Investment Rating - The report maintains a "Buy" rating for leading securities firms such as CITIC Securities and Huatai Securities, while also recommending attention to other quality firms like Guotai Junan, China Galaxy, Dongfang Securities, and Zheshang Securities [5][6]. Core Viewpoints - The performance recovery of listed securities firms is expected to continue into Q2 2025, driven by a rebound in capital markets and increased trading activity, with an estimated 10% year-on-year growth in operating revenue [1][12]. - The self-operated and brokerage business lines are projected to maintain high growth rates, with self-operated income expected to increase by 30% and brokerage income by 26% year-on-year [1][2][12]. - The investment banking sector is anticipated to recover, with IPO and refinancing activities showing significant growth, leading to a projected 20% increase in investment banking revenue [4][32][34]. Summary by Sections 1. Business Outlook - Q2 2025 is expected to see a continuation of high growth momentum for listed securities firms, with operating revenue projected to grow by 10% year-on-year, driven by self-operated, brokerage, asset management, credit, and investment banking businesses [1][12]. - The market sentiment is recovering, and trading activity is increasing, with the average daily trading volume in the stock market reaching 1.49 trillion yuan [2][18]. 2. Investment Strategy - The report emphasizes the importance of focusing on high-elasticity stocks, particularly leading securities firms that are likely to benefit from the recovery of the capital market [37][38]. - The ongoing mergers and acquisitions, along with the steady progress of refinancing, are expected to enhance the performance of the securities industry [38][48]. 3. Key Companies - CITIC Securities is projected to maintain high growth rates in Q2 2025, benefiting from strong performance in its investment banking and international business segments [50][51]. - Huatai Securities is also expected to show robust performance, with significant year-on-year growth in both revenue and net profit [39][50]. 4. Financial Projections - The report provides detailed financial projections for key companies, indicating a positive outlook for revenue and net profit growth across the sector [6][39]. - For instance, CITIC Securities is expected to achieve an operating revenue of 178 billion yuan in Q2 2025, with a year-on-year growth of 29.1% [50]. 5. Market Trends - The report highlights the positive trends in the Hong Kong stock market, which are expected to benefit mainland securities firms in their investment banking and brokerage businesses [40][41]. - The ongoing recovery in the capital markets, along with supportive government policies, is likely to enhance the overall performance of the securities industry [37][38].