Executive Summary
Hengtai Securities reported a compelling QQ1 2025 with substantial year-over-year top-line momentum and pronounced operating leverage. Revenue reached CNY 730.93 million, up 51.9% from QQ1 2024, underpinned by broad participation across its brokerage, investment banking, and asset management businesses. The company posted an operating income of CNY 426.64 million, yielding an operating margin of approximately 58.4%, while net income climbed to CNY 120.37 million, representing a 346.9% year-over-year increase and a net margin of about 16.5%. The weighted average shares outstanding stood at roughly 2.605 billion, with basic and diluted EPS of CNY 0.0462.
Key Performance Indicators
QoQ: 96.66% | YoY:346.86%
QoQ: 96.60% | YoY:348.54%
Key Insights
Revenue: CNY 730.92m (YoY +51.9%, QoQ +4.85%) | Gross Profit: CNY 730.92m (YoY +51.9%, QoQ +4.85%) | Operating Income: CNY 426.64m (YoY +45.6%, QoQ +13.4%) | Net Income: CNY 120.37m (YoY +346.9%, QoQ +96.7%) | Net Margin: 16.47% | Gross Margin: 100.0% | Operating Margin: 58.37% | EPS: CNY 0.0462 | ROE: 1.41% | Debt Ratio: 4.45% | P/B: 0.53 | Free Cash Flow per Share: CNY 0.0692...
Financial Highlights
Revenue: CNY 730.92m (YoY +51.9%, QoQ +4.85%) | Gross Profit: CNY 730.92m (YoY +51.9%, QoQ +4.85%) | Operating Income: CNY 426.64m (YoY +45.6%, QoQ +13.4%) | Net Income: CNY 120.37m (YoY +346.9%, QoQ +96.7%) | Net Margin: 16.47% | Gross Margin: 100.0% | Operating Margin: 58.37% | EPS: CNY 0.0462 | ROE: 1.41% | Debt Ratio: 4.45% | P/B: 0.53 | Free Cash Flow per Share: CNY 0.0692
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
730.92M |
51.91% |
4.85% |
| Gross Profit |
730.92M |
51.91% |
4.85% |
| Operating Income |
426.64M |
45.59% |
13.37% |
| Net Income |
120.37M |
346.86% |
96.66% |
| EPS |
0.05 |
348.54% |
96.60% |
Key Financial Ratios
operatingProfitMargin
58.4%
operatingCashFlowPerShare
$0.07
freeCashFlowPerShare
$0.07
Management Commentary
Transcript data not provided. No management quotes are available in the supplied material. As a result, no thematic quotes or quotes by specific executives can be cited. If a transcript becomes available, key themes would likely include growth in core brokerage and investment banking activities, liquidity management, and commentary on capital markets conditions in China.
Forward Guidance
No explicit forward guidance was presented in the provided data. The QQ1 2025 results imply improving top-line momentum within a challenging macro and regulatory environment typical for Chinese capital markets. Investors should monitor: (1) sustained client activity in brokerage and wealth management, (2) underwriting and advisory pipeline for investment banking, (3) fluctuations in other income that materially affected quarterly profitability, and (4) regulatory developments affecting margin financing, securities lending, and OTC services. Management commentary (once available) would be crucial to validate the sustainability of the earnings mix and any capital deployment plans.