Guotai Haitong recently unveiled its first – quarter 2025 financial results, showcasing remarkable growth figures. The company reported a 47.5% year – on – year increase in revenue, a substantial 391.8% year – on – year rise in net profit attributable to the parent company, and a return on equity of 6.46%.
The growth rates across each of the company’s main business segments in the first quarter of 2025 were particularly striking. The significant surge in net profit was mainly driven by negative goodwill absorbed from Haitong Securities, which in turn boosted non – operating income.
Broken down by business segment, in Q1 2025, the company’s brokerage, investment banking, asset management, investment, and credit business revenues grew by 77%, 10%, 27%, 69%, and 98% year – on – year, respectively. These segments contributed 26.5 billion yuan, 7.1 billion yuan, 11.7 billion yuan, 40.1 billion yuan, and 6.9 billion yuan in revenue, accounting for 23%, 6%, 10%, 34%, and 6% of the total revenue. Compared to the same period last year, the proportions of these segments saw changes of +4%, -2%, -2%, +4%, and +2%, respectively.
Detailed Analysis of Q1 2025 Results
Guotai Haitong’s first – quarter 2025 results revealed a revenue increase of 47.5% year – on – year, a net profit attributable to the parent company that soared by 391.8% year – on – year, and a return on equity of 6.46%.
All main business segments of the company demonstrated impressive growth rates in the first quarter of 2025. The substantial increase in net profit attributable to the parent company was predominantly due to the positive impact of integrating Haitong Securities, which led to a rise in non – operating income.
In Q1 2025, Guotai Haitong achieved an operating revenue of 117.7 billion yuan, representing a 47.5% year – on – year growth. Specifically, the net income from brokerage business commissions reached 26.5 billion yuan, up 77% year – on – year; investment banking commission net income was 7.1 billion yuan, a 10% increase; asset management commission net income was 11.7 billion yuan, up 27%; investment business income (calculated as net investment income + fair value change income – investment income from associated and joint ventures) was 40.1 billion yuan, a 69% year – on – year rise; and net interest income was 6.9 billion yuan, up 98%. The net profit attributable to the parent company was 122.4 billion yuan, a 391.8% year – on – year increase, and the weighted average ROE was 6.46%, an increase of 4.91 percentage points compared to the same period last year.
From an asset structure perspective, customer funds deposit increased by 53% month – on – month and 98% year – on – year to 2817.2 billion yuan; lent funds rose by 77% month – on – month and 118% year – on – year to 1885.6 billion yuan. In Q1 2025, the company’s financial investment assets balance was 7200.9 billion yuan, a 64% year – on – year increase. Among them, the balance of trading financial assets was 5497.5 billion yuan, up 52% year – on – year. The company’s leverage ratio excluding customer funds was 4.0x, a decrease of 0.78x compared to the same period last year.
Profit Forecast, Valuation, and Rating
Projections indicate that the company’s revenue for 2025 – 2026 will reach 562 billion yuan and 644 billion yuan, respectively, with year – on – year growth rates of 29% and 15%. The net profit attributable to the parent company is expected to be 211 billion yuan and 218 billion yuan, respectively, with year – on – year growth rates of 62% and 4%. Based on the closing price on May 21, 2025, the PB valuation for 2025 – 2026 is approximately 1.06 and 1.00 times, and the company has been assigned a “buy” rating.
Risk Factors to Consider
Market Price Fluctuation Uncertainty
Capital market prices are influenced by a multitude of factors. Macroeconomic fluctuations, changes in the global economic landscape, and shifts in investor sentiment can all trigger stock price changes or impact the valuation of financial institutions such as securities firms and insurance companies. The performance of the non – banking financial industry is especially sensitive to market prices and trading volumes.
Enterprise Profit Forecast Uncertainty
The profits of the securities and insurance industries are subject to multiple influencing factors. The forecasts regarding industry valuation and performance in reports carry certain uncertainties. Additionally, intensifying internal industry competition may also cause deviations in forecast results.
Technological Updates and Iterations
The rapid development of emerging technologies requires financial institutions to continuously adapt. However, the accelerated pace of technological updates and iterations brings high research and development costs and talent training expenses, potentially increasing the operating costs of securities firms and insurance companies. Moreover, the emergence of technological innovation is somewhat unpredictable.
Notably, on May 23, 2025, Guotai Haitong was subject to disciplinary action by the Shenzhen Stock Exchange in relation to the initial public offering of Zhongding Hengsheng Gas Equipment (Wuhu) Co., Ltd. on the ChiNext board. This event may have exerted some influence on the company’s stock price.
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