China Merchants Securities H1 Net Profit Surges Over 90%, Exceeding 10 Billion Yuan for the First Time
Alina Collins
China Merchants Securities (招商证券) guided H1 net profit of RMB 10–11 billion, up 93%–112% year-on-year — a record since listing; an A-share trading-volume boom is the main engine, while a stake in CXMT adds a potential second catalyst.
First time above RMB 10 billion — how real is the number?
Guided H1 net profit attributable to shareholders: RMB 10–11 billion, up 93%–112% YoY — the highest half-year on record since listing.
Net profit after stripping out non-recurring items is also RMB 10–11 billion, matching the headline figure. This means → virtually all of the growth came from core operations, not one-off gains.
In plain terms = the profit jump is driven by the day-to-day business, not asset sales or subsidies.
Why was Q2 so much stronger than Q1?
Q1 net profit was RMB 3.27 billion; by subtraction, Q2 came in at roughly RMB 6.73–7.73 billion — more than double Q1, quarter-on-quarter.
This means → earnings momentum accelerated sharply into the second quarter.
The driver: A-share trading volume in H1 nearly doubled versus a year ago. More trades mean more brokerage commissions — the most direct revenue line for any Chinese securities firm.
The stock is already up 50% — is it expensive?
As of July 7, China Merchants Securities' A-share closed at RMB 20.65, up more than 50% from its March low.
This reflects the market pricing in the strong H1 early, yet profit growth (93%–112%) still outpaced the share-price rally.
Whether the stock can keep climbing hinges on trading volumes holding up and proprietary-trading returns staying stable through H2.
The CXMT stake — a hidden catalyst?
Through subsidiaries, China Merchants Securities holds roughly 0.84% of CXMT (长鑫科技), China's leading DRAM chipmaker.
The market estimates CXMT's post-IPO valuation could reach RMB 2–3 trillion; if that materialises, the investment gain would add meaningfully to the bottom line.
The payoff, however, depends on CXMT's IPO timeline, its eventual valuation, and broader market conditions. In plain terms = the lottery ticket looks promising, but the draw hasn't happened yet.
Content is for reference only, not financial advice.