Hong Kong Stock Concept Tracking | Frequent Actions of Increasing Holdings and Buybacks! Signals of Value Reassessment in the Brokerage Sector (Including Concept Stocks)

Recently, actions such as stock increases and buybacks have been frequently seen in the brokerage sector. According to announcements, the controlling shareholder of Soochow plans to increase its holdings by 100 million to 200 million yuan, while the shareholder of Industrial intends to increase holdings by 30 million to 60 million yuan; Changjiang plans to use its own funds for a buyback of 100 million to 200 million yuan, and the buyback efforts of Huaan and Sinolink are also progressing. The aforementioned companies have stated that their decisions to increase holdings and conduct buybacks are based on their confidence in the future development prospects of the securities industry and their recognition of their own company value. On the policy front, four departments jointly issued the "Implementation Opinions on Improving the Governance of Financial Institutions." Huaxi's analysis indicates that the document covers all licensed institutions, including banks, insurance, and securities, proposing 22 measures to construct a governance system with clear responsibilities, compatible incentives, and strict risk control, aiming for a significant formation by 2029. The core focus is to prevent illegal interventions by major shareholders and insider control, strengthen penetrating regulation and early risk intervention, while incorporating the protection of financial consumers' rights into the top-level design. This move is expected to systematically enhance the inherent stability and risk resistance of the financial system, providing a solid support for serving the real economy and laying a institutional foundation for the long-term regulated development of the non-bank sector. At the same time, the 2026 mid-year report disclosure season is in full swing, and the brokerage sector has taken the lead in delivering an impressive "report card." According to Wind data, by the end of July, 17 listed brokerages had released performance forecasts for the first half of 2026, all of which are expected to achieve performance increases, covering major, medium-sized, and small brokerages. Overall, the direction of industry recovery has become relatively clear, with follow-up growth momentum expected to continue, although attention should still be paid to marginal changes in the external environment. Among the leading brokerages, several institutions are entering the ranks of those with half-year net profits exceeding 10 billion yuan. CITIC SEC expects its net profit attributable to shareholders to reach 23.343 billion yuan in the first half of the year, a year-on-year increase of 69.5%, continuing to hold the top spot in the industry; Guotai Haitong expects its net profit attributable to shareholders in the first half to be between 20.003 billion and 20.511 billion yuan, a year-on-year increase of 27% to 30%, with non-recurring net profit reaching a record high for the half-year period and Q2 profit achieving a doubling growth compared to the previous quarter; CMSC has achieved its first half-year net profit to surpass 10 billion yuan, with an expected net profit of 10 billion to 11 billion yuan, showing a year-on-year growth of 93% to 112%; CICC forecasts its net profit attributable to shareholders to be between 7.708 billion and 8.227 billion yuan, with a year-on-year increase of 78% to 90%. For mid and small-sized brokerages, Tianfeng expects its net profit in the first half to grow by 429.03% to 693.55% year-on-year; several mid and small-sized brokerages such as Xiangcai Co., Ltd., Polaris Bay Group, Zhongtai, Huaan, Caida, and Huaxi expect a doubling of their net profit year-on-year. Recently, the brokerage sector has shown strong resilience amidst market fluctuations. Central China points out that although the brokerage index experienced a peak in July and then shifted to a range-bound oscillation, its short-term performance still outperformed most technology growth indices. Currently, the sector's average P/B ratio is around 1.26-1.30 times, significantly lower than the historical average of 1.52 times since 2016, with over 60% of stocks having valuations below the industry average, indicating potential for valuation recovery in the context of a stabilizing equity market. Looking ahead, many analysts are optimistic about the performance of brokerage stocks. Huaxi's non-bank analyst Luo Huizhou states that the current allocation of actively managed equity funds to the non-bank sector is still significantly underweight. With the continuous vitality of the capital market and deepening reforms, alongside the entry of medium- to long-term funds into the market and increased equity allocation by residents, continued optimistic prospects are expected for the allocation value of the non-bank financial sector with beta characteristics. The non-bank analyst Liu Xinqi's team at Guotai Haitong notes that due to significant adjustments in the overvalued tech sector recently, investors have shifted towards undervalued and underweight sectors. Within the non-bank sector, the severely underweight insurance segment has thus benefited. In the subsequent process of market style rebalancing, brokerage sectors with performance exceeding expectations and who remain undervalued are expected to face valuation recovery opportunities, and investment opportunities in top brokerage stocks with continued outperformance but still undervalued have strong potential. Related concept stocks: GF SEC (01776): GF SEC (01776) announced that in the first half of 2026, the capital market maintained a good development trend. The company firmly implements the overall policy of high-quality development, closely aligns with the new requirements of starting the "14th Five-Year Plan," anchors the direction of building a first-class investment bank, maintains strategic resolve, enhances comprehensive service levels across the entire chain and cycle for clients, boosts product development capabilities, deepens international layout, and improves the effectiveness of refined management. In the first half of 2026, the company's revenues from wealth management, trading and institutional business, investment management, and investment banking all saw year-on-year growth. The company expects to achieve a net profit attributable to shareholders of listed companies ranging from 11 billion to 12 billion yuan, a year-on-year increase of 70% to 85%. CICC (03908): CICC (03908) disclosed that as of June 30, 2026, Zhongjin Wealth had total assets of about 250.1186 billion yuan (RMB, the same below) and net assets of about 30.212 billion yuan; from January to June 2026, it achieved operating revenue of approximately 6.139 billion yuan (including: net commission and fee income of approximately 3.6425 billion yuan, net interest income of approximately 1.176 billion yuan, investment income of approximately 855 million yuan, and fair value changes of approximately 429 million yuan), with operating expenses of approximately 2.914 billion yuan, operating profit of approximately 3.225 billion yuan, total profit of approximately 3.227 billion yuan, and net profit of approximately 2.387 billion yuan. CITIC SEC (06030): CITIC SEC (06030) announced that as of June 30, 2026, Huaxia Fund had total assets of 23.093 billion yuan and total liabilities of 7.728 billion yuan; in the first half of 2026, it achieved operating revenue of 5.708 billion yuan, a net profit of 1.413 billion yuan, and total comprehensive income of 1.368 billion yuan. As of June 30, 2026, the parent company's managed asset scale for Huaxia Fund was 29,079.98 billion yuan. China Securities Co., Ltd. (06066): China Securities Co., Ltd. (06066) announced that, according to preliminary calculations by the finance department, it expects to achieve net profit attributable to the parent company shareholders in the first half of 2026 ranging from 7.214 billion to 8.116 billion yuan, an increase of 2.705 billion to 3.607 billion yuan compared to the same period last year, representing a year-on-year growth of 60% to 80%. According to preliminary calculations by the finance department, it expects to achieve net profit attributable to the parent company shareholders, excluding non-recurring gains and losses, in the first half of 2026 ranging from 7.339 billion to 8.241 billion yuan, an increase of 2.868 billion to 3.770 billion yuan compared to the same period last year, representing a year-on-year growth of 64% to 84%.