Brokerage Buyback Wave Meets Strong Mid-Year Earnings as Non-Bank Financials Hit Decade-Low Valuations

Industry

โดย Jiemian·Read original

Summary · why it matters

Huaan Securities and Guolian Minsheng have successively announced buybacks, with a combined repurchase cap of up to 700 million yuan alongside Guojin Securities. Meanwhile, 20 brokerages reported a median year-on-year increase of 91 percent in their mid-year earnings forecasts, creating a resonance between strong performance and extremely low valuations. As of July 17, the securities company index traded at a price-to-book ratio of just 1.10 times, at the 11th percentile of its 10-year range, and a price-to-earnings ratio of only 14.39 times, at the 2nd percentile. Corporate buybacks to support share prices demonstrate confidence in value, making the sector both defensive and growth-oriented. Looking ahead, a concentrated wave of IPOs from hard-tech stars such as Changxin Memory Technologies and Unitree Technology is expected to benefit brokerages across the entire chain of sponsorship, co-investment, and direct investment. Combined with a solid foundation in wealth retail business, the return on equity for top brokerages could rise from the current sub-10 percent level toward 15 percent, opening up room for a medium- to long-term valuation re-rating.