Brokerages' Q3 earnings show resilience; institutions optimistic about sector valuation recovery

Recently, a number of listed securities firms have successively disclosed their third-quarter reports, with operating revenue and net profit generally achieving growth in the first three quarters, and overall performance demonstrating strong resilience. At the same time, institutions have also noted the current dividend attributes of the securities sector. CITIC Securities analysis stated that the dividend yields of leading A-share securities firms have approached or surpassed those of traditional dividend industries. Gao Chao, chief non-bank analyst at Kailuan Securities, believes that market trading volume and stock market performance weakened quarter-on-quarter in the third quarter, putting pressure on brokerage and margin financing business revenue, but the recovery of the IPO market, the incremental direct investment and follow-on investment gains brought by the listings of projects such as ChangXin Technology, as well as the operational resilience of large wealth management and overseas businesses, are expected to provide support for industry profitability. At present, the ROE center and earnings sustainability of leading securities firms have improved, clearly mismatched with low valuation levels, and the probability of valuation repair has increased.