Dongwu Securities: Guotai Haitong's current valuation is lower than the industry average level, maintaining a "buy" rating.

The research report from Dongwu Securities pointed out that Guotai Haitong is expected to achieve a net profit attributable to the parent of 27.5-28 billion yuan in 2025, a year-on-year increase of 111%-115%; the fourth quarter is expected to achieve a non-GAAP net profit of 4.8-5.2 billion yuan, a quarter-on-quarter decrease of 42%-47%. The profit growth in 2025 mainly comes from brokerage, investment banking, and proprietary trading businesses. Guotai Junan and Haitong Securities are consolidated in the first quarter of 2025, initially achieving a synergistic effect of "1+1>2". The Company's asset scale and operating performance have reached historical highs, with significant year-on-year growth in wealth management, institutional, and trading business income. In addition, the negative goodwill generated from the company's merger with Haitong Securities is included in non-operating income. The market remains active, with slight adjustments to previous profit forecasts. It is expected that the Company's net profit attributable to the parent from 2025 to 2027 will be 27.7/28.2/30.4 billion yuan, corresponding to PB ratios of 1.11/1.04/0.98 times. After the merger, the Company's various indicators are among the industry's best, with its asset size ranking first in the industry, and it is expected to continue to benefit from capital market reforms. The Company's valuation is lower than the industry average, and a "buy" rating is maintained.