Economic Observation Network Huatai Securities (06886. HK) saw significant revenue growth in wealth management and international business in the first half of the year, while also facing related business risks

Wealth management (revenue of 9.958 billion):Net revenue from selling financial products on a commission basis was 600 million (+114%), and net revenue from buying and selling securities on a commission basis was 4.7 billion (+61%) The balance of the two financing companies is 225.6 billion yuan, with a market share of 7.47%, ranking second in the industry in terms of interest income 。

International business (biggest highlight):Huatai Financial Holdings (Hong Kong) had a profit of HKD 3.09 billion (+170%) in the first half of the year, contributing 23% to the group's profits, and total assets surged by 74% compared to the beginning of the year 。

Investment banking business:The lead underwriter for refinancing is 47.34 billion yuan (+177%), ranking third in the industry; The number of mergers and acquisitions and restructuring projects has passed, ranking first in the industry 。

AI driven has been implemented:The AI powered Zhangle App has downloaded over 5 million copies in less than a year since its launch, and the high growth in brokerage and sales services is due to the contribution of the AI native service system 。

Risk points that need attention:In the first half of the year, the leverage ratio was 4.7 times (4.04 times at the beginning of the year), and the expansion pace was fast. It is necessary to pay attention to the risk of self operated investment drawdown when the market falls. In addition, IPO underwriting decreased by 53% year-on-year. If the equity financing policy tightens in the second half of the year, the flexibility of investment banking business may be limited 。

The above content is based on publicly available information and does not constitute investment advice.