HHTG(600095) 太平洋证券·2025-04-24 12:45Investment Rating - The report maintains a "Buy" rating for Xiangcai Co., Ltd. (600095) with a target price based on the last closing price of 8.43 [1]. Core Views - Xiangcai Co., Ltd. is positioned as a traditional brokerage firm embarking on a new journey, with a strong emphasis on advancing financial technology to create differentiated competitive advantages [1][5]. - The company has optimized its governance structure and continues to operate under a light asset model, with a significant focus on its securities business, which contributes 96.25% of net income [4][19]. - Financial performance has shown fluctuations due to proprietary trading, but there has been a recovery in 2024, with revenue and operating profit increasing by 5.89% and 42.04% respectively [4][23]. Summary by Sections Company Governance and Structure - Xiangcai Co., Ltd. was established from Hunan Xiangcai Securities and went public in 2020 through a reverse merger with Hako Technology [15]. - The introduction of Zhejiang state-owned capital has led to a mixed ownership structure, enhancing governance [16]. - The company has reduced the proportion of its industrial sector assets to less than 2% through various strategies [19]. Business Development through Financial Technology - The brokerage business is being empowered by financial technology, focusing on wealth management transformation [5][34]. - Credit business has seen stable growth, with margin financing increasing by 12.60% year-on-year [45]. - Proprietary trading has shifted towards long-term value investment, with a significant increase in fixed-income investments [51]. - The investment banking segment is focusing on regional service models, with a notable increase in profit margins [59]. Financial Performance and Forecast - Revenue projections for 2024-2026 are estimated at 22.60 billion, 25.11 billion, and 28.30 billion respectively, with net profits expected to reach 1.03 billion, 1.95 billion, and 2.55 billion [6]. - The diluted EPS is projected to grow from 0.04 in 2024 to 0.09 in 2026, indicating a positive trend in profitability [6][9]. Strategic Mergers and Acquisitions - The company plans to absorb and merge with Dazhihui, enhancing its financial technology capabilities and business synergy [83]. - This merger is expected to significantly boost Xiangcai's business development and wealth management transformation [84].