GF Securities H1 Net Profit Attributable to Parent Reaches 11.652 Billion Yuan, Up 80.1% YoY
nashnova research
GF Securities (01776) posted first-half net profit of RMB 11.65 billion, up 80.1% year-on-year — profit growth far outpacing revenue growth, signaling that an improved business mix is amplifying earnings leverage, though second-half trading activity remains the key test.
Why did profit growth far outstrip revenue growth?
Total revenue and other income reached RMB 31.75 billion, up 59.42% YoY; net profit attributable to shareholders hit RMB 11.65 billion, up 80.1%.
This means → profit grew roughly 21 percentage points faster than revenue. Costs did not scale in step, so the improved business mix created positive operating leverage.
In plain terms = revenue rose by six-tenths, but the bottom line rose by eight-tenths — each yuan of new revenue converted more efficiently into profit.
How big was the Hong Kong investment-banking book?
GF completed 11 offshore equity-financing deals in the period — 9 Hong Kong IPOs and 2 secondary offerings — totaling HKD 45.81 billion in issuance.
By pro-rata deal size across all underwriters, GF ranked No. 5 among Chinese-background brokerages in Hong Kong equity financing (Dealogic data).
This means → GF's Hong Kong IB arm has reached the edge of the top Chinese-brokerage tier, but a gap with the top four remains. Whether it moves up depends on large-deal execution in H2.
What about the A-share and NEEQ pipeline?
On the A-share side, GF completed 6 equity-financing mandates with lead-underwriting volume of RMB 3.58 billion; it also completed 6 NEEQ listings.
As of end-June, GF served as sponsor broker for 57 listed companies, of which 77.19% are classified as "little giant" (专精特新) firms.
This reflects a deliberate bet on the policy-backed "little giant" segment — these firms enjoy strong regulatory support, and their future board-transfer or financing needs could generate a sustained deal pipeline.
What does the broader bond market look like?
Credit-bond yields drifted lower in H1 while credit spreads kept narrowing. Total issuance of major credit bonds reached RMB 9.35 trillion, up just 1.25% YoY.
The mix diverged sharply: corporate bonds RMB 3.41 trillion, up 32.13%; non-financial enterprise debt instruments RMB 4.32 trillion, down 6.92%; non-policy financial bonds RMB 1.62 trillion, down 19.43%.
Offshore bonds by Chinese issuers totaled USD 75.19 billion, down 15.61% (DMI data).
In plain terms = the overall bond market barely grew, but corporate bonds bucked the trend — companies increasingly favored corporate bonds over other instruments.
Where does GF stand among top-tier peers?
GF's 80.1% net-profit growth exceeded Huatai Securities (54.87%) and Orient Securities (30.48%), but came close to CICC (89.3%).
This means → earnings elasticity is diverging among leading brokerages. In the same market, some posted 80%+ gains while others managed only 30% — business mix and cost discipline are the differentiators.
Whether second-half trading activity can sustain the current high level will be the critical checkpoint for full-year earnings durability.
市场有风险，内容仅供研究参考，不构成投资建议。