CMS(600999) 华创证券·2025-03-29 10:00Investment Rating - The report maintains a "Recommended" rating for the company, expecting it to outperform the benchmark index by 10%-20% over the next six months [11][23]. Core Views - The company's ROE has shown significant improvement both year-on-year and quarter-on-quarter, with a reported ROE of 8%, up by 0.8 percentage points year-on-year. The quarterly ROE stands at 2.5%, reflecting a 0.6 percentage point increase quarter-on-quarter and a 0.5 percentage point increase year-on-year [2]. - The total revenue for the reporting period, excluding other business income, reached 20.7 billion yuan, representing a year-on-year increase of 14.1%. The net profit attributable to the parent company was 10.39 billion yuan, up 18.5% year-on-year [8][11]. - The company benefits from a robust regulatory framework, with a risk coverage ratio of 216.7%, significantly above the warning line of 120% [4]. Financial Performance Summary - The company's self-operated business revenue totaled 9.53 billion yuan, with a quarterly revenue of 2.36 billion yuan, showing a slight decrease quarter-on-quarter [3]. - Interest income from credit business amounted to 10.02 billion yuan, with a quarterly income of 2.68 billion yuan, reflecting a quarter-on-quarter increase of 3.75 billion yuan [3]. - The brokerage business revenue reached 6.18 billion yuan, with a quarterly revenue of 2.51 billion yuan, marking a substantial increase of 128.9% quarter-on-quarter and 100.5% year-on-year [10]. Valuation and Price Target - The target price for the company's stock is set at 22.37 yuan, with the current price at 18.17 yuan, indicating a potential upside [5][11]. - The expected EPS for 2025, 2026, and 2027 is projected to be 1.45, 1.56, and 1.67 yuan respectively, with corresponding PB ratios of 1.28, 1.19, and 1.11 [11][12].