Guangfa Securities: General self-operated warming up, brokerage performance is expected to continue to improve

Guangfa Securities' research report indicates that the overall performance of the securities industry in the third quarter of 2024 has rebounded, with a year-on-year increase of 41% in net profit attributable to the parent company and an increase in industry concentration. The performance of various business lines has mostly declined to varying degrees, and the self-operated business has become the driving force behind the rise due to its low base. Looking ahead, first, the influx of incremental funds into the market and the steady implementation of rising policies will help sustainably boost market confidence; second, the Central Bank's innovative monetary tools will stabilize and activate the capital market, opening up leverage enhancement space for leading securities firms; third, market warming driven by internal and external factors can be expected, with the investment banking business expected to recover in the subsequent stage and the long-term trend of comprehensive wealth management enhancing the certainty of rise, leading to the potential continuous recovery of securities firms' performance and elasticity; fourth, the industry's structure is expected to usher in a new breakthrough towards headship. Current valuations have been significantly restored, and securities zone funds are still at a low point in holdings.