with returns of 14.5%, 13.6%, 13.6%, and 21.2% for various funds year-to-date [5] - The company is expanding distribution channels through participation in cross-border initiatives and optimizing the mutual recognition of funds (MRF) to attract mainland investors; ongoing efforts in Southeast Asia aim to broaden market coverage [5]