Orient Securities announced its Q3 2025 results, reporting operating revenue of RMB 127.1 billion, a year-on-year increase of 39.4%, and net profit attributable to shareholders of RMB 51.1 billion, up 54.8% YoY. The weighted average ROE (non-annualized) for 9M25 stood at 6.35%, rising 2.19 percentage points YoY.

**Brokerage & Investment Drive Growth, Q3 Costs Rise** The company’s securities-related revenue reached RMB 126.3 billion (+39.9% YoY). Key segment breakdown: - **Brokerage**: RMB 23.8 billion (+49.1% YoY), contributing 18.9% of total revenue. - **Investment Banking**: RMB 11.7 billion (+41.1% YoY), 9.3% share. - **Asset Management**: RMB 9.7 billion (-4.3% YoY), 7.7% share. - **Net Interest Income**: RMB 7.8 billion (-15.1% YoY), 6.2% share. - **Net Investment Income**: RMB 64.8 billion (+60.0% YoY), dominating at 51.3%.

Q3 operating expenses rose to RMB 24.5 billion (+27.5% YoY, +57.2% QoQ), with an expense ratio of 52.4% (-5.4 ppts YoY, +14.0 ppts QoQ).

**Investment Leverage Adjusts, Returns Remain Strong** Operational leverage ended Q3 at 3.86x (+0.13x YoY, +0.13x QoQ), while investment leverage dipped to 2.77x (+0.02x YoY, -0.09x QoQ). Financial investments totaled RMB 2.27 trillion (+1.5% YoY, -6.3% QoQ), likely due to fixed-income contraction. Proprietary equity holdings grew 10.5% YoY to RMB 148 billion, while non-equity holdings fell 11.1% YoY to RMB 1.75 trillion. Q3 net investment income hit RMB 22.3 billion (+26.6% YoY, +3.3% QoQ), with an annualized return of 3.80% (+0.33 ppts YoY).

**Asset Management Recovers on Market Uptick** Q25 asset management revenue rose to RMB 3.7 billion (+20.6% YoY, +24.2% QoQ). Subsidiary Huitianfu Fund’s non-monetary AUM surged 30.4% YoY to RMB 655.6 billion, ranking 9th industry-wide. Orient Asset Management’s AUM grew 21.6% YoY to RMB 170.1 billion.

**Brokerage & Investment Banking Show Strength** Q3 brokerage revenue jumped 83.2% YoY to RMB 10.1 billion, while 9M25 IPO underwriting volume reached RMB 17.1 billion (2.2% market share). Bond underwriting totaled RMB 447.2 billion (+18.1% YoY).

**Outlook & Risks** Forecasted 2025-2027 net profits: RMB 67.0 billion (+100.0% YoY), RMB 76.3 billion (+13.9%), and RMB 81.4 billion (+6.7%). Risks include economic slowdown, declining trading volumes, and slower retail investor participation.