Nanhua Futures(603093) 东吴证券·2025-04-21 15:11Investment Rating - The report maintains an "Add" rating for Nanhua Futures [1] Core Views - Nanhua Futures reported a stable net profit year-on-year in Q1 2025, despite a significant decline in revenue, primarily due to changes in revenue recognition methods [7][8] - The company has formally submitted its application to list on the Hong Kong Stock Exchange, aiming to enhance its competitiveness in overseas markets [7][8] - The earnings forecast remains unchanged, with expected net profits for 2025-2027 at 5.39 billion, 5.88 billion, and 6.66 billion respectively, indicating growth rates of 17.72%, 9.15%, and 13.16% [7][8] Revenue and Profit Analysis - In Q1 2025, total revenue was 534 million, down 46.2% year-on-year, while net profit was 86 million, up 0.1% year-on-year [7] - The decline in revenue was attributed to a significant drop in net commission income and interest income, with net commission income falling by 22.7% and interest income by 20.5% [7] - Investment income showed a positive turnaround, contributing 18 million in Q1 2025 [7] Cost and Expense Management - Overall expenses decreased in line with revenue, with business and management fees down 9.3% to 156 million [7] - Credit impairment losses significantly decreased by 65% to 7 million [7] - Other business costs also fell by 61.6% to 266 million, reflecting the decline in other business income [7] Market Position and Future Outlook - Nanhua Futures is positioned to become the second "A+H" listed futures company in China, following Hongye Futures, which could enhance its market presence [7] - The company is expected to continue leveraging its strengths in overseas clearing and risk management capabilities [7]